MADRID, 11 Dic. (EUROPA PRESS) –
The Spanish technology company Lleida.net has launched a “comprehensive” restructuring plan in response to the 20% decrease in its sales during the first three quarters of this year, which includes an Employment Regulation File (ERE), the reduction of personnel in its subsidiaries and branches in Colombia and Peru, the closure of several subsidiaries and a new financial policy.
The plan, as reported this Monday by the company in a press release, involves a “significant” restructuring at various levels of its operation and its measures aim to “guarantee a rapid return to profitability and reduce net financial debt, with the goal of generating positive cash flow again from the beginning of 2024.
Specifically, the firm has explained in a document sent this Monday to BME Growth that the ERE, which is currently being negotiated with the works council and will be concluded before the end of the year, will affect the centers in Lleida and Madrid, and its objective is to “lighten the group’s wage bill so that it adapts to current sales and achieves a path of positive results.”
At the beginning of November, Lleida.net announced the implementation of an ERE in its headquarters that will affect a maximum of 29 workers.
Likewise, the company announced this Monday that it has carried out layoffs and contract terminations in the subsidiaries of both Lleida.net and Lleida.net PKi in Peru and Colombia during the last quarter.
It has also reported the closure of unprofitable subsidiaries, which will focus in a first phase on the United Kingdom, Costa Rica and South Africa, as well as on the unification of offices in Colombia of Lleida SaS and Indenova PKI.
Additionally, it has announced the closure of operators in countries with “little traffic”, such as the United Kingdom and France, and has detailed that the offices in the United States and the United Arab Emirates (Dubai) will become virtual.
The company has indicated that its future strategy focuses on ‘Software as a Service’ (‘SaaS’) sales in markets with a recurring customer base, highlighting Peru, Colombia, the Dominican Republic and Europe.
And, in particular, it considers Europe as a “key” market due to aid for digitalization and the EIDAS regulations.
Likewise, the company has highlighted that it is redefining its focus on standard products that require less technical development and a greater ability to reach customers with a higher average ticket.
DECLINE IN SALES OF 27% IN THE THIRD QUARTER
Lleida.net recorded a 27% decrease in sales during the third quarter of the year compared to the same period in 2022, up to 3.8 million euros, as a consequence, according to the company, of a change in the technological model in the SMS market, which still represents 34% of the group’s total turnover.
Thus, sales of its ‘SaaS’ line constituted 46% of the group’s total sales.
Geographically, international sales have decreased, now representing 47% of the total, compared to 57% the previous year.
The firm recorded a negative gross operating result (Ebitda) of 151,000 euros, and after more than 36 quarters with positive Ebitda, they have reported three quarters of losses and falling sales.
For its part, it obtained a negative result before taxes, of around 797,000 euros.
The firm has assured that it is “aware” that it has been a negative year and that is why they have begun to introduce changes and have announced the launch of this restructuring plan.
The company has argued that it has suffered the consequences of a change in technological model, in which SMS has declined “globally.”
