In a statement released via the ASX, AWI said costs associated with its shareholding in van Eyk, in conjunction with corporate overheads, have impacted on its earnings for the first quarter of the financial year, with the firm posting a profit before tax of $288,000.
“Corporate overheads, together with earnings from AWI Ventures and AWI Funds amounted to $441,630 for the quarter,” a statement from AWI said.
This included approximately $150,000 in non-recurring costs in relation to the establishment of AWI Funds and AWI Ventures, both of which are expected to contribute positively to earnings this financial year, and costs associated with investments (including in relation to van Eyk Research),” AWI said.
“The current value of van Eyk Research ($7.5m) is expected to be further written down this financial year and this will impact earnings,” the statement said.
AWI also said it experienced a slight drop in its cash reserves but still expects to “generate positive cash flow” in the second quarter of the 2014/2015 financial year.
“On 30 September 2014, AWI had cash reserves of $6.49 million versus $7.35 million at 30 June 2014. The decrease in cash during the period of [$859,000] relates to the timing of revenues with respect to the core divisions,” a statement from AWI said.
“In particular, revenues from Intelligent Investor are typically paid on an annual basis via campaigns in June and December. Cash inflow from this business is significantly skewed to these months (approximately 60 per cent of total revenue is received in these two months),” AWI said.
