KEY POINTS:
Newly merged payment-technology company ProvencoCadmus expects an annual saving of $7.5 million from restructuring.
The company announced yesterday that it planned to shed about 100 jobs - a quarter of its total staff - as a result of doubling up arising from the merger of Provenco Group and
Cadmus Technology this month.
Chief executive Jim Doyle said some sales, engineering and support roles would go, as well as some middle-management roles.
"We've not defined the detail yet, but it's across the company."
Doyle had flagged redundancies shortly before the shareholder vote last month, and staff were given more details yesterday afternoon at Provenco's offices in College Hill.
A review now underway will determine final redundancy numbers, but the expectation was for staffing levels to fall by about a quarter.
The details were still being finalised but Doyle expected the saving to be about $7.5 million annually.
"As previously advised to the market throughout the merger process, the two companies shared many operating synergies and it was these synergies that presented shareholders with achievable cost savings through the two businesses merging."
The staffing review will focus on the merged company's payments, technology and retail automation division, and will not affect the Vantex distribution business.
Provenco and Cadmus posted revenue last year of $170.9 million and $25.4 million respectively but net losses of $5.2 million and $4.5 million.
Provenco reported a December half-year net loss of $4.6 million and Cadmus a half-year loss of $671,000.
"We want to continuously invest in the future, but unfortunately the way we are from a performance point of view, we need to realign the business."
Doyle said staff would have certainty very soon.
"We've made a commitment to the staff that everybody will know exactly where they are by the end of June.
"Where positions are made redundant, we will be offering full support with initiatives like a career-transition programme, provided through an external specialist."
The company also plans to seek $15 million from shareholders to reduce debt and fund future expansion.
ProvencoCadmus shares fell 4c yesterday to close at 34c.
LINKING UP
* Provenco supplies Eftpos payment and retail technology in New Zealand and its Vantex subsidiary distributes payment technology in Asia Pacific.
* Cadmus designs, develops and manufactures Eftpos terminals.
* Both companies agreed to merge last October.
* The Commerce Commission cleared the merger on February 7, having been satisfied that it would not substantially lessen competition.
* The merger needed 75 per cent shareholder approval - 99.98 per cent of Provenco shareholders and 93.46 per cent of Cadmus shareholders voted "yes".
