Insider information: Betolar plans structural changes to strengthen the implementation of its growth strategy and adjusts its cost structure
Betolar Plc
Company Release
12 September 2023 at 2:00 PM EEST Insider information
Insider information: Betolar plans structural changes to strengthen the implementation of its growth strategy and adjusts its cost structure
Betolar Plc plans to make group-level changes to ensure its structure and resources optimally support the focus areas of the growth strategy updated in March. The company will implement cost savings that are estimated to result in annual savings of EUR 5 million. This ensures the company’s ability to make growth investments in line with its strategy. The savings are mainly related to the procurement of external services and other variable costs, and partly to personnel costs.
Betolar published on 29 March 2023 an updated growth strategy focusing on strengthening company’s position in the side stream value chain, targeting higher volume segments in construction elements and mining, and prioritizing key markets for the green transition. All of this is supported by AI development tailored to the business ecosystem.
As part of the planned changes, Betolar will initiate change negotiations concerning the company, the aim of which is to renew the organizational structure to support the implementation of the strategy and adjust the number of personnel and personnel costs accordingly. If implemented, the planned organisational changes could lead to a reduction of up to 9 employees. The change negotiations will start on 18 September 2023 and they are expected to be completed by the beginning of October.
The targeted savings are expected to be visible in the company’s cost structure moderately during the rest of the year 2023 and to materialize fully in 2024.
”As an early-stage growth company, allocating our resources effectively is crucial. This ensures that we can invest in alignment with our updated strategy. It's natural for a growth company to adjust its focus based on the evolution and maturation of technology and business. Both the productization of low-carbon hollow-core slabs, which began in 2023, and the ongoing projects in the mining and side stream sectors are central to the company's strategy. We will focus our operations on these areas without compromising our material innovation capability. We strive to implement the planned changes responsibly and transparently and ensure the our operational quality, reliability or customer satisfaction remains at the high level,” says Riku Kytömäki, CEO of Betolar Plc.
Betolar Plc
More information
Riku Kytömäki, President and CEO, Betolar Plc, riku.kytomaki@betolar.com, p. +358 50 511 8288
Certified Adviser:
Aktia Alexander Corporate Finance Oy, +358 50 520 4098
About Betolar
Betolar Plc is a Finnish materials technology company that offers the production of sustainable and low-carbon concrete with the Geoprime solution. The solution converts industrial side streams into a cement substitute.
Betolar's artificial intelligence innovation can significantly reduce CO2 emissions compared to traditional cement-based concrete production by optimizing existing manufacturing processes, supporting solution development with advanced analytics, and creating global markets for side streams. Betolar’s mission is to help reduce CO2 emissions and the use of virgin resources.
Betolar was founded in 2016 and is domiciled in Kannonkoski, Finland. Betolar is listed on the Nasdaq First North Growth Market.
Read more: www.betolar.com
