An ASX-listed utilities management provider has collapsed into voluntary administration, following months of financial challenges during which its losses have continued to grow.
Intermoco appointed Daniel Juratowitch and Bruno Secatore of Cor Cordis as voluntary administrators on July 3. Both were contacted by SmartCompany but were unavailable to comment prior to publication.
Victorian-based Intermoco provides “managed utilities”, allowing customers to connect utilities into one bill, while also providing other services including data collection and management, and the provision of smart metering, voice and data and services to tenants.
Although the business was placed in administration last week, it has been suffering financial difficulties for some time with limited access to funding.
In the company’s most recent half-yearly report, it recorded a loss of $1.17 million, up from $956,679 during the previous corresponding period.
The business had implemented a capital raising process with the hope of raising $1.5 million, but on May 15 it announced a shortfall of $604,000. The company entered discussions with other investors for alternative funding.
However, a director resigned later in May and a trading halt was implemented on July 2. The company entered voluntary administration the next day.
In the company’s 2011-12 annual report, chairman John Evans said the company had focused on growing the company’s various business units, but noted poor performance in product sales.
“In summary, the Board acknowledges there is certainly more work to do in relation to financial performance, and we anticipate achieving further improvements again in 2012-13,” Evans wrote.
Evans also said “renewed jitters” in financial markets during 2011 had an adverse impact on the company’s share placement and purchase plans. He also wrote of “very restricted access” to other financing options.
The administration comes just a few months after Intermoco appointed a new managing director.
Accounts auditors Nexia said in its review of Intermoco’s half-yearly report the company’s financial situation carried a “material uncertainty which may cause significant doubt about the consolidated entity’s ability to continue”.