Baltimore Technologies’s painful restructuring plans remain on course after a turbulent year in 2001, the company’s shareholders were told at its annual general meeting in London today.
During his opening address at the AGM, Baltimore Technologies chairman Mr Peter Morgan said 2001 was a difficult year for the company but that it has entered 2002 with a clear strategy and is confident that its revised goals are achievable.
He said Baltimore had made significant progress in restructuring with asset disposals worth £29.7 million sterling having been agreed.
Baltimore’s 46 offices worldwide have been reduced to 38 and surplus space has been disposed of in Dublin and London. Headcount has fallen from a peak of over 1,400 in 2001 to about 562 at the end of January. This number should fall to 420 after cutbacks are finalised in Japan and Australia.
Shareholders voted to back Baltimore’s new remuneration package for senior management proposed by the board last October to reflect the company’s diminished circumstances.
Non-executive directors will receive only one-third of their fees in cash, and the balance will be paid in Baltimore shares.
Mr Morgan told the meeting Baltimore is trading in line with expectations and the board believes that with the sales proceeds from disposals, the company has sufficient working capital to cover its needs until it turns EBITDA (earnings before interest, tax, depreciation and amortisation) positive.