ASX-listed IT services provider, Anittel, (ASX: AYG) is seeking advice from industry consultant, John Walters, as it undertakes a strategic review of the business.
“John is very knowledgeable and well respected, and will look at how we take the business forward from where it is,” recently appointed Anittel managing director and chairman, Peter Kazacos, told ARN.
“We’ve brought a lot of companies together over a short period of time, and we need to understand that we’ve got the right culture going forward and we’ve got the best of each company.”
Kazacos said it had managed to address some cash related issues by trimming down a significant number of staff, but couldn’t disclose how many had been affected.
Anittel currently has about 190 employees on its books. When the SMB powerhouse came together in February 2010, it had more than 270 staff.
During the next three months, Kazacos said the business will revise its strategy along with its services offerings and pricing.
“We’ll be active with our revised strategy and we’re evolving that as we speak,” he said.
In a leadership shake up, Anittel CEO, Ilkka Tales, has stepped down from his post and Kazacos has taken up the managing director role and will continue as chairman of the board. Tales will remain as a director of the board, in a non-executive capacity. He took up the CEO post in March last year, and was previously the founder and CEO of engin.
Earlier this month, Anittel suffered a dramatic 1215.5 per cent loss in profit after tax amounting to $13.7 million for the half-year ending December 31. However, revenue over the same period rose 1221.6 per cent to $31.67m. At the same time last year, Anittel’s net profit dropped $1.02m loss with revenue totalling $2.4m.
The main reason for the sharp loss involved a $10.86 million impairment write down of goodwill due to a fall in product sales in Tasmania and the poor performance of the IT services.
The company plans to increase its shareholder value by increasing its managed service business and introducing more interesting offerings in the hardware and software side of the business, Kazacos said.
Even though there was a significant drop in its hardware and software business, Kazacos said managed services continued to grow.
“We’ve been successful in winning contracts in the managed services space, but those wins haven’t balanced the significant loss in opportunities and revenue in the hardware business. We’re looking at how to rebalance the business,” Kazacos said.
In April last year, the company confirmed a management restructure and staff cuts were expected following its acquisitions of Anittel, Axxis Technology, Aspirence and Accord Technologies.