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Webcentral's losses deepen to $11M

Webcentral's losses deepen to $11M

Half year saw Webcentral complete its 5G Networks integration and increase its hold on Cirrus Networks.

Joe Demase (5G Networks, Webcentral)

Joe Demase (5G Networks, Webcentral)

Credit: 5G Networks

IT service provider Webcentral has posted a loss of almost $11 million for the half year ended 31 December 2021. 

The period follows the recently acquired company's integration with 5G Networks and its failed bid to acquire Perth-based provider Cirrus Networks. 

Although it did not acquire the entire company due to Cirrus shareholders' rejection of the deal, Webcentral did increase its holding over it to 18.5 per cent. 

Webcentral said it is now in a "strong capital position" with $5 million cash and $2.3 million of available debt as of 31 December 2021, plus $10.5 million standby debt facility if it decides to press ahead with acquiring all of Cirrus’ shares. 

The IT provider had initially offered the company roughly $26.3 million, or 3.2 cents cash per Cirrus share before its rejection last year.  

On a good note for Webcentral, revenue held strong during the six-month period, growing 21 per cent to hit $48 million year-on-year.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) also grew by almost 15 per cent to reach $7 million. 

Webcentral's financial report claimed its parent company 5G Networks had gained $12 million in renewals and $2 million in new business. 

It also claimed 5GN had rolled out more than 100 kilometres of fibre cabling, connecting more than 50 data centres as of 31 December. 

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