An $86 million impairment charge saw SAI Global (ASX: SAI) announce a net loss after tax of $43.2 million on Wednesday. Underlying net profit excluding the impairment was $42.4 million, down 5.1% on the prior year. An unchanged final fully franked dividend of 8.2 cents per share was declared.
The group said the impairment charge was a result of operating issues around a compliance-learning platform and costs associated with rectification and enhanced customer support. The problematic platform is due for replacement over the next 12-18 months.
Overall the group grew sales revenue to $478.6 million up 6% on the prior year with overall earnings before income tax, depreciation and amortization (EBITA) up 5.3% to $100.7 million.
The company believes the outlook remains positive and the market didn't disagree, sending the share price up 3.59% on Wednesday. A falling Aussie dollar is a positive, with over 40% of equivalent EBITA from overseas in FY 2013. Notably, the dollar only began to weaken against its global peers in May.
Foolish takeaway
Year-on-year the stock is down around 8%, reflecting recent disappointments and some flat performance. The company will need to deliver on a consistent basis to see its star rise again.
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Motley Fool contributor Tom Richardson does not own shares in any of the companies mentioned in this article.
