Release

Gofore Plc: Gofore will divest its UK subsidiary

Gofore Plc: Gofore will divest its UK subsidiary

GOFORE PLC COMPANY ANNOUNCEMENT 31 JANUARY 2020 AT 15.00 

Gofore will divest its UK subsidiary 

Gofore will divest its subsidiary’s operations in the UK due to its weak market outlook and unprofitable business operations. This means that the business of the subsidiary will be closed. Gofore has reported about the evaluation of the options for its UK subsidiary in a company announcement, dated 14 January 2020. 

The net sales of the subsidiary clearly weakened in 2019, remaining at approximately EUR 1.3 million, which represents approximately two percent of Gofore’s net sales. Net sales for the first half of the year were EUR 1.07 million and EUR 0.27 million for the second half, of which less than half were net sales from external customers. The subsidiary’s business generated EUR 0.33 million loss in the second half of 2019.

An employee consultation regarding all of the subsidiary’s employees, that was initiated on 14 January 2020, has been completed. As a result of the consultation, all 14 employment agreements will be ended.

The divesting of the subsidiary’s business will result in non-recurring costs of approximately EUR 0.35 million, of which a provision will be recorded in the first quarter of 2020. The non-recurring items include the salary costs arising from the termination of employments and other operating expenses that the subsidiary is contractually obliged to pay, or that are necessary for the divesting of the business. Cost savings of approximately EUR 0.3 million from the divesting of the subsidiary are expected to be realized quarterly starting from the second quarter of the current financial year.

Gofore has reported about the situation in the UK business in the business review for September 2019, dated 11 October 2019. 

Further enquiries:  
Mikael Nylund, CEO, Gofore Plc  
tel. +358 40 540 2280  
mikael.nylund@gofore.com 
    
Certified Adviser: Evli Bank Plc, tel. +358 40 579 6210  

Gofore Plc is a Finnish digitalisation specialist with international growth plans. We’re made up of some 580 people across Finland, Germany, Spain and Estonia – top experts in our industry who are our company’s heart, brain, and hands. We use consulting, coding and design as tools to incite positive change. We care for our people, our customers, and the surrounding world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2019, our net sales amounted to EUR 64.1 million. Gofore Plc’s shares are quoted in the Nasdaq First North Growth Market Finland. Learn to know us better at www.gofore.com.