Advantage Group is going back to its core business after break-even performance for the past seven months and a $1.7m loss in the first quarter.
“Advantage Group’s core business is in the distribution of Hypercom Eftpos terminals and other Hypercom products, for which we hold the exclusive agency in New Zealand and Australia,” says chairman Denham Shale.
The move means that Advantage will be abandoning its call centre, relationship management systems and service operations. It comes after an in-depth review by chief executive Keith Davis, who joined the company in July.
“Advantage will exit from non-core activities, reducing head count from 160 to 100,” says Davis. “We will write off intellectual property assets and other assets in areas where we see no acceptable return. We anticipate the programme will largely be complete by the end of March 1988.” Advantage has budgeted $2.4 million to complete its restructuring programme in the current financial year. “The outlook beyond 1997-98 has a strong, positive upside,” says Davis.