Manaccom creditors accept Deed of Company Arrangement
- 10 March, 2011 12:42
Creditors of software specialist distributor, Manaccom, have accepted the Company’s Deed Of Company Arrangement (DoCA) and it will be closed in the near future.
Parent company, Jumbo Interactive Limited (ASX:JIN) said the process of closing the “underperforming division” was expected to be wrapped up quickly.
Manaccom was placed into voluntary administration on January 31 after Jumbo decided to stop funding the business.
It then offered a cash contribution of $500,000 to a fund to pay unsecured creditors.
Jumbo’s Internet Lotteries business is unaffected by the closure of Manaccom.
Acceptance of the DoCA follows a poor 2010 financial year result when Manaccom experienced a trading loss of $3.8 million. 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 financial performance came after losing its most significant vendor partner, Trend Micro, in May 2009.
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.