Revenues have risen and losses have narrowed at Yorkshire tech firm Cirata following a transformational year which saw it move “from rescue to recovery”, its CEO has declared.
Stephen Kelly, who was brought in to rescue the Sheffield business in 202,3 said the jouney with Cirata has “often been gruelling, with many unplanned and negative surprises” and has “not been for the faint hearted”, but he said that the 2024 financial year finally saw the legacy issues subside, allowing management to concentrate on growth strategies.
In figures released to shareholders, the company – which also has offices in Newcastle, Belfast, California, China and Japan – said it delivered total bookings of $7.1m, broadly flat on the prior year’s $7.2m, but the firm said the bookings had improving quality and a shift to Data Integration (DI), which management expects to lead to growth in future bookings. Highlights included 13 new contract signings in the final quarter, with six focused on DI.
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Revenues for 2024 rose from $6.7m to $7.7m, while the previous year’s Ebitda loss of $24.2m was narrowed to $13.5m. Operating losses narrowed from $32.4m to $15m. The year also saw improved engagement with both customers and partners, with major wins in the period included a $2m Live Data Migrator (LDM) contract with a top three US bank for a one-year term, the biggest deal of its kind to date.
Looking ahead, the firm said it expects improvements in the levels of sales activity and execution, both directly and through its partners, and expects the acquisition of new customers to be an “improving source of future growth” as it moves through the current financial year. The business added that its goal to achieve cash flow breakeven remains unchanged, supported by ongoing improvements.
Mr Kelly said: “2024 was a transitional year for Cirata as we moved from ‘rescue’ to ‘recovery’, stabilizing the business to prepare for growth. We have reduced our cost base by roughly two-thirds since the peak in early FY23. Our efforts in restructuring the organisation, strengthening governance and enhancing cultural accountability have delivered tangible results, including the largest LDM Original Equipment Manufacturer implementation in our history with our partner IBM.
“While challenges remain and stronger execution is required, the focus for FY25 is clearly on growth and a pivotal year for establishing Cirata as a consistent growth company. The foundations we have put in place and the progress we have made, affirm Cirata’s potential as a leader in enterprise data solutions.
“As I chronicled last year, FY23 was a rescue year for a broken company. FY24 was a year of building foundations, regaining trust and confronting the legacy challenges that hampered Cirata’s potential. Rescuing and building a company back from FY23 from the ground up has been a demanding journey for the management team. We understand the sentiment of demoralised colleagues, customers, partners and investors who understandably felt extremely let down, given the $250m capital raised since the Company’s IPO.
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“As we move into FY25, I am pleased to report that last year’s extensive restructuring, cultural renewal and operational focus are beginning to bear fruit. While we are only part way through our journey, we are no longer defined by past struggles but are shaped by future opportunities. Our focus for FY25 will be on transitioning to a more predictable growth phase, scaling operations, striving for continued high growth in Data Integration, achieving cash flow break-even and avoiding seeking further working capital.
“We believe Cirata’s technology occupies a unique position in the market, enabling enterprises to harness the power of data for transformative insights, analytics and Gen AI applications. As AI adoption accelerates and the need for seamless data integration grows, Cirata’s platform is more relevant than ever.
“Cirata has not been for the faint-hearted. As a British tech battler on the global stage, especially aspiring to be strong in the US market, the Company has to punch above its weight. Building a growth company from the wreckage of a broken company has been challenging and has tested us all.
“The path ahead will not be linear, but it is clear. We are energized, focused, and committed to making FY25 the year Cirata continues to turn a corner and stake its position as a leader in data innovation.”
In a separate announcement the tech firm announced it had sealed a $2m deal with a 海角视频 retailer. The business says the three year contract with the leading 海角视频 retailer represents an expansion of value and scope and a “deepening strategic relationship with this customer”.