Powerlan reports $2.6M profit

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ASX listed software developer Powerlan has turned a $2.6 million profit on revenue of $52.1 million for its half year ending December 31.

The past 12 months has been a rough ride Powerlan, which was forced to divest some of its operations. Theo Baker, MD at Powerlan, said in a statement: “Eighteen months ago we commenced a strategic transition of our business from a role of reseller to our current business model of software developer and vendor specialising in vertical market mission-critical software and services.”

Powerlan claimed it had been successful in turning its business around, but its cash flow had been impacted by legacy debt obligations and costs relating to the divestment of former businesses. “We retired major debts such as that to the ANZ Bank and made significant progress in meeting our legacy debts.

“We will continue to make payments relating to these debts and to divested businesses, we expect to occasionally experience a negative operating cash flow for short periods over the coming months.

“The legacy debt payments can also be met partially from these profitable businesses and from proceeds still owing from the sale of non-core businesses as well as drawing the chairman's loan facility if required,” Baker said.

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