ERG collects more fares in 2005

Stan Beer
Monday, 12 September 2005 07:00

IT Industry - Listed Tech

Automated fare collection systems and smartcards provider, ERG Limited (ASX:ERG), has reported a solid turnaround in 2005, with increased revenues and a dramatic narrowing of its previous year's net loss.

Key features of its resultsfor the 12 months ending 30 June 2005 include:

• A 10.6% growth in sales revenue to $227.5 million and a 3.4% increase in revenue from operating activities to $272.6 million;

• Operating EBITDA of $11.0 million, up from a loss of $4.3 million;

• Operating EBITDA from its Operating Companies Division of $26.0 million, an increase of approximately 144% from the previous financial year; and

• A net loss after significant items attributable to members of ERG of $11.1 million, a significant improvement on the net loss of $52.7 million recorded in the previous financial year.

In announcing the result ERG's CEO, Dr Allan Sullivan said, "ERG has continued to improve its financial results which is evident from our significantly improved EBITDA and our reduced net loss for the year. Although the divisional results for the year were mixed it is pleasing to report that the Small Projects Division as well as the Operating Companies (Service & Maintenance) Division – the areas in which the Group strategically differentiates itself - performed very well and exceeded internal expectations. However, the continuing aim and challenge of management is to improve the delivery of the major contracts. Procedural improvements have been made in this area over the last 12 months."

ERG shares were heavily traded and closed unchanged on 19c.