TradeWindow, which currently employs 80 staff, declined to say how many roles would be affected by the reorganisation. Photo: 123RF
Trade software company TradeWindow is losing money and moving quickly to reorganise the business in order to break even, which will include an unknown number of job losses.
"TradeWindow has resolved it is prudent to undertake a further reorganisation of the business to conserve capital and put the company on an accelerated path to a self-sustainable footing," it said in a statement to the market.
The company currently employed 80 staff, but declined to say how many roles would be affected by the reorganisation.
"TradeWindow will work to assist all staff affected by the process to find alternative employment through its networks."
Earlier this year, the company tried to raise $20 million in capital to fund expansion, but was only able to raise $5.4m.
It also made a deal with British-based company nChain, to pay $11.1m in exchange for a near 20 percent stake in the company, but that was stalled following a change in leadership at nChain.
Trading update
TradeWindow expected revenue for the year ended March 2024 to range between $6 million and $6.5m, which compared with its August forecast range of between $7m and $8m.
It said the review reflected increased geopolitical tensions in the Middle East, persistent inflationary pressures and a downturn in economic activity in New Zealand and key export markets.
TradeWindow said it was also in discussions to divest the Rfider business and its Assure+ traceability product.
"While the product is attracting strong interest, it has a longer sales cycle, and given the constraints the company is facing TradeWindow believe it is now appropriate to focus on its core product offer."
The divestment of this business was expected to save the company more than $1m a year in innovation and development costs.
"The global downturn in trading, the ongoing challenges [for] early-stage companies in securing funding, combined with the ongoing uncertainty over the nChain strategic agreement, requires the company to take immediate action," chair Alasdair MacLeod said.
"We continue - as previously signalled - to explore multiple options to obtain additional funding and assert our rights under the nChain strategic agreement. However, it is now clear that we must take prudent steps to protect the business and stakeholders."
Executive director and chief executive AJ Smith said the company was committed to quickly moving to a break-even position.
"We will update shareholders and our people as we gain greater certainty around our alternative funding and cost reduction outcomes."