Agility 2Q profit down by half

AGILITY’s net profits fell 53 per cent in the second quarter 2010 compared to the same period last year. Operating profit also fell by 50 per cent, but revenues rose three per cent.

The company describes 2010 as a “pivotal year” blaming the scaling down of troops in Iraq, the global recession and the ongoing fraud investigation in the US for the poor results.

“Although we are facing challenges, we see this as a catalyst for change,” it said in a statement. “Agility is committed to a strategy to grow revenue organically, improve return on investment, manage costs and working capital prudently, and maximise yields on core operating assets. By executing on this strategy, Agility will become more flexible and competitive.”

However, auditors from Ernst & Young and Kuwait’s Albazie & Co wrote in a report: “Prolonged suspension [of the US Army contract] could have a material impact on the Group’s government related business and may result in the associated assets being impaired.”

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