RE: Games8 May 2019 12:45
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 NED 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 £290k, 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 £219k (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 Dec 2018. Overall, the Board anticipates a reduction in global operating expenses of approximately 62%