This article is from the Australian Property Journal archive
RUN Corp?s chief executive Nathan Cher has assured shareholders that the company has overcome hurdles experienced in 2006 and is ready to forge ahead. RUN has booked a net loss of $3.14 million for the six months to December 31, 2006 ? a decrease of 29% when compared to $4.44 million in 2005.
Cher said that RUN had tracked in line with internal budgets and milestones that had previously been released to the market.
For the six months period, total revenue was $12.8 million, with $9.9 million generated from property management commission income with the balance relating to letting fees, sales commission, other ancillary income and interest income.
Total EBITDA loss for the half year was $0.2 million, with an EBITDA profit achieved for the December 2006 quarter. The improvement from the EBITDA loss of $2.5 million for the previous half year ended June 2006 was a direct result of the successful stabilisation of the business and the impact of a major cost reduction program.
The consolidated loss for the half year, after income tax, was $3.1 million. This represented a significant reduction from the loss in the previous half year to June 2006 of $13.4 million.
The consolidated loss for the half year, before income tax, was $4.4 million which included non-cash amortisation expenses and depreciation of $2.6 million.
At December 31, 2006, the group had bank debt of $42 million with $1.8 million cash on deposit. In addition, unused bank facilities were $1.4 million.
“I am confident that we have successfully overcome the operational hurdles we encountered in 2006. I believe that due to the organisational restructure and a range of customer service and business development initiatives introduced over the last six months, RUN’s foundations are now solid,” Cher said.
Looking ahead, he is projecting a monthly breakeven operating cash flow position during the last quarter of the financial year ending June 2007.
As at December 31, 2006, RUN had 19,878 properties under management.
“To help further develop new growth opportunities, fund ongoing working capital and reduce bank debt, the board is continuing to work towards its previously announced capital raising program. This is likely to be in the range of $6 million to $10 million during the June 2007 half year,” Cher concluded.
RUN shares closed 0.01 cents or 7.14% higher at 15 cents yesterday.
Australian Property Journal
