Glantus announces job cuts following 'very challenging year'

Software company Glantus said on Tuesday that 2022 had been "a very challenging year" for the group, with the firm swinging to an adjusted underlying loss and announcing job cuts.

Glantus expects to report full-year revenues of roughly €10.8m and and an adjusted LBITDA of €2.1m, as the negative impact its global restructuring had on productivity, the relocation of its AP audit function to Costa Rica and the delayed onboarding of some new opportunities all weighed on the group's performance.

The AIM-listed group also highlighted that after doing "a comprehensive review", it has determined that "a material amount of revenue" set to be received from two client contracts in 2022 now may not be achieved.

"In response to the above, the group has rapidly and decisively restructured the business. This has achieved annualised cost savings of over €3.0m by reducing the global workforce by 39 persons," said Glantus.

However, Glantus did noted that it had been able to generate "encouraging monthly billing amounts" in recent months, with average monthly billing in the fourth quarter coming to €1.22m.

"This billing performance combined with the revised cost base means the board believes the business is poised to deliver strong margins and positive cash flow from operations in 2023," said the group.

As of 0930 GMT, Glantus shares were down 9.09% at 7.50p.

Reporting by Iain Gilbert at Sharecast.com