ComputerCorp flags heavy losses
Substantial transformation and reconstruction blamed for worrying result
Fleur Doidge (ARN)05 September, 2007 12:30
WA-based IT services provider ComputerCorp has flagged a likely loss of $17.8 million for the year ended June 30 on revenues of $145 million.
The preliminary financial report notes that the loss was "clearly not acceptable to the board". However, "substantial transformation and reconstruction" of the company was partly to blame, it said.
CEO, Robin Rindel, said the result, of which $3.1 million was a trading loss, was disappointing.
"It was a tough year for us. It was our first year as a listed company but obviously we hoped to do a lot better than that," he said.
Rindel said the transition to public company status had imposed its own pressures. The departure of three senior executives including founder and CEO, Hugh Smith, had also had an impact and resourcing inefficiencies had seen it fail to take advantage of last year's buoyant IT market, he said.
"We also had a significant amount of duplication, so we closed [excess] warehousing and centres down in each state except Perth and Canberra. We do a lot of business there but everywhere else will be served from Sydney," Rindel said. . .