LiveTiles flags operational review after ASX delisting

LiveTiles co-founder and CEO Karl Redenbach

Australian-founded LiveTiles has revealed a first glance into how the business will operate after its planned delisting on the Australian Securities Exchange (ASX), which includes the continued move of “certain” jobs to Portugal and the Philippines.

Released in a statement to the ASX, the software vendor said it will undertake an “extensive” operational review of its business with four aims in mind.

These aims, it claimed, are to continue developing employee experience technology, delivering revenue growth, hiring and retaining talent and generating free cash flow and profitability on a sustainable basis.

To achieve these, the vendor said it will continue moving “certain” jobs to “lower-cost locations of Portugal and the Philippines, as well as consider rebranding.

It also said it would review management, its organisational structure and software products, cut costs, focus more on large enterprise customers and cut back the costs associated with its ASX listing, which it estimates to be more than $1.5 million per annum.

The operational review is not to come without its own costs however, with the company flagging that it is expected to take a financial hit in the short term.

“Whilst the Board and senior management team are confident that the operational review will improve the company’s market position, growth profile and financial performance over the medium term, it is likely that the company’s short-term financial performance will be impacted as the initiatives are implemented,” LiveTiles said in its ASX statement

“The Board is therefore of the view that the operational review is best conducted in an unlisted environment, without undue short-term focus on quarterly financial results.”

After the review, LiveTile’s Board is expected to explore a liquidity event, which may take the form of a growth capital raise, selling off the company, a merger and acquisition (M&A) with complementary companies and/or the listing of LiveTiles on the US-based National Association of Securities Dealers Automatic Quotation System (NASDAQ).

LiveTiles announced its intention to delist from the ASX last week, citing underperformance of share prices and low trading liquidity levels, among other reasons.