Balcatta-based technology company ERG Group has hit back at claims its multi-million dollar project to improve Sydney's public transport ticketing system was in financial trouble.
The response was incited by an article appearing in yesterday's Sydney Morning Herald, entitled "Not the ticket: Tcard in doubt", which alleged the company was struggling to fulfill the contact.
The ERG response, released to the Australian stock exchange this morning under the pen of company secretary Stephen Gethin, refuted the accusations
"The company has recently concluded an agreement with its customer, the (NSW) Transport Administration Corporation, to re-align and update certain provisions of its original contract as a consequence of some delays ERG has experienced in the development of a new smartcard based ticketing system for the public transport network of Sydney and surrounding regions," Mr Gethin said.
"ERG believes such agreements are not unusual in dealing with complex long-term engineering contracts and that the agreement does not materially alter the principles of the contract."
He went on to say the ASX was fully informed of the company's situation.
ERG announced an anticipated net loss before tax of $33 million to $38 million on June 30 this year.
