Recently listed receivables management group RMG Limited (ASX/NZSE:RMG) today announced a maiden half year result to 30 June 2000 of a net loss before tax of $1,079,823, which directors said was in line with the prospectus forecast.
Revenue for the period under review was $12.358 million. No dividend has been declared.
The accounts for RMG for the June half year cover the full 6 months results of the former Frontier Petroleum Ltd’s activities and the accumulated trading of the vendor companies acquired by Frontier, effective from 1 April 2000, as part of the restructuring of Frontier into the region’s largest receivables management company.
The results reflect the transition from private to public company accounting standards with provisions and costs associated with the acquisitions of 16 businesses included in the result.
The Chief Executive of RMG Limited, Mr Paul Cooney, said the integration of the initial 16 companies in the group was proceeding according to the internal management plan agreed to on commencement. A rationalisation of business premises was 85 per cent complete and the bringing together of administrative, IT and back office systems was almost completed.
While the consolidated RMG accounts include the results for the new businesses for the 3 months since 1 April 2000, the integration of these new businesses only commenced from the 20 June 2000 when the transaction was settled. Therefore virtually no synergy gains from the integration have been included in the result to 30 June 2000.
The results are in line with the prospectus’ proforma full year results for the new business after adjustment for integration costs attributable to the period and transaction costs and place the company in an ideal position at the commencement of the new period.
Since 30 June 2000 the company has been active in settling a number of additional acquisitions which are all earnings positive and will contribute to the full year results.
Additional acquisitions announced in June 2000 but settled after the close of the period included the purchase of prominent West Australian based debt recovery agency, Laurens & Munns, New Zealand-based Kiwi Factors, Northern Receivables and Southern Receivables Ltd, for a total consideration of $A4.8 million
New acquisitions announced after the close of the period included the purchase of Australia’s largest collector of business to business debt, Credit Solutions Australia Pty Ltd, with revenues of $A10 million.
Mr Cooney said the group now planned a period of consolidation to deliver the benefits of the businesses’ integration and ensure the maintenance of its market leadership position.
A number of strategic alliances with major clients were also currently being explored, Mr Cooney said.
The company has received advice from the ASIC that its application to change its balance date to June 30 from the current December date is unlikely to be accepted, but further discussions are pending. This will impact the full year accounting period, reports and forecasts. However, information for the respective periods will enable accurate comparisons to be made with projected performance.
Services provided by RMG include traditional debt recovery and receivables management, credit information and database management services, debt purchasing, factoring, ledger management and complete outsourcing of a company’s receivables function through leading edge internet-enabled technology.
For further information:
Paul Cooney RMG Limited
Tel: 03) 9205 07ll
Mob: 0419 561 161
Peter Mahon Royce Communications
Tel: 03) 9639 2300
Mob: 0418 351 754
Michael Bartrom Botica Conroy & Associates (NZ)
Tel: 9 303 3862
Mob: 021 403 503