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Comms Groups weighs up sale options

June 21, 2023

Read time: 2 min

“It’s a strategic review designed to maximise shareholder value,” he said. “It is the board’s view that the sum of the parts (of the three key business units) is worth significantly more than the market’s current valuation of the company.”

There is no timeframe for when the review will end, with the company stating it will continuously update the market. 

Latimer Partners have been retained as financial advisers to assist in the review, which follows a restructure in April.

According to a document about the strategic review, the restructure was successful in reducing operating costs to the tune of $2 million, which was predominantly in its small- to medium-sized enterprise (SME) and ICT business units.

At the time, the strategy was forecast to make an underlying annualised earnings before interest, tax, depreciation and amortisation (EBITDA) of roughly $7 million, including $2 million in operating costs. 

Other cost-saving measures included synergies with onPlatinum, which Comms Group acquired last year for $18 million.

This included focusing on network and cost of goods sold synergies to save $300,000 in FY24. 

by Sahsa Karen

Originally Published by ARN