Datalex said that an increase in services revenue led to a decline in gross margin and earnings due to rising personnel costs. Total operating costs surged 30 per cent to $18 million in the first half, said outgoing chief executive Sean Corkery, correlating “directly to the increased activity in customer activations, which requires upfront investment”.
The group also recently secured a new €5 million loan from Dermot Desmond’s Tireragh vehicle, €3 million of which has already been drawn down, bringing to the €13 million the total drawn down in loans from the businessman’s company. All the credit facilities are due for repayment by December 31st, 2024.
Datalex said in April that it was exploring “all financing options” to refinance loans under an existing €10 million facility from Mr Desmond’s Tireragh, as the rate attached to the loans increased from 10 per cent to 15 per cent and is on track to ultimately rise to 18 per cent from October.