Fronde directors have bitten the bullet over Fronde Anywhere, acknowledging it has failed to meet expectations and that important sales opportunities were deferred or lost during the second half of the 2009-10 financial year.
Chairman Wayne Norrie says in his report the board would fully impair the assets of Fronde Anywhere to a conservative estimate of $1.987 million.
The figure reflects that the asset is viable as opposed to a write-off, which would imply no viability in it, he says.
The operational focus on Fronde Anywhere would now be on supporting clients, closing existing deals and mitigating costs. The directors had decided the business must be funded from Fronde Anywhere cash flows and to seek any additional funding requirements from new investors.
CEO Ian Clarke says in his report that the business was hard-hit in the second half-year with declining spending from clients, particularly in Auckland.
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