The management of multimedia hardware distributor, Lako Pacific, has ended a five-year stint on the Australian Stock Exchange by buying the business back. The deal is valued at $1.3 million.
CEO, Evan Kourambas, said the decision was prompted by its inability to grow further while publicly listed. "We tried for two years to find an acquisition or grow the business organically, but we were unable to do it," he said.
Lako Pacific was listed on the ASX in July 2000 under its original name, Pineapplehead. The business had two operating divisions: an IT distribution arm, known as Lako Vision, and the Pineapplehead unit, for sports graphics.
The company was renamed Lako Pacific after the board opted to sell off the Pineapplehead business in June 2003. Since then, it has been operating solely as an IT distributor.
According to Kourambas, the company had been spending an average of $400,000 per annum on listing costs, which were eating up profits. In its financial report to June 30, the business recorded a net loss of $67,000 on revenues of $8.7 million. The remaining listed company shell has been renamed New Opportunity Limited.
Its board was currently looking to acquire a business for a backdoor listing, he said. For Lako, the focus would now be on growing its product range, Kourambas said.
He highlighted home automation and home networking as two key areas of expansion during the next year.
The distributor has also relocated from Kew in Victoria to the Melbourne suburb of Heidelburg. The new premise was more than twice as big, Kourambas said. As a result, Lako had hired several technical and sales staff.