In its Third Quarter 2021 Earnings Report released on February 9, 2021, Goldmoney Inc. (the “Company”) disclosed the plan to restructure its operations by transferring its activities from Jersey, Channel Islands to achieve cost efficiencies, which the Company projected to complete during fiscal year 2022. More recently in its June 23, 2021 Annual Letter to Shareholders, the Company announced it had successfully ceased business in Jersey, with customers having the choice of moving their relationship to the Canadian or United Kingdom offices.
As we near six months since the closure of our Jersey operations, the benefits to the Company’s shareholders and clients are significant:
Through the elimination of redundancies in staffing, facilities, and IT, we expect to recover within 12 months all the costs related to the closure of the Jersey operations, and thereafter benefit from structural savings close to $4 million each year in the future.
Our Treasury team has achieved lower operating costs with economies of scale from consolidating our supplier and vaulting relationships.
By moving our primary Relationship Management Team to Canada and adding additional contact options to the Goldmoney Holding, we have improved our response times and client satisfaction.
The closure of the Jersey office was completed on schedule in September. Subsequently, the Jersey Financial Services Commission (“JFSC”) approached the Company in relation to a matter that had occurred within the Jersey-based subsidiary during the 2016 to 2018 period. To resolve this matter, the JFSC proposed that Goldmoney would not be permitted to operate in Jersey for a period of ten years, should it choose to re-establish a Jersey office. Having made in January 2021 the commercial decision to close its operations in Jersey, thereby making any plans to return there unlikely, the Company considered its alternative courses of action and decided it was in the best interests of its shareholders to accept the JFSC’s proposal.
With these matters now behind us, and with the significant realised savings that closing our Jersey operations is now providing, management looks forward to focusing our entrepreneurial energies on delivering long-term value to our shareholders.
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