QPR Software Plc starts change negotiations to achieve cost savings and operational efficiency
QPR SOFTWARE PLC INSIDE INFORMATION 20 September 2022 AT 10 AM
On September 20, 2022, QPR Software Plc issued a negotiation proposal in accordance with the Act on Co-operation within Undertakings to start change negotiations to adapt its operations in order to improve the profitability of the business and enhance the implementation of the company's strategy. According to preliminary estimates, the plans that may be implemented after the change negotiations could lead to personnel layoffs and the termination of a maximum of 25 jobs. The scope of the negotiations includes the company's entire personnel, a total of 89 people. With the planned actions, compared to its size, the company aims for significant annual savings.
QPR issued a profit warning on September 7, 2022, in which the company estimates that revenue and operating profit will clearly fall short of the key figures reported in 2021. The company has had to re-evaluate the invoicing and profitability of several contracts and related software delivery projects signed during 2020 and the beginning of 2021, which weakens the outlook of the consulting business and software maintenance for 2022. SaaS (Software as a Service) business growth, which is at the core of the company's strategy, is not sufficient at this stage to compensate for the declining revenue volumes.
The company has already initiated actions to improve cost efficiency and minimize the effects of the general rise in cost levels in all areas of the business. The change negotiations will deal with actions aiming to adapt the company's operation, structure, and related personnel costs to meet the requirements of a scalable business model.
The company estimates that the possible non-recurring costs related to the reorganization of operations will be a maximum of approximately 100,000 euros. Non-recurring expenses are recorded in the result of the fourth quarter.
The negotiations will start on September 26, 2022, and last six (6) weeks according to the act on Co-operation within Undertakings.
For further information, please contact:
QPR Software Plc
Jussi Vasama
Chief Executive Officer
Tel. +358 50 380 9893
About QPR Software
QPR Software Plc (Nasdaq Helsinki) provides process mining, performance management, and enterprise architecture solutions for digital transformation, strategy execution, and business process improvement in over 50 countries. QPR software allows customers to gain valuable insights for informed decisions that make a difference.
www.qpr.com
DISTRIBUTION
Nasdaq Helsinki
Key medias
www.qpr.com
