AIE 0.00% 1.3¢ autodom limited

AI LTD looking promising

  1. 493 Posts.
    looks like directors are looking to turn this company around for the benefit of the investor

    A.I. LIMITED 2002-05-28 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    After reporting a loss for 2000/2001 of $3.7 million, aiLimited is
    forecasting revenue from activities for the financial year 2001/2002
    to be over $120 million. EBITDA for the year ended 2001/2002 is
    expected to be approximately $6 million, resulting in a small net
    profit after tax.

    Revenue for the financial year 2002/2003 is forecast to increase only
    marginally to $130m with a corresponding EBITDA of $8m. Forecast net
    profit after tax for the year ended 30th June 2003 is projected to
    exceed $3m.

    The directors are pleased with the progress of the company's
    previously announced business plan and the focus on core business
    units and profitability. Asset sales of non-core businesses will
    continue during 2002/2003.

    Profit increase is expected to come from a more solid performance
    from the company's Adelaide based automotive division, via an
    increase in volume and more efficient work practices. Furthermore,
    following a difficult trading environment for engineering and
    construction related businesses, the company is confident that its
    investments in this industry will return to profitability. Interest
    expense will reduce substantially due to the minimal level of debt
    carried by the company since the sale of the South Australian
    Manufacturing Park in late 2001 for $21 million.

    aiLimited has mandated Poynton and Partners to review the
    profitability of its automotive division, and assist in finalising
    studies for two major outsourcing projects for the automotive
    industry. These outsourcing opportunities are well progressed in
    terms of structure, commercial feasibility and industry acceptance.
    Each opportunity has already incurred significant amounts of
    pre-feasibility expenditure, and major national and international
    partners have been identified. If successful, these projects, which
    have a commencement date in 2005, have the potential to substantially
    increase aiLimited's revenue and profitability.

    To present these forecasts and business opportunities, broker and
    institutional presentations in Perth, Melbourne, and Sydney are
    planned over the next two weeks.


    P Werrett
    COMPANY SECRETARY
 
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