Trading Statement and Board Changes
23 November 2007
Corero plc ("Corero" or "the Company")
Trading update, Contract wins and Board changes
Corero plc, the specialist provider of software solutions to the banking &
securities and education markets, updates its 2007 outlook, announces a
significant contract in its Financial Markets division, further contract wins
in its Business Systems division and changes to the Board.
At the time of announcing our Interim Results for the six months ended June
2007, we anticipated that Corero Business Systems would maintain its
performance and that Corero Financial Markets would have an improved second
half.
Trading during the second half has improved. The Business Systems division is
on track to have its best year ever and we are pleased to announce two further
contract wins in the education sector, from Central Sussex College and Epping
Forest College.
Central Sussex College has placed an order for our Resource Financials suite
and for our Web Requisitioning & eProcurement system. Epping Forest College has
placed an order for our new Student Management Information System.
The Financial Markets division has also improved its performance. We are
pleased to announce a significant new contract with Blackmont Capital Inc., the
investment dealer subsidiary of CI Financial Income Fund based in Toronto,
Canada. This contract is for the Blue Curve hosted service and work on the
contract is already underway. Blackmont Capital is the second new Financial
Markets client to be signed within a month, and the contract represents further
progress in developing the large and important North American market.
Despite these improvements, as a result of the slower than anticipated
implementation of a major investment banking project, contracted earlier this
year, we now anticipate that Corero will make a small operating loss for the
second half which, when added to our first half performance, will result in an
overall loss for 2007. We now anticipate that the majority of the delayed
revenue will be recognised in 2008.
The Board has taken a number of actions to improve the group's performance
against an increasingly challenging market environment. Measures have been
implemented to reduce costs significantly, in order to achieve profitability in
2008 and at the same time to maintain and enhance customer service and our
ability to win business.
Although 2007 will be a disappointing year, we go into 2008 with a
significantly reduced cost base, contracted annual licence and support renewals
covering approximately 60 per cent. of our costs, satisfactory cash resources,
a streamlined management structure, a strengthened North American presence and
two divisions that are highly competitive in their chosen markets.
Board Changes
We are also announcing today a change to the Corero Board. Colin Peters, our
longest serving non-executive director and former chairman, will stand down on
31 December 2007 after seven years. We thank Colin for his immense contribution
to the Company.
Joining the Board on 1 January 2008 as a non-executive Director is Roy Walter
Mitchell (aged 51). Roy is a member of the Institute of Chartered Accountants
of Scotland and the Chartered Institute of Taxation. He has held senior
management roles with organisations such as TI Group, Polygram and Man Group
plc. At Man Group plc he sat on the Boards of several subsidiary companies and
was a member of the group finance committee and the risk committee. Roy will
chair the Corero Audit Committee and be a member of the Remuneration Committee.
We are confident that his deep financial knowledge will be an asset to the
Company.
During the last five years Mr Mitchell has been a director of MGP 2003, MGP
2001 Employee Benefit Trustee Company, MGP 2002 Employee Benefit Trustee
Company, Eastern Sugar Investments B.V., E.D.& F. Man Investments B.V. and Gilt
B.V.
Mr Mitchell has a beneficial interest in 2,005,000 Ordinary Shares,
representing 4.40 per cent. of the issued share capital of the Company, 175,000
of which are held in the name of his wife, Pamela Mitchell. In addition, he
holds £20,000 of Convertible Unsecured Loan Stock 2007 of the Company.
Mr Mitchell has confirmed that there is no further information required to be
disclosed under paragraph 17 of the AIM Rules.
ENQUIRIES:
Corero plc
Peter Waller Tel: 07785 228080
John East & Partners Limited
John East/Simon Clements Tel: 020 7628 2200
College Hill
Matthew Smallwood/Jamie Ramsay Tel: 020 7457 2020
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund