Alphyra chief executive John Nagle has told RTE that he is not concerned about An Post's recent entry into the UK electronic transactions market.
Shares in Alphyra - formerly ITG - plunged by more than 35% to 1.40 euro in Dublin today after it reported that profit before interest, tax, depreciation and amortisation (EBITDA) for the eight months to the end of December 2001 was €0.4 million compared with €7.5 million in the 12 months to April 2001.
This was a result of a significant downturn in the telecommunications and computers business. Substantial and necessary investment in the new markets of Germany and France also contributed to the downturn.
The company added that turnover for the eight months to the end of December 2001 was €55.4 million. This compares to a 12 month figure in April 2001 of €88.5 million. Alphyra again blamed the fall on the poor performance by the voice and data business - of which only the payphones business remains - following the disposal of the telecommunications and computer businesses last year.
The voice and data division saw a drop in turnover for the eight months to €28 million compared to €64.5 million in the 12 months ended April 2001. The period saw tough market conditions for this sector and the company said its disposal enables it to focus its resources on its electronic transaction business.
Alphyra said the performance of its electronic transaction business continues to improve as the business matures in more of its regions. Turnover in Ireland increased to €5.9 million while its UK turnover was also higher at €9.2 million.
The company said its European business also performed well during the eight month period with turnover up €12.1 million - driven mainly by growth in its Swedish and Dutch operations.
The difficult trading conditions experienced by the payphones business since the September 11 attacks in the US have continued over the last few months. As a result, Alphyra has decided to write down the goodwill associated with this business by €10.1 million.
Looking ahead, Alphyra said it is well positioned to drive significant revenue growth over the coming years.
