Adacel forecasts $3m pre-tax loss for FY11

Adacel forecasts $3m pre-tax loss for FY11

Adacel Technologies [[xref:|(ASX:ADA)|CFOWorld] has forecast a pre-tax loss of up to $3 million for FY11.

The company, which develops aviation and defence simulation and control systems, had in February forecast achieving a profit for the year ending in June.

But in a market update, Adacel chairman Julian Beale said factors outside the company's control, including more cautious spending across its target markets, had kept sales slow for the year.

The delays finalising the US budget process have also negatively affected operations, due to the number of Adacel contracts with US-based civil and defence organisation.

Beale added that the strong Australian dollar had also taken its toll.

But he said the company is in a “robust” cash position, with cash inflow for the year estimated at over $4 million, and expects to be debt free as of the end of the month.

Adacel will release its audited results in August.

ADA shares fell 2.44% on Wednesday to $0.205.

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Tags Australian dollarGuidanceAdacelJulian BealeASX:ADA

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