Helloworld says it’s profits for the 2014/15 financial year are on track to sit within the range of the previously stated market guidance.
Unaudited trading results for the year ending 30 June 2015 show the travel agent company’s Adjusted EBITDAI to be in the range of $27 million to $28 million.
This figure will deliver an Adjusted Profit Before Tax of approximately $7 million – a result which is in line with the market guidance.
The results were released ahead of the audited financial accounts for the year, which will be out on 28 August.
In preparation for the final results, the company has included a number of intangible assets such as goodwill, which arose from a number of legacy transactions including the 2010 merger of Stella Travel Services Pty Ltd and Jetset Travelworld Limited.
An assessment of the carrying value of intangible assets found the company will incur a non-cash impairment charge of $205 million.
Although the non-cash charge will be included in the statutory results, it will have ‘no impact on helloworld’s cashflows or ongoing operations’.
“The Company has a strong balance sheet and is positioned for long-term sustainable growth.”
helloworld statement
At 30 June 2015, the Company held a cash balance of $176.1 million comprised of general cash of $27.4 million and client cash of $148.7 million.
Meanwhile, in the last 12 months helloworld has made some big operational changes such as the appointment of its wholly-owned subsidiary, QBT Pty Ltd, as the sole provider of travel management services to the Whole of the Australian Government.
