Inabox Group Limited (ASX:IAB) Managing Director & CEO, Damian Kay, outlines changes to the company to align costs with revenue in the wake of profit downgrade.
Jessica Amir: Hi I’m Jessica Amir for the Finance News Network. Joining me from technology platform provider Inabox Group Limited (ASX:IAB) is Managing Director and CEO, Damian Kay. Hi Damian, welcome back.
Damian Kay: Thanks Jessica, it’s good to be here.
Jessica Amir: When we last caught up three weeks ago, you announced a profit downgrade relating to the Hostworks business and also some sweeping changes in regards to cost reductions. Just tell us how everything’s going and did you make those changes?
Damian Kay: They’re pretty much complete. We made the decisions over the last three weeks, we considered the business carefully. We’ve now announced those changes to the staff that are affected. Approximately 10 per cent of the staff, their roles will no longer exist in the organisation, as we align our costs with the revenue. And some other big changes that we’ve made are consolidating our national call centres, or operation centres, from Albury into our Adelaide 24/7 national operations centre. As well as centralising the allocation of our field engineers and also offshoring some of our monitoring and maintenance. In all, the savings that we’ve identified and now enacted, amount to just over $2 million.
Jessica Amir: That’s quite a lot of changes. What else can we expect from Inabox over the next 12 months and beyond?
Damian Kay: My initial focus is to make sure that the changes are enacted according to our plan. Some roles will not be continuing by the end of December. Some roles will continue on until the end of the first quarter, as we make those changes and move our national operations centre into Adelaide.
But moving forward, our really big focus right now is to deliver the large pipeline of customers we’ve got in the indirect channel, and the enablement channel.
Those two channels are performing very strongly, as I’ve mentioned before and making sure that we continue that momentum. And obviously securing our customers in the direct channel, which is where some of the problems had occurred. And that is really my focus for now, but the teams are really focused on delivering for the company and our shareholders.
Jessica Amir: Damian Kay, thank you so much for the update.
Damian Kay: Thank you very much.