It is expected Solution 6 managing director Laurence Milton will formally announce the cuts to customers before the end of March.
Milton told Accountancy Age the company was set to offer customers the opportunity to upgrade their current packages. The cuts will be made to long standing offerings. It is understood the software vendor will charge its customers to upgrade – but will offer discounts of 60-70% for existing clients compared to the full retail value.
The company will offer a 12-month change over period for the upgrade to new products.
Viztopia practice management product VPM and its Singleview knowledge management package will be promoted while it is estimated that 11% of its customer base has already upgraded its software.
‘For too long this company has promised and not delivered, now we are. We will now be offering our clients a long-term opportunity to upgrade their products. There will be additional charges for the upgrade but we will be offering existing customers discounts on what the products would sell for.’
Solution 6 acquired Management Information Centres Holdings last September and as part of the £6.5m deal, also acquired MICL’s interest in Viztopia.Milton also revealed his intention to put the company back on the map. He admitted the company had lost its way for a number of years due to failing to concentrate on its core business.
It has been hit by an overhaul to its management team, lack of new products and large losses. It also axed 35 staff from its Nottingham office. The worldwide group recently released figures, which showed an EBITDA loss of £16.7m ($24.3m) for the six months to December 31, 2000.
Milton said in the UK the company had budgeted for ‘substantial losses’ and that is what had been produced although no UK figures were released. However the company’s ASP agreement with Deloitte & Touche last month has hinted at signs of recovery.
Milton added the acquisition programme the company carried out over the last few years would stop ‘unless the company for sale was linked to its core business.’
He denied the upheavals at the company had dented its client base, adding: ‘We are beating budget now and are profitable on a monthly basis and our core products in place, our staff have been re-motivated and the tide is beginning to turn.
‘We have a very happy client base who have stuck by us through thick and thin and we are now getting back to looking after professional firms.’
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