Tele-IP divests Cabling Division The Directors report dated 28th February 2007, published as part of the Half Yearly Report to 31st December 2006, explained that following the disappointing results in the first half, the Directors were looking at a further restructuring of the company’s activities. As a result of those reviews, Tele-IP has decided to divest its Cabling and Installation Division effective 31st March 2007. Tele-IP will continue to offer all of its current services, but in the future, the cabling and installation delivery will be sub-contracted to those companies that have the best technical skills suited to the job and relevant customer premises knowledge. Existing and future customer maintenance and service contracts will continue to be held by Tele-IP and all service levels will be agreed to by the sub-contractors prior to jobs being outsourced, ensuring that the customer will receive the best possible service at the most competitive price. Tele-IP understands that a new company may be established by a number of those employees terminating at the end of March, and logically, that organization would be well positioned to carry out a substantial amount of that work for Tele-IP. As a consequence of the restructuring, Tele-IP will be able to reduce its wages and a substantial quantity of its fixed overhead expenses. The higher cost of outsourcing the labour component of the service delivery will reduce our direct margin on each job, however, the above expense reduction will result in an improved overall trading position going forward. About Tele-IP Limited Tele-IP is an Australian company focused on the development and sale of products and services to the telecommunications markets in Australia and overseas through Beam Communications. Tele-IP’s network services division and PBX reseller business, through its base of over 2,500 customers, is particularly well positioned in the Voice over IP market through its market-leading product portfolio
TEE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
