IRIS
Trigyn Technologies Ltd. has restructured its operations in the United
Kingdom. This has been done to eliminate operational losses and to achieve
profitability, without sacrificing any existing client relationships or
revenues. The operations were carried out through Trigyn Technologies Ltd., UK,
a third level subsidiary of Trigyn Technologies, India.
Business growth in UK during the last 15 months was not commensurate with the
investment made in Trigyn UK and as such Trigyn UK incurred significant losses.
Key element of these losses were the overheads, most of which had been optimized
during the last fiscal. However, chronic losses continued mainly on account of
certain long-term lease contracts which were a drain on the operations and which
were entered into by the previous management of Trigyn-UK. The premises were
leased at that time, in view of the projected revenue growth in UK. But in view
of the slower than projected revenue growth in UK, the premises leased were much
more, cost wise than the requirements.
The nine-year lease tenure if continued would have been a further drain on the
UK operations and would also have impacted Trigyn as a whole. Keeping the
prudent commercial practices in view and considering the overall profitability
and cashflow issues, Trigyn UK has been put into voluntary liquidation.
The company shall continue to serve the existing customers in the UK through a
branch, being registered with necessary regulatory and legal approvals. Trigyn
Technologies India Pvt Ltd., a subsidiary of Trigyn Technologies, is ultimately
servicing these clients and will be opening its branch soon.
Trigyn has communicated the restructuring to the Bombay Stock Exchange.
Source:myiris.com