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- Release Date: 26/07/12 14:33
- Summary: FORECAST: SDL: SDL - Preliminary 2012 Earnings Announcement
- Price Sensitive: No
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SDL
26/07/2012 12:33
FORECAST
REL: 1233 HRS Solution Dynamics Limited
FORECAST: SDL: SDL - Preliminary 2012 Earnings Announcement
In the year to 30 June 2012, Solution Dynamics Limited (NZAX: SDL, "the
Company") recorded an unaudited net loss after tax of $545,000. The EBITDA
(Earnings Before Interest Tax Depreciation & Amortisation) of $206,000
compares to 2011 EBITDA of $875,000. Initial guidance for the 2012 year was
$1,150,000.
(NZ$ 000's) 2012 2011 2010
Total income 10,931 11,308 10,014
EBITDA 206 875 471
Net operating profit / (loss) (545) 142 (121)
Net cash, bank & finance facilities (400) (621) (856)
While the New Zealand based Service business has performed above the targets
set at the time that initial guidance was provided, we have failed to secure
the required level of licence and development sales in the software business.
The shortfall in licence & development sales has also flowed, to a lesser
extent into the expected growth in recurring sales. We remain convinced of
the value of our software products. Our plan to take these products to
market, within the constraints of our business model has not been successful.
This was due to a combination of strategy and execution. We are currently
assessing options for the future of the software business.
In providing recent market guidance it was anticipated that we would remain
in compliance with our bank covenants, only if we were successful in closing
the anticipated licence sales. With the failure to secure NZ$250,000 of
forecast licence sales before year end we will now be in breach of the
covenant with the bank to maintain EBITA at two times interest expense.
From the above table it can be seen that our cash position has improved. We
have enjoyed long term support from our Bank and the directors believe that
the bank will continue to support the Company.
Two parties have entered non disclosure agreements and are currently
examining the Services business.
The Board is also reviewing other strategic options.
For and on behalf of the Board
Colin Giffney - Chairman 021 630 998
End CA:00225337 For:SDL Type:FORECAST Time:2012-07-26 12:33:24
