Basware is planning to launch a productivity programme.
Global Banking News-May 1, 2019-Basware is planning to launch a productivity programme
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Basware Oyj (HEL: BAS1V) announced on Tuesday that it plans to launch a productivity programme aimed at improving profitability and cashflow.
Reportedly, more than two thirds of Basware's revenues are from the cloud. In the transition so far, the company's focus has been primarily on cloud growth.
According to the company, as a more mature stage of the transformation process has been reached, Basware is planning to increase its focus on profitability and cashflow.
This productivity programme will focus on a number of areas including making professional services profitable, streamlining the product portfolio, R&D and production operations, as well as corporate support functions.
Basware has identified potential annual run rate net cost savings of approximately EUR10m in comparison to costs in the first quarter of 2019. Basware is exploring the possibility of making personnel reductions.
Also, any labour negotiations will be executed in cooperation with the personnel and in compliance with local legal requirements. The number of employees that may be affected globally is up to 90. The upfront cash costs of the programme are expected to be approximately EUR3.5m.
Basware expects to reach positive EBIT in 2020 and positive free cashflow on a run rate basis by the end of 2020.
The company clarified that its prior communicated 2019 guidance and strategy are unchanged.
Basware is a provider of networked source-to-pay solutions, e-invoicing and innovative financing services.
((Distributed via M2 Communications - http://www.m2.com))
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|Publication:||Global Banking News (GBN)|
|Date:||May 1, 2019|
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