- Aerial imaging company Nearmap (NEA) has detailed plans to cut its short term costs by 30 per cent, enabling it to push ahead with growth plans
- The company says COVID-19 has caused no material impact on its sales but is seeking to strengthen its balance sheet amid a challenging business climate
- Nearmap has proposed a raft of initiatives to conserve cash including a cut to Board and employee pay and reducing the number of permanent staff
- These measures are designed to provide capital flexibility for growth initiatives such as the commercialisation of AI and roof geometry content
- At market open, Nearmap shares are worth $1.20 each
Aerial imaging company Nearmap (NEA) will cut its short term costs by 30 per cent, enabling it to push ahead with growth plans.
The company has continued to operate during the COVID-19 pandemic, as it has been classified an essential service for its work supporting government organisations, which maintain critical infrastructure.
In addition, the company’s U.S. and Australian workforce has been able to transition to working from home without disruption. As of yet, the company maintains it has felt no material impact on its sales during the pandemic.
Nevertheless, in the midst of uncertain and trying business conditions, Nearmap has today shared a list of proposed measures that would cut its operating and capital costs by 30 per cent.
“The business has been through a period of significant growth which means that there are areas we can scale back to former levels for a period of time while we navigate our way through the current environment,” said Chief Financial Officer Andy Watt.
Perhaps most notably, the list included a reduction in permanent staff numbers, equivalent to 10 per cent of the company’s cost base.
In addition, for a six month period from May 1, the Board and CEO will see a 25 per cent reduction in their compensation, while all other employees will see a 20 per cent cut to their pay.
These measures are designed to provide capital flexibility for growth initiatives as explained CEO and Managing Director Dr Rob Newman.
“For the Nearmap business, the unprecedented circumstances have meant we have had to make some difficult business decisions to provide a clear path forward for our team, customers, suppliers and shareholders.”
These decisions will see us well-positioned to navigate the road ahead and will allow us to continue to fully invest in our growth initiatives including the commercialisation of AI and roof geometry content and investment in the development of a next-generation camera system,” he continued.
At market open, Nearmap shares are worth $1.20 each.