Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Plexure to cut workforce by a quarter

Plexure to cut workforce by a quarter in effort to generate positive cash flow

By Paul McBeth

June 30 (BusinessDesk) - Plexure Group, the digital advertising firm formerly called VMob, plans to trim its workforce by more than a quarter in an effort generate positive cash flow by the end of the year.

The Auckland-based company will cut nine permanent jobs and six contract staff from its 55 strong workforce from August in a restructure as the digital ad firm's product development stage ends and it sees growing demand for professional services. From August Plexure will operate in four streams: sales and account management, core product development, professional services, and administration.

"Along with architectural advances leading to a more efficient use of costly cloud resources, this organisational restructuring will enable the company to accelerate its move towards profitability," chief financial officer Andrew Dalziel said in a statement. "The company is confident that the reduction in operational headcount will have minimal impact on its ability to deliver high quality services for its current customers and to meet its 2017 sales targets."

Plexure narrowed its annual loss to $6.5 million in the year ended March 31 from $6.6 million a year earlier on an 11 percent gain in revenue to $7.3 million. While its staff wage bill fell 10 percent, or $668,000, to $5.4 million in the year, it spent $720,000 on contractors, up from $408,000 a year earlier.

The firm's key management, including executives and directors, was paid $2.3 million, up from $2 million a year earlier, of which chief executive Scott Bradley was paid $719,185 including $146,097 to cover living costs in San Francisco when he relocated to help drive growth in the US. That was up from $609,635 in 2016, of which $133,289 was for living costs. Bradley has since returned to New Zealand and his salary has been adjusted accordingly, Plexure said in its annual report, also released today.

Chairman Philip Norman said Plexure's revenue growth was slower than preferred in the 2017 financial year, but that he expected it to accelerate in 2018 "as our penetration of existing customers deepens and new customers are acquired".

Auditor Deloitte noted Plexure's ability to continue as a going concern as a material uncertainty in its report. The board adopted the going concern basis on the expectation of raising new capital, something they said they were confident of achieving.

Plexure operational cash outflow widened to $4.7 million in the year ended March 31 from $4.5 million a year earlier, and after financing and investing activities left it with cash on hand of $615,000.

The company's shares last traded at 9 cents and have slumped 72 percent so far this year. That values the company at $8.3 million.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>


Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>