Selector wants $1.5m to develop

By DANIEL RIORDAN

Selector Group hopes to raise $1.5 million in a one-for-three renounceable rights issue, after losing almost $1 million in its first six months as a listed company.

The company, which was known as e-Opportunity before it adopted the name of the human resource software company it acquired in July, has reported a loss of $923,300 for the six months to September 30, about $352,700 higher than anticipated. That included $307,000 of extraordinary items associated with the listing and the takeover.

Chief executive Jon Vincent said the money from the rights issue would be needed for development.

Rights would be issued at an indicative price of 15c in the first quarter of next year.

Mr Vincent defended the result, saying that although the bottom line wasn't great, operational performance had been sound. "We hit our sales' targets pretty damn spot on. We were 1.6 per cent out, just $1900."

Mr Vincent said the expenses associated with running the business were as forecast, but the company had greatly underestimated the expenses associated with listing.

"Is our business on target to achieve what it said it would achieve? Yes it is."

Income in the year's second half would also be considerably lower. There was little chance of receiving an expected $500,000 from a tender for a contract with an Australian partner.

The company, which in April became the second listing on the New Capital Market, was the first to make the transition to the main board in August. It was then projecting positive cashflow by early next year and profitability within 12 months.

After Selector's underperformance, directors have cut projections of trading profit for the year to March 31 to a loss of $2.05 million.

"We get this horrible association with dot.coms. But we've got damned good technology you can touch, we've got damn good clients," Mr Vincent said.

Selector has an alliance with internet employment site Seek, and new customers include ihug, Telstra Saturn, Ernst & Young and Sky Television.

Selector Group shares, issued at 50c to new investors in April, closed on Friday at 17c.