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Newly listed Selector seeks more cash

By Phil Boeyen, ShareChat Business News Editor

Tuesday 28th November 2000

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Human resources software company Selector Group (NZSE: SEL) has posted an interim loss of $565,000 and announced plans to raise extra funds via a 1-for-3 cash issue.

The company says the result is in line with expectations. Revenue for the six months to the end of September was $113,000, slightly below forecast.

Selector says the first six months have been an important milestone, marking the introduction of key products and the consolidation of its business in Australasia, and it has now reached the stage where it is able to capitalise on opportunities to grow the company.

However it says to ensure it remains at the forefront of the internet-based human resource business it needs to increase investment to continue its R&D programme as well as push aggressive marketing initiatives to drive sales.

It also needs establish new markets in South East Asia, North America and Europe, and will use the funds raised from a renounceable cash issue on a 1-for-3 basis at an indicative price of 15 cents to speed up the process.

The rights issue is planned for early next year, and shareholders will also get one free option to with each new share subscribed, exercisable at 50c at the end of February 2003.

Selector has re-forecast the financial performance of the company for the current financial year and now expects revenue of $388,000 to the end of March, which it says is well below original forecasts although it is expecting significant increases in revenue during February and March.

The board says its confidence in the company's future is built on recent trends showing Internet-based recruiting is expected to be the primary means of job selection in the future.

Recruitment agencies are among the biggest users of Selector products which includes such software tools as an online personnel assessment system called Selector e-Profiler.

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