(Reuters) – New Zealand’s Vista Group International Ltd on Thursday disclosed plans to reduce 6%-8% of its global workforce and streamline operations in an effort to turn cashflow positive a year earlier than targeted.

The film technology provider said it now expects to be free cashflow positive by the fourth quarter of 2024, as a bump in capital expenditure outlined last year will be spread over four years rather than previously indicated two years.

Shares of Vista rose 4.7% to NZ$1.77 by 1129 GMT, marking its highest level since September 2022.

“This updated, more stable, development program should result in a modest reduction in the total spend over time and a lower cash consumption in the near term,” the company said.

It now expects total capital expenditure to be about NZ$20 million ($12.36 million) per year ongoing.

However, the group reaffirmed to achieve its targets of annual recurring revenue of NZ$175 million to NZ$205 million and earnings before interest, tax, depreciation and amortization (EBITDA) of at least 15% by the end of 2025.

The restructuring and transformation program will be completed by the end of 2023, the company said.

($1 = 1.6186 New Zealand dollars)

(This story has been corrected to change the value to NZ$ from A$ in paragraphs 5 and 6)

(Reporting by Roushni Nair in Bengaluru; Editing by Shweta Agarwal)

Brought to you by www.srnnews.com