THE bold move to cull GDC’s executive has seriously paid off as the company has recorded a solid financial turnaround for December, 2003.
While the phone services company has still recorded a loss, the $227,000 deficit is a marked improvement on its $4.6 million loss for the previous year. The 2003 result coincides with the first anniversary for managing director Geoff Lawrie, who has taken a new broom to the executive. “We’ve replaced all the management team bar one,” Lawrie says.
GDC made the announcement of the audited figure to the New Zealand Stock Exchange on February 27.
It follows contract dissolutions between GDC and Telecom. Late last year, Telecom cut GDC from its list of patch service contractors and in January ended its status as a reseller of GDC’s rented application software, Ivasp.
But those parting of ways have not impacted on 2003 revenue because the patch contracts do not end until August and Ivasp sales through Telecom were minuscule. Ivasp sales overall increased 70% over 2002.
The company’s stock exchange statement says the improvement in financial performance was due to an increase in total sales from $54 million to $56.8 million, or 5.4%, and all three divisions — contract services, voice and technology solutions — reporting revenue increases. A reduction in expenses of $3.5 million was also a factor. This is despite $250,000 in costs associated with the failed Telecom patch contracts tender.
Lawrie says there are “no major restructures ahead” but the company plans to “diversify” from doing fixed cable work — of which Telecom “is such a big part” — to doing more work in the wireless and fibre optic areas.