Outsourcery chief executives Piers Linney and Simon Newton are to sacrifice their salaries for a year as part of a financing package unveiled by the cloud computing firm today.
The move by Dragons’ Den star Linney and Newton will save the AIM-listed business, which is based in Manchester, nearly £520,000.
Outsourcery’s Piers Linney
The £4.5m package also includes a £1.5m shares placing and an organisational restructure designed to raise £1m, and comes as the company seeks additional working capital after a testing few months.
In June it reported that the build of its strategic partner channel has suffered delays, impacting on monthly recurring revenue and causing “slower-than-expected growth”.
A statement from the company said: “The directors believe that the proposed financing package of £4.5m will enable Outsourcery to achieve its aim of reaching monthly run rate break-even and operational positive cash flow during 2015.”
It also reported that it made an after-tax loss of £3.6m on revenues of £3.5m for the six months to the end of June. Shares in the firm were up 8.7% to 24.45p in early trading.
