ISS says pre-tax loss grew to $940k in Q3

Industrial software company ISS (ASX:ISS) expects sales to pick up in Q4, after a decline in revenue led to a wider pre-tax loss of $940k in the third quarter

Industrial software company, ISS Group (ASX:ISS), said its unaudited results show a 116 per cent wider pre-tax loss for Q3.

The company has flagged a likely pre-tax loss of $940,000, from 19 per cent lower revenue of $2.7 million.

But in a market update ISS, which provides software to the energy, minerals and manufacturing industries, said it had made progress growing its sales pipeline during the quarter.

The benefits of the new sales opportunities at the Australian, Singapore and UK offices should be reflected in Q4 and FY12, ISS said.

Labour costs were also reduced by eight per cent year-on-year, although selling, general and administrative costs grew 49 per cent to $1.15 million due to the accrual of employee benefits.

While ISS said the strength of the Australian dollar is a concern, just as it is with most export-focused businesses, its forex position means exchange losses are usually not realised. The company estimated a forex loss of $29,000 in the third quarter.

ISS said it will continue to concentrate on growing sales in each of its regions - which as well as Australia, Asia and Europe also include the Americas through a partnership with oilfield services company Schlumberger.

ISS shares fell four per cent in Friday's trading to $0.120.

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