(Reuters) – New Zealand’s Vista Group International Ltd on Thursday disclosed plans to reduce 6%-8% of its global workforce and streamline operations in an effort to turn cashflow positive a year earlier than targeted.
The film technology provider said it now expects to be free cashflow positive by the fourth quarter of 2024, as a bump in capital expenditure outlined last year will be spread over four years rather than previously indicated two years.
Shares of Vista rose 4.7% to NZ$1.77 by 1129 GMT, marking its highest level since September 2022.
“This updated, more stable, development program should result in a modest reduction in the total spend over time and a lower cash consumption in the near term,” the company said.
It now expects total capital expenditure to be about A$20 million ($13.30 million) per year ongoing.
However, the group reaffirmed to achieve its targets of annual recurring revenue of A$175 million to A$205 million and earnings before interest, tax, depreciation and amortization (EBITDA) of at least 15% by the end of 2025.
The restructuring and transformation program will be completed by the end of 2023, the company said.
($1 = 1.5033 Australian dollars)
(Reporting by Roushni Nair in Bengaluru; Editing by Shweta Agarwal)
