Sheffield-based Cirata is undergoing a comprehensive rebuild, says CEO
In March last year, the company, which was then known as WANisco, revealed that it had found “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee". The Yorkshire Post understands that a Financial Conduct Authority investigation into this matter is still ongoing.
In 2023, the company, which is headquartered in Sheffield and California, recorded revenue of $6.7m, compared with $9.7m in 2022.
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Hide AdStephen Kelly, the chief executive officer, commented: "As I reflect on the past year, it is clear that we have navigated through the most challenging period in our company's history.
"Our collective efforts have yielded good progress, particularly in the rescue and initial phases of recovery. However, it is important to acknowledge that there is still much work ahead of us and the speed of the recovery is slower than we anticipated.
“Cirata is currently undergoing a comprehensive rebuild from the ground up. FY24 (full year 2024) needs to evidence a transition to growth. The guidance provided by management indicates improving pipeline and visibility. We thank shareholders, customers and colleagues for their patience and support.”
Commenting on the results, analysts from Stifel said: “While we are still at an early stage of Cirata's rebuilding, the full year results are better than we expected and show some healthy signs of progress. “Better than expected cash was already announced at the trading update and today revenue is comfortably ahead of our estimate. This is coupled with costs that have reduced further providing continuity with our existing forecasts which we leave unchanged at this time.”
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Hide AdStifel’s analysts said that the company appears to have made meaningful progress, “transforming itself into a more professional organisation and maintains its target of reaching run- rate cash flow breakeven in the current year, despite ongoing deal slippage and an
understandable second-half weighted bookings expectation.”
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