ERG to trial local Tcard systems early 2008 Friday 24 August...

ERG to trial local Tcard systems early 2008
Friday 24 August 2007

The ERG Group,who are scheduled to trials the Tcard public transport ticketing system in New South Wales early 2008 are more than 18 months behind schedule although the company looks to be turning their fortunes around.

The Company announced that after several years of investment in work in progress in its major Automated Fare Collection ("AFC") Project development, cash flow from operations was approximately $6.5 million positive in the six months ending 30 June 2007, although slightly negative for the full year.

ERG’s Executive Director of Finance, James Carroll, says these results reflect the continued turn around of ERG’s business.

"When compared to the prior year nearly all of our financial indicators have improved during the year just ended and as we enter the 2008 financial year we believe we will generate further improvement in results and cash flow," he says.

Executive Director Operations, Steve Gallagher, says the company has been working hard to get their systems in place in other international markets.

"Our major AFC projects have all progressed well during the year ended June 30, 2007 with systems now in initial stages of commercial operation in San Francisco, Stockholm and Gothenburg while we have successfully completed Beta trials in Seattle and are finalising testing in Sydney before public trialing of the rail and bus systems commence, we expect, in early 2008.," Gallagher says.

The says the deployment of these systems will deliver significant cash generation during 2008 and 2009.

"In addition both our Operating Companies and Small Projects divisions delivered growth in arnings before interest tax depreciation and amortisation (EBITDA) in excess of 20 percent each which shows the underlying strength of ERG’s portfolio of installed systems around the world," he says.

"We believe ERG can build upon the progress achieved in the last financial year and be seen in the market place as a company which can be relied upon to deliver outstanding solutions and services to customers in a timely fashion."