BlueFreeway Limited (BLU) reported a full year net loss of $56.5 million for the 2008 fiscal year down from a profit of $2.7 million last year. The company said the result was impacted by a goodwill impairment to the tune of $37.5 million.
BlueFreeway said it produced a strong underlying result from its portfolio companies, which highlighted the resilience of the business in a difficult operational period.
Non-executive chairman Michael Hannan said since the restructure of the head office was completed the company now had a framework to allow its portfolio companies to be unencumbered by inappropriate head office costs.
"The previous level of expenditure was unsustainable but is now estimated to be less than $4 million in FY09, lower than FY08 by almost $10 million" Mr Hannan said.
Mr Hannan said the goodwill impairment action and balance sheet writeoffs which flow from the review instituted by the directors in 2H08, would allow the company to be presented in its true light to the market.
"This shows the robust nature of the significant portfolio companies which we believe are integral to the growth of BlueFreeway and of which we intend to maintain control," he said.
In June 2008 the company began a recapitalisation program which included a $6.5 million convertible notes issue and the settlement of a $10 million facility to fund working capital requirements and reduce existing borrowings subject to agreement with the financier.
Mr Hannan also said that although the cleanup of the previous management's legacy had been a painful process, management remained focussed on the underlying business.
He also added that it was pleasing to see that July and August showed significant and real growth over the corresponding period last year.
At 1124 AEST, shares in BlueFreeway were up 2.5c or 33% to 10c.