If a company can't grow sales what can it do to improve profitability? Easy answer: cut costs - and that strategy should boost Pilat Media's results next year.
Pilat Media's recent results have hardly impressed investors; boring might be the best description. Its interim figures last year were knocked by a large impairment provision when out of the blue Fox Studios terminated a deal to implement and roll out a suite of broadcast management software - hence the hefty reported loss. But rather less well known, but still major, have been the costs incurred in migrating 40 clients to Pilat's new Microsoft-based versions of its Integrated Broadcast Management System product. All but two clients have moved over, but there have been significant costs in manning two separate software versions. Eliminating them next year should significantly cut costs, notably through employee numbers.