Kordia sneaks into black, debt rises

Kordia has reported a $2.2 million half-year net profit for the six months to December 31, down on the year-ago period's $7.3 million (which included a one-off gain in the form of a Telecom settlement paid to the state-owned company's ISP division, Orcon).

Revenue increased 10.5% to $207.6 million, ahead of the half-year target of $197 million outlined in Kordia's Statement of Corporate Intent (SCI) to the government last year.

Net debt has increased $9.4m from December 2011 to $75.3 million. Group CEO Geoff Hunt says this was driven primarily by Kordia Solutions Australia. Gearing is up 4% from the end of the 2012 financial year to 46%.

Kordia delivered the government a $1 million interim dividend, meeting its SCI target.

Mr Hunt warns that the company's Australian business - which accounts for half of its revenue and most of its growth - will be weaker in the second half.

“The company in Australia continues to diversify its service offering and customer base. Several major projects concluded in the first half of the financial year, and the second half year is therefore forecast to be significantly softer than the first half year," the Group CEO says.

"However, there is a record amount of investment in telecommunications infrastructure projects for key customer planned over the next eighteen months.  This indicates a solid longer term outlook for Kordia Solutions Australia."

Kordia's Australian business in centred on telecommunications engineering and network services, while its NZ operation also includes broadcasting and wholesale and retail internet services.

The state-owned company refused to supply NBR Online with more detailed financials, which a spokeswoman said would not be make public until tabled in Parliament. A date has yet to be set.

A recent restructure saw Mr Hunt's Group CEO role eliminated. He leaves at the end of March.

The heads of Kordia New Zealand (Scott Bartlett) and Kordia Solutions Australia (Peter Robson) will now report directly to the Kordia Board, along with the Group CFO, Shaun Rendell.