Posts Tagged ‘Sema’

  • Post-buyout SEMA to join digital mail race

    A somewhat diminished post-administration SEMA looks poised to enter the digital mail race, competing with industry rivals, Salmat and Australia Post to claim a chunk of the local market share developing in email-based essential mail delivery.

    After being forced into administration on 17 May, and surviving through a management buyout that was finalised this week, the essential mail company looks set to continue operating, albeit as a new entity with a heavily diminished workforce. With the last month behind it, the company is already looking forward to claiming a stake in the industry’s potential digital mail market.

    The leader of SEMA’s four-person management buyout team, industry consultant John Stewart, expects the company to return to profit by September, a forecast that is aided somewhat by the loss of around two-thirds of its workforce during the administration period, and a heavy cost-cutting directive by administrator, PPB Advisory.

    While SEMA’s new post-administration strategy will need to deliver increased sales to return to profitability, it is understood the company is still in negotiations to acquire its second French Impika high-volume inkjet press, the first of which was commissioned in March.

    Among the company’s long list creditors is the local Impika press supplier, Fuji Xerox, who, at last count, was owed around $1.1 million by SEMA for the two presses. It is understood the presses are to be an integral part of SEMA’s strategy of change that was implemented by management prior to the administration.

    The strategy, which will continue to be implemented under the new management, includes moving to a single software platform and introducing continuous colour printing with the Impikas. The company has also indicated its intention to follow its rivals, Salmat and Australia Post into the burgeoning digital mail market.

    SEMA will operate as a new entity under the four buyout shareholders, Brent McCulloch – COO, Brian Smith – head of marketing, ABnote business manager, Chris Williams and Stewart, who is to become its new managing director. However, as it will trade as anew entity, any pre-administration debt is to remain with the old business.

    Under the buyout deal, the new owners have purchased the company’s name, existing plant, equipment and intellectual property, with leases over premises and some equipment yet to be negotiated. The debt remaining from before the administration will remain with the old business.