Deepverge PLC (AIM:DVRG) has said it will save up to £2mln a year as it carries out an “accelerated” geographical restructuring of its two main businesses, with Modern Water to focus on China, South Asia and EMEA, while Labskin and Skin Trust Club target North America.
The cash costs are expected to be no more than £200,000 to implement the reorganisation.
Nigel Burton, who was taken on as the company's interim chief executive as part of the recent £12.5mln financing and ongoing board reshuffle, said: “This restructuring will enable the company to build on the unrealised value created within both business divisions in order to maximise shareholder value."
The company noted that Modern Water has won a number of contracts worth upwards of £1mln since moving from traditional unit sales of standalone monitoring equipment to fully integrated solution sales, underpinned by data automation and AI.
Under the reorganisation, the integration of the company's March acquisition, Glanaco will create two sub-divisions within Modern Water: one focused on sales of solutions and the other run by Glanaco and centred on equipment, assembly and logistics.
Modern Water will also focus primarily on markets where there is regulatory-driven need for clean water, the company said.
Meanwhile, Labskin and Skin Trust Club business units will transfer to Rinocloud, the software and AI specialist acquired in May 2019.
Following the recently announced material wins with IARPA, NOAA and Georgia Ports, this business will primarily be focused on and in the North American market.
Deepverge, which also confirmed that it has now settled its Riverfort loan following the recent fundraising, said some redundancies may need to be considered in some areas of the business as part of the restructuring.