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 Non-Executive Directors 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 December 2018. Overall, the Board anticipates a reduction in global operating expenses of approximately 62%.
Commenting, Simon Buckingham CEO said: “Given the falling revenue, it was necessary to take decisive cost reduction actions. This has allowed the Company to preserve and protect its remaining cash balances. The Company is looking at all potential business development opportunities and other asset optimisation strategies.”