Ansearch Pty Ltd (ASX:ANH) Profitable Trading Continues

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The Company advises that the month of January has exceeded budget expectations and revenue is marginally higher than December.

Ansearch Limited (ASX: ANH) recently announced a significant improvement in its second quarter revenues, up 30% on the previous corresponding period and up 68% on the first quarter. This announcement also noted that Ansearch had its second highest revenue month on record in December.

The Company advises that the month of January has exceeded budget expectations and revenue is marginally higher than December. Despite the global financial crises and a slower than expected first quarter, the company remains within 8% of its revenue budget for the year to January 2009.

Ordinarily over the summer months the Company sees a seasonal reduction in sales, however the Webfirm division held up strongly in line with budget and Searchworld exceeded its targets, more than offsetting a shortfall experienced by the Media division.

Management is monitoring the revenues flowing from Searchworld's US operations, and expect these revenues to drive the Company toward a further improvement in revenue in quarters three and four.

The Company posted a small profit in January after also posting a profit in December. The Company's earnings before tax at end January 2009 are ahead of budget following the higher than expected revenue numbers.

The half year accounts are currently being reviewed by the company auditors, however unaudited results are as follows:

  • Net profit/(loss) improving 26% to ($1.6 million), up from a loss of ($2.2 million) in the previous corresponding period.

The improvement in operating results has arisen from a range of cost cutting measures and the termination of non-profitable and non-core projects. The result is in line with budget expectations.

  • Total revenue down 26% to $5.5 million from $7.4 million in the previous corresponding period.

The decline in revenue resulted from a decision at the end of the previous corresponding half-year to terminate the contracts of several customers in the Searchworld division whose activities were putting the Company's supply agreements at risk. This in turn led to the severing of some unsustainable revenues that had caused a spike in the first quarter of the previous corresponding period.

The reduction in revenue on the previous corresponding period whilst disappointing, was a necessary step in resetting and reshaping the Company. However, as demonstrated by our second quarter results and our performance in January, this trend has now reversed and both revenues and profitability have improved substantially.

This progressive trend is envisaged to continue into quarters three and four of this financial year.

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David Burden
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