Publicly listed Moore announced the loss in a statement to the ASX yesterday.
The statement said: “Tabcorp have advised Moore Australasia (Holdings) Limited that the venue consumables contract with Tabcorp, which was the subject of a recent re-tendering process, will expire on 31 May 2011.
“The venue consumables contract business represented approximately 21% of total revenue for the 12 months to 31 December 2010.
“The company [Moore] is currently assessing the impact of this loss on the company’s future outlook and a more detailed statement will be provided once this review has been concluded,” read the statement.
In a statement to the ASX on 12 October 2010, Moore said its expected revenues for the full-year to 30 June 2011 to “be of the order of $54m to $57m”. This would put a value of at least $10m on the Tabcorp contract.
The contract comprises print as well as mailing, warehousing and logistics.
Moore’s shares were trading at 4c on the ASX today, an 85% fall from its 52-week high of 27c in February 2010 following its “backdoor float” via the merger with publicly listed entity Argus Solutions.
It also marks a major blow to Wodonga-based supplier South Pacific Print Group, the former Paragon Printing site at the centre of last year’s prolonged administration and subsequent buyout by Print Media Group (PMG).
PMG general manager sales & marketing Lisa Stark told ProPrint the impact on the 80-staff Wodonga plant would be “dramatic”.
“Absolutely it will have a huge impact on Wodonga. It is a very very difficult situation. A great deal of the work that channelled through there was directly related to Tabcorp,” she said.
She had been told the work was moving to Blue Star where it would be produced sheetfed.
Industry sources confirmed that the print component of the contract had been won by Blue Star’s IQ print management arm.
It would be a big win for Blue Star IQ after some major losses in 2010, including Vodafone-Hutchison going to Business Print Australia and Westpac-St George being picked up by Stream Solutions.
Neither Moore Australasia chairman David Paterson nor a Tabcorp spokesperson had responded to ProPrint at time of publication.
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