Advantage Group Ltd Announces Six Month Result

Advantage Group Ltd Announces Six Month Result – Recovery Underway

Auckland – 20 February 2002 – Advantage Group Limited (NZSE: ADV) today announced a surplus after tax of $880,000 for the six months ended 31 December 2001.

The balance sheet strengthened over the period with improvements to shareholders funds and reductions in debt and liabilities.

Cash flow for the period was neutral despite the increased working capital requirements arising from the seasonally higher business activity in the second quarter.

“This six month result shows the first steps towards recovery following the difficulties of last year,” said Mr Tony Bradley, Managing Director of the Group.

“The recovery is being led by domestic demand for our products and services, while the international market continues to be slow. The outlook for the second half of the year is for the gradual recovery to continue” said Mr Bradley.

The current six-month result is the first report following the restructuring undertaken in the early part of 2001.

Financial Highlights
for the six months ended 31 December 2001

(unaudited) (unaudited) (audited)
six months to six months to 12 months to
31.12.01 31.12.00 30.6.01
($000’s) ($000’s) ($000’s)

Income 33,794 42,799 71,153
Operating Profit before non operating 880 2,297 195
Profit, tax and good will

Non Operating Profit
Profits on investments in Strathmore 0 3,347 3,347
Loss on investment in Orion Ventures 0 (1,865) (1,865)
Restructuring costs, write downs and
Provisions 0 0 (7,845)
Total Non Operating Profit 0 1,482 (6,363)

Surplus/(Deficit) before tax and 880 3,779 (6,168)
goodwill
Taxation 0 (210) 0
Minority Interest 0 (127) 647
Goodwill Amortised 0 (3,056) (60,369)
Surplus/(Deficit) attributable to the
shareholders 880 386 (65,890)

Total Shareholders’ Equity 12,516 70,937 6,329

Total Operating Cash Flow 57 180 30

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