Jolimont short-term computer rental group Hire Intelligence International Ltd has announced an increase in expected earnings before interest tax and amortisation to between $2.1 million and $3.1 million for the 2006-07 financial year.
This increase in forecast profit compares to an EBITA of $1.9 million in 2005-06, and comes after company chairman Tom Crage indicated in July that the company would focus on developing its operating division this financial year.
The full text of a company announcement is pasted below
Leading short term computer rental group, Hire Intelligence International Limited (ASX:HII), is delighted to announce improved profit expectations for the current financial year.
Increased first quarter profitability (up 31.0% on the same quarter in the prior year) coupled with further anticipated cost savings and its anticipated move to larger premises in London has resulted in your Board increasing its forecast range for earnings before interest tax and amortisation from $1.6 million to $2.6 million to a new range of $2.1 million to $3.1 million inclusive of an element of non-recurring profit. This compares with an EBITA of $1,899,000 in the 2006 financial year.
In addition to these profits Hire Intelligence anticipates earning net interest income approximating $400,000. This means that earnings before tax and amortisation are expected to be between $2.5 million and $3.5 million.
The Company believes that the 2007 financial year will be its 4th year of successive normalised double digit percentage profit growth, increasing net tangible assets and increasing cash reserves.
HII's company owned London outlet is moving to larger premises due to continued growth.
HII has succeeded in negotiating the assignment of its existing premises simultaneous with its move to the new ones and has sublet surplus space in the new premises at a profit. This together with additional anticipated benefits flowing from the move is expected to
result in improved profits this financial year.
Until the costs and benefits of the move have been more accurately determined Hire Intelligence remains confident of achieving an EBITA within the new range of $2.1 million to $3.1 million.
