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Lite Access Technologies eyeing profitability in UK later this year

"After several quarters of significant investment in our U.K. subsidiary, we are beginning to see results," said the CEO
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Revenue was down at the group 16% to C$1,525,039 compared to C$1,807,563 in the first quarter

Lite Access Technologies Inc (CVE:LTE), the fibre optic trenching specialist, reckons it's on track to achieving profitability in its UK business later this fiscal year.

In the second quarter to March 31, the firm saw revenues fall to C$833,579 at Lite Access UK compared to C$1,984,798 in the first quarter this year, due to  work issues.

Revenue was down at  the group 16% to C$1,525,039 compared to C$1,807,563 in the first quarter.

But in the six months to end March, revenue was up 13% to$4,143,845 versus C$3,605,817 for the six months ended 31 March 2017.

The net loss after tax was C$2,309,887 for the quarter, compared with a loss of C$1,792,560 for the quarter ended 31 March 2017, mainly attributable mainly to the U.K. operations where the company focused on remedial works as a result of issues caused by other contractors.

"After several quarters of significant investment in our U.K. subsidiary, we are beginning to see results," said Carlo Shimoon, chief executive at Lite Access.

"Sales have temporarily declined over the prior year due to issues beyond the company's control and we are currently focusing on remedial works for issues caused by other contractors, which in turn is greatly helping us maintain key stakeholder relationships in the U.K.

"We are still on track to achieving profitability later this year. We will continue to execute our key strategies to exploit the tremendous opportunity in the U.K. and grow our business."

Shimoon added: "In March, Gigaclear engaged Lite Access to bring full-fibre broadband to up to 10,000 homes in West Oxfordshire, U.K.

"We expect increased sales from this award to be reflected later this year and throughout fiscal 2019. It will be important for us to manage the project and scale to meet the additional demands of Gigaclear and other network providers in the U.K.

"The U.K. market for our specialty construction services remains massive and after much hard work we are now being recognized in the industry as the standard for fibre deployment. We are also pursuing new opportunities that will enable the company to deliver further results and shareholder value."

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