Fuji Xerox New Zealand recorded a $43 million pre-tax loss for the year ending March and its Japanese-owned parent company is ready to step in to provide financial assistance "if necessary," according to New Zealand's National Business Review.
An exclusive report by NBR's Karyn Scherer says the company’s accounts show a pre-tax loss of $43 million and net current liabilities of $46.5 million, with amounts due to its Japanese parent totalling $99 million.
A note in the accounts says its directors have a “reasonable expectation” the company can continue to operate as a going concern for the next year. The immediate parent of the company has undertaken to provide financial assistance to the company, if necessary, to ensure the company can meet its debts as they fall due.”
Fuji Xerox NZ's revenue in 2016 was $227 million - well below last year’s revenue of $301 million.
Together with its finance arm, it has a loan facility with its Japanese parent of $284 million, which has been fully drawn down. However, it appears to have borrowed an extra $10 million from Citibank in Singapore during the year. The accounts also reveal a huge increase in “intercompany payables” from $108 million in 2015 to $162 million in 2016.
FX NZ managing director Gavin Pollard has yet to comment on the report. In May, the company announced it would be cutting up to 5% of its 800 staff in New Zealand.
NBR reports that former MD Neil Whittaker - who led the New Zealand company for 11 years then became head of FX Australia before an abrupt exit in May - has now returned to New Zealand but declined to comment on the story.
The sales team installed by Whittaker in Sydney has also left the company.