Toronto, Ontario – May 13, 2025 – Dye & Durham Limited (“Dye & Durham” or the “Company”) (TSX: DND), one of the world’s largest providers of cloud-based legal practice management software, today issued the below letter to shareholders on behalf of its Board of Directors (the “Board”).
Dear Shareholders,
Over the past five months, the new Board and management have diligently assessed our business, evaluated our leadership, and most importantly listened to customers’ insights, concerns and goals. Following a period of rapid inorganic growth that compromised the quality of our customer experience, we recognize the urgent need to chart a different path to create long-term sustainable growth and enhance shareholder value. We are committed to doing this by getting back to business basics – delighting our customers with innovative and trusted products and customer service that is second to none. We are confident that, with our solid foundation of assets, we will transform our offerings to better serve the critical needs of our customers.
The new management team is actively refining the product portfolio, restoring client trust through meaningful engagement and strategically investing in talent to drive value creation. By reflecting on the Company’s past mistakes and missed market opportunities, the restructured Board is now positioned to make well-informed decisions about the future direction of Dye & Durham.
With this vision in mind, we are pleased to share the Company’s go-forward strategy, which is anchored by three pillars: Customers First, Product Transformation, and Portfolio Optimization.
The strategy prioritizes organic growth and operational excellence, ensuring Dye & Durham remains the partner of choice for the legal community. At its core, the strategy places customers at the centre of every decision, ensuring that we keep our promises and meet their needs. The Company has already begun to see early progress as evidenced by the news shared today. Some highlights include:
- As of the end of April, our Unity® gross retention renewal rate is over 90%, a number that is above our initial expectations and reflects the early initiatives management has implemented.
- Our customer-focused strategy led to a 75% improvement in email response times and 85% improvement in phone response times.
- We launched a redesigned Unity® interface that significantly enhances usability and navigation for our users. We’re also accelerating the long-awaited launch of Unity® in British Columbia.
We recognize the need to act with speed and urgency. As such, the company has established a regional structure and has identified market leaders in the United Kingdom and Australia. We’ve also strengthened our teams by rehiring former employees who are product experts and highly trusted by our customers. This strategic move will ensure we leverage their deep industry knowledge and relationships.
Additionally, we are nearing the completion of our search for a permanent CEO. While this search has lasted longer than expected, it’s crucial we select the right individual who can lead Dye & Durham during this transformative period. Rest assured, the organization is not at a standstill while we finalize this decision. Transformative work is underway, and our management team is implementing impactful changes.
The Board remains committed to maximizing long-term value for shareholders. Although we received recent bids for the purchase of the Company that have been given thorough consideration, we believe the best way to enhance long-term value is by optimizing operations first. These bids underscore the significant potential and value of our business. Selling a business during a renewal cycle or when operating trends are not optimized will lead to distractions at a critical time and is unlikely to benefit shareholders. Our approach requires patience, and we are highly confident that the operating trends will continue to improve as the leadership team continues to focus on the business. In the meantime, we are exploring the sale of some non-core assets to accelerate our deleveraging efforts. By concentrating on growing the business organically and selling non-core assets to improve the balance sheet, we expect to be in a much stronger position to maximize value, whether in the public market or through a sale.
Each day, we are making meaningful strides toward unlocking Dye & Durham’s full potential. Our focus on organic growth and operational improvements will continue to be our priority in the upcoming quarters. Although we are just at the beginning of our turnaround journey, the leadership team is confident that the future looks bright.
Thank you for your investment.
The Board of Directors
Forward-Looking Statements
This letter may contain forward-looking information within the meaning of applicable securities laws, which reflects Dye & Durham’s current expectations regarding future events, including with respect to the Company’s go-forward strategy. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent the Company’s current beliefs, expectations, estimates and projections regarding future events and operating performance. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dye & Durham’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in Dye & Durham’s most recent annual information form. Dye & Durham does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
For Further Information:
Huss Hirji
Vice President Investor Relations
Phone: (647) 323-7193
Email: [email protected]
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