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At the company’s AGM today, HiTech (HIT: ASX) Chairman and CEO Ray Hazouri announced that the company expects the first half of the year, ending 31 December 2013, to have a break-even result.
Addressing shareholders, Mr Hazouri said: “HiTech remains profitable, with a strong balance sheet and no debt in an environment where there is ongoing national economic uncertainty. HiTech continues to win new business and is increasing its client base steadily.”
The company’s full year financial results for the 12 months ending 30 June 2013, reported a revenue decrease of -24% from AUD 9.6 million (USD 9.2 million) to AUD 7.3 million (USD 7 million). Gross profit for the period also fell, dropping by -23.8% to AUD 1.6 million (USD 1.5 million) from AUD 2.1 million (USD 2 million) last year.
Net income for the period fell by -70.3% to AUD 165,504 (USD 158,670) from AUD 556,699 (USD 533,705), year-on-year.
In May, HiTech announced that it expected to report declining profits for the financial year 2013. The company also announced in July that company Chief Operating Officer, Sam Hazouri, had resigned, as had company secretary Barry Neal.
Looking forward Mr Ray Hazouri said: “Our outlook for FY2014 depends on the prevailing economic conditions at the time and the demand for human talent from business and government. For the first quarter FY2014, operating revenue decreased by almost half over the prior corresponding period, mainly due to a decrease in contracting revenue. Profit will be affected accordingly unless the market improved.”
“Based on internal management accounts, assuming similar market conditions, the Group’s expected net profit after tax for the full financial year is expected to be in the range of AUD 100,000 (USD 95,870) and AUD 500,000 (USD 479,350).”
He concluded: “To sum up, despite the challenging market, HiTech remains profitable, resilient, with a strong balance sheet, solid cash reserves, and no debt, as always. We are determined to improve our results and will continue to do our best to improve overall performance and growth.”
In trading today, the company’s share price rose by +5.9% to AUD 0.09. Based on its share price, the company has a current market value of AUD 2.8 million (USD 2.7 million).