Repcol forecasts first half loss "significantly" over $7m-$9m

Subiaco-based debt collection agency Repcol Ltd has suspended trade in its shares ahead of an audit, which the company believes will result in a loss significantly higher than the $7 million to $9 million predicted in November last year.

Repcol's auditors were completing a review of the company's debt ledger valuation, which it expects will be completed by Monday.

In November, the company said it had experienced an increase in operating costs relating to the collection of debt by Australian based resources and a decline in the valuation of ledgers principally located in its Brisbane office.

Repcol advised that to counter this decline in financial performance, the company has set about restructuring its activities with an increased dependence on its lower cost operation in Bangalore, India.

The company predicted at the time that, after management and structural changes, the second half of the 2007 financial year would yield a significant improvement in performance.