Omnitech Consultant Group inc.

Omnitech Consultant Group inc.

November 04, 2005 16:18 ET

GCO Announces its Financial Results for 2005

QUEBEC CITY, QUEBEC--(CCNMatthews - Nov. 4, 2005) - Omnitech Consultant Group Inc. ("GCO") (TSX VENTURE:GCO), announces its audited results for the fiscal year ended May 31, 2005.

2005 Fiscal Year Highlights

- Sales totaled $12.1 million, or an increase of 303%
- Organic sales growth of 32%
- Gross profit margin of 71%
- $740,000 in non-recurring costs identified by management
- Initial Public Offering and listing on the TSX Venture Exchange
- The acquisition and successful integration of 4 new entities:
Maxi-Concept Inc., LoGEXia Inc., Toptech Groupe Conseil Inc., and
Groupe ISAC Inc.

GCO had consolidated sales of $12.1 million during the fiscal year ended May 31, 2005, compared to $3 million in 2004, representing an increase of $9.1 million or 303% over the preceding fiscal year. Of those sales, $8.1 million came from acquisitions completed during the year. The difference, $4 million, represents 32% organic growth from the previous year

The company declared an operating loss of $537,315, while it recorded a profit of $259,819 last year. According to management, several factors explain this net loss: $609,000 of amortization of new intangible assets, the cancellation of one acquisition, as well as extraordinary legal, accounting and financial costs. Costs totaling $740,000 were clearly identified by management as being non-recurring.

Selected Annual Information
As at May 31
(in thousands of Canadian dollars)
2005 2004 2003
Operating revenues 12,104 3,000 852
Amortization 609 55 20
Net profit (loss) (537) 260 83
Net profit (loss) per share
(in dollars) (0.017) n/a n/a
Total assets 27,616 2,615 553
Long-term debt 2,452 1,280 272

The above table presents a summary of certain elements of the
company's financial information, and should be read together with the
Management Report and accompanying notes filed with SEDAR.

Overview of Activities

Founded in 2001, GCO, which has its head office in Quebec City, is a Canadian firm specializing in engineering, information technology and systems maintenance. The company works with clients in 22 countries, and is capable of intervening in virtually every aspect of industrial engineering and information technology (IT), integrating new technologies or optimizing existing systems by applying on behalf of all its clients the cutting-edge expertise currently used in the best practices of small and medium-sized businesses, including the expertise of large corporations. The strength of integrating capabilities in engineering and information technology, which GCO combines, allows the company to present itself to its clientele as a "one-stop-shop" in performance engineering. Performance engineering constitutes GCO's competitive advantage, and its application drives a first-rate, unified consulting service, allowing GCO to position itself strategically with respect to traditional markets and to distinguish itself from the competition in being one of the rare companies offering this combination, and one of the only companies that develops its own software.

Claude Belley, President, Chief Executive Officer and Chairman of the Board, states, "2005 has been an eventful year and we achieved several important milestones of our business plan. We went through this building year with the support of our employees and clients. We put in place several measures that will allow us to maintain our current growth path while quickly returning to profitability. Through the hiring of several seasoned managers, we have expanded our management depth which will help us grow the business in the coming years".

Filing of quarterly statements

GCO will file its quarterly statements for the period ended August 31, 2005 and the related management report at the beginning of next week. Since its audited annual financial statements were still pending, GCO could not proceed with the filing of its quarterly statements before the October 28, 2005 deadline.

About Omnitech Consultant Group Inc. ("GCO")

GCO operates in the engineering, information technology and systems maintenance sectors. GCO is capable of intervening in all aspects of industrial engineering and information technology (IT), thus combining a major and distinctive niche in comparison with the competition. GCO integrates new technologies or optimizes existing systems by applying cutting-edge expertise currently used in the best practices.

TSX Venture Exchange Inc. assumes no responsibility regarding the relevance or accuracy of this press release.

Contact Information

  • Omnitech Consultant Group Inc.
    Claude Belley
    (418) 626-9090
    Omnitech Consultant Group Inc.
    Philippe R. Bertrand
    Vice President, Communications and Public Affairs
    (418) 626-9090
    Paradox Public Relations
    Eric Leboeuf
    (514) 341-0408