Dave Hallas has stepped down as acting CEO of Nashua, and has been replaced by Nashua Mobile CEO Mark Taylor as the company closes down its mobile arm.
Taylor says Hallas, who was appointed last November to take over from David Coutinho, has given the company the usual amount of notice, and will return to his role as marketing director until the end of his notice period.
Coutinho left after two years as MD of Nashua, bringing to an end his 27 years with the company. Taylor, who took over Nashua a month ago, says the marketing director slot will be advertised and filled in the "coming months".
Nashua's brands have recently been through restructuring to take into account market changes, says Taylor. "We believe that, in this newly-structured and focused shape, we are well poised to take advantage of future growth opportunities."
Converged growth
Opportunities lie in areas such as document management solutions, document management workflow optimisation, as well as expanded voice integration offers for its office automation franchisees, says Taylor. He adds the "market continues to present new opportunities in converged opportunities which the Nashua group of brands is well poised to take advantage of".
In the first half of the year, Reunert's Nashua unit improved its top line 3%, to R3.4 billion. However, excluding Nashua Mobile, revenue increased 10%, to R1.6 billion. Operating profit from continuing operations increased 11%, to R204.4 million.
In April, Reunert said it was selling off Nashua Mobile's subscriber base, and would eventually close the unit. The business weighed on Nashua at half year, dragging its operating profit down 8%, to R290 million, as revenue dropped 5% because of price deflation in the mobile industry, as well as the impact of the reduced incentives received from the service providers.
It will sell its Vodacom and MTN subscribers to the mobile duopoly for R2.26 billion, while Altech Autopage will buy its 65 000 Cell C subscribers for R91.5 million.
Approval needed
Taylor says Nashua Mobile is being wound down, but the outcome depends on Competition Commission approval. He says any retrenchments linked to the process will depend on the commission's ruling, but the company will aid staff in finding alternative employment should this be needed.
Nashua Mobile, which has around 950 000 customers in total, was formed in 2000 after Nedtel Cellular and Nashua Cellular merged. It currently employs 601 staff and has 94 stores, the bulk of which are owned by franchisees.
Taylor says the future of the franchises depends on talks happening with various undisclosed parties in SA, and will also be subject to competition approval.
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