Dentistry reshape takes a big bite

Brian Weatherley says restructuring Software of Excellence is within budget. Picture / Martin Sykes

Restructuring and asset writedowns have pushed dental software company Software of Excellence International into the red, but its revenue is still growing.

One-off costs of $6.6 million covered the withdrawal of the company from its enterprise operations (substantively completed by March 31 with the sale of its Asia-Pacific enterprise business) and the full writedown of its United States enterprise operation GSD.

Also included in the total writedown was $1.7 million related to the carrying value of Soel Focus and Soel Knowledge - the company's US groups and dental schools products.

A management buy-in of GSD has left the company with a 49 per cent interest in the business.

The one-off costs were in line with guidance and saw the previous year's profit of $200,000 turned into a loss of $5.35 million for the year ended March.

The company said the changes had generated monthly savings of about $150,000 - equivalent to about $1.8 million a year.

Meanwhile, revenue was up 18.6 per cent from $20.79 million the previous year to $24.67 million.

Britain accounted for 77 per cent of total turnover, with revenue from the company's professional business up 20 per cent at £6.8 million ($17.7 million).

Focusing predominantly on professional and British public health business would provide a more predictable future revenue stream, expected to grow by more than 15 per cent this year, the company said.

Chief executive Brian Weatherly said the restructuring had been completed on time and within budget.

"We now have the opportunity to consolidate further on the benefits inherent in the company's software, its growing customer base and the adjacent opportunities that these present, particularly in the UK market."

No dividend will be paid for the year. Software shares closed up 4c yesterday at $1.10.