NATIONAL TELECOMS GROUP LIMITED 2003-02-18 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
Due to continuing pressure on its sales operations the Board of NTG
has determined that revised forecasts announced by NTG in a profit
downgrade in December 2002 will not be achieved and that a more
radical restructuring of the business will be necessary to return the
company to profitability.
The Board has agreed in principle to a restructure which will focus
NTG's future operations on the provision of a wholesale product
package including telephone and office equipment, software for call
tracking and unified messaging, installation and ongoing service and
support which will be distributed through an independent dealer
channel.
The announced Rights Issue will be delayed pending finalisation of
the restructuring. NTG's two major shareholders Tony Hakim and Morry
Fraid have agreed in principle to provide additional financing and
extend the period of the loans pending the restructure.
The Board is not in a position at this time to provide an accurate
forecast until the restructuring takes place, preliminary modelling
indicates that NPAT will be in the order of negative $15 million
after the write down of goodwill. Further information on the
restructuring will be provided to shareholders as soon as practicable
after a detailed plan is finalised.
For more information, please contact:
Ron Nissen Tel: 02 9598 8888
National Telecoms, Executive Chairman
NTG
national telecoms group limited
