Redflex Holdings Ltd has reported a 92.6 per cent drop in full-year profit, but the traffic systems company forecast a substantial improvement in the current year.
Redflex Holdings posted a net profit after tax of $715,000 in the year to June 30, 2010.
The company said there was a few one-off events that affect profit in the 2010 financial year.
"These included administrative issues involving the Department of Public Safety in Arizona and litigation costs," Redflex said in a statement.
"The underlying profit before tax before these one-off effects was approximately $19 million, however these one-off factors have resulted in a financial year net profit before tax of $0.4 million."
Total revenue from operations was $136.59 million in fiscal 2010, up 4.3 per cent from $130.93 million from the prior year.
The company declared a final dividend of 5.0 cents a share, fully franked after no interim dividend was paid.
"In summary, our underlying business remains strong, robust growth is anticipated, and with the removal of the major negative effects of FY10 on our business we expect a substantially improved profit performance for the year ahead," the company said.
Shares in Redflex were down one cent to $2.59 by 1124 AEST.