Administrators call on customers to stick with SEMA

SEMA's administrators are determined to continue trading ahead of a potential sale and have implored print and mail customers to stick by the stricken company.

Philip Carter, Marcus Ayres and Daniel Walley from PPB Advisory were appointed joint administrators on 17 May.

A PPB spokesperson told ProPrint it was too early to comment on why SEMA had failed, its financial position or any potential sale.

One industry source suggested the loss of a major Centrelink contract had hit the company's bottom line, though this could not be confirmed.

A statement from PPB Advisory said the firm was "trading the business while we endeavour to sell the business and assets on a going concern basis".

"At the current time we do not anticipate there to be any disruption to customer orders."

The administrators said the payment of debts was "critical to our ongoing ability to trade the business without disruption" and also asked customers to stick by SEMA.

The first creditors' meeting will be held on 29 May and the second on 21 June.

NAB has been revealed as a secured creditor, but the identity of the other creditors is not yet known.

SEMA had explored refinancing options before entering administration, according to PPB's statement.

Two SEMA clients, the Department of Human Services (DHS) and Department of Parliamentary Services, told ProPrint that SEMA's demise would have minimal impact on them.

A DHS spokesperson said SEMA "manages a very small volume of Medicare mail-outs, as well as a portion of Centrelink bulk mail processing".

"There is no impact on customer mail production and distribution for the department," the spokesperson said.

"[SEMA] is just one of a number of panel members who provide services to the department. If [SEMA] cannot sustain production, the processing can be moved to other panel members for processing."

A Parliamentary Services spokesperson said SEMA had been contracted in 2009 to digitise the Hansard records from 1901 and also "some important building information records".

SEMA has since been contracted to digitise more building information records, but work has not started and all materials remain in the department's possession, according to the spokesperson.

"If SEMA is unable to undertake the planned digitisation, DPS would have to find an alternative provider to do the work."

Two other SEMA clients, the Australian Electoral Commission and NSW Department of Education and Training, were reluctant to provide details. Both said they were assessing the situation.

The Australian Taxation Office, which has awarded millions of dollars worth of bulk printing and mailing to SEMA over recent years, would not comment to ProPrint.

Rival business process outsourcing companies Salmat and Computershare would be the likely winners if customers do jump ship, though both refused to comment to ProPrint.