Australia Post is the major client of the joint venture, which is 50% owned by each of the parties, though there are believed to be a number of smaller accounts.
In a statement to the ASX, Wellcom chief executive Wayne Sidwell (pictured) said “although the joint venture will not continue in its current form, we have enjoyed and continue to enjoy a great relationship with Australia Post”.
It is unclear exactly what form this “re-organisation” will take, but Sidwell did warn it could impact the full-year results for 2012. Wellcom’s full-year revenues for 2009/10 were $80.9m, with $7.66m of net profits.
The iPrint business, which celebrates 10 years in operation this October, currently employs around 30 people.
Wellcom chief financial officer Julian Graham said: “The model that we use is a very transparent one. We have a panel of suppliers we qualify for different work and we buy more than just print.”
He said work included anything from B&W forms to marketing material, annual reports and more complex jobs.
Wellcom also announced some wins for its core pre-media business, adding Master Hardware to its Woolworths client base that already includes the likes of BWS and Dick Smith Electronics.
Australia Post has recently announced a “reconfiguration’ of its joint ventures with Qantas, Australian Air Express and Star Track Express.
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