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Cirata targets 2024 cash flow breakeven in WANdisco turnaround

Image credit: Cirata

Cirata, formerly WANdisco, is targeting cash flow breakeven at the end of the 2024 financial year following a turnaround of a fraud scandal that led to the near-collapse of the data company.

The Sheffield and California-headquartered firm reported sequential growth in bookings from Q2 to Q4 in 2023 for both data integration and application lifecycle management segments.

For the quarter ended 31 December 2023, Cirata said it had a closing cash balance of $18.2m, higher than the guidance range of $16m to $16.5m.

The data software business expects to confirm bookings of $2.7m, up from $2.2m in the year-ago period.

Cirata cited “strong cost management” and “good cash collections” in a trading update published on Tuesday.

The AIM-listed firm was thrown into turmoil last year by a fraud investigation over sales irregularities. The company’s shares were suspended in July and its leadership left the business.

Former Sage Group CEO and ex-Tech Nation chair Stephen Kelly was parachuted in to steady the ship.

Since then the company has closed eight data integration contracts including General Motors, NatWest and Experian.

In September, WANdisco rebranded to Cirata in a bid to draw a line under the turbulent period.

Under Kelly, Cirata has restructured to a flatter management hierarchy. Cirata made three chief revenue officer appointments to oversee separate divisions, with each reporting in directly to Kelly.

Kelly described the 2023 financial year as “eventful” and that it required a “herculean effort to rebuild from the ground up”.

He added:“ Against all odds, the turnaround is well underway. Our Q3 and our Q4 reflect the first steps of a company coming back ‘off the canvas’.”

Cirata will publish preliminary full-year results between mid-March and mid-April.