The financials of the company will be heavily impacted by the Hostworks business, which is a relatively recent acquisition.
Hostworks provides managed cloud-hosting, cloud solutions and co-location services.
Inabox has outlined that the business will perform well below expectations during FY18 and will have a significant negative impact on the company's financial performance for the period.
Inabox acquired Hostworks in February 2017 to fast-track the company’s cloud strategy and expand its cloud capabilities and services, which can be cross-sold to its existing 2,000+ managed IT and wholesale customers.
This did not materialise with lower take-up than expected, and other clients transitioning away.
At the time of the acquisition, Inabox estimated that Hostworks would contribute in excess of $21.8 million in revenue, $3.5 million EBITDA and $1.2 million of net profit after tax for FY18.
Inabox now expects that Hostworks will not contribute material earnings in FY18.