By Chris Hutching
Friday 8th August 2003
|Text too small?|
A forewarning of the dramatic turnaround at Jade became apparent a few weeks ago when senior marketing executive Peter Helms resigned ahead of new chief executive Rod Carr taking over the reins.
Mr Carr was formerly deputy governor of the Reserve Bank and has been brought in to shake up the organisation.
Mr Carr said that over the next few days and weeks he would be consulting staff about what positions should be made redundant, with the aim of making cost savings of about 25%.
Corporate sponsorships are also under review as the company focuses on the core business of promoting the Jade software and cutting back on research and development in other areas.
"We need a reasonable prospect that we can be cashflow neutral before we go to investors for recapitalisation."
A slump in international sales of technology products is being blamed for the fall in fortunes but the company has struggled to make headway for some time and last month announced that it would provide free access to its Jade software although it would charge for commercialisation.
The experts agree that the technology is sound but it has yet to be accepted on a wide scale.
The recapitalisation of Jade is yet to be finalised with potential private investors. Mr Carr said the company would seek $10-25 million a wide range but it would depend on terms and conditions.
Company founder Sir Gil Simpson has about 90% of the shares after a recapitalisation two years ago involving venture funder I-Cap Partners. Mr Carr said some of the same investors would be involved.
Jade employs 383 people with most of them in Christchurch.
Last June Jade named UBS as lead manager for its float and Stock Exchange listing this year.
The company value was estimated at between $100 million to $150 million.
No comments yet
Fonterra farmers urge MPs to unshackle cooperative
NZ dollar benefits as EU likely to grant Brexit extension
24th October 2019 Morning Report
OPINION: All the questions the convention centre fire asks
MARKET CLOSE: NZ stocks drop as investors dump power companies on smelter scare
NZ dollar eases after another Brexit failure
SkyCity, Fletcher won't name their insurers
NZ stocks smacked by smelter review, SkyCity fire
No govt cash for Tiwai Point - Woods
Strong dairy exports narrow Sept trade deficit