Enzumo Limited reported consolidated earnings results for the half year ended December 31, 2016. For the period, group revenue of AUD 3,637,000 down 10% on half year to 30 June 2016 which is in line with expectations. Group loss was AUD 2,017,746 compared to AUD 1,545,151, which included an impairment of the Enzumo Corporation software development project of AUD 1,425,000, a provision for an R&D refund of AUD 374,000 (net of expenses) and an amortisation charge of AUD 465,000 relating to the acquisition cost of Chant West. The group incurred an operating loss of AUD 1,296,000 (the first year with a full 12 months contribution from Chant West) ­ Chant West a profit of AUD 1,476,000, Enzumo a loss of AUD 1,491,000, and Limited a loss of AUD 1,281,000. The total capital expenditure on the software project to 31 December 2016 was AUD 3,425,000. Total revenue and other income was AUD 4,244,143 compared to AUD 2,458,145 a year ago. Net loss from ordinary activities before income tax was AUD 2,017,746 compared to AUD 1,545,151 a year ago. Basic and diluted loss per share was 2.11 cents compared to 2.78 cents a year ago. Net cash outflow from operating activities was AUD 393,254 compared to AUD 1,884,337 a year ago. Purchase of property, plant and equipment was AUD 28,016 compared to AUD 9,007 a year ago. Purchase of intangible assets was AUD 2,029,166 compared to AUD 241,680 a year ago.

The group is expected to reach operational profitability by the end of fiscal year 2017 as Enzumo returns to profitability and Chant West continues to deliver strong results.