MOORE Australasia (Holdings) Ltd, former operator of the Moore Paragon plants in Wodonga, has gone into external administration as its financial difficulties worsen.
Its future is now in the hands of chartered accountants McGrath Nicol and trading in Moore shares is suspended.
The directors’ move to place Moore into voluntary administration follows last week’s closure of Moore’s warehouse in Wodonga and the print works which last traded as South Pacific Print Group.
McGrath Nicol partners Shaun Fraser, Shane O’Keeffe and Anthony McGrath are the administrators.
Last month Moore Australasia told the Australia Stock Exchange the company’s trading activities had been severely affected by a restructure in February and the departure of both its chief executive and chief financial officer.
Moore, known as Argus Solutions until December, had recorded a $3.4 million loss on a revenue of $22.78 million in the six months to December 31.
An independent auditor found that Moore’s current liabilities at December 31 exceeded its current assets by $2 million.
The March quarter figures published in May were worse, with Moore reporting a negative cash flow of $1.787 million and cash at the end of the quarter a negative $1.5 million.
Replying to a “please explain” request from the stock exchange, Moore company secretary John Lee stated on May 17 that Moore was hit badly by losing contracts with TAB and Australian Air Express as of May 31.
The TAB contract represented 21 per cent of Moore revenue in 2010.
The Air Express contract had earned Moore $1.9 million in nine months to March 31.
Last year Moore lost lucrative Australian Taxation Office business.
Moore has a $7.6 million bank loan and Mr Lee said the bankers still supported Moore, while various suppliers had granted “relaxed terms”.
“The company will continue to reduce staffing numbers in coming months and is looking at further ways of reducing its cost base and returning Moore to profitability,’’ Mr Lee said.
Its financial position would improve after the one-off costs of restructuring had been removed and it received the benefits of selling a Western Australian business to Fraser and Jenkinson for $450,000.
Fraser and Jenkinson, trading as Print Media Group, is Moore’s biggest shareholder and is controlled by Moore director Leo Moio.
Moore’s directors are non-executive chairman David Paterson, chief executive Ralph Stonell, Mr Lee and Mr Moio.
St John’s Ambulance in Western Australia has entered into a long-term contract with Moore.