Moore works to stabilise business but reveals “material uncertainty” to remain a going concern

The publicly listed print management company reported revenues of $22.8m for the six months to 31 December 2010.

In its report to the ASX, Moore’s directors said it was on a “stable platform for the future” thanks to support from its bankers and a restructure of its banking facilities.

According to the statement: “The group’s bankers have reaffirmed their support for the business by agreeing to the restructure of our banking facility. Based on cash flow forecasts and steps taken to reduce costs (ie restructuring) in line with revenues, the directors believe the company has access to sufficient funds to finance its operations for the short term.”

The company has put in place a drastic restructure plan to get into better shape, including closure of the Wodonga site. It has already reduced staffing and other operating costs by the “equivalent of $2.55m per annum”.

Moore also announced it had received another long-term contract for St Johns Ambulance, as well as renewing its deal with the NSW Roads & Traffic Authority.

However, the report concedes: “In relation to the group’s ability to continue as a going concern, material uncertainty exists for the following reasons”, pointing to the operating loss, its net liability position of $2m, the loss of the Tabcorp contract and the need for additional funding by April 2011.

The ASX statement continued: “However, after taking this into account all the available information, the directors have concluded that there are reasonable grounds to believe the group will be able to pay its debts as and when they become payable.”

While Moore did publish year-on-year figures for the six months to December 2009, they are not directly comparable because the previous reporting period was for the old Argus business, which has since been sold off.

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