Brief: Seamless Initiates Cost-Cutting Program After Q4 Profit Drop
09/02/2023 08:23
Feb 9 (Reuters) - Seamless Distribution AB (publ)
SDSY.ST :
* SAID ON WEDNESDAY, DUE TO DETERIORATING EBITDA FOR THE
FOURTH
QUARTER OF 2022, SEAMLESS DISTRIBUTION AB IS LIKELY TO BREACH
ITS COVENANT IN THE TERMS OF ITS ISSUED BONDS
* SDS HAS ENGAGED PARETO SECURITIES AND GERNANDT &
DANIELSSON AND
IS CONDUCTING A DIALOGUE WITH THE LARGEST BONDHOLDERS
* IN ORDER TO DRIVE EFFICIENCY, MARGIN AND CASH FLOW
IMPROVEMENTS
GOING FORWARD, SDS HAS DECIDED TO LAUNCH A COST REDUCTION
PROGRAM
* PROGRAM AIMS TO GENERATE ANNUAL SAVINGS OF OVER SEK 45
MILLION,
WITH A NOTICEABLE EFFECT IN THE SECOND QUARTER OF 2023 AND WITH
FULL EFFECT IN THE FIRST QUARTER OF 2024
* PROGRAM INVOLVES A POTENTIAL LAYOFF OF 20-25% OF STAFF
* Q4 EBITDA IS EXPECTED TO BE ABOUT SEK -34 (20) MILLION FOR
THE
FOURTH QUARTER
* DURING Q4, THE GROUP'S ORGANIC GROWTH WAS NEGATIVE, MAINLY
DUE
TO DELAYS IN PROJECTS THAT, ACCORDING TO PREVIOUS FORECASTS
WOULD HAVE BEEN COMPLETED IN THE FOURTH QUARTER, AND THAT TWO
PROJECTS THAT WERE RECOGNIZED AS REVENUE EARLIER IN 2022 WERE
TERMINATED BY THE CUSTOMER
Source text for Eikon: urn:newsml:reuters.com:*:nBQN9Q3VhS
Further company coverage: SDSY.ST
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