Sydney, Australia, 14 August 2013. SAI Global Limited (ASX: SAI) today announced a net loss after tax attributable to shareholders of $43.2M, down from a profit of $42.4 million in the corresponding period. Underlying 1 net profit, which backs out the impact of significant charges, was $42.4 million, a decrease of 5.1% over the corresponding period.

An improved performance at the EBITDA line has been overshadowed by non-cash impairment charges totalling $86M relating to the company's compliance assets.

The Compliance division has continued to experience the operating issues with its learning platform that first emerged in the second-half of FY12. This platform failed to deliver to expectations and will be replaced by the "next generation" platform over the next twelve to eighteen months. Extra costs associated with an enhanced customer support effort have had an adverse impact on operating margins. The growth outlook for the learning business will also be tempered until the next generation learning platform is operational. It is necessary to factor into the valuation model the current lower margins and growth outlook for the compliance division as it works its way through these issues and restructures its Environment, Health and Safety (EHS) business.

These factors have resulted in the impairment of goodwill of $78.6M. In recognition that the learning content platform (LCP) did not meet expectations the capitalised costs associated with this platform of $2.7M have been written off. The intangible asset relating to acquired customer relationships has been written down by $4.7M in view of the lower level of customer retention rates currently being experienced.

The Board remains confident in the strategy and long-term potential of the compliance assets. Importantly, there is a clear plan in place to rectify the operating issues that have given rise to these impairment charges.

The impairment charge has no impact on the company's ability to pay a dividend. The balance sheet remains strong and conservatively geared. The company continues to trade within its banking covenants. The directors have declared a fully franked final dividend of 8.2 cents per share, bringing the total dividends for the year to 15.0 cents, unchanged from last year. The final dividend will be paid on 20 September 2013. The record date is 26 August 2013.

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