On 26 May 2009, Datatrak Holdings plc issued its Interim Directors’ Statement in which it explained that in order to mitigate the slow down in business due to the negative performance in the international markets, measures were taken to reduce operating costs. However, since by mid-2008 the Group had already reduced major infrastructural costs to a bare minimum, the Company decided to embark on a number of new measures to further manage costs. Datatrak explained that the Group is now focusing on those areas which have the greatest potential for cash generation and has therefore restructured its development capacity to focus more on those cash-generating projects without losing its vital development resources.
Datatrak stated that they have suspended their plan to infiltrate new markets until the international situation becomes more positive. Also, sales and administration costs have been reduced by downsizing both teams in these departments whilst new leads and sales are now being generated from senior management together with the Group’s overseas partners. The Datatrak Group announced that it closed down those departments which were not contributing enough whilst a number of resources have been reassigned to ensure high levels of cover in those areas which make up the Group’s core business.
The Group explained that great effort has been made to maintain cash flow. Moreover, despite the current economic downturn, revenue streams from major projects have also been preserved and Datatrak has also managed to secure a significant loan from its bank which is guaranteed by the company and its major shareholder (Group CEO Mr. Joseph Fenech Conti). Datatrak concluded by stating that increasing revenues, the management of costs and increasing cash flows will remain the Company’s key focus for 2009.