Wide range of financial solutions
Significant additional funding from the owners. Earnings on good level, strengthened offer book and order backlog
Over the last few years, LTS Consulting Oy with its subsidiary CTS Engtec Oy have faced a financially challenging situation, owing to the general downturn in the industry.
In the past year the Companies have carried out a series of strong adaptation measures designed to safeguard their business and thus secure company workers' jobs in the future. Along with the cost-saving efforts, expansion of services has been prioritised.
Following the adjustment measures, CTS Engtec Oy's business has been revitalised: in the autumn, the order and offer books as well as net sales have continued to grow, and the result is good.
As the market continues to be challenging, in addition to the adjustment measures the Companies have been looking for a diverse range of financial and stabilisation solutions to allow for the continued recovery of the business.
LTS Consulting Oy and CTS Engtec Oy have decided to merge their operations as of December 31, 2013. This merger is designed to continue the stabilization of their financial situation further.
As a major move promoting the business, the owners have injected substantial additional funding into the company.
In support of the financial and stabilisation solutions, restructuring programmes for both companies have been prepared in open and confidential cooperation with all creditors. By way of this procedure all the financiers, the creditors and owners of the Companies have adopted a highly constructive approach to the securing of business continuity and the protection of jobs. Thanks to common assent, the restructuring program was confirmed on Friday, November 29, 2013.
CTS Engtec Oy's operative business will continue enhanced and uninterrupted. All on-going and about-to-start projects as well as tender negotiations will continue with the agreed schedules and action plans. The stabilisation solutions do not involve changes to the ownership or customer relations.
The staff reductions are minimized and do not affect customer orders. Despite the challenging situation, the Company's personnel are highly committed and motivated to continue their good work on the projects.
The order book of the Russian subsidiary has been established on a favourable level, and the subsidiary will continue to operate normally.
Managing Director of CTS Engtec Oy Antti Lukka emphasizes that the relevant stabilisation measures will suffice to consolidate the financial situation to a high degree, so that the company, doing profitable business, will continue its core business activities without interruption and be able to continue to focus on business, thereby moving the company ahead.