It’s not every day that a company’s preliminary results quote Charles Dickens and talk Greek mythology, but then Sheffield software firm, Cirata, has been “on a journey.”
Before we move onto A Tale of Two Cities, let’s hit the figures for the group previously known as WANdisco.
For the period ended 31st December 2023:
– Bookings for the year $7.2m (FY22: $11.5m)
– Revenue for the year $6.7m (FY22: $9.7m)
– Cash overheads of $30.3m (FY22: $39.7m)
– Adjusted EBITDAloss of $24.2m (FY22: loss of $30.7m)
– Statutory loss from operations of $36.5m (FY22: loss of $29.6m)
Bookings were mainly across DevOps/Application Lifecycle Management software – with renewals including BMW, while its Data Integration team won General Motors as a new contract. It also expanded the scale of its work with NatWest and renewed contracts with HCSC and Tesco.
Looking ahead to next year, it expects bookings to reach $13m-$15m.
“As I reflect on the past year, it is clear that we have navigated through the most challenging period in our Company’s history. Our collective efforts have yielded good progress, particularly in the rescue and initial phases of recovery. However, it is important to acknowledge that there is still much work ahead of us and the speed of the recovery is slower than we anticipated,” explained Stephen Kelly, Chief Executive Officer.
“Cirata is currently undergoing a comprehensive rebuild from the ground up. The Company faced challenges in terms of governance, a GTM strategy that failed to deliver sustainable growth, and a prevailing corporate culture at odds with the Company’s commercial reality. FY24 needs to evidence a transition to growth. The guidance provided by management indicates improving pipeline and visibility. We thank shareholders, customers and colleagues for their patience and support”.
And then we hit Dickens.
In the Business Review, Kelly adapts A Tale of Two Cities to “encapsulate the Company crisis.”
“’It was the worst of times, it could be the best of times, it was the season of light after the season of darkness, it had been the winter of despair, it could be the spring of hope.’
“Following the release of the 9 March 2023 RNS, the Company transitioned almost instantly from being celebrated as a “Tech Darling” to, hitting rock bottom. The trust in the Company evaporated. The new management team operates now to a guiding commitment of re-establishing and rebuilding that trust with all stakeholders, through focused delivery, transparent communication, and tangible results.”
Kelly explained that within weeks of that first announcement, Ken Lever joined the Board as Interim Chair and led both the internal investigation and the search for a new executive team. Ijoma Maluza, Chief Financial Officer joined shortly thereafter on an interim basis, and Kelly joined the rescue team on 10 May 2023 also on an interim basis.
He added: “we are in a stronger and more stable position today than those days of March 2023.”
He said that the first half of 2023 revealed “a business at a standstill” and led to a “root & brand” restructuring and refocusing of the company. That held led to “customers and partners re-engaging.”
The aim of FY24 was to be a “transition to growth.”
“Internally, the post 9 March 2023 announcement (the “Irregularities”) discovery period extending into late 2023 resembled the laborious task of Sisyphus. Reactive surprises, rear-guard activities and unexpected challenges occupied late nights and weekends. The situation demanded continuous firefighting. We were experiencing a seemingly endless series of “whack-a-mole” challenges,” continued Kelly.
“Soon after 9 March 2023, some customers and partners placed the Company on their “watchlist”, leading to a pause in activities and the then embryonic sales pipeline coming to a standstill. For a period, the only substantial executive interaction with certain customers and partners involved reassuring their compliance teams. It wasn’t until post-October 2023 that any semblance of normality returned, with Q4 2023 providing an opportunity for management to proactively plan for FY24.”
Kelly admitted there was more work today and the management team would be “actively engaged” and “hands-on” to “reboot the company.”
“As we moved into FY24, we are focusing externally on prospective and existing customers, strategic partners and colleagues to execute on the strategy. Proactive customer dialogue is directly shaping Cirata’s ongoing strategy, and an inaugural Customer Innovation Board is planned for early summer 2024.
“Rebuilding trust and fulfilling the potential for shareholders remain our top priorities. The management team would like to express gratitude to shareholders and colleagues, especially for their unwavering support, patience, and commitment.”
