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 Price at posting:
0.0¢ Sentiment: None Disclosure: Held
