Digital services company Hyro has bolstered its management team with the appointment of new media consultant Mark Neely as head of strategy and seasoned telecommunications executive Mac Walker as creative director.
The shoring-up of Hyro’s executive bench comes as the company strategically refocuses on its Australian business following the losure of its New Zealand and Shanghai offices.
Hyro announced last week that as part of wide-ranging cost reduction and operational restructure initiatives it had reduced annual costs by $10 million, achieved largely via job rationalisations and a streamlining of operations.
As part of the restructure Hyro’s Hong Kong business unit has been merged with the professional services operations of technology vendor partner, Avartis, to create a new joint venture called Kallidos operating in Hong Kong and Singapore. Hyro will retain 30% of the merged entity, with most staff moved across to the new company.
Hyro has closed the doors on its unprofitable Shanghai office, shedding 12 staff and has appointed a receiver for its failed New Zealand operation where another 12 staff were affected, however, some staff may be transferring to the Australian office which will now service New Zealand based clients.
Hyro’s profitable Thailand business will now form the regional base for its Asian business.
Hyro warned the market that following the realignment which was instigated as a response to poor results for 2007, it will report an operating loss for the full year.
The company conceded that its funding issues associated with the Lehman Brothers collapse has had “severe consequences for the company, impacting on customer and partner confidence during the second half of 2008. As a result, Hyro experienced lower than expected levels of revenue for several months as customers either scaled back, or deferred activities”.
Despite an arrangement being reached with Lehman Brothers Commercial Corporation Asia and a subsequent return of stronger levels in the latter part of the half, overall revenues were still adversely impacted.
The company will not be providing revenue guidance or forecasts for 2009.
Hyro is confidant however “that that a combination of the significant changes made to the business in 2008 and the expected market conditions for digital services in 2009 provide a platform for the delivery of improved operating results in 2009”.
The company added that it has enjoyed strong levels of enquiry from both existing and new customers over the last few months and has been successful in a number of bids and proposals.
