16th Feb 2007 07:00
NETeller PLC16 February 2007 Press release Friday 16 February 2007 NETELLER Plc Group rationalisation programme substantially complete NETELLER Plc (LSE: NLR), the leading global independent online money transferbusiness, today issued the following update from its Board of Directors withregard to its principal operations in Calgary, Canada and the UK. As a result of the Group's voluntary withdrawal from the US market, the Grouphas substantially completed the necessary reorganisation and restructuring ofits operations to reduce its headcount and align related costs with anticipatedrevenues of its worldwide business. This rationalisation programme has focused on the Group's Calgary-basedoperations where the principal teams serving the US market were employed. Aspreviously highlighted, transfer volumes and customer enquiries through theGroup's contact centres have decreased substantially since the Group ceasedprocessing transfers for US residents. Staff reductions will total around 220employees, across all levels, from the Group's contact centre and securityteams, as well as related support functions in marketing, processing and IT/product support. Approximately half of the reductions were through the Group'svoluntary redundancy programme. In addition, as part of the rationalisation of the Group's UK facilities, it isexpected that around a further 30 redundancies will arise from the relocation ofthe Group's Gatwick-based operations to Cambridge where they will share premiseswith the Group's NetBanx business. This move is expected to be completed by theend of March 2007. Following these staff reductions, the Group will employ approximately 425 staffacross its European, Americas and Asia Pacific operations, down from a peak ofover 1,000 during 2006. A further part of the Group's rationalisation programmewill include a review of the Group's property requirements and may include asale or partial lease of certain of the Group's Calgary-located facilities. Asstated in our trading update of 18 January 2007, the total cash costs associatedwith staff restructuring are expected to be in the region of US$ 1.1 million in2006 and a further US$ 3.7 million in 2007. Ron Martin, Group President and CEO said: "The events of the past months haveled to challenging times for the Group and the Board has taken these measures toensure the Group has a sustainable business going forward. We would like tothank all of our employees who have contributed to the growth of the NETELLERbusiness over the past few years, and for those who have left or will be leavingthe Group, we wish you well for the future. The Board believes NETELLERcontinues to have a strong future ahead and presents many exciting opportunitiesfor its employees." The Group's shares will continue to be suspended from trading on AIM for thetime being in view of the continuing uncertainty. Further announcements will bemade as appropriate. Enquiries: Citigate Dewe Rogerson + 44 (0) 207 638 9571Sarah Gestetner/Sebastian Hoyle/George Cazenove Notes to Editors The NETELLER Group Trusted by millions of consumers to transfer billions of dollars each year, theNETELLER Group operates the largest independent online money transfer businessin the world. The Group specializes in providing innovative and instant paymentservices where money transfer is difficult or risky due to identity, trust,currency exchange, or distance. Being independent has allowed the Group tosupport thousands of retailers and merchants in many geographies and acrossmultiple industries. The Group is quoted on the London Stock Exchange's AIM market, with a tickersymbol of NLR. NETELLER UK Limited is authorised by the Financial ServicesAuthority (FSA) to operate as a regulated e-money issuer. For more informationabout the Group visit www.netellergroup.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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