Melbourne, April 14, 2008 AEST (ABN Newswire) - Mobi Limited (ASX: MBI), Australia's Leading IP business telephony company and traditional business phone installer, announced today that its wholly owned subsidiary, Sholl Communications has achieved a record monthly profit for March of A$130,000.
"Our hard work to streamline the operations of Sholl Communications has paid off handsomely and there is more to come," said Mobi Limited, CEO, Mr. Michael Abela.
Sholl Communications specialises in providing complete telephone and IP (internet protocol) networks for businesses across Australia.
"This is another positive signal towards our stated goal of delivering a profit for Mobi in 2008/09," Michael added.
Company Update
- Sholl Communications ("Sholl") has achieved a profit for March of $130,000
- The positive result is the culmination of a significant change management project to revitalise the business
- Overhead costs of Sholl have been reduced by at least 30% enabling the business to better manage profitability regardless of fluctuations in monthly revenue
The Sholl Business has been the subject of a significant revitalisation since its acquisition in September 07. Whilst the fundamentals of the business were sound, many of its practices and procedures needed to be improved significantly.
A major focus of the changes was on improving the accountability of the sales force and reducing overhead costs to ensure more consistent profitability and positive cash flow.
As part of the work undertaken, staff numbers were reduced by close to 50%, significantly reducing fixed overheads of the business. Amongst the staff that concluded their employment/engagement was Mr. Garry Sholl.
Although undertaken with regret, the Company has taken steps to ensure that neither Mr. Sholl nor his associated entities have any further management involvement with the Company. Mr. Sholl and his associated company have issued proceedings asserting wrongful dismissal. This proceeding will be defended and we are confident of our prospects of success.
Additionally, the Company is investigating a number of anomalies in the Sholl accounts, which the Company believes contributed to Sholl's initial underperformance and will be taking action against any necessary party should such proceedings be considered appropriate.
"Whilst it has been hard work, the team at Sholl has really pulled together and we are now proud that we have a more professional and profitable entity, which combined with our other operational subsidiaries we aim to deliver a profitable full year result in 2008/09," said Michael.
As with all subsidiaries, the Directors are focused on continuous improvement and growth and the focus of Sholl Communications will be continuing control of costs and sales improvements.
April is off to a strong start for Sholl, last week signing up a contract to install a state of the art Avaya IP Office phone system with a full call centre application for Camp Australia. Camp Australia is the leading provider of Outside School Hours Care nationally. The installation includes the new phone system, cabling and peripheral devices such as wireless headsets.
A key element of the continuous improvement adopted within the Sholl Communications business will be to add to the strong sales pipeline of small to medium systems with larger systems, such as Camp Australia which is a $130,000 contract installation.
Mr. Malcolm Lewis, General Manager of Sholl Communications (and former 50% partner in the business prior to Mobi's acquisition), says, "being acquired by Mobi has been very positive for Sholl Communications. It has enabled the business to become more professional and driven and we are seeing the results start to flow through."
Contact
Justyn Stedwell
Company Secretary
Tel: 03 9 698 7800
Fax: 03 9 698 7878
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