Matrix Communications Group PLC
10 May 2006
Matrix Communications Group
Potential disposal and AGM statement
At the Matrix Communications Group plc Annual General Meeting today, the
Chairman Alan Watkins, gave shareholders an update on corporate activity and
current trading. He said:
'In the last few weeks Matrix has received an unsolicited offer to acquire its
Integration businesses from an international trade buyer with minimal UK
presence. These businesses, which exclude the Fujin mobile content filtering
business, are the main sources of revenue and profit for the Matrix
Communications Group and in the year to 31 October 2005 had proforma revenue of
£35.2 million and operating profit contribution of £4.1 million.
'The Board has entered into a period of discussions with the potential buyer as
it believes there is considerable industrial logic in combining the Matrix
Integration businesses with the potential acquirer's operations and with
financial benefits for Matrix' shareholders.
'These discussions are now at an advanced stage. Whilst there can be no
certainty that a transaction will be concluded, if agreement is reached, the
transaction would require shareholder approval. A further announcement will be
made in due course.
'In the first half of this financial year order intake within our Integration
businesses has been in line with our budget, and as we enter the third quarter,
the Board believes the business is in a good trading position with a stronger
than normal order book.
'Fujin, our mobile content filtering operation which is a much earlier stage
business, continues to be adversely affected by the slower than anticipated
take-up of some services by Vodafone, its largest customer. Whilst there remains
a wide range of potential outcomes, the Board currently expects the results for
Fujin for the year to 31 October 2006 to be below its expectations.
'The management of Fujin has made encouraging progress in securing new customers
from the global mobile network operator community. A contract has been recently
signed with a major mobile operator in an EU country and discussions are also
taking place with a number of other operators regarding implementation of the
'In addition, further investment has been undertaken to develop and deepen the
Intellectual Property Rights (IPR) within Fujin. Shortly, we expect our first
product, fully developed by Fujin, to be released for general sale.
Additionally, in July we expect to have the first full working prototype of a
next generation content filtering engine that makes use of advanced artificial
'Current activities with a number of mobile operators present significant new
potential opportunities and the Board continues to regard Fujin as having the
potential to generate significant shareholder value.
'As announced on 14 February 2006, Matthew Darling and Michael Frank will step
down from the Board at the conclusion of the AGM. I would like to take this
opportunity to thank them for their contribution to the Board over the last few
10 May 2006
Matrix Communications Group plc 01342 871 888
Ian Smith, Chief Executive Officer
Tony Weaver, Chief Operating Officer
College Hill 020 7457 2020
Adrian Duffield/Corinna Dorward
About Matrix Communications Group Plc
Matrix (AIM: MXC) is a leading converged communications solutions provider that
is rapidly evolving to a Virtual Network Operator (VNO) business in response to
customer demand for fully integrated and managed voice and data services.
In the three years since its inception, Matrix has grown rapidly through a
combination of strategic acquisition and organic growth into a £54 million
business* comprising two divisions 'Integration' and 'Fujin', a specialist
technology business focused on the delivery and control of mobile content for
The Integration businesses provide comprehensive voice, data and security
solutions, managed from the core to the edge of the Local Area Network and via
the Wide Area Network, by superior 24x7 proactive management.
Fujin has established a leadership position in the provision of image and
contextual content rating products and services (specifically designed for
Mobile Internet, WAP and MMS) and has already succeeded in winning substantial
contracts with both national and international mobile operators.
For more information see www.mxcplc.com
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