Mobile Streams plc Trading Statement (9778V)
12 Abril 2019 - 1:00AM
UK Regulatory
TIDMMOS
RNS Number : 9778V
Mobile Streams plc
12 April 2019
12 April 2019
Mobile Streams plc ("Mobile Streams" or the "Company") (AIM:
MOS)
Trading Update
Following the recent reductions in revenue, particularly in
India, Mobile Streams has undertaken a comprehensive cost-cutting
exercise, resulting in a significant reduction in headcount,
rationalisation of the Company's main operating centre in Argentina
as well as reducing operating expenditure in the UK, US and India.
As part of the cost-cutting exercise, the Company's CEO and both
Non-Executive Directors have volunteered a partial salary deferral
of 50% of their respective remuneration.
The rationalisation and cost-cutting exercise has resulted in
sizable one-off redundancy costs and severance payments of
approximately GBP290k, primarily due to the long service of many
employees and the severance terms in Argentina. Following payment
of all the Company's severance obligations, the cash balance
currently stands at GBP219k (as at 10 April 2019).
Monthly operating expenses in Argentina from May 2019 are
expected to be reduced by 72% on an ongoing basis in comparison to
December 2018. Overall, the Board anticipates a reduction in global
operating expenses of approximately 62%.
Commenting, Simon Buckingham CEO said: "Given the falling
revenue, it was necessary to take decisive cost reduction actions.
This has allowed the Company to preserve and protect its remaining
cash balances. The Company is looking at all potential business
development opportunities and other asset optimisation
strategies."
For further enquiries:
Mobile Streams plc +1 347 669 9068
Simon Buckingham, Chief Executive
Officer
Enrique Benasso, Chief Financial
Officer
Nplus1 Singer Advisory LLP
(Nominated Adviser and Broker) +44 (0)20 7496 3000
Mark Taylor
George Tzimas
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END
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April 12, 2019 02:00 ET (06:00 GMT)
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