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March 6, 2008 |
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VTL GROUP: Reports NZ$14-Mln Loss in 14 Mos. Ended Aug. 31, 2007 VTL Group Ltd. has filed with the New Zealand Stock Exchange its financial results for the 14 months ended Aug. 31, 2007. VTL Group reported a NZ$133 million loss for the 14-month period ended Aug. 31, 2007, after write-downs and provisions to the value of NZ$105 million. These write-downs relate to the impairment in the value of assets, intangible assets and receivable balances in subsidiary companies including the write-downs of investments in and receivables from Service America Group Inc. The revaluation process adopted reflects the expected realizable values of the various companies and assets that are in the process of being sold. VTL Group Chairman, Gary Stevens said: "The result is clearly disappointing, however the company's board and management are working through an orderly process, which included a thorough review of the company's balance sheet." He said the company had taken a conservative approach to the re- valuing of assets. Mr. Stevens went on to say "The focus of the board and management is now on protecting the assets of the company and on generating as much value as possible for the benefit of stakeholders. Legal and professional advisers have been engaged to assist with both the sales and restructuring processes. This is a difficult time for all our stakeholders and we are appreciative of the support particularly from management and staff, and of the Nathans Finance Receivers as we work through the divestment programme and the restructuring of the company." With the filing of the results, the stock exchange has lifted the suspension placed on VTL securities on Nov. 6, 2007. VTL Group Limited (NZX: VTL) is a global franchisor, with its franchised brands represented internationally including in Australasia, North America, UK and Europe. VTL Group's franchise model is supported by a complete management system including its proprietary technology and financing. The company's primary growth strategy for 24seven and Shop24(TM) is based around purchasing quality electronic vending equipment for 24seven or the manufacturing of its Shop24 units, installing proprietary control technology and building a network of franchised owner/operators. VTL Group Limited has declared itself insolvent. Its wholly owned subsidiary, Nathans Finance NZ Ltd went into receivership in August 2007. |
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