NexBis defends investment strategy

Investment in UKI (Asia Pacific) solely to do with "significant benefits" expected to be delivered, NexBis director says

Listed telecommunications services company Nexbis Limited (ASX:NBS) has posted a net loss after tax of $49.6 million for the financial year ended 30 June 2010.

In a statement to the ASX, the the company explained that the net loss was due to non-cash items including write down of intangibles, provisions for impairments, depreciation and amortisation charges.

Net operating cash flow rose to $23 million for the year.

Group chief executive, Johann Young, said in the ASX statement that the last financial year was the most challenging in the company's history.

“The lack of contribution of revenue from Malaysia and China severely impacted our revenue and reimplementation of those projects has taken longer than antcipated," he said.

"However, we have made substantial progress on restructuring those ventures, as well as progressing our overall project pipeline.”

Young said that the company was negotiating with its customer in Malaysia and restructuring a Chinese gas tank project.

In related news, Nexbis has won a tender in the Maldives for the country’s immigration and emigration border control system project.

The award is for a 20 year build, operate and transfer concession contract covering all entry and exit point systems.

Commercial and technical details of the project were not disclosed due to government confidentiality requirements.

Nexbis expects revenue contribution next year from the Maldives project.

In May NexBis confirmed it was working with the Cambodian Government on a $US700 million, 15-year deal.

In March the company went on the defensive following a news report that questioned the soundness of the company’s recent investments in security technology companies TrustDefender and UKI (Asia Pacific).

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