Inside information: QPR Software Plc’s change negotiations for achieving cost savings and operational efficiency have ended

By Globe Newswire Published on November 7, 2022, 15:00 IST

QPR SOFTWARE PLC INSIDE INFORMATION November 7, 2022, at 12 pm EET

On September 20, 2022, QPR Software Plc announced its plans to start change negotiations and adapt the company’s operations, structure, and related personnel costs to meet the requirements of a scalable business model. The change negotiations have been completed today.

As a result of the negotiations, the company terminates a maximum of 18 positions and lays off temporarily a maximum of four (4) employees part-time. At the beginning of the negotiations, the company estimated that the adaptation measures will lead to the termination of a maximum of 25 positions.

The measures are based on the profit warning issued by the company on September 7, 2022, in which the revenue and operating profit were estimated to clearly fall short of the key figures reported for 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 revenues.

The company aims to achieve significant annual savings with the adaptation measures defined as a result of the change negotiations. The company is consolidating its organizational structure in such a way that it enables more efficient implementation of growth-oriented investments.

The company continues to focus on the international growth of the process mining SaaS business. As part of the defined measures, the company focuses its operations more strongly on the development of innovative process mining solutions and on ensuring the efficiency of sales, marketing, and partner business. The company also initiates measures to find outsourcing partners for customer deliveries of software solutions in the strategy and performance management application area.

The company estimates the non-recurring costs related to the reorganization of operations to be approximately 100,000 euros. Non-recurring expenses are recorded in the result of the fourth quarter.