GDC "stable going forward with Downer/Areva"

[etrader]

Further developments securing GDC's future as a large player specialising in their field of experience.

This stock has to have turned a corner now with this new revenue stream.


GDC03/06/2004GENERAL REL: 1659 HRS GDC Communications Limited GENERAL: GDC: GDC secures Downer sub-contract The directors of GDC Communications Limited are pleased to advise thatagreement has been reached for GDC to sub-contract to Downer Connect Limitedfor ongoing work servicing the Telecom network. This work is in addition tothe Heads of Agreement recently reached with Alstom T & D NZ Limited. The sub-contracting agreement with Downer is focused principally on theprovision of services within the Auckland geography, and is for an initialperiod of three years beginning on the expiry of the current Auckland patchcontract in August, 2004. Collectively, the two subcontract agreements are expected to generate closeto $10 million of contracting revenue for GDC on an annualised basis. The directors are confident that the new sub-contracts with Downer and Alstomwill generate satisfactory levels of cash flow and profits for GDC goingforward. These sub-contracts will provide a good core of work to enable GDCto retain its highly effective and efficient North Island contracting teamsand to achieve expansion of contracting operations into the future.End CA:00101005 For:GDC Type:GENERAL Time:2004-06-03:16:59:28

[Bullet]

yippee! Any thoughts on how the market might react to this news? Friday will be an interesting day!!

[SEC]

quote:Originally posted by etrader


This stock has to have turned a corner now with this new revenue stream.


I see it as a continuation of an existing revenue stream under far more onerous terms and far less profit.

The profit margin GDC enjoyed originally on the Telecom contract has been taken up by Telecom and Downer/Alstom, with only crumbs left for GDC.

Furthermore the revenue from these two subcontracts is only $10M per annum whereas it was $40M previously.

It probably only ensures GDC's short term survival, with GDC hoping it can extract profits from other divisions in the meantime.

SEC

[willy_wonker]

Good luck guys, you will need it.

[ari]

quote:Good luck guys, you will need it.
ww...wot do U hold, negative about GDC, negative about TEN.
I've just sold 50% my GDC for a $7k profit if that's any help:D

[lucky]

ww..is too busy posting here ,there and everywhere, to hold anything !!!!!!!!

[etrader]

I see it as a continuation of an existing revenue stream under far more onerous terms and far less profit.

The profit margin GDC enjoyed originally on the Telecom contract has been taken up by Telecom and Downer/Alstom, with only crumbs left for GDC.


SEC
[/quote]

$10 million worth of work is better than no work at all, firing lots of staff, selling vans and equipment and writing down book value of these assets to relise cash. Yes this has probably created GDC into a case of not closing down shop altogeter.

Kiwi's are so good at bagging companies that are trying to make a go of things, they just got crushed by two multi nationals that will take work at break even or a loss just to create new work going forward for their shareholders.

To date I'm very happy with the performance of the shares i purchased, and reading the annual report the efforts they've taken to turn around losses, not forgetting that profit before tax and write off's is positive.

[willy_wonker]

Suckers, I made that much at the casino last time I was there. Wait till full year report day.

[ari]

quote:Suckers, I made that much at the casino last time I was there. Wait till full year report day.
willy w a n k e r....you are such a dick!

[eGuru]

quote:Originally posted by willy_wonker

Suckers, I made that much at the casino last time I was there. Wait till full year report day.

The directors of GDC Communications Limited advise that the Group hasrecorded an After Tax Loss of $227,000 for the year to 31st December,which was in line with the loss to year end that willy_wonker made at the casino on last visit.This is an audited result, and compares with the After Tax Loss of $4.635Mreported for the previous year.

[drum]

GDC seems to be falling rather rapidly with few buyers left. Anyone know wether it could be considered 'cheap' and be a good time to buy, or better to stay well away?

[The Doctor]

doomed....no profit in deal,CHH using the same 'tactics' on contractors....survival short term only.

[HarryFlashman]

Alstom seem to be selling their NZ business - does this mean the division that maintains the TEL network is (or might be) for sale?

Cheers
Harry

[drum]

In this mornings NZ Herald:

Alstom sold its transmission and distribution unit in January to French company Areva. The New Zealand unit's business includes maintenance contracts for Telecom's networks.

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=3578376&thesection=business&thesubsection=transport&thesecondsubsection=rail

[willy_wonker]

How much is a lost making contract worth?

$1?

[ari]

quote:Alstom seem to be selling their NZ business - does this mean the division that maintains the TEL network is (or might be) for sale?
With GDC getting crumbs from TEL would this not be an opportune time for say Telstra to get into bed (like totally) with GDC and stymie TEL...just thinking out loud:)

[etrader]

quote:Originally posted by ari

[quote]Alstom seem to be selling their NZ business - does this mean the division that maintains the TEL network is (or might be) for sale?
ALREADY SOLD TO AREVA THEY BOUGHT THE WORLDWIDE PART OF ALSTOM AND GDC ARE CONTINUING TO SUB TO THEM INSTEAD, AREVA TOOK THE NAME OF ALSTOM T AND D TEMPORARLY BUT OFFICIALLY THE BUSINESS/VANS ARE ROLLING OUT WITH NEW LOGOS ON.

the good thing is gdc can contract to anyone else as TEL wanted exclusive contract, but Areva are doing work for Telstra in ozzy but it must be just for nz contract work the exclusive side.

Waiting in August for first 6 months, they have already stated a similar result to last years first 6 mth been a loss of 350k plus so has been built into the shareprice already one would think.

The Vodafone 3g work has gone quiet, I know Nokia was providing a large amount of the equipment around $400 mill but heard no news of install's to date.

Disc: Hold