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
STP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
