expects fy06 net down 76pc on reorganisation

Sydney - Tuesday - August 1: (RWE Aust Business News) - Cellnet
Group (ASX:CLT) said its sales revenue was up seven per cent to $560
million in FY06 but expects net profit to be down 76pc to $1.6m from the
$6.6m profit in FY05.
The company gave the update today, saying its audited results
will be released on September 8.
It said cash flow was a positive $33m in the year compared with a
negative $30m in FY05.
Cellnet said its reorganisation has established a strong
foundation for FY07 but has had a signficant impact on earnings for FY06.
This can be attributed to the "process of change" creating a
"number of distractions for sales teams" in the second half, margin
reduction from high levels of stock writedown and various one-off
operating costs associated with the reorganisation.
It said management will now focus on growing revenue and
improving profitability.
Cellnet is reviewing potential acquisition targets and said it
can complete these with existing funds or new debt.