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MBL`s Instalment Warrant Report - ANZIBK/ANZIBL/ANZIBO

Document date:  Wed 10 Nov 1999
Published:  Wed 10 Nov 1999 17:37:53
Document No:  154905
Document part:  A
Market Flag:  N
Classification: 

HOMEX - Melbourne                                                     

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FINANCIAL RESULTS RELEASE

Australian-listed electronics manufacturer and distributor, GES
International Ltd (GIL), the holding company of the GES Group of
Companies, announced yesterday that it closed the first half of
financial year 1998 with a turnover of A$316 million (S$344 million),
a 35 per cent improvement over the corresponding period base on the
proforma results of GES group, and 9 per cent above the forecast
implied by the Prospectus dated 22 July 1997.

Similarly, the group has attained 37 per cent better EBIT (Earnings
results of GES group and is 3 per cent above prospectus forecast.

The Board of Directors made additional provision for inventory by
A$0.5 million (S$0.6 million), and trade debt provision by A$1.6
million (S$1.7 million) to shelter the group from any contingent
pitfalls.

This resulted in a net profit after tax attributable to members of
A$5.57m (S$6.07m)

The result was driven by strong demand from the Datamini PC business
and strong growth in the regional distribution business. The Point of
Sales business did not grow in the same light as the other business
but future demand remains favourable.

Interim Dividend

In recognition of the underlying profitability of the company, GIL
will declare an interim dividend of A0.45 cent per share in April
1998 as forecast in the Prospectus.

Investment

During this financial period, the group invested part of its proceeds
from the 1997 Prospectus in the following subsidiaries and associated
companies - Digiland Hong Kong Co. Ltd., Digiland Taiwan Inc. Ltd.,
and GES Technologies Ltd which will provide the platform to expand the
distribution business into Hong Kong, China, Taiwan and India. A
further investment will be made in MSI-Digiland Philippines in March
1998. The acquisition of this company is seen as a wise move as the
cost of acquisition has been made cheaper by the weakness of the
Philippines Peso. The acquisition of subsidiaries and associated
companies is expected to contribute to the growth of the distribution
business in the coming second half. GIL further reported that all the
subsidiaries and associated companies have been performing well and
continue to do so.

Despite the difficult economic conditions prevailing in Asia, GES, a
regional player, has succeeded in growing the business in the face of
difficult markets.

Outlook

The group's globalisation strategy has enabled it to grow its market
with Singapore now representing 32 per cent of revenue, Australia 15
per cent; and USA 14 per cent ASEAN countries represent 33 per cent
and GES has succeeded in capturing market share from competitors
facing liquidity problems in the region. The group also has its
sights on the burgeoning economies of China and India.

But GES has not been spared the effects of the financial turmoil in
the region. Although the group has not increased its net borrowings,
rising interest rates have increased interest expenses by 38% above
its forecast, thereby pulling the results downwards by A$0.7 million
(S$0.8 million).

In addition, profits earned in some subsidiaries that were not
budgeted for have attracted additional tax accrual by 18 per cent.

According to Mr Goh Lik Tuan, Executive Chairman and Founder of GES:
"Taking into consideration the recent currency turmoil, GIL wishes to
advise shareholders that the second half year will be a tough period
of operation; however the management team considers the second half
will continue to be profitable and the group remains on track to meet
its prospectus forecast for the full year. He also advised that the
group is continuing to work towards having a secondary listing in
Singapore.


For more Information please contact:      Issued by:

Mr Richard Colless                        Bonny Gunn / Michelle Lovius
Director: GES International Limited       Comcon Solutions
Telephone: +61 2 9922 6017                Telephone: +61 2 9955 7877
                                          Mobile: +414 433 334
Mr Daniel Yeong
Managing Director: GES International Limited
Telephone: +65 360 9889
Mobile: +65 9 639 0451
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