iiNet has confirmed to the market its continued suspension from trading on the Australian Stock Exchange, now into its fourth week, with no immediate knowledge of when it will resume trading.
iiNet has confirmed to the market its continued suspension from trading on the Australian Stock Exchange, now into its fourth week, with no immediate knowledge of when it will resume trading. It also made some executive and consulting appointments.
The pioneer Western Australian ISP said that it remained in voluntary suspension from trading while it continued to work towards reporting a revised EBITDA guidance for the 2006 financial year.
In other news, the company announced that chairman Peter Harley had taken on the role of executive chairman. He will act as an executive within the business for as long as required.
In addition, iiNet has also appointed GEM Consulting to facilitate a strategic review of the company.
The company is now in the process of confirming the revised EBITDA forecast, and trading data for April will also be confirmed before a revised full year guidance is released.
The information from iiNet is the latest installment in what is becoming a drawn-out process, as it tries to unravel accounting irregularities that have adversely affected the company's performance figures.
iiNet, Australia's third largest internet service provider, initially called a trading halt on April 18 and advised that it expected to recommence trading late the following week.
Then on May 1 it first revealed details of the forecasting and clerical errors that have impact the company's 2005-06 results, and said then it was likely to resume its place on the boards sometime this week.
The latest announcement casts further doubt on the immediate future of the company, with it now saying that it believes the process will take a further one to two weeks.
Mr Harley is a qualified accountant with extensive financial management and corporate experience, and has been on the board of iiNet since 1999.
GEM is a well established and respected strategic consulting firm, based in Perth, with a multi-national client base.
iiNet's share price has lost ground in recent months, falling from $3.40 in September to $1.69 prior to the suspension of trading.
THE FULL ASX ANNOUNCEMENT APPEARS BELOW.
SUSPENSION UPDATE
iiNet remains in voluntary suspension from ASX trading while it continues to work
towards reporting a revised EBITDA guidance for the 2006 financial year.
The Company also confirms that Chairman Peter Harley has been appointed Executive
Chairman. Mr Harley will act as an executive within the business for as long as required.
Mr Harley is a qualified accountant with extensive financial management and corporate
experience with a number of major Australian listed companies. He is presently a non-
executive Director of Perilya Ltd, Blaze International Ltd and Gunson Resources Ltd.
Mr Harley has been on the board of iiNet since it listed on the ASX in 1999 and has been
Chairman since 2002.
iiNet has also appointed GEM Consulting to facilitate a strategic review of the Company.
GEM is a well established and respected strategic consulting firm, based in Perth, with a
multi-national client base.
The objective of the review is to refine the Company's growth strategy, to ensure that the
Company has the requisite financial resources, that customer service standards are
maintained and improved, and that the Company is operating at optimum efficiency.
The Company is now in the process of confirming the revised EBITDA forecast. As a
matter of prudence, trading data for April will also be confirmed before a revised full year
guidance is released. At this stage, the Board believes the process will take a further
one to two weeks.
The Company remains focused on rebuilding shareholder value and the appointments of
Mr Harley and GEM are expected to assist significantly in this regard.
