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Engin Doubles Revenues And Losses. Then Loses New CEO |
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Written by Adam Gosling
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Friday, 31 August 2007 |
On the day it announced a growing gap between income and costs, Engin
has announced Chairman Will Jephcott and Chris Shaw, a founder and
director of the company, will both resign from the Board. Jephcott, who
had already flagged his intention to go after the AGM has decided to go
early after 8 years on the Board. Neil Gamble, a Director since 1999
will assume the role of Executive Chairman until the company can find a
new new CEO.
New CEO? Yes Engin announced on the 31st July that Max Alexander would
join the company, but he must have got a better offer because he's now
decided that due to personal circumstances he won't be able to relocate
from the UK to Australia as promised.
That leaves Engin without a driver and the search is back on for a new CEO as well a new Board members.
That means current CEO, Ilkka Tales will continue in his role, but
answer to Gamble, until a new candidate has been selected and is ready
to take over the reins of leadership.
The appointments don't stop there, either. The Board has also announced
the appointment of Mark Zworestine as a new Chief Financial Officer
from the 15th of October 2007 and takes over the role from Paul
Jeronimo, who plans to jump after a transition period.
But that shouldn't distract from the financial performance these
departing execs have put in. In a big year when the company saw a
massive $26 million investment from the Seven Network, the signing of
Australia's first Naked ADSL2+ deal, signed as the primary distributor
and manager of TiVo entry into Australia, and changed the first letter
of its name to a capital, Engin has more than doubled its operating
revenues.
The total subscriber base grew 71 per cent to 77,000 during the year to
June and the revenues from those customers increased by 103 per cent to
$17.4 million compared to $8.6 million for the previous year.
However, that wasn't enough to offset a blow-out in operating expenses
which increased to A$19.5 million for the year - 49 per cent up from
the year before. The company incurred an EBITDA loss of A$12.5 million
compared to previous year A$10.0 million loss.
The Loss attributable to members of the parent entity grew from A$7,319,252 in 2005/6 to A$13,804,045 2006/7.
The company's $5.4 million investment in capital assets during the year
relates to the scaling up of the business to deliver expanded services
and handle subscriber growth. $3.8 million of the capital asset
investment relates to the implementation of Cerillion, the company's
new state-of the-art customer management & billing platform.
Cash at bank as at 30 June 2007 was $12.3 million, up from $3.0m at 30 June 2006.
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