Sharechat Logo

Provenco-Cadmus merger to cut costs by $20 million

Thursday 26th June 2008

Text too small?
The merger between eftpos terminal companies Provenco Group and Cadmus Technology will cut annual costs by NZ$20 million, almost three times as much as was forecast before the amalgamation, chairman Rick Christie said.

The companies had previously estimated synergy benefits from a merger of NZ$7.6 million, Christie said in a statement today.

The merged company, called ProvencoCadmus Ltd, will post an ebitda loss of about NZ$10 million for the 12 months ended June 30, reflecting one-time restructuring costs.

ProvencoCadmus said in May it would cut about 100 workers, or 25% of its staff to reduce costs and duplication between the two former rivals. The company plans to raise capital in the first quarter of 2009 and is also considering the sale of some non-core assets, it said.

Shares of ProvencoCadmus rose 4% to 26 New Zealand cents. They traded at NZ1.15 at the beginning of 2007.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive
30th November 2021 Morning Report
Serko Limited (NZX: SKO) Announces Opening of NZ$10 Million Retail Offer
Rua Bioscience Limited (NZX: RUA) Rua to Accelerate Growth with Proposed Acquisition of Zalm
The New Zealand Refining Company Limited (NZX: NZR) Successfully Completes Placement
NZME Limited (NZX: NZM) Acquires BusinessDesk to Supercharge Digital Growth
Cannasouth Limited (NZX: CBD) Acquisition of Outstanding Stake in Cultivation JV Complete