ISS Group returns to profit

Software developer ISS Group has announced its estimated profit for the 2010 financial year will be $4.2 million after a 2009 loss of $2.9 million.

The company's operating revenue for the 2010 financial year remained very similar to 2009 rising just 2 per cent.

But it cut its labour costs by 20 per cent.

The board of ISS attributed the improvement in profit to tight fiscal management, and a clear focus on delivering sales and positioning ISS Group as a strong and viable organisation in the solutions market.

The company's revenue was up 21 per cent in the fourth quarter of 2010 and it said in the same period gross profit experienced a sharp rise to $1.35 million mainly because of the retention of contract payments and maintenance income bills during the period.

The Group's net working capital also increased to $9.6 million, an increase of $0.6 million on the third quarter of 2010.

The board said it was exploring the best way to provide a financial distribution to shareholders given the company's improved financial position.

Shares in ISS closed up 20 per cent or 3 cents to 18 cents.