Interim Management Statement

RNS Number : 6537V

Microgen PLC

30 October 2014

 



microgen

www.microgen.com                                                                              30 October 2014

INTERIM MANAGEMENT STATEMENT

Microgen plc ('Microgen' or 'the Group') provides its Interim Management Statement covering the period from 1 July 2014 to the date of this announcement. Microgen released its interim results for the six months ended 30 June 2014 on 21 July 2014.

There have been no significant changes since 1 July 2014 in the trading or financial position of Microgen and its balance sheet remains strong. Both of the Group's businesses, Aptitude Software and Financial Systems, continue to perform satisfactorily in line with the Board's current expectations. In line with the Group's seasonal cash flow cycle and the normal variation in timing of customer receipts the Group had cash at 30 September 2014 of £34.7 million (30 June 2014: £37.9 million) and net funds of £17.7 million (30 June 2014:  £20.2 million).

Investment has continued in the Aptitude Software business with the release of the latest version of the Aptitude technology platform in October. This software version further extends the Aptitude Big Data processing capabilities enabling users to build data-driven applications deploying Aptitude's in-memory, in-database and in-Hadoop processing. In conjunction with this release, the Aptitude Software business has entered into a partnership with Cloudera, the leading distributor of Apache Hadoop. In October, the Aptitude Software business also released the Compact Edition of the Aptitude Accounting Hub, a pre-configured Aptitude-based divisional accounting hub and sub-ledger which complements the Aptitude Revenue Recognition Engine and the Aptitude Allocation Engine released earlier in the year.

In August, Aptitude Software signed a contract with a large North American telecommunications company, which is anticipated to generate revenues in excess of $5 million over its expected term. Discussions are also underway with a number of other telecommunications companies related to the potentially very high volume data processing demands associated with the new IFRS 15 (customer contract revenue recognition) accounting requirements.

Financial Systems' wealth management product for trust and fund administration, 5Series, continues to be well received in the market with three new contracts entered into since 1 July 2014. In line with the Board's strategy, the Financial Systems' Application Management business continues to decline slowly as some legacy products/solutions approach end of life. A number of add-on acquisitions in the wealth management sector continue to be progressed, although the Board remains prudent and, as always, there can be no certainty that any acquisitions will be completed.

Microgen is continuously identifying and evaluating businesses and strategic investments which the Board believes may benefit from being operated as a business unit under Microgen's stewardship. The Board will maintain its prudent approach and there can be no certainty that any material acquisition will be completed.

Contacts

Martyn Ratcliffe, Chairman                                            020-7496-8100

Philip Wood, Group Finance Director

Lucy Delaney, FTI Consulting                                        020-3727-1131

 

END

 

 

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