20:20 Logistics and Dextra to restructure

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20:20 Mobile Group will embark on the task of combining the back offices of its 20:20 Logistics handset division and its Dextra accessories unit this month, following the completion of its financial restructuring.

It is also set to refresh its brand. Both the 20:20 handset Dextra accessories brands will be retained, although new divisional logos are likely to be introduced. The brand reviewwill take two months.

A source close to the company said: "The group is rationalising its back office functions in a bid to move the company into a new era, replacing the siloed model inherited from the Caudwell era. This work is expected to take another month to complete and is intended to be a hard-headed de-duplication of staff and functions."

Senior UK and international executives last week heard 20:20 chief Meinie Oldersma explain the detail of the company’s financial restructure and unveiled his 10 quarter strategy for growth.

The source added: "20:20 wants to position itself as a value-added supplier, developing strategic partnerships in a maturing market. It is a clear direction after the well-documented period of hiatus."

The restructure is aimed at stripping out unnecessary costs and integrating supply contracts and sales legers. Jobs at all levels are expected to go.

20:20’s refinancing will see the banking syndicate that put up the debt for Doughty Hanson’s original purchase of 20:20 in late 2006 write down net debt to £92 million and receive a 45 per cent equity stake in the business.

Doughty Hanson has injected £15 million capital into 20:20. A £30 million credit facility has also been restored to the distributor.

The shareholder structure sees the banking syndicate, led by RBS, take 45 per cent too, with 20:20’s management taking 10 per cent.

The board will comprise two representatives of both Doughty Hanson and the banking consortium, plus 20:20 chief executive Meinie Oldersma and finance chief Nick Smith.

Oldersma said: "We believe a fresh approach will enable us to become a truly global player."

Rival distributor Data Select had a £120 million bid for 20:20 Mobile turned down by the banking syndicate. Peter Jones, chairman and chief executive of Data Select parent company Phones International Group, is understood to be interested in making a second bid for the business.

A second bid would be made to the banking syndicate, Doughty Hanson and 20:20’s shareholders combined.

Jones was unavailable for comment.

 

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