looks like directors are looking to turn this company around for the benefit of the investor
A.I. LIMITED 2002-05-28 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ After reporting a loss for 2000/2001 of $3.7 million, aiLimited is forecasting revenue from activities for the financial year 2001/2002 to be over $120 million. EBITDA for the year ended 2001/2002 is expected to be approximately $6 million, resulting in a small net profit after tax.
Revenue for the financial year 2002/2003 is forecast to increase only marginally to $130m with a corresponding EBITDA of $8m. Forecast net profit after tax for the year ended 30th June 2003 is projected to exceed $3m.
The directors are pleased with the progress of the company's previously announced business plan and the focus on core business units and profitability. Asset sales of non-core businesses will continue during 2002/2003.
Profit increase is expected to come from a more solid performance from the company's Adelaide based automotive division, via an increase in volume and more efficient work practices. Furthermore, following a difficult trading environment for engineering and construction related businesses, the company is confident that its investments in this industry will return to profitability. Interest expense will reduce substantially due to the minimal level of debt carried by the company since the sale of the South Australian Manufacturing Park in late 2001 for $21 million.
aiLimited has mandated Poynton and Partners to review the profitability of its automotive division, and assist in finalising studies for two major outsourcing projects for the automotive industry. These outsourcing opportunities are well progressed in terms of structure, commercial feasibility and industry acceptance. Each opportunity has already incurred significant amounts of pre-feasibility expenditure, and major national and international partners have been identified. If successful, these projects, which have a commencement date in 2005, have the potential to substantially increase aiLimited's revenue and profitability.
To present these forecasts and business opportunities, broker and institutional presentations in Perth, Melbourne, and Sydney are planned over the next two weeks.
P Werrett COMPANY SECRETARY
AIE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held