Contract & Provision Updates
Anite Group PLC
07 April 2006
For immediate release 7 April 2006
Anite Group Plc
Contract and Provision updates
Anite Group plc, ('Anite' or 'the Group'), the worldwide IT solutions and
services company, today announces updates in relation to its contract with the
Department of Human Services of the State of Victoria ('SoV'), based in
Melbourne, Australia, and the implementations of its Pericles software with a
number of local government customers in the UK.
State of Victoria
The Board is pleased to confirm that Stage One of the State of Victoria contract
has now successfully gone live. This important milestone means that the first
stage of Anite's software is now being successfully deployed by the customer.
Anite and SoV are currently in detailed negotiations regarding options to finish
the final stages of the project on the most efficient basis with least cost and
risk. However, following a recent review, the Board now believes that the Group
will have no option but to incur further one off costs in relation to the State
of Victoria contract. These additional costs are likely to run to several
million pounds, and accordingly a sum will be added to the £3.1m provision
carried forward at the end of October 2005, to be utilised throughout the next
two financial years. While these negotiations are ongoing, it is impossible to
accurately estimate the level of these costs, however as soon as these costs are
finalised an announcement will be made.
Pericles
The latest software (Release 36) has now been successfully deployed by most
customers within the Pericles user group, representing another significant
milestone.
Implementations have continued in line with our expectations with a further
client now live on the benefits module since the interim results. The
implementations will continue for a further twelve months, during which time the
provision will be under continual review.
In addition, we are also pleased to report that the Department of Work and
Pensions' (DWP) Performance Standards Fund (PSF) has awarded Anite a £3 million
contract for the second phase of its Pericles Mobile Working Project. This
efficiency-driven initiative will transform the work of 31 local authority
Benefits departments by enabling visiting officers to access information
remotely via mobile devices.
Notice of trading update and results
The Group expects to announce a trading update for the year ended 30 April 2006
in early June.
Steve Rowley, Anite's Chief Executive, commented:
'We are delighted that Stage One of Anite's software is now being successfully
used by the State of Victoria. This represents a significant milestone for
Anite.
'However, as a result of these additional costs we are now in intensive
negotiations with the customer to restructure the project such that the
remaining software stages are implemented with minimum risk, maximum visibility
and the lowest level of costs for Anite.'
A conference call for analysts will be held at 7.30am this morning.
For further information, please contact: www.anite.com
Anite Group plc 01753 804000
Steve Rowley, Chief Executive
Christopher Humphrey, Group Finance Director
Smithfield 020 7360 4900
Sara Musgrave
This information is provided by RNS
The company news service from the London Stock Exchange
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