7Digital's appoints new leadership team
Digital music solutions provider 7digital's new leadership team were formally appointed to its board on Tuesday following the departure of long-time chief executive Simon Cole.
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7digital's new chief executive, John Aalbers, immediately began a review of the company in order for him to formulate a vision and strategy to take the company forward,
While the AIM-listed group will not issue a pre-close update covering its 2018 trading year, the new boss intends to present his plan for the firm's future to shareholders in 7digital's full-year results.
Incoming chief financial officer Julia Hubbard has also started preparing the group's accounts for the 2018 financial year and reviewing budgets for the current year in conjunction with Aalbers' review of the company strategy.
While both reviews were ongoing, 7digital believes the business will require "material further equity and/or debt funding" in the next quarter or it could be forced to shutter all operations.
"The board will assess financing options for the company however, it is likely that this would entail significant dilution for shareholders," said 7digital.
7digital also noted that negotiations and the ultimate loss of MediaMarktSaturn as a customer had diverted management attention and led to disruption within the business during the first quarter and also had a marked effect on customer sentiment.
"This has slowed both adoption by new clients and payment by existing debtors. The sales strategy and execution are the board's and new management's highest priority focus in the short term."
As of 0920 BST, 7digital shares had tumbled 54.55% to 0.50p.