Perth, Nov 11, 2008 AEST (ABN Newswire) - HELICON GROUP LIMITED (ASX:HCG) announced today that it has implemented a restructuring and cost reduction program in response to the ongoing delays by the Chinese regulatory authority, the State Food and Drug Administration (SFDA), to grant regulatory approvals across the board and an anticipated slow down in economic activity in China.
The restructuring and cost reduction programs should result in a reduction of operational costs by approximately 40 to 50% from December 2008.
The cost management program that will follow will ensure the Company has approximately two years of funding.
The Company remains confident that its business model is viable and continues to actively pursue its strategy to gain regulatory approval for its existing range whilst also negotiating with various groups to add to its portfolio.
The Company will also investigate other opportunities and directions.
"Helicon's Board of Directors has recognised these short term hurdles to the implementation of the Company's strategy and is taking the longer term view in this restructure" commented Helicon CEO Peter Abrahamson.
The Company will continue to use its expert consultants and established logistics partners as a cost-effective market access and market development strategy.
Contact
Peter Abrahamson
Helicon Group Limited
Level 1, 173 Mounts Bay Road Perth WA 6000
Tel: +61 411 336 330 (Australia)
Tel: +86 1366 147 9600 (China)
Email: peter@helicongroup.com.au
Website: www.helicongroup.com.au
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