Monday, 14 November 2005 11:00

Volante shares plummet on first half forecast


Shares in IT products and services firm Volante Group (ASX:VGL) took a 30% nosedive after news that the company's first half forecast would be lower than market expectations.

Last week, Volante shares dropped from $1.30 to $1.17 in a day, prompting the ASX to issue a standard please explain query to the company. In response Volante issued two releases stating that the company had incurred a total of $3.25 million in non-recurring costs related to corporate restructuring, tender submissions and redundancy payments. As a result Volante expects to achieve a first half EBITDA of between $11.5-$12.0 million instead of $14.8-$15.3 million. The market obviously wasn't very happy with Volante's reponse to the ASX because the shares tanked further to close on 94c.

Volante attributed the company's intended transition away from products and toward services as being responsible for a large portion of its non recurring costs. "Implementation of these structural changes has involved redundancy costs of $750,000 and other non-recurring costs totalling $1.5 million before tax in the first. These costs are expected to have a pay back within 12-18 months," said the Volante statement. "The company has also incurred tendering costs of approximately $1.0 million for large managed contracts. The outcome of these bids will not be known  until the second half of 2005/6 and, if the company is successful, the benefits will accrue from 2006/7 onwards."

Volante's performance in the first half of calendar year 2006 should provide the answer as to whether the market has judged the IT services provider too harshly and presented investors with a buying opportunity or whether the devaluation of the company was justified.

Subscribe to ITWIRE UPDATE Newsletter here


The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.


Stan Beer

Stan Beer assists with Digital Advertising installation and monitoring of advert performance. With 35 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications. Any previous news story submissions should be director to and advertising enquires to

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News