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Future Integrated (FUR)

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Thursday 14 December, 2000

Future Integrated

Trading Update(Replacement)

Future Integrated Telephony PLC
14 December 2000

THIS ANNOUNCEMENT REPLACES THE TRADING UPDATE RNS No 8097V RELEASED ON 14
DECEMBER 2000 AT 11.15AM. THERE HAVE BEEN A FEW CHANGES TO THE TEXT - THESE
ARE NOT MATERIAL CHANGES.

Future Integrated Telephony plc

Trading Update

The Board announced on 11 October 2000 that as a result of the difficulties
experienced with Independent Energy Holdings plc ('IEH'), the company had
implemented its own contingency plans.


The Company stated at that time that it had received commitments from three
organisations/agencies for the connection of 39,500 telephone lines out of the
Group's target of 57,000, but due to these organisations having to review or
re-arrange their electricity and gas supply agreements there was an estimated
delay of one or two months for the connection of these new lines.


The problems encountered by these organisations in dealing with their customer
bases, because of the sale of the IEH's business, have become more acute as
the billing errors of that organisation have become more apparent. Whilst
these orders remain valid, the organisations/agencies have not been able to
progress connections in respect of some 24,000 of these orders, and hence no
income has yet been generated from these. As a result of these delays, it is
unlikely that the company will now achieve 132,000 connections by the end of
the financial year. In anticipation of these, and other connections, the
company had increased its facilities and infrastructure resulting in higher
overheads. The consequential delay in receipt of revenues combined with the
additional overheads has delayed the Board's anticipation about when it will
return to profitability. It is currently the Board's view that the Group will
become profitable, on a month on month basis within the three months ending 31
May 2001, the Company's financial period end, but the profit so created will
not be sufficient to achieve the loss anticipated by the market, which is
likely to be substantially higher. The Board has taken the review that it
would damage the future of the business to reduce the infrastructure in order
to make short-term savings as a result of these external and unexpected
problems.


Despite the above continuing problems as a result of IEH's cessation of trade,
discussions are at an advanced stage with another organisation with the
anticipation of entering into trials in February/March 2001 for an estimated
50,000 additional lines.


In a significant step to implement its plan to transform the Company from a
Telecommunications Services Supplier to a Business Services Supplier in the
SME market, the group launched, on time, in November its business portal -
www.fit4business.com. This was further strengthened by the recent announcement
that the Company and Bank of Scotland have signed a 5 year agreement to
provide a 'Business Solutions' Internet offering and this will be available
through the Portal early in the New Year. Future's own Internet service is on
track to be completed this month and offered for sale in January and revenues
will flow from March.


The Board is committed to stabilising and strengthening its base business
while continuing its strategy to add e-commerce distribution to that base.
Progress has been made in improving the back office processes in anticipation
of the increased demand so that growth will not create proportional overhead
growth. The Company will continue to share its progress with the market as
developments occur.


END

                                                                                
                                                                                
                                                                    

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