SGO today updated the market in relation to its outlook for the 2013/14 financial year.
Stream Group Limited is expecting an underlying profit before tax (PBT) in the order of $0.5 to $0.6 million (FY13 $4.6 million) and EBITDA in the order of $2.1-$2.3 million (FY13 $5.4 million). The reduction in FY14 profit is primarily due to:
Expansion costs in relation to establishing the UK business ($1.66 million)
Expansion costs in relation to new initiatives including: Software Services & E-Commerce ($0.5 million)
Very benign claims environment across the insurance industry in Australian for all of FY14.
Cerno’s financial performance has continued to be below expectations which has been exacerbated by the benign claims environment.
And the trading depth doesn't help. 3 shares for $0.16 yesterday to trigger a 20% drop.
SGO Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
