By Phil Boeyen, ShareChat Business News Editor
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Monday 23rd July 2001 |
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However the company is promising increased medium-term profitability from the move, claiming the operational restructure will save around A$6 million a year.
Deputy chairman and CEO, James Boult, says the restructuring is part of a new operating plan, known as 'Project One'.
"The new structure will produce substantial upside benefits for our customers, our staff, and particularly, our shareholders and is a first step towards making the company the most profitable in the sector."
Under the plan the company's country Victorian offices will be integrated into a regional call and collection centre in Melbourne, which will also run operations for RMG in Queensland, South Australia and Western Australia.
Offices in those states will be restructured as sales and marketing centres.
RMG says its call and collection centre in NSW and its New Zealand and Malaysian businesses will not be affected by the changes.
The company is buying what it says is a state-of-the-art call centre in Melbourne to back up its plan.
"Having immediate access to this state-of-the-art 223-seat call centre will enable us to advance the integration of regional operational functions into this one location in the shortest possible period of time," says Mr Boult.
"There will be significant cost savings in being able to get this centre operating almost immediately."
Mr Boult says the restructure will enable the company to reduce staff numbers in Australia by around 160, providing an initial annual saving of A$6 million from staff and premises.
"This is a very large cost saving, and together with the improved standards of customer service being introduced concurrently, will produce a substantial bottom line impact."
Mr Boult says RMG will absorb a substantial restructuring provision in its accounts to the end of June.
"The company is also critically examining the balance sheet values of all assets and any necessary adjustments will be reflected in the annual announcement the company expects to make by late August."
"As a consequence the company will report a loss for the 6 month trading period ended 30/06/2001."
The company says it has already reduced costs by around A$4 million since it brought the various businesses together as one group last year.
RMG has also announced the creation of a new position of chief operating officer to be filled by a UK-based New Zealander, Adrian Mitri.
Mr Mitri is currently managing director of UK collections company, Legal & Trade Risk Management Services.
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