First Half Results Up 257% Profit Upgrade for Full Year

Feb 21, 2008

ASX RELEASE – Thursday, 21st February 2008

Leading Australian IT and e-commerce company, Manaccom Corporation Limited – formerly Jumbo Corporation Limited - today announced a 257% increase in net profit after tax for the half year to December 2007, as well as a profit upgrade for the full year to June 2008.

The audited results for the 6 months to December 2007 include revenue of $16.2 million, EBITDA of $959,608 and net profit after tax of $764,199.
 
Further, the results for the 12 months to June 2008 are expected to be higher than previously announced, with revenue between $30 million and $38 million, EBITDA between $2 million and $2.8 million and net profit after tax between $1.3 million and $2 million.
 
The better than expected results are attributed to the successful acquisition of Manaccom Pty Ltd and a turnaround in the online lottery division.
 
“The acquisition of Manaccom Pty Ltd went smoothly and the subsidiary has performed well in its first 4 months since the acquisition on 31 August 2007”, Manaccom Corporation Limited CEO, Mr Mike Veverka said.
 
“The performance of Ozlotteries.com has also been pleasing with sales up and the number of active customers up as well,” he said.

Summary of Audited Results for the 6 months to December 2007

 
The following table summarises the results.
    HY Dec 06 (Audited)   HY Dec 07 (Audited)   Change
  Revenue   $8,889,504   $16,171,500   82% increase
  EBITDA   $269,018   $959,608   257% increase
  Net Profit After Tax   $214,274   $764,199   257% increase
 
These results include 4 months of trading from the newly acquired Manaccom Pty Ltd and a full 6 months trading from the remainder of the group. The results also include a number of one-off costs relating to the acquisition and the subsequent changes and losses relating to the sale of the company’s investment in Global Approach Limited in July 2007.  
 

Summary of Forecast Results for the 12 months to June 2008

 
The following table summarises the forecast results which are based on unaudited management accounts.
    FY June 08 Range
  Revenue   $30 million to $38 million
  EBITDA   $2.0 million to $2.8 million
  Net Profit After Tax   $1.3 million to $2.0 million
This schedule replaces the previous schedule announced on 18 September 2007.
 

About Manaccom

On 31 August 2007, Jumbo Corporation Limited acquired Manaccom Pty Ltd and subsequently changed its name to Manaccom Corporation Limited. The company is now logically divided into three divisions.

1. Online Lottery Division. This division is involved in the sale of Australian lottery tickets from www.ozlotteries.com and from a number of outlets in Pacific countries such as Fiji and Norfolk Island. Key relationships include Tattersalls and NSW Lotteries Corporation. This division saw a turnaround in its results with an increase in revenue and profits of 34% and 234% respectively.

2.  Software Publishing Division. This division publishes  and  markets  popular  software titles through large retailers and independent resellers. Key relationships include Harvey Norman, Dick Smith, Officeworks, JB Hi-Fi and Trend Micro. Recently Manaccom was selected as a preferred software supplier for Harvey Norman OFIS when the new OFIS stores are launched in late March 2008. 4 months of trading results from this division contributed to the group results with the acquisition completed 31 August 2007 (www.manac.com.au).

3. Jumbo Interactive. This division is involved in internet advertising and customer traffic management. The division operates a number of web sites including www.jumborewards.com, www.jumboaffiliates.com and www.jumbomall.com.

Future Growth through Acquisitions

Manaccom Corporation Limited is actively seeking acquisition opportunities in the e-commerce and information technology industries. The company has significant experience in the IT industry dating back to 1986.  

For further Information:
Mike Veverka
CEO,  Manaccom Corporation Limited
(07) 3331 5999

Media Assets

 21022008.pdf