27th Jun 2014 07:47
LONDON (Alliance News) - Outsourcery PLC Friday said it has had to cut costs because the sales pipeline of its strategic partner channel has taken longer than expected to ramp up, due to delays in finalising the "organisational, system and their sales force readiness."
In a statement, the cloud-based IT and business communications provider said it is considering a number of options to improve its cash resources over the medium term, because the delay will push back its monthly cash flow break-even point despite the cost cuts. Outsourcery said the options include a possible revision or extension of its debt facilities, investment by one of its strategic partners, or raising additional equity.
Oursourcery said its efforts to tackle costs mean that it is still on track for a full-year pretax profit in line with current market statements, despite the delays, which it said will specifically hurt the growth of its monthly recurring revenue in the short-term. It said that it expects to save an additional GBP1.0 million annually from its next financial year in the wake of a review into its cost base.
Outsourcery said that the delays come despite a "growing pipeline of opportunities" from partners' large enterprise and mid-market end-customers. It expects some those to close in coming weeks. Outsourcery added that it is in discussions with new potential strategic partners with "large customer bases, significant sales forces and material revenue opportunities."
Meanwhile, it said its work with Microsoft Corp on the build-out of its secure cloud platform is on schedule, within budget, and due for completion next month. Accreditation and launch is still expected before the end of the year.
Outsourcery shares were early Friday quoted at 33.00 pence, down 15%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
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