LONDON (Thomson Financial) - Innovation Group Plc. said integration expenses
will lead to an about 1 million pounds reduction in adjusted profit, but added
it expects to be in a positive net cash position at the year-end and looks
forward to 2009 and beyond with confidence.
"In order to meet the board's expectations for the current financial year,
after adjusting for the items above, the group still needs to conclude a number
of commercial arrangements in the remaining period. Going forward we are pleased
with the fundamentals of our business in terms of increasing demand and strong
revenue growth coupled with normalised monthly profit and cash generation,"
Innovation said.
The business process outsourcing provider for the insurance sector said its
balance sheet remains strong, and cash flow from operating activities has
improved since the half year.
Regarding its Nobilas acquisition, Innovation said majority of the
restructuring actions are approaching completion within the planned budget.
However, the split of the integration expenses between trading and exceptional
costs will result in a 1 million pounds reduction in adjusted profit due to the
company's decision to retain staff and property to support increased anticipated
demand.
TFN.newsdesk@thomson.com
jro/ejp
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