Utilico posts wider first half loss

Infrastructure and utilities investor Utilico International today reported a first half loss of $375,000, as its key investment, Australian smartcard company ERG, continued to struggle.

The loss ballooned from an $83,000 deficit in the same period last year as cost overruns for major ERG projects continued to escalate.

Taking out unrealised losses on ERG and the effects of foreign currency losses, Utilico posted a nominal profit of $29,000, chairman Duncan Saville said.

No dividend was declared.

ERG supplies fare management and software systems to the transport industry.

The company has installed its products in major transport systems throughout the world including Hong Kong, Melbourne, Rome, San Francisco & Singapore.

Installations are in progress in Gothenburg, Oslo, Seattle, Stockholm, Sydney and Washington DC.

Utilico said the company continued to make progress, with two of its three divisions, Small Projects and OPCO profitable and performing well.

The remaining division, Large Projects was still a challenge.

While significant progress had been made on delivery and advanced testing, the net estimated costs to complete these projects continued to swell.

Recent tender wins included China, France, USA and New Zealand.

Utilico shares last traded at 45c on February 15 -- a year low compared with a high of 64c.

- NZPA