The BroadTel Communications Limited Group (BRO) of companies comprises of the parent company and three subsidiaries of which only Elect Telecoms Pty Limited (previously Select Telecoms) (SEL)was active during the half year
Revenue from ordinary activities was $4.816M, an increase of $179% from $1.723M in the corresponding period to 31 December 2002. The Net Loss after income tax was $1.506M, an increase of 132% compared to the previous corresponding period Loss of $0.691M. Whilst increase in revenue through expansion and acquisition of businesses has been considerable; the cost of integration, lower margins and higher administrative costs have had a negative affect on the overall results. Following a review of the Company's affairs, a radical change in operations has been necessary, which was implemented by new management post 31stDecember 2003, in the early part of January/February 2004. (Refer note on Events Post End of Reporting Period in the Directors' Report). A low margin and higher sales driven approach, together with lack of appropriate internal controls and structured procedures in all aspects of the business had resulted in unexpectedly higher costs and negative cash flow. The necessary changes have already had a positive impact
Review of Operations The BroadTel Communications Limited Group of companies comprises of the parent company and three subsidiaries of which only Elect Telecoms Pty Limited (previously Select Telecoms) was active during the half year. During the reporting period, the financial performance of the consolidated entity from ordinary activities was less than satisfactory, in particular during the 2ndquarter of the reporting period, resulting in a substantial loss and negative operating cash flow. However, changes made since then by the new management and Board have stemmed the loss and it is expected that the net cash flow position and the results will improve considerably during the 2ndhalf of the year.
SEL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
