UPDATED: Manaccom goes into administration
- 02 February, 2011 15:28
- Comments 2
Software specialist distributor, Manaccom, has gone into administration after its parent company, Jumbo Interactive Limited (ASX:JIN) decided to stop funding the business.
Deloitte has been appointed as the administrator to the subsidiary.
Jumbo CEO and executive director, Mike Veverka claimed it had been funding the business for years and tried to turn it around but it became apparent that it wasn’t going to reach profitability for a while.
Manaccom experienced a trading loss of $3.8 million before tax in the 2010 financial year. Of this, the software publishing and distribution business contributed $16.15 million revenue and a segment (pre-tax) result of $1.8 million. The software distributor's poor financial performance, came after losing its most significant vendor partner, Trend Micro, in May 2009.
The Group incurred a total loss of $7.3 million when factoring in additional extraordinary expenses, including write-downs.
Despite this, Manaccom previously maintained a profitable record. It reported a 55 per cent increase in revenue to $59 million, along with net profits of $2.96 million (up 8 per cent year-on-year) for the 2009 financial year.
Jumbo claimed adverse market conditions for over-the-counter software, was a major contributing factor to Manaccom’s loss.
About 35 staff will be impacted by the decision to wind down the Manaccom business, Veverka said.
The parent company intends to put a proposal for a deed of company arrangement in place to ensure a substantial return to Manaccom creditors.
“We’re hoping to come up with a suitable arrangement with all the creditors and just shut the business down without too much fuss,” he said.
The list of creditors has not been released at this stage. The first creditors meeting will be held on February 10.
Without Manaccom in the picture, parent company, Jumbo expects to achieve a half-year net profit between $2.5-$2.7 million for the period to December 31, 2010.
The distributor's founder, Ian Mackay, left the business in June 2010, when Jumbo bought him out of the business.
Manaccom specialised in providing publishing and re-publishing services for software developers. Its distribution line up included McAfee, Acronis, Net Nanny and MYOB.
It supplied products to a number of retailers including Harvey Norman, Officeworks, Dick Smith, JB Hi-Fi as well as independent resellers.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
Trish Wraight
Can you please tell me who took over the Wagez software. We have been subscribers for many years and are now totally stuck.
teresa zarisinski
would you please let me know how do we access the tax table in Wagez software, We need to update the tax rates as for the comment above we have been using the software for many years and are now stuck , the administrators should be able to find out how the users can access the tax tables and update them for this years changes, while the old customers look for alternative software
Regards
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