WELLINGTON - Listed technology investor Strathmore Group has reported a sixfold increase in revenue in the half-year and a turnaround in profit after selling a loss-making investment.
The company posted a bottom-line profit of $1.36 million for the six months to January 31, against a $1.54 million loss for the same period last year.
The latest result followed a one-off gain of $2.04 million from the sale of Wellington Drive Technologies, while earnings last year were hit by a $1.08 million writedown relating to Wellington Drive and another loss-maker, CES Commu-nications.
Strathmore held 33 per cent of Wellington Drive and is trying to sell its 52.7 per cent stake in CES.
The company made a loss before unusual items and tax of $635,000, an improvement on last year's $1.49 million loss.
Strathmore, a shell company transformed into an IT investor and boasting Auckland entrepreneur Eric Watson as a 10 per cent shareholder, said the results were in line with expectations.
The company reported sales of $1.86 million, a 546 per cent improvement over the $288,000 previously recorded.
But executive chairman Phil Norman noted that the "important decisions for future value creation have largely been made since the end of the period."
As a result, he said, Strathmore had almost doubled shareholders' funds to $19 million and made four significant investments.
In February, the company raised $6 million through a placement of 13.3 million shares to institutional investor NZ Funds.
Its recent buying spree has included 10 per cent of Silicon Valley tech investor Double Impact, 16.7 per cent of United States e-commerce software maker Soft Tech America and 10 per cent of another US software firm, Genie Systems.
The company had total assets of $17.72 million at January 31, against $4.64 million previously. With total liabilities at $7.24 million against $530,000, net assets were $10.48 million against $4.11 million.
Strathmore's shares ended down 1c at 31c on Friday as local tech-related stocks continue to lose favour in line with global trends.
- NZPA