Kamani backed Sorted Group to go back to start-up mentality and nimble Manchester roots
Sorted Group is to return to its “nimble roots in Manchester” as part of a streamlining of operations following its reverse takeover by Location Sciences Group (LSG).
Sorted, which provides software that aims to improve ecommerce delivery experience and post-purchase technology, numbers boohoo co-founder Mahmud Kamani and former Zeus boss Richard Hughes, among its major shareholders.
The business is listed on AIM and in June the involvement of the new shareholders provided a secured convertible bridge loan agreement to lend it up to £2.6 million for working capital purposes.
In a half year trading report by chairman Simon Wilkinson to the markets this morning the company said a number of cost cutting measures designed to foster a “start-up” mentality within the business have been put in place.
They include a reduction in headcount from 66 to 51, eliminating “an expensive corporate layer that is no longer required for the business” coupled with a reduction of back-office costs related to legal, HR, and finance functions, will save the business £1.2m a year.
The company has also closed the London office and is “resizing the Manchester office to be more fit for purpose” in order to deliver a “six-figure” saving.
The new board of the company includes Mahmoud Warriah as Chief Financial Officer, and Petar Cvetkovic as Non-Executive Director. Carmen Carey stepped down as Chief Executive Officer in May.
Wilkinson has taken on the role of Executive Chairman and said he would “draw on the significant experience” of board members, including the distribution and logistics expertise of Petar Cvetkovic
Wilkinson is paid a daily consultancy rate of £1,750.00 for a maximum of three days per week.
Wilkinson also said: “Our second largest cost, outside of personnel, is our IT infrastructure, which we will focus on reducing in the second half of the financial year.”
Sorted made a £3,434,450 loss for the first half of the year on turnover of £3,188,490.
