Software
Services
Security
Hardware
Networking
Mobility
Voice & Data
Storage
Sales & Marketing
Training & Development
Strategy
Finance
Login
|
Register
|
Sitemap
|
RSS
Features
|
Galleries
|
Events
|
Awards
|
Magazine
|
Newsletter
|
Subscribe
|
Fast50
Home
>
News
>
Your Business
>
Finance
>
Cellnet repays $10M loan
Finance
Cellnet repays $10M loan
By
Lilia Guan
Dec 2, 2008 3:18 PM
Tags:
cellnet sandy
Australian distributor, Cellnet has repaid the $10 million, taken out as part of its strategic direction change.
Sandy Beard, chairman of Cellnet’s board told
CRN
that the loan was to be repaid by the first of December and was no longer needed because the company's situation has improved.
“Part of a strategy to strengthen Cellnet was making sure the debt was repaid,” he said.
“It’s a long way from being over – on getting it back on track. It’s slow, but we are surely going well, even in this tough environment.
According to Beard, after repayment of the above term loan the distributor's cash on hand will approximate $5 million.
"This is expected to improve as the company continues its orderly exit from its transactional stock holdings in the notebook and desktop distribution market," he said.
Beard said the company exited those markets because it couldn’t make a return on investment.
"As outlined in the announcement to the market on
31 October
, the exit from this transactional business is expected [to] see the release of approximately $10 million in working capital as inventory and debtors are realised.”
He said the use of these additional cash resources expected to be released has yet to be decided on by the Board and could include growing the remaining parts of the business either organically or through acquisition.
“We are on track to ending with a strong balance sheet and having a profitable viable proposition for customers and vendors.”
“Cellnet is purely getting back to being a healthy business with profitability. There are a ton of initiatives,” said Beard.
When CRN inquired about any further
warehouse
closures or staff cuts, Bear said: “In terms of what we have done, they were initiatives we said we were going to do in earlier statements.”
Related Articles
Cellnet cuts ties with Jabra
Cellnet expands mobility portfolio
Cellnet records $15.8 million loss
Cellnet sells IT division assets to Avnet
Breaking Stories
Exetel, Netspace press case to become Tassie NBN ISPs
Mwave offers free shipping
HP settles spat over counterfeit printer ink
Microsoft makes new push for virtual desktops
Interview: Cloud to be enterprise ready by 2020, says RSA President
Related Listings
Cellnet Group Ltd
Email this
Print this
Tweet this
Send us your tips
Comments
Be the first to comment on this article.
Thoughts on this article? Add a comment below.
Comment:
Want to participate in the discussion?
Register for FREE
Or
log in
now to comment
Ads by Google
Top Stories
A guided tour of Cisco's proof-of-concept centre
A data centre to test your customers' rigs.
Interview: Peter Kazacos and the "wild west" of IT
CRN
talks to Hostech chairman and industry veteran, Peter Kazacos.
On the Move: March
Updated: Appointments and promotions.
Most Read
|
Most Discussed
Online retailer's 'reseller only' claims rejected
Mwave "embarrassed" by ACCC warranty notice
Telstra and Polycom launch video phone service
Case study: Cisco's first UCS customer Catholic Education
Simms: how to survive as an Apple reseller
Resellers in uproar over SaaS pricing
Online retailer's 'reseller only' claims rejected
Mwave "embarrassed" by ACCC warranty notice
Case study: Cisco's first UCS customer Catholic Education
From the coalface: The IT profession needs to grow up
Shortcuts
all you need to know on...
Latest Comments
"Thanks Glen, I've made those corrections."
on
Case study: Cisco's first UCS customer Catholic Education
by
sholtomacpherson
Mar 19, 2010 10:33 AM
"This result is the law! It even applies to the small telco sellers in the mall of a shopping ..."
on
Online retailer's 'reseller only' claims rejected
by
peter
Mar 18, 2010 9:10 PM
"Additionally, any small business with growth (and competition) on their mind would do well to ..."
on
Opinion: “Myopic” Microsoft lost in the cloud
by
bld
Mar 16, 2010 9:54 PM
"Finally on line retailers having to behave like retailers. I have purchased quite a lot from ..."
on
Mwave "embarrassed" by ACCC warranty notice
by
tonyh
Mar 16, 2010 5:01 PM
"Lenovo products are excellent, even after moving away from the traditional IBM regime. All our ..."
on
Lenovo: HP is after your customers
by
em3
Mar 16, 2010 3:44 PM
Polls
Have you experienced a problem when returning faulty goods to online retailers?
Never
Only once
All the time
|
View results
Never
40%
Only once
10%
All the time
50%
TOTAL VOTES: 10
Vote now
view previous polls »
CRN Magazine
Issue:
277
|
March, 2010
CRN Magazine looks in-depth at the emerging issues and developments for the Channel, and provides insight, analysis and strategic information to help resellers better run their businesses.
What's in this issue?
Subscribe Now!