IDE Group significantly reduces losses following cost cutting efforts

(Sharecast News) - IT services provider IDE Group cut costs during its last financial year, resulting in an improved performance in its second half.IDE made £7.2m worth of annualised staff cost reductions in 2018, with further reductions identified since the year-end bringing the total to £7.8m, and various other operational cost savings, including a reduction in costs associated to software licensing and property.The AIM-listed outfit also reached a settlement in relation to an outsourced service contract which will result in a further saving of around £3m over the next three years.As a result, the provision made at the time of IDE's interim results has been reversed, leading it to expect a "significantly reduced loss at adjusted EBITDA level for the full year."Elsewhere, IDE said it had made progress in relation to its cost base and saw several of its material customers renew a total of £3.6m of contracts towards the end of the year, some on a multi-year basis.As of 1030 GMT, IDE shares had shot up 20.37% to 1.62p.