Profit Guidance - 27 July 2007

Jul 27, 2007

ASX RELEASE – Friday 27 July 2007

In a follow up to a previous announcement on 8 June 2007, Jumbo Corporation Limited today announced an updated profit guidance for the full year ending June 2007. This forecast is based on unaudited management accounts and is subject to further review and audit.

 
   

FY 2006

  FY 2007 Guidance
  Revenue   $16.6 million   $17.6 to $18.6 million
  Gross Profit   $4,643,137   $4.8 to $5.1 million
  EBITDA   $869,970   $200,000 to $500,000
  Net Profit   $786,973   ($300,000) to ($500,000) Loss
  The guidance takes into account a number of items that include:
  • Impairment of Global Approach Limited (GLO) Investment. Jumbo recently sold its entire holding in GLO raising $1.09 million (less brokerage costs) in additional cash for working capital resulting in a loss of $194,725
  • Impairment of Proprietary Online Lottery Games. As announced between September 2006 and December 2006, Jumbo developed and launched a range of proprietary online lottery games that included scratchprizes.com and pinballkeno.com. A decision was made to close these games due to low sales and to focus on new opportunities such as the Manaccom acquisition.
 

Upgrade to Lottery Network As announced on 8 June 2007, improvements and new additions were made throughout the year to both Internet (Ozlotteries.com) and non-Internet (Pacific Island Network) sales channels to build a platform for future growth. These improvements and new additions were required to build a system capable of sustaining higher sales levels and to take advantage of new online marketing initiatives. Manaccom Acquisition Update As announced on 25 June 2007, Jumbo has entered into a conditional Heads of Agreement to acquire Manaccom, a specialist software publishing and distribution business that supplies major retail chains including Harvey Norman, Dick Smith, JB Hi-Fi and Officeworks. The purchase consideration of $5.1 million comprises of $2.5 million cash on settlement (bank finance) and 80 million JUM shares (at 3.25c). Manaccom has provided audited accounts for the 12 month period ended 30 June 2006 that include:

  •  $11 million in Revenue
  •  $1.6 million in EBITDA

  The results for Manaccom for the 2007 financial year are expected to exceed these results. A Notice of General Meeting was announced for 23 August 2007 with a settlement planned shortly afterwards. Due Diligence and negotiations for Finance have commenced and are progressing well. For further Information: Mike Veverka CEO,  Jumbo Corporation (07) 3831 3705


Media Assets
 27072007.pdf