Synergy Plus into receivership

18/03/2011 - 14:13

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Perth-based IT services group Synergy Plus has been placed into receivership after its major funder GE Capital demanded repayment of a finance facility.

Perth-based IT services group Synergy Plus has been placed into receivership after its major funder GE Capital demanded repayment of a finance facility.

On Thursday, the directors appointed Hall Chadwick's Richard Albarran, David Ingram and David Ross as administrators of the parent company, Synergy Plus Ltd, and its four subsidiaries.

The directors said they were seeking to implement a speedy restructuring of the business that would focus on its Air Data subsidiary and its services business.

Subsequently, GE appointed Taylor Woodings' Michael Ryan, Andrew Swarz and Quentin Olde as receivers and managers of the group's main operating subsidiary Synergy Plus Operations Pty Ltd.

Formerly known as ComputerCORP, Synergy Plus has completed multiple acquisitions over the past four years under the guidance of fomer chairman Domenic Martino.

Mr Martino also recruited a new chief executive in Garry Henley, who achieved success with Perth IT company Alphawest.

However, Synergy Plus failed to deliver consistent or adequate profits. Its most recent results for the half year to December 2010 were a loss of $5.9 millon on revenue of $65.8 million.

In the previous corresponding period, it recorded a profit of $0.8 million on revenue of $76.8 million.

The many changes at the company included the appointment last Novmber of Frank Stranges as executive chairman, with Mr Martino stepping down to a non-executive director role.

That came five months after the acquisition of AirData Pty Ltd, a provider of "enterprise class mobility solutions".

In February ths year, Synergy Plus announced a deal with Pacific Alliance Asia Opportunties Fund to provide up to $30 million by way of convertible bonds.

The first drawdown was due yesterday but did not proceed after GE's payment demand.

Synergy Plus has said it wants to shift from being a vendor centric product reseller to a "customer solution focused provider where service revenue will be the majority of its sales in 2011 and beyond".

 

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