PS&C is to offload another business, selling its Melbourne consulting practice for $21 million.
The decision was announced just days after its financial results for 2020 were published, which revealed a year of cost cuts and offloading had shifted its previous $51 million loss into a $3 million profit.
According to a notice to shareholders, the business unit will be sold to LVP Technology Services.
If agreed by the publicly listed company’s shareholders, the sale deal will result in a loss on sale of the business segment of approximately $5.5 million, being the difference in the carrying value of the business segment net assets (including goodwill) and the sale consideration.
However, following last year’s loss, incurred after writing off $49 million of goodwill and posting more than $10 million in debt, PS&C sold its security arm to Tesserent for $16 million.
Having divested its Allcom Networks arm in November 2018, PS&C had indicated its business would now largely centre on recruitment and professional services from Melbourne using a fee-for-service model.
However, the latest financial report instead indicated its recent purchase of real estate website farmbuy.com would form a stronger component of its offerings.
PS&C CEO Robert Hogeland has been contacted for comment.