Manaccom sheds accounts software unit for $1.7m

Manaccom sheds accounts software unit for $1.7m

Online lottery operator and software distributor Manaccom (ASX:MNL) has sold its Star System Solutions enterprise accounting software unit for $1.7 million.

The company said the sale has allowed it to upgrade its profit guidance for 1H11 by $1.5 million to up to $2.7 million, as the asset had been written down in FY10.

This would represent an up to 135% profit increase on the corresponding quarter in FY10. Revenue is expected to grow by 11-16% to between $40 million and $42 million.

Star System was acquired in 2008 to bolster Manaccom's software distribution business, but the parent is currently restructuring to concentrate on its internet lottery business.

Star System was determined to be non-core to the company's future, Manaccom said in a statement.

The sale is not expected to effect future profitability, as Star System contributed only a nominal sum to annual profits, the statement added.

Manaccom has proposed to change its name to Jumbo Interactive to reflect the change in business focus, in a motion that will be voted on at its AGM on 15 November.

The company is pursuing growth in international markets, particularly in the US, the UK and Europe.

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Tags Mergers and acquisitionssoftwaremanaccomASX:MNL

More about InteractiveManaccom CorporationSystem Solutions

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