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WIN plc (WNN)

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Thursday 25 June, 2009

WIN plc

AGM Statement

RNS Number : 4211U
WIN plc
25 June 2009

Embargoed until 07:00

25 June 2009

WIN plc

('WIN' or the 'Company')

Trading Update and AGM Statement

WIN plc (AIM:WNN), an innovator in interactive mobile entertainment and information, will hold its Annual General Meeting in London today at which the Chairman, Richard Joyce, will make the following statement:

'The main focus for the current year-to-date has been on increasing sales in our Managed Services and Enterprise businesses and cost reduction. We have streamlined the business functions and integrated the recent acquisitions following the completion of the earn-out periods relating to the acquisitions of Pocket Group and Quattrocomm.

We have invested in our sales and marketing teams during the period which has resulted in new customer additions and an improved pipeline of potential new business. Significant new customer wins during the period included Sun Micro Systems, Fujitsu, GE Money and Centrica.

Our current rationalisation programme will reduce overheads by £200,000 on an annualised basis and we will continue to focus on cost containment.

Overall trading in the first five months of the current year has progressed well. Gross profit has remained in line with the level achieved in the previous year, despite a £250,000 deduction caused by the planned cessation of Pocket Group's direct-to-consumer business. 

There are currently encouraging signs of growth within our key divisions of UK Managed Services and Enterprise. Gross profit for UK Managed Services, an area of major focus for the Group, increased by 11.6% during the first 5 months of 2009 compared to the same period last year. In addition, Pocket Group's Managed Services business has performed well. The Enterprise division recorded 19% growth in gross profit during the first 5 months of 2009 compared to the same period last year. 

Gross profit in the New Media division fell by 30%, due entirely to the premium rate market, although the rate of decline has now slowed to 14% year-on-year and we anticipate winning new customers within this division in the second half of the year.

We have recommenced investment in the Next Generation Messaging Platform ('NGMP'), which was previously put on hold during the recent bid talks. WIN has awarded the development contract for the NGMP to Indian-based global system integration and business transformation specialists, Tech Mahindra. The NGMP contract is the first step in a broader alliance under which the two companies intend to work increasingly together and develop joint go-to-market initiatives in key territories. We believe that such a partnership should enable the Company to take advantage of the significant opportunities within the market going forward.

WIN currently enjoys an established position within growing sectors of a market where we are focused on generating increasingly high margin business. We are profitable with an excellent customer base and a strong cash position. The progress we have already made in the year-to-date leaves us confident for the remainder of 2009.'

For further information, please contact:

WIN plc

01494 750 500

Graham Rivers, CEO

Lance Moir, CFO

Beaumont Cornish Limited (NOMAD)

020 7628 3396

Michael Cornish

Arden Partners plc (Broker)

020 7398 1632

Richard Day

ICIS Financial PR

020 7651 8688

Tom Moriarty, Bob Huxford, Fiona Conroy

About WIN

WIN is an innovator in interactive mobile entertainment and information distribution with a ten-year track record of developing an unrivalled variety of services for Europe's leading content owners, mobile operators, corporate enterprises, broadcasters and media corporations.

WIN enables companies to use mobile services to improve business efficiency, grow revenues and reduce costs. Companies using WIN's services are able to improve communication with existing customers, attract new customers, increase brand loyalty and enhance customer satisfaction. An impressive and growing client list includes such household names as Vodafone, T-Mobile, Orange, Sony Ericsson, AOL, Centrica and E-On. 

Headquartered in Buckinghamshire, UK, WIN has built on its success by extending its reach into new overseas markets including Ireland, Germany, Austria, Hungary, Greece, Scandinavia, Australia, Africa, Malaysia, Thailand and Singapore. WIN is structured into three operational units, Managed Services, Enterprise Solutions and New Media.

This information is provided by RNS
The company news service from the London Stock Exchange