The company specialized in digital certification Lleida.net is preparing an ERE and the closure of subsidiaries to face a drop in business and changes in the global technological model that impact it, as announced this Monday in the communication of the results sent to BME Growth.
“The first nine months of 2023 have not been good for Lleida.net and we are aware of it,” the document begins. The plan involves a “significant” restructuring at various levels of its operation and aims to “ensure a rapid return to profitability and reduce net financial debt, with the goal of returning to generating positive cash flow from early 2024.”
At the beginning of November, the company already announced an ERE in the headquarters for a maximum of 29 workers. The ERE is already being negotiated with the works council and will be completed before the end of the year. It will affect the Lleida and Madrid centers, and its objective is to “lighten the group’s wage bill so that it adapts to current sales and achieves a path of positive results.” The company defends that it is not the first reconversion it has had to go through.
Lleida.net recorded a 27% decrease in sales during the third quarter compared to the previous year, up to 3.8 million euros, due to a change in technological model in the SMS market, which still represents 34% of The Billing. Gross margin falls 22% and net debt rises 3%, to 9.26 million.
The company will focus its future strategy on Software as a Service (SaaS) sales, currently representing 46% of sales, in markets with a recurring customer base, highlighting Peru, Colombia, the Dominican Republic and Europe. The latter is seen as “key” due to aid for digitalization and the regulatory push.
The focus will shift to standard products that require less technical development and greater ability to reach higher average ticket customers.
The measures also include a new financial policy and the reduction of personnel in subsidiaries and branches in Colombia and Peru. It will also close unprofitable subsidiaries in the United Kingdom, Costa Rica and South Africa in a first phase. Added to this is the closure of operators in countries with “little traffic” such as the United Kingdom and France. The offices in the United States and the United Arab Emirates (Dubai), for their part, will become virtual.
Geographically, international sales have decreased, now representing 47% of the total, compared to 57% the previous year. All this led to a negative gross result (ebitda) of 151,000 euros, with three quarters of losses and lower sales.
So far this year the price has fallen 59%.
