Melbourne, 28 February 2005 – Secure electronic payment company,Intellect Holdings Limited (ASX: IHG), today announced an after-tax profitof $1.84 million in the six months to 31 December 2004, compared to aloss of $15.3 million for the previous corresponding period.
Excluding the profit on the sale of the TAFMO business, the Companyincurred an operating loss of $11.8 million which included a write-down of inventories by $1.5 million.
The Directors expect the Company to become cash flow positive in the final quarter of the current financial year.
The combined effect of the restructure will show an improvement in the net equity of the Company of $26 million. A pro forma balance sheet as at 31 December 2004 allowing for the capital raisings is attached and shows positive equity of $11.7 million and a cash surplus of $8.5 million.
The Directors of Intellect are confident that the debt restructure will be approved in April and as a result the Company will satisfy the going concern criteria."
I suppose that the last paragraph is the most important - but on the surface it appears that the company should satisfy "the going concern" criteria if they have disclosed everything
Should be worth a chance @ this price
IHG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
