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SPHE Chairman’s Statement: Profit of $1,081,331
We take pleasure in announcing the 2008 full year results for Spearhead Limited, Inc. (“Spearhead” or the “Company”)
For the twelve months ended December 31, 2008, Spearhead Limited, Inc. recorded an operating profit of $1,081,331 as compared to an operating loss of US$ 1,110,370 loss in 2007 on turnover of US$ 10,947,764 in 2008 as compared to US$ 14,345,421 in 2007.
Spearhead derives all of its revenues from its Canadian subsidiary, Spearhead Management Canada, Inc. (“SMC”), which generates over 90% of its business from direct contracts with agencies of the Canadian federal, provincial and local governments.
Despite an increasingly competitive marketplace in the Canadian National Capital Region (SMC’s principal target market), SMC was able to improve its profit performance position.
Importantly, SMC was able to secure additional strategic national standing offers during 2008, which contributed to improvements of gross margins. These national standing offers are Canadian government procurement vehicles that are awarded to companies via a competitive qualification, adjudication and bidding process that takes significant resources. SMC’s strong base of solid national standing offers places SMC in a strategic competitive position to secure additional assignments from various departments and agencies.
The profit margin of the IT operations in 2008 increased to US$ 782,733 as compared to a profit margin of US$ 295,271 in 2007 even though the Company experienced a drop in IT revenues of US$ 3,397,657 or 23.67% from last year. Said improvement resulted from corrective measures implemented during the 2008 whereby the Company was able to lower overhead costs. The reduction in operating costs resulted in a return to industry profit margin levels. The net profit for the year of US$ 1,081,331 includes interest expense write-off of US$ 623,906.
In addition to the IT services consulting business of its SMC subsidiary, the Company pursued during the year its search for acquisition and roll-up opportunities, which continued to be funded by Spearhead`s Investor Group. In 2008 the Company conducted evaluations of roll-up opportunities and strategic acquisition targets in Canada. The Board and key investors have agreed to renew the loans joined by a forgiveness of partial interest that contributed to operating profit position.
Posts: 201 | From: Cornwall | Registered: Feb 2006
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posted
Again people, we are profitable now, SPHE is worth much more than it was when it wasnt profitable. Minimum $0.25 PPS !!!
I am not kidding, what would you pay for a company giving you more than $1 Million dollars per year of Profit ??
$10 Million plus is the answer, we are way undervalued here and slowly SPHE is headed towards its true valuation.
Get in now, it will take a few weeks but we will get there.
This is a sound money making company with Canadian goverment contracts all verifiable online.
Google "Spearhead Management contract" and see what comes up, pages and pages of them.
Posts: 201 | From: Cornwall | Registered: Feb 2006
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( Revenues expected to be $15-$20 Million, Profit could be $2-$3 Million for 2009 ! )
So what would you pay for a company making $2-$3 Million Profit per year ??
$20 to $30 Million is the answer !!
Thats $0.50 to $0.75 PPS valuation !
We are in a very important transition right now, from being non-profitable to profitable, you cant get them any cheaper than this, I expect this to reach $0.25 PPS before the 2009 Financials come out.
GL and enjoy.
Posts: 201 | From: Cornwall | Registered: Feb 2006
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