Telecom faults ring up earnings

By ADAM GIFFORD

Newly-listed telecommunications infrastructure company GDC Communications says its contracts to manage connection and faults services in four Telecom "patches" will earn it $11 million this year and $20 million next year.

The company took over the Taranaki and Hawkes Bay patches at the weekend, with the cutover from the previous contractor going smoothly.

It also has patch contracts for South Auckland and North Christchurch.

Managing director Paul Honnor said contracting revenue would this year account for about 25 per cent of GDC's total forecast revenue of $45 million.

"Having established branches, implemented our patch management methodologies and completed the cutover, I believe our earnings will easily meet our projections."

Contracting was expected to account for less than a third of GDC's total operations, with faster growth expected in its design, build and maintenance operations for communications systems and networks, and in its new ASP (application service provider) business.

GDC took on 80 technicians and 10 support staff for the contracts. Most of them had previously worked for ConnecTel or Telecom.

GDC shares opened on the stock exchange last week at $1.85 after a private placement at $1.50.

Enthusiastic trading yesterday of almost 5 per cent of newly issued shares saw the price climb from $1.88 to $2.