LONDON (Alliance News) - Shares in Mirriad Advertising PLC dropped on Wednesday as the company announced a restructuring aiming to put the firm back on the path to growth.
Mirriad shares were trading 16% lower Wednesday morning at 8.00 pence each.
"Mirriad has many unique strengths and areas of competitive advantage and its core proposition is more powerful than ever," Chief Executive Stephan Beringer said.
He added: "However, the business has been taken on a path to market that was significantly out of touch with its content and distribution partners as well as advertisers and their agencies. A reset is clearly needed. Today I set out a revised strategy showing the path to growth."
A review of the business, conducted by Beringer, showed despite Mirriad's addressable market in television and on-line video being "large and growing", the company's Go To Market strategy "has historically been flawed" as it was spread over too many markets.
To address the encountered issues, the CEO is proposing a revision to the Go To Market strategy aiming to accelerate demand by engaging with clients and media agencies as channel partners.
Furthermore, the company will focus on core markets, including US, UK, Germany, France and China.
In order to align with the new strategy, Mirriad has already exited the market in Brazil and India, as well as putting in place new management in the US and a new organisational structure in Europe.
The changes are expected to be cost neutral, Mirriad added.
Mirriad Advertising (MIRI)