DoloMatrix International Limited (DoloMatrix), an Australia-based waste management company, has reported revenues of AUD16.4 million for the first half of fiscal 2009, compared with the revenues of AUD13.7 million in the year-ago period. It has also reported profit of AUD289,000 million, or 0.2 cents per share, for the first half of fiscal 2009, compared with the loss of AUD1.11 million, or 0.8 cents loss per share, in the year-ago period.
Review of Results and Operations
Net profit before tax for the December 31, 08 half year is $1.015 million compared with a loss of ($1.706) million for the same period last year – a turnaround of $2.721 million. Legal fees in relation to the claim by Doumbos amounting to $113,000 were also expensed in the current period.
With revenues up on the previous corresponding half by 19% the consolidated entity produced EBITDA of $3.507 million compared to the same period last year of $1.068 million a 228% improvement. Operating cashflow for the half year is substantially improved over the same period last year.
Tax expense includes a prior year adjustment of $187,000 : there will be no cash payment of tax as the prior year losses are still being consumed.
On September 10, 2007, the former chief executive officer of DoloMatrix lodged a statement of claim in the Supreme Court of NSW seeking damages, interest and costs for contractual entitlements under his employment service agreement and lost income in relation to his now expired option entitlements. Following mediation, the company believes that the matter will settle shortly and estimates that an amount of around $600,000 will be payable on settlement and have included this detail in the contingent liabilities note in this report. This amount has not been provided for in the financial statements and is in addition to the legal costs incurred and expensed by the company this half.
Achievement of the full year revised forecast set out in November 2008 will depend on a continuation of improvements made to date and the sales for Plascon machines being achieved. Most financial commentators and business indicators show that there will be a slowdown in 2009. The majority of the operations of Chemsal and BCD are to some extent insulated from any general slowdown, however in the case of Chemsal there are a significant number of commercial customers who may face declining output and this may affect the company’s operations. That said the company’s revenues for the first six months were in line with expectations and at this time the operations of Chemsal and BCD are running to forecast.