Market Update

Released: 21 Jan 2009

Oakton provides market update
Australian consulting and IT services provider Oakton Limited [ASX:OKN] has provided the following market update today:

• As a result of the current financial crisis and the reduced levels of Federal Government demand, the October 2008 to December 2008 trading period has been below expectations as clients sought improved pricing arrangements and in some situations delayed their planned consulting and I.T. investment.

• In addition, Oakton have assessed the commercial status of a small number of projects and as a result, the earned value of these projects will be reduced by an amount in the order of $4m in the FY2009 first half result.

• Whilst revenue for the first half is in line with last year the impact of the general trading conditions and the project value reduction will result in the FY2009 first half year profit result being below the corresponding period last year. Current estimates, which are subject to finalisation and external audit sign-off, have the NPAT for the FY2009 first half in the order of $6.5m.

• A more comprehensive overview of the first half results and the outlook for the remainder of FY2009 and beyond will be provided at the FY2009 half year results briefings post the release of the FY2009 half year results on the 17 February 2009. This will include an overview of the actions being taken by Oakton in light of the changing market conditions.

• Oakton have finalised a new, three year financing facility that covers all investment and working capital debt as required. Oakton’s operating cash flow has remained strong in the first half and it is expected that the debt levels will continue to decline over the next 12 months.

Further information:

Neil Wilson
Managing Director and CEO
 

Oakton Limited is a consulting and information technology company listed on the Australian Stock Exchange [ASX:OKN]. Capitalised at approximately $A140million (January 2009), Oakton has provided services to large and medium sized organisations for more than 20 years. Oakton provides a range of consulting and IT services centred around business operations and systems. The services cover business consulting, IT strategy, planning services, delivery services in solutiondesign, custom software development, packaged software implementation, information management and system integration solutions. Oakton also provides a service offering to fully manage organisations’ operational systems. The company has offices in Melbourne, Sydney, Canberra, Brisbane and Hyderabad (India).

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