IiNet in financial navel gazing

IiNet has advised the ASX that it’s shares will continue to be suspended pending an assessment of the financial state of the company.

In an ASX statement iiNet’s company secretary, Stephen Fewster, said the ISP’s financial performance in the March quarter had been well below expectations.

“The situation was not identified earlier due to deficiencies in forecasting and clerical errors in revenue recognition that have only recently emerged,” he said.

“It has become clear, however, that expected EBITDA for the 2006 financial year will be significantly below the company’s guidance to the market.”

IiNet first requested that its shares be suspended on April 20 citing an impending announcement. It is currently working with auditors Ernst & Young.

Despite the variances between the guidance and the actual financial results in the March quarter, customer numbers and service delivery continued to track well, Fewster claimed.

“However, the Company believes it is prudent to remain suspended from trading until it is in a position to provide the market with an analysis of the performance to date and a revised guidance for the full financial year,” he said.

IiNet expects to resume trading during the week commencing May eight.