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Major Profit Recovery by Fronde

14 November 2008

Fronde has turned in a $1m net profit for the six months to September 30 which is a turn-around of $4m on the $3.1m loss for the same period last year.

“We have focused on our clients, their needs and how to deliver exceptional value and this is behind our major profit turn-around,” said Ian Clarke, chief executive of Fronde.

“Focusing on our clients in the midst of a recession has enabled us to improve productivity and reduce our overhead costs.  We have found that our clients themselves are so much more single-minded on getting value from our IT offering and we have worked with them to achieve that.  It has been a win-win.

“By paying attention to the clients, the dollars have taken care of themselves.  We have improved productivity by nearly 40%, and reduced overheads by 43% on static sales.

“We invested the increase in cash back into the business and reduced debt from $3.3m down to $0.5m.  We intend to reduce this even further.

“Looking forward, we will continue our relentless focus on our client’s needs and being careful stewards of our shareholder funds.

“While the economy may be in recession, we are finding that this is an ideal environment in which to review and enhance the contribution that IT makes to the capability of organisations,” said Clarke today.

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