Facilitate Digital expects pre-tax loss on strong AUD

Digital marketing company Facilitate Digital (ASX:FAC) has forecast a $250k pre-tax loss for FY11, and said it had appointed advisors after receiving informal takeover proposals

Digital advertising company, Facilitate Digital (ASX:FAC), is expecting a $250,000 pre-tax loss in FY11, due to the impact of the strong Australian dollar.

The company, which had previously been forecasting a roughly break-even result for the year, said in a market update that currency conversion rates had been depressing revenue.

Adjusting for the forex impact, pre-tax profit is likely to be $350,000, which compares to the $40,000 earned in FY10.

Revenue is likewise now expected to be $7.5 million - down from prior guidance of $8 million - but would have grown by 12 per cent had currency rates stayed constant.

But Facifiltate said it had made good progress towards major development projects for international contracts, that are expected to begin paying off in FY12 and beyond.

The company is also continuing to invest in its recently released Symphony marketing campaign automation platform.

Facilitate also said it had engaged M H Carnegie and Co to give advice on how to approach a number of informal merger proposals.

And the company will conduct a rights issue to raise $700,000. The fully underwritten issue, for one new share for every 14 shares held, is priced at $0.08 per share.

FAC shares grew 14.29 per cent on Tuesday to $0.080.

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Tags businessFacilitate Digitalpre-tax loss

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