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FreeSoft emerges from red in 2010 with improvements at unit, cost control

Hungarian IT company FreeSoft posted consolidated after-tax profit of HUF 46.9 million in 2010, compared to post-tax losses of HUF 133.7 million in 2009, on improved performance of company unit HUMANsoft and on keeping expenses under tight control, FreeSoft announced in the company's consolidated, unaudited 2010 IFRS report.

The FreeSoft group, which consists of FreeSoft, HUMANsoft, Axis Consulting 2000 and BankSoft, generated total revenue of HUF 8.7 billion in 2010, up 6.0% yr/yr. Revenue fell at all units except for a 21% rise at HUMANsoft to HUF 6.93 billion, or 83.7% of group revenue.

The group had operating profit of HUF 82 million instead of a HUF 94 million operating loss a year earlier. With financial losses dropping from HUF 78 million to just over HUF 2 million, it registered consolidated pre-tax profit of HUF 79.8 million in 2010 as against pre-tax losses of HUF 172.2 million in 2009.

The group had EBIDTA of 166.4 million in 2010, up sharply from EBITDA of HUF 5.9 million in 2009.

Net assets of HUF 2.73 billion at the end of 2010 were up 1.8% from the end of 2009.

The group had consolidated short-term liabilities of HUF 2.8 billion at the end of 2010, up 55.2% from short-term liabilities of HUF 1.78 billion at the end of 2009. Consolidated long-term liabilities fell 52.1% to HUF 47 million at the end of last year. Slightly over 40% of the group's short-term liabilities stemmed from supplier debts outstanding for a period of under 60 days.

The FreeSoft group employed 268 people at the end of 2010, compared to 282 people at the end of 2009.

FreeSoft shares trade in the B-category at the Budapest Stock Exchange.