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- Flexiroam (FRX) has issued an update regarding the measures it has taken as part of its COVID-19 response plan
- Based in Fremantle, Western Australia, the company provides global connectivity and data access to travellers around the world
- However, with the implementation of widespread travel restrictions globally, Flexiroam has seen a steep drop-off in demand
- As a result, all employees are currently working remotely, and sweeping cost reductions have been implemented company-wide
- Most significantly, all of Flexiroam’s employees — who are working remotely — have been subject to a 25 per cent pay reduction
- But Jef Ong, Managing Director of Flexiroam, said that while significant changes have been made so far, further reductions may be necessary
- Flexiroam is currently steady on the market, with shares trading for 1.7 cents each
Flexiroam (FRX) has issued an update regarding the measures it has taken as part of its COVID-19 response plan.
Based in Fremantle, Western Australia, the company provides global connectivity and data access to travellers around the world. Its service coverage spans 110 countries, with access to more than 580 network operators.
However, with the implementation of widespread travel restrictions globally, Flexiroam has seen a steep drop-off in demand. This response plan, the company says, has been designed to keep its head above water throughout what could be a prolonged downturn in business.
As such, a range of cost-cutting measures have been put in place to preserve liquidity. Most significantly, all of Flexiroam’s employees — who are working remotely — have been subject to a 25 per cent pay reduction. The company’s Managing Director has also taken a 30 per cent cut, with all non-executive directors forgoing their pay entirely.
This is expected to save $166,800 per quarter. In turn, some employees have been stood down from their roles, and the company is currently working to offer assistance with alternative work placements.
Flexiroam is also engaged in ongoing discussions with its key suppliers, partners and distributors with a view to reducing its network costs. To date, the new credit terms with suppliers are estimated to reduce cash outflow by approximately $800,000 over the next six months.
Further to this, the company is actively working to bring on new customers and subscribers in an effort to stimulate income. Secondary avenues of revenue generation are also being pursued, with a particular focus on opportunities within the Internet of Things value chain.
Jef Ong, Managing Director of Flexiroam, said that while significant changes have been made so far, further reductions may be necessary.
“Flexiroam continues to be conscious of the need to be flexible and innovative during these challenging times, and early feedback on our Internet of Things connectivity platform for various applications has been positive.
“We will also continue to monitor our crisis and recovery plan and other cost-saving measures that can help the company to overcome this current challenge, whilst preserving our culture and team spirit,” he added.
Flexiroam is currently steady on the market, with shares trading for 1.7 cents each at 10:29 am AEST.
