July 1st 2003 - Swedish transaction technology provider OM is implementing a cost reduction programme that will result in the consolidation and termination of many products as the firm seeks to focus its business on financial market in preparation for its merger with the Helsinki Exchange (HEX). The moves will lower costs by SEK578 million (£43.7 million) with lower revenues of SEK105 million (£7.9 million) annually and it is hoped that this will return the company to profit in all business areas from the first quarter 2004, according to acting-chief executive Magnus Böcker.

Consolidation of the product portfolio will include solutions for corporate actions, front office and settlement but the reorganisation will also include increased investment in services for existing customers. OM does not confirm which products will be discontinued.

Significant cost savings are being achieved through reducing staff numbers with a total of 240 redundancies, of which 220 are from OM’s technology operations. This includes 100 redundancies announced in March. The cost of this restructuring plan is expected to be SEK623 million (£47.2 million) with a negative effect on cash flow estimated at SEK193 million (£14.6 million).