ready4luck
EOG Member
RNS Number:3683R
NETeller PLC
16 February 2007
Press release
Friday 16 February 2007
NETELLER Plc Group rationalisation programme substantially complete
NETELLER Plc (LSE: NLR), the leading global independent online money transfer
business, today issued the following update from its Board of Directors with
regard to its principal operations in Calgary, Canada and the UK.
As a result of the Group's voluntary withdrawal from the US market, the Group
has substantially completed the necessary reorganisation and restructuring of
its operations to reduce its headcount and align related costs with anticipated
revenues of its worldwide business.
This rationalisation programme has focused on the Group's Calgary-based
operations where the principal teams serving the US market were employed. As
previously highlighted, transfer volumes and customer enquiries through the
Group's contact centres have decreased substantially since the Group ceased
processing transfers for US residents. Staff reductions will total around 220
employees, across all levels, from the Group's contact centre and security
teams, as well as related support functions in marketing, processing and IT/
product support. Approximately half of the reductions were through the Group's
voluntary redundancy programme.
In addition, as part of the rationalisation of the Group's UK facilities, it is
expected that around a further 30 redundancies will arise from the relocation of
the Group's Gatwick-based operations to Cambridge where they will share premises
with the Group's NetBanx business. This move is expected to be completed by the
end of March 2007.
Following these staff reductions, the Group will employ approximately 425 staff
across its European, Americas and Asia Pacific operations, down from a peak of
over 1,000 during 2006. A further part of the Group's rationalisation programme
will include a review of the Group's property requirements and may include a
sale or partial lease of certain of the Group's Calgary-located facilities. As
stated in our trading update of 18 January 2007, the total cash costs associated
with staff restructuring are expected to be in the region of US$ 1.1 million in
2006 and a further US$ 3.7 million in 2007.
Ron Martin, Group President and CEO said: "The events of the past months have
led to challenging times for the Group and the Board has taken these measures to
ensure the Group has a sustainable business going forward. We would like to
thank all of our employees who have contributed to the growth of the NETELLER
business over the past few years, and for those who have left or will be leaving
the Group, we wish you well for the future. The Board believes NETELLER
continues to have a strong future ahead and presents many exciting opportunities
for its employees."
The Group's shares will continue to be suspended from trading on AIM for the
time being in view of the continuing uncertainty. Further announcements will be
made as appropriate.
Enquiries:
Citigate Dewe Rogerson + 44 (0) 207 638 9571
Sarah Gestetner/Sebastian Hoyle/George Cazenove
Notes to Editors
The NETELLER Group
Trusted by millions of consumers to transfer billions of dollars each year, the
NETELLER Group operates the largest independent online money transfer business
in the world. The Group specializes in providing innovative and instant payment
services where money transfer is difficult or risky due to identity, trust,
currency exchange, or distance. Being independent has allowed the Group to
support thousands of retailers and merchants in many geographies and across
multiple industries.
The Group is quoted on the London Stock Exchange's AIM market, with a ticker
symbol of NLR. NETELLER UK Limited is authorised by the Financial Services
Authority (FSA) to operate as a regulated e-money issuer. For more information
about the Group visit NETELLER Group: Creating the Global Freedom to Manage and Move Your Money.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTGUUUUPUPMGRA
NETeller PLC
16 February 2007
Press release
Friday 16 February 2007
NETELLER Plc Group rationalisation programme substantially complete
NETELLER Plc (LSE: NLR), the leading global independent online money transfer
business, today issued the following update from its Board of Directors with
regard to its principal operations in Calgary, Canada and the UK.
As a result of the Group's voluntary withdrawal from the US market, the Group
has substantially completed the necessary reorganisation and restructuring of
its operations to reduce its headcount and align related costs with anticipated
revenues of its worldwide business.
This rationalisation programme has focused on the Group's Calgary-based
operations where the principal teams serving the US market were employed. As
previously highlighted, transfer volumes and customer enquiries through the
Group's contact centres have decreased substantially since the Group ceased
processing transfers for US residents. Staff reductions will total around 220
employees, across all levels, from the Group's contact centre and security
teams, as well as related support functions in marketing, processing and IT/
product support. Approximately half of the reductions were through the Group's
voluntary redundancy programme.
In addition, as part of the rationalisation of the Group's UK facilities, it is
expected that around a further 30 redundancies will arise from the relocation of
the Group's Gatwick-based operations to Cambridge where they will share premises
with the Group's NetBanx business. This move is expected to be completed by the
end of March 2007.
Following these staff reductions, the Group will employ approximately 425 staff
across its European, Americas and Asia Pacific operations, down from a peak of
over 1,000 during 2006. A further part of the Group's rationalisation programme
will include a review of the Group's property requirements and may include a
sale or partial lease of certain of the Group's Calgary-located facilities. As
stated in our trading update of 18 January 2007, the total cash costs associated
with staff restructuring are expected to be in the region of US$ 1.1 million in
2006 and a further US$ 3.7 million in 2007.
Ron Martin, Group President and CEO said: "The events of the past months have
led to challenging times for the Group and the Board has taken these measures to
ensure the Group has a sustainable business going forward. We would like to
thank all of our employees who have contributed to the growth of the NETELLER
business over the past few years, and for those who have left or will be leaving
the Group, we wish you well for the future. The Board believes NETELLER
continues to have a strong future ahead and presents many exciting opportunities
for its employees."
The Group's shares will continue to be suspended from trading on AIM for the
time being in view of the continuing uncertainty. Further announcements will be
made as appropriate.
Enquiries:
Citigate Dewe Rogerson + 44 (0) 207 638 9571
Sarah Gestetner/Sebastian Hoyle/George Cazenove
Notes to Editors
The NETELLER Group
Trusted by millions of consumers to transfer billions of dollars each year, the
NETELLER Group operates the largest independent online money transfer business
in the world. The Group specializes in providing innovative and instant payment
services where money transfer is difficult or risky due to identity, trust,
currency exchange, or distance. Being independent has allowed the Group to
support thousands of retailers and merchants in many geographies and across
multiple industries.
The Group is quoted on the London Stock Exchange's AIM market, with a ticker
symbol of NLR. NETELLER UK Limited is authorised by the Financial Services
Authority (FSA) to operate as a regulated e-money issuer. For more information
about the Group visit NETELLER Group: Creating the Global Freedom to Manage and Move Your Money.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTGUUUUPUPMGRA