Hire Intelligence lowers outlook on writedown fears

Hire Intelligence lowers outlook on writedown fears

Computer equipment rental group Hire Intelligence (ASX:HII) has warned it may need to write off $449,000 goodwill in its 100%-owned subsidiary Cityside Asset.

Hire Intelligence plans to stop the practice of having company-owned outlets pay franchise fees to Cityside, which operates the franchise business of the Hire group.

While this will have no effect on earnings for the Hire Intelligence group, it will lower Cityside’s profitability to below breakeven, Hire said. This will terefore impact the carrying value of its goodwill.

As a result of the expected charge, the company has reduced its ebitda forecast to between $1.4 million and $2 million, compared to a normalized ebitda range (ignoring the write-off) of between $1.9 million and $2.5 million.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags hardwarerentalforecastHire Intelligence

Show Comments