Consulting, software sales to return: Runge

AFTER a slump in consulting revenue and deferral of large software sales, Runge has seen sales in November and December return to pre-economic downturn levels.
Consulting, software sales to return: Runge Consulting, software sales to return: Runge Consulting, software sales to return: Runge Consulting, software sales to return: Runge Consulting, software sales to return: Runge

Runge says the biggest issue facing any longwall mining operation is how to improve the bottom line cash flow of the business.

Angie Tomlinson

The Australian mining technology services company expects net profit after tax of $0.5-1 million for the first half of the 2010 financial year and EBITDA of $2-2.8 million.

“As foreshadowed by the chairman at the annual general meeting, the difficult trading conditions in the last half of the 2008-09 financial year continued into the first half of this financial year,” Runge managing director Tony Kinnane said.

“This was characterised by a low level of consulting revenue and continued deferral of large software sales.

“In November and December, revenue for consulting has returned to levels experienced prior to the economic downturn and a number of large software deals are imminent, but will not fall in the first half.”

Runge said the worst of the downturn for the resources industry was over and the second half results would be in line with normal business.

“We have found that the impact of the GFC has meant that mining companies have refocused on control and simplicity in their processes. This augers very well for our future in the second half and beyond,” Kinnane said.

Runge expects full-year profit of $5.5-10 million, compared to the $7.9 million achieved in the 2009 financial year, and EBITDA of $10-16 million.

Runge was trading down 3.64% mid-morning today at 79.5c.

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