28th Sep 2022 11:14
(Alliance News) - Glantus Holdings PLC said on Wednesday that its relocation to Costa Rica has been more challenging than anticipated as it posted a virtually flat interim loss despite a revenue jump.
In the first half ended June 30, the data platform, which provides software as a service solution, reported a loss of EUR1.6 million from EUR1.5 million a year prior.
Glantus shares plummeted 63% to 12.83 pence each in London on Wednesday morning.
This was despite higher revenue, which was up 54% at EUR6.6 million from EUR4.3 million.
Adjusted earnings before interest, tax, depreciation and amortisation were down by 39% to EUR724,000 from EUR1.2 million.
Glantus attributed the drop to acquisition-related integration costs, after deciding to relocate the audit function of the business to a global shared services centre in Costa Rica.
Cost of sales widened to EUR1.8 million from EUR850,000. Administrative expenses increased 82% to EUR4.1 million from EUR2.2 million, while amortisation costs widened to EUR1.1 million from EUR318,000.
Facing macroeconomic headwinds and relocation audit delays, Chief Executive Officer Maurice Healy said he expected full year revenue and Ebitda "to be significantly below market expectations".
He looked into the future optimistically, however: "With our improved product suite and functionality, expanded client base, and a focus on operational efficiency, we are primed for the next phase. Combining these attributes with our investment into a global shared services centre and the new product offerings heralds a strong future for our company."
"We have taken the strategic decision to execute the AP audit function relocation to Costa Rica to deliver more productive and technology-led automated audits. Whilst the relocation has been more challenging than anticipated it will be more productive for the company in the long term and we expect it to improve profitability going forward."
The company declared no interim dividend.
By Holly Beveridge; [email protected]
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