ERG records $10m first half net loss

Balcatta-based transport systems technology developer ERG Group has announced a 74 per cent reduction in its net loss after tax for the first half of the financial year, up to $10 million from the $38.8 million in the prior comparative period.

The company recorded a 12 per cent increase in revenue to $105.2 million, and broke even at the level of earnings before interest, tax, depreciation and amortisation, compared to a loss of $10 million in the prior competitive period.

ERG had predicted a net annual loss of $10 million for 2006-07 at its annual general meeting in November last year.

The company's operating companies division increased its EBITDA by 56 per cent to $13.8 million from the securing of new maintenance contracts and growth in services.

The small projects division also recorded an EBITDA increase, of 16 per cent to $3.3 million.

But the Large Projects Division recorded a loss of $5.4 million at the EBITDA level.