Webcentral Profits Plummet
SYDNEY: Webcentral has posted a massive drop in its half yearly results of 1217 percent, following a customer dispute and deep debt.
Total net loss from continuing operations from its small-to medium-sized business unit fell to roughly $18 million in the red, down from the previous corresponding period of $1.6 million in profit.
The drop, according to documents listed on ASX was in part due to the selling off of its enterprise business, which generated a loss on sale of approximately $1.6 million.
Revenue was down 53.7 per cent to $21.6 million.
Not included in the reporting period however is Webcentral’s acquisition by the US-based Web.com for $12.2 million, with the deal to be put to a vote on 29 September.
Under this agreement, Web.com will refinance Webcentral’s existing debt facilities and repay all of its existing debt, priced at about $45.6 million.