By NZPA
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Wednesday 17th July 2002 |
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SOE posted a full year loss of $191,000 for the year ended March, bettering the $2.4 loss million forecast on listing.
In the company's key market, the United Kingdom, it had met its target of 363 new sales in the last year, SOE managing director Robert Powell told shareholders at the annual meeting in Auckland today.
"The past year has been one of considerable success. Not only did the UK achieve its target of 363 new sales -- a target set mid-year in response to competitive pressure -- but it overachieved the revenue budget by nearly Stg100,000 ($NZ328,000) reaching sales of over Stg2.07 million in the year," Mr Powell said.
"We have made a good start with actual revenue exceeding budget for the first quarter of this year and unit sales tracking on target."
More than 1000 UK practices were using SOE's Exact software, and the company was closing in on its main competition Practice Works, which had 1907 sites.
SOE was winning sales as a result of the National Health Service's push for modernisation in British dentistry.
Chairman Jim Syme said SOE had a growing presence in Australia, Singapore, and the United States.
Yesterday the company cancelled its proposed $5.3 million rights issue to fund its US expansion because of the fragile state of the international equity markets. SOE said today it would follow other funding options.
SOE decided to adopt the conservative US accounting principles for software income recognition throughout the company, which would affect the figures for the six months ended September.
"For the current half year we will still be in a loss situation because we have employed additional people to support our growth, the costs we are incurring in setting up our US operation ($1.2 million) and the effects of the new income recognition policy ($1.3 million)," Mr Syme said.
"By year-end, providing we obtain some of the enterprise contracts that we expect to get in the coming months, and provided we achieve sales successes in the US, we will meet our projected net profit after tax of $3 million for the twelve months.
"We expect further strong growth in sales in 2004 and an increasing profitability rate because we will be driving a higher level of revenue through the structural platform for growth that we have been putting into place over the past 18 months," he said.
SOE listed in December 2000 after eight years as a public unlisted company, and its share price rose from an initial offering of $1 to $3.38 by the end of 2001.
SOE shares closed today down 5c at $2.15.
The stock has benefited from good company disclosure, which it said today would continue.
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