Moore closes the door on Wodonga

Wodonga warehouse set to close as Moore Australasia reports $3.4 million loss.

The loss for the six months to 31 December 2010 was considerably higher than the 2009 result of $1.8 million. However, according to a statement, the group’s balance sheet has improved due to the conversion of debt to equity during the period.

A major blow to the company was the loss of the Tabcorp contract, which expires on 31 May 2011. The venue consumables contract business represented approximately 21 per cent of total revenue for the twelve months to 21 December. St John’s Ambulance in Western Australia has entered into a long-term contract with Moore, while the New South Wales RTA has re-signed for another year.

Once the Tabcorp contract expires, a staffing restructure will take place. Part of this includes the closure of Wodonga’s warehouse facility (located near outh Pacific Print Group – formerly Paragon Printing). Colliers International has been appointed as agents to sell the land and buildings.

According to Paterson, the plans are to vacate the premises before the end of the financial year. “The proceeds of sale of the buildings, owned by MOV, will be applied to reduce group debt,” he said in a statement.

This year has already seen a mass exodus from the company with former rural Victoria boy, David Glavonjic, losing the top job of CEO, replaced by Ralph Stonell who will take on both CEO and CFO roles. Other big names, including former director, Trent Harris and CFO, Neil Mitchell-Clark, have also departed.

“The Board believes that the restructure of the business when completed will place the group in a strong position to be able to recover for shareholders and will provide a stable platform for the future,” the statement said.