Successful Integration Lifts Advantage Q1 profit
E-commerce Reinforced as WebMasters Acquisition Completed
Auckland – 4 November 1999 – Advantage Group
Limited (NZSE: ADV) today announced a first quarter profit
of $1.4 million on revenues of $15.6 million, a result up
9.3% on forecast. This compares with a profit of $232,000 on
revenues of $4.76 million for the first quarter last year.
Condensed statement of financial performance
(unaudited)
First quarter ended September
(millions)
2000 1999
Total Revenues $15.6 $
4.7
Net Profit * $ 1.4 $0.23
* after tax and before
amortisation of goodwill.
Condensed statement of
financial position (unaudited)
As at 30 September 1999
(millions)
Shareholders
Funds $26.3
Liabilities $29.3
Total $55.6
Total
Assets $55.6
“This result reflects substantially improved
company performance over the last year and that is due to
three main factors,” says CEO Greg Cross. “Firstly, the
strategic growth strategy the company has implemented means
that Advantage has achieved size and credibility in a
rapidly growing market. Secondly, strong trading in each of
the company’s business-to-business e-commerce, retail
solutions and POS equipment divisions. Thirdly, the
management team’s successful integration of acquisitions
Computer Enhancements, PEC Retail and Glazier
Systems.
“This is strengthened by the completion of our
recent acquisition of leading web development company
WebMasters. The WebMasters acquisition fulfils a major part
of our plan to become Australasia’s leading partner in
delivering integrated end-to-end e-commerce solutions, from
development through to transaction processing.
“The
positive result confirms our ability to leverage Advantage’s
position as one of the largest e-commerce companies in
Australasia,” says Cross. “We derive income from designing,
developing and implementing Internet software and
business-to-business e-commerce applications. According to
Business 2.0, business-to-business e-commerce revenues in
Asia Pacific alone are expected to exceed US $1 billion by
2001 and are growing at a compound annual growth rate of
75%. We are also focused on achieving significant capital
appreciation by taking cornerstone shareholdings in
strategic e-commerce ventures. We have taken two such
strategic positions to date, in investment company
Strathmore and business-to-consumer e-commerce venture
FlyingPig.co.nz, and we are looking at other opportunities.
“Joint ventures like this are a superb way for
traditional bricks and mortar companies to establish an
online presence.
“As new e-commerce standards roll out
over the next six to twelve months, we anticipate an
acceleration in the trend of traditional businesses looking
for technology-savvy businesses to partner with in joint
ventures. Rather than trying to create an online business
from scratch, a joint venture allows them to quickly
leverage their own brand, intellectual property and market
strengths alongside Advantage’s e-commerce capabilities.
And Advantage knows more about business and smart ways to
use complex technology than any other prospective
partner.”
Earnings Per Share
As at 30 September
1999
1999 1998
Base EPS 3.28 cents 0.66 cents
Cash
EPS 3.69 cents 0.91 cents
ENDS
Company
Background
Advantage Group Limited, an NZSE listed
company, is a leading supplier of e-commerce and transaction
processing solutions in New Zealand, Australia and
throughout the Southern Hemisphere. The company has three
business units: business-to-business e-commerce, retail
solutions and point-of-sale equipment. It provides web
development capabilities, software development, transaction
processing and funds transfer capabilities to enable
end-to-end e-commerce solutions. For more information,
please visit www.advantagegroup.co.nz.
FOOTNOTE:
Base EPS is net profit after depreciation, amortisation
of intellectual property and taxation and, in this instance,
before amortisation of goodwill.
Cash EPS is net profit
before depreciation, amortisation of intellectual property
and goodwill but after
taxation.