NZ's Vista Group to streamline business, cut jobs to turn cashflow positive (updated)

Vista International

06/07/2023 24:36

(Adds restructuring details in paragraph 2; quote and share
move in paragraph 3 & 4)
       July 6 (Reuters) - New Zealand's Vista Group
International Ltd  VGL.NZ  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)
 ((Roushni.Nair@thomsonreuters.com;))