By Phil Boeyen, ShareChat Business News Editor
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Monday 19th March 2001 |
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In the six months to the end of December RMG has reported a loss of A$4.037 million, despite meeting revenue forecasts.
During the period the former petroleum company received A$40.7 million in revenue from financial services and A$2.4 million from its energy business, making total revenue of A$43 million.
The company says the size of the project it has undertaken - to merge 22 businesses and create a major regional provider of receivable management and information services - has been reflected in its profit performance.
However it appears confident it will score a better on its next report card.
"The delays in delivering the synergy benefits available from the merging of these businesses are being removed," the company says in a statement.
"At the beginning of 2001 we are demonstrating lower operating costs, improved service levels, outsourcing successes through innovation and a successful management restructure."
RMG says it now has call centres in seven locations across Australia and New Zealand and plans to get all offices onto its Collect system by the middle of this year.
The company is also pointing to its ability to meet forecast revenue target despite the period of "significant disruption" as it worked to bring the operations together.
" Management is now confident that the integration of the businesses has been substantially achieved. Processes have now been implemented to deliver the long-term savings and profit growth originally forecast."
Post-balance day results have, the company says, been on budget for both sales and profits with synergy benefits beginning to come on stream.
The market, however, has shown its disapproval of the slower than expected move to profitability by marking down RMG shares this morning 25% to 18 cents.
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