Solutions Dynamics loses major contract, plans restructuring

Solutions Dynamics (SDL) has announced that it was unsuccessful in a recent request for proposal (RFP) process undertaken by its largest customer.

SDL said it had been advised by the customer that the RFP was conducted to qualify another vendor's capabilities.

As a result, the customer now expects to tender its communications programme services on a project-by-project basis.

SDL clarified that the RFP decision was based on commercial factors, not on performance.

SDL will remain a vendor to the customer, but on an ongoing per-project contestable basis.

The company said it will initiate a significant restructuring to align its cost structure with the risk of lost margin and business.

SDL said the impact of this development is likely to be severe in the short term.

The company expects to provide an update on its first half FY25 earnings guidance range in mid-December.