Solutions Dynamics has announced the commencement of a significant restructure process, aimed at right-sizing the business.
The restructure proposal, which is broad-based and affects both New Zealand and international operations, is intended to remove a material amount of costs.
As a result of the restructure, the company will incur an impairment provision in its first-half results, although the final amount will depend on the consultation results of the restructuring proposal.
Solutions Dynamics' largest customer has transitioned to a multi-vendor model, and the company said it will take time to fully understand the impact on revenue and margin.
The inclusion of restructuring costs and the need for additional clarity have made providing guidance more uncertain, but the company now expects its first-half earnings result to be in the range of $1.9 million to $2.5m.
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