Cellnet: '$4.5M loss mainly debt write-offs'

Beard, on Wednesday, disclosed the company’s $4.6 million loss for the financial year ending June 2008 while comparing it to a $5.9 million profit in the previous year.

However, according to Beard, $3.1 million of the $4.5 million loss, relates to the writing-off of debts and can’t be compared to last year’s profit.

“You can’t compare last year’s profit with this year’s financial result,” said Beard. “While there was a loss this year, Cellnet has wiped its debts and is back on its feet with a good balance sheet,” Beard told CRN.

Cellnet sold its profitable Mercury Mobile business in May 2007 and unlocked the value of Mercury from its Cellnet shareholders, a move that has significantly affected this year's results.

According to Beard, Cellnet will now concentrate on making the company profitable. “While the current year’s results are clearly unsatisfactory, Cellnet’s healthy and strong balance sheet means 2009 will be about building on that strength,” Beard said.

Meanwhile, Beard did not confirm or deny whether any approaches have been made by Australian or overseas companies to acquire Cellnet.

"Cellnet is a strong and debt-free company and there have been all sorts of inquires made about Cellnet. It’s because Cellnet is healthy that these companies are making inquiries.”

“I guess people can speculate to their hearts content about the direction of Cellnet – after all it’s an industry riddled with all sorts of rumours," said Beard.