Fuji Xerox NZ posts full-year loss, plans 'internal restructure'

Fuji Xerox has begun consultation on an internal restructuring plan. Photo / NZ Herald

Fuji Xerox NZ has reported a net loss of $1.5 million for the year to March 31 amid falling sales and is consulting staff on an internal restructuring plan.

The office supplies company, which remains under investigation by the Serious Fraud Office in relation to a $355m financial scandal in 2017, was recapitalised to the tune of $367m last year to repay intercompany loans.

Total revenue fell to $149.45m in the March year, down from $172.9m in 2019, according to financial statements filed with the Companies Office and audited by KPMG.

The net loss compared with a small $53,000 profit in 2019 after bouncing back from a $7.5m loss in 2018.

Fuji Xerox NZ was reinstated as a government contractor in April last year despite the SFO investigation. In October, former auditor EY was added to Fuji Xerox's civil legal proceedings against three of its former executives after the firm's "inappropriate accounting" over a six-year period was exposed.

At balance date, Fuji Xerox NZ had net current assets of $14.6m and positive equity of $19.5m.

Notes to the accounts state that the firm's immediate parent, Fuji Xerox Asia Pacific Pte and an intermediate parent, Fuji Xerox Co, have provided continuing letters of support to the company.

The letters provide commitment of financial assistance to the company to ensure it can meet its debts as they fall due.

The accounts also note that during lockdown in April the firm received inquiries from customers requesting payment relief.

"Various initiatives such as payment deferrals have been offered to customers," the company said.

In April the company received $3.7m from the Covid-19 wage subsidy scheme.

Expenses included remuneration of key management totalling $3.7m compared to $3.6m in 2019.

In June this year the company announced an internal restructuring plan, "which is currently in the consultation phase and any financial benefits will be realised in the next financial year".