Crealogix to cut 10% of workforce

Source: Crealogix

CREALOGIX looks back on a stronger second half of the year and can report the following provisional results for the 2019/2020 financial year:

Despite COVID-19, the group closes the financial year with a sales growth of 3.9% in local currencies. Adjusted operating income before depreciation and amortisation (EBITDA) was CHF 2.4 million, up from CHF 1.9 million in the previous year.

One-off costs in the form of provisions to finance reorganisation measures will reduce EBITDA for the 2019/2020 financial year by CHF -7.0 million. These costs are resulting from streamlining business processes, unifying the product platform and realising a leaner organisation.

As part of the reorganisation, the group will cut around 10% of jobs. With these measures the group is accelerating its transformation; the focus is on standardising the group’s product portfolio and establishing a segment-oriented go-to-market strategy.

The sales organisation will be doubled in order to maximise the potential in existing core markets and to develop further key markets such as Asia-Pacific. Another priority for the group is to expand its global partner network to increase indirect sales and implementation services.

These measures will accelerate the transition of the group’s business model to becoming a leading SaaS provider of digital banking platforms.

Positive effects on earnings due to economies of scale and efficiency improvements are expected over the coming reporting periods. These will further strengthen CREALOGIX's leading position.

Full annual results for 2019/20, including detailed information on the status of the group’s transformation, will be published on September 15, 2020.

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