CSAM Health Group AS (CSAM), a leading provider of specialised software for healthcare, will implement a group-wide cost-saving program that will ensure reaching the target EBITDA margin of 30% for fully integrated business areas and products, as previously announced in the Q3 report published on 30 November 2022.
The comprehensive program covers all business units, as well as the common services area, and includes the following specific targets:
- Reduce personnel costs through a combination of non-replacement of voluntary attrition and retirement, as well as redundancies. Between 25 and 35 employees will be notified of redundancy in Q1 2023.
- Together, the total reduction of external consultants and employees will be equivalent to approximately 60 FTEs, with a gross effect of approximately 60 MNOK.
- Any one-off effects related to the restructuring will be booked in Q4 2022.
- Continued focus on gross margin by further reducing COGS, targeting 5% of total sales.
- Reduce other costs targeting 15% of total sales, compared to 20% in Q3 2022
“After five acquisitions over the last 24 months, we are realising cost synergies through a cost-saving program. This will give us the necessary financial flexibility to continue our growth, especially important in these times of macroeconomic uncertainty and increased cost of capital,” said Sverre Flatby, CSAM CEO. He added “Our growth ambitions remain unchanged and demonstrating the profitability potential inherent in our business model is key to supporting our long-term financing strategy.”
For more information, please contact:
Chief Financial Officer
+47 91 55 45 32
CSAM Health Group is the leading provider of specialised software for healthcare in the Nordics. From this solid foundation the company has grown to serve more than 500 customers in 25 countries. Our highly specialised software solutions are instrumental in the clinical care processes of healthcare providers and in enabling emergency responders to enhance public safety. CSAM’s headquarters are in Oslo, Norway. CSAM has more than 300 dedicated specialists in ten countries across Europe, Asia, Oceania and North America, including a wholly owned software engineering subsidiary in the Philippines.
For more information, visit www.csamhealth.com
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