Travel software firm Datalex is undertaking a cost restructuring program, which it said will impact outsourced contractors and employees.

The company did not provide details on how many employees would be at risk of losing their job.

The programme will deliver savings of between $8m-$8.5m (€7m-€7.5m) in 2019.

From 2020, Datalex, who’s shareholders include billionaire financier Dermot Desmond, expects to generate annualised cost savings in the range of $9.5m to $10m (€8.4m-€8.8m).

The cost-saving programme, which is already underway and will be completed this year, comes after the group earlier this year said it expects to report an adjusted earnings loss in the range of -$4m to -$1m for financial year 2018.

The adjusted earnings primarily relates to significant difficulties in its services business, including incurring exceptional delivery costs that are unlikely to be recovered and operating efficiencies that are currently being addressed.

The group’s results for financial year 2018 remain to be audited.

In a statement today the board said it has reviewed its financial year 2019 guidance and now expects to report adjusted earnings before interest, taxation, depreciation, and amortisation in the range of $3m to $3.5m for FY 2019.

Meanwhile it said it “remains confident” in the future of the business, and expects to report adjusted earnings in the rage of $12m to $13.5m for financial year 2020.

The board does not intend to propose a dividend payment in 2019.

Source: Read Full Article