AUSTOCK Group said its underlying trading performance will be better than anticipated at the beginning of May and its profit after tax for FY08 is expected to be about 30% below last year.
Austock said that this is a solid result given the present difficult financial environment.
Managing director Tim Boyle said the company proposes to write down investments in light of the current market.
Austock proposes to write off $1.6 million associated with its the Australia Pacific Exchange Limited financial market licence.
In addition, the company will recognise a $5.3 million from Global Education Trust.
And the company’s shares in ABC Learning Centres Ltd acquired in lieu of fees in March 2001 will recognise a further impairment loss of $1.1 million.
The net profit after tax reported by the company for the year to June 30, after allowing for impairment losses and discontinued operations of $8 million, is likely to be about break-even.
Boyle said with the recent market turbulence, Austock began a restructuring program earlier this calendar year.
“Our restructure is well advanced and we are now focusing on our growth strategies.
“Austock will continue to be leveraged to on-going market conditions. Whilst this makes organic growth difficult, it does provide merger and acquisition opportunities that Austock is well placed to take advantage of, as it has strong cash reserves and solid underlying businesses,” he concluded.
Australian Property Journal
