Utilities management company Intermoco (ASX:INT) does not expect its loss to increase for the financial year, despite an expected significant decline in revenue.
The company, which is transitioning into a provider of embedded utility and communications networks using internet metering, is forecasting revenue of $3.5 million for the year.
The result, which compares to $6 million revenue for FY10, has been blamed on a legislative holdup to a $2 million Queensland project and flow-on effects from the recent floods in the state.
But because embedded networks provide higher margins than the company's traditional outsourced billing services, the company expects its bottom line result to be “broadly in line” with the $3.2 million loss recorded in FY10.
Despite the anticipated result, the Intermoco board said in a market update that it “strongly believes that the strategy... to concentrate on the Intermoco Connect [embedded networks] model will provide growth and profitability in future years.”
Intermoco said it currently has seven embedded water, energy, voice and data networks in operation, and is billing to plan for the services.
Recent wins include a $3.5 million deal for a Melbourne residential project from Statewide Developments, and another $2.5 million contract for a development in South Yarra.
INT shares stayed still on Wednesday at $0.002.
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