Conduit computer workers to lose jobs

By ADAM GIFFORD

Renaissance Corporation's e-commerce subsidiary, Conduit, is laying off some of its software developers but says it is still on course to list on the Singapore Stock Exchange.

Conduit chief executive John Hayson would not confirm suggestions that 10 of the 48 staff would lose their jobs.

"We're still going through a process of consultation with staff," he said.

The company might reassign some people and it wanted to bring back others as contractors if needed.

"Some parts of the business are growing, others have come to a natural conclusion as projects are completed. We need to see we have resources in appropriate areas."

Conduit was set up to develop the software and delivery systems for Renaissance's IT distribution business.

It works on an application service provider model, hosting companies' websites and providing all the processes for electronic business.

Conduit has targeted other distribution-oriented companies in New Zealand, Australia and Southeast Asia.

Mr Hayson said Conduit had had a lot of work as it installed the system at several New Zealand sites, including consumer electronics distributor Monaco Corporation.

It was now installing the system for its biggest customer so far - Australian food wholesaler Bidvest.

That deal was worth about $500,000 over three years, most of it in the first year.

Mr Hayson said that as Conduit's software developed, it needed fewer people to install and support it.

The Development Bank of Singapore has a 17 per cent stake in Conduit, and is helping it work towards a Singapore listing.

The company needs a minimum market capitalisation of $S80 million ($108.54 million) to get a main board listing.

Mr Hayson said the market was still too soft for a listing.

"We want to make sure when we list that we do it at an appropriate valuation so we can receive a cash injection and do it in a marketplace where we can deliver benefit to shareholders."

Renaissance shares traded at 85c yesterday. They were around $1 in April.