Travel software company Datalex has reported a loss of $50 million in 2018, in what the company described as the "most difficult year in the history of the group".
In its 2018 annual report, the company said that events which unfolded early this year, including the breakdown in internal controls which failed to detect accounting irregularities, were unprecedented.
Interim CEO Sean Corkery also explained that due to this breakdown in controls, the company's auditors have been unable to express an opinion on the financial statements.
He said that this was "extremely disappointing".
Tight Financial Position
The group finds itself in a tight financial position due to the level of expenditure, having spent approximately $27 million on deployment and product investment.
In response to this, the group intends to arrange equity fundraising in the next few months. It added that it has already received confirmation from its largest shareholder, Dermot Desmond, for additional funding of up to $5.5 million.
"The directors intend to arrange an equity fundraising to raise, net of expenses, sufficient proceeds for the repayment of the company's loans and the funding of the working capital needs of the business in 2020 and beyond," Corkery said. "As we emerge from this comprehensive review across the group's business, processes and structure, I am confident of both the viability of our commercial model and the market opportunity."
Corkery added that the company plans to continue its transformation programme to ensure the long-term growth of the business.
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Aidan O'Sullivan. Click subscribe to sign up for the Hospitality Ireland print edition.
