NZX-listed communications management technology developer Solution Dynamics has embarked on what it describes as a "significant restructure process" after the loss of a major contract. "The restructure proposal is broad-based, affecting both New Zealand and international operations, and aims to remove a material amount of costs," company chair John McMahon and CEO Patrick Brand told shareholders in a joint statement today. The company would incur an impairment provision in its first half results, although the final amount of that would depend on the outcome of the restructuring proposal now under consultation. From 1 January 2025, Solution Dynamics' directors would also reduce board fees back to the level before their last increase in 2022 while chair McMahon would reduce his fees entirely. "With the company's largest customer having moved to a multi-vendor model, it will take some time until the range of decline in revenue and margin becomes clear," today's statement said. The inclusion of restructuring costs and additional clarity required around contract timing at the end of the first half made providing guidance more uncertain than usual, shareholders were told. However, first half earnings now seemed more likely to be in the range of $1.9 million to $2.5 million rather than the $2.2 million to $2.6 million range provided in October, when the result of the major customer's tender was still outstanding. Customers noted on Solution Dynamics' website last month included World Vision International and Auckland Council, which issued a request for information in July for "digital print room" technologies. In September, SDL was the target of an unsuccessful buyout by NZX-listed Being AI.
