31 July 2014
ComOps Limited (“ComOps”) is pleased to advise shareholders that the Company has released its' Appendix 4C Quarterly Cash Flow Report for Q2 of the 2014 Financial Year today, as required by LR 4.7B.
The Q2 Cash Flow Report shows a net increase in cash to a closing cash balance of $1.17m, following a successful capital raising of $1.65m (net cash of $1.53m), an improvement in cash receipts to $1.3m and a small improvement in total operating and investing cash flows to ($0.7m); which, whilst still negative does include some significant costs, both from the restructuring undertaken during the quarter (as foreshadowed in the Company’s previous quarterly) and from prior periods.
Expectations for an improved business performance in Q2 were only partly achieved and not yet to a satisfactory level, however, the Microster business produced a positive profit contribution to the group for the first two quarters, before head office costs; with:-
- Revenue again dominated by professional services revenue, which continues to be above budget, whilst new license sales were again held back by longer decision-making cycles in the government and corporate client base.
- The positive effects of the Q2 efficiency program that will provide annual savings of $1+m (without sacrificing operational capability) not being reflected in the results, whilst the costs are fully reflected. The benefits will be in Q3 and onwards.
- Management and the board spending significant time completing the rectification of prior period issues, including the Sale of the Korellus ERP Business (now settled) and completion of projects (E.G. SNP Security now live).