Stericorp profit warning!!!

STERICORP LIMITED 2002-08-23 ASX-SIGNAL-G
HOMEX - Melbourne
Financial & Operating Update
Market sensitive
DocumentDateqc

2002/08/23
Timeqc

2002/08/23 17:32:56
The Board of Stericorp at its meeting on the 22nd August have
reviewed the preliminary financial results for the year ending June

30th 2002. The Board has determined to take a conservative treatment
to certain items, specifically not to utilise the tax effect of carry
forward tax losses. In addition, the Board has decided not to
capitalise a number of expenses incurred by management during a year
when many acquisitions have been effected. Further it has initiated
additional redundancies incurred by the ongoing consolidation of
acquired businesses prior to year end.
The effect of these changes will be to increase the estimated
unaudited loss to $1.6m from the forecast $750k for the year ending
June 30th 2002.
At this time the company does not intend to alter its 2003 and 2004
profit forecasts but recognises that the timing and magnitude of its
ongoing acquisition activities will have a material effect on the
components of its financial results. In this regard the company
continues to identify and be in discussions with acquisition
opportunities.
The ongoing performance of the business continues to be positive with
the past 3 months generating positive EBITDA results.
ETD PLANT
The construction of the ETD medical waste treatment plant in the ACT
has been completed. Validation tests were successfully conducted this
week, it is expected that an operating permit will be issued within
the next week to enable commercial operations to begin soon after.
Following on from the successful completion of the ETD facility, the
board will over the next few weeks review recommendations from
management as to the rationalisation of existing treatment facilities
in NSW and Vic.
ARGENTINA
The company's joint venture in Argentina has commenced commercial
operations with contracted medical waste treated by the joint
ventures ETD plant. The financial forecast indicates that the venture
will be cash positive in its first year.
STERITUBS
The Australian operations have received the first shipment of
SteriemTub(TM) containers and will be introducing this unique
proprietary medical waste container system to major customers from
September 1st.
A Metcalfe
COMPANY SECRETARY