Last checked at 18 May 2015 07:00
microgen
www.microgen.com 18 May 2015
MICROGEN PLC
AGM TRADING UPDATE
Martyn Ratcliffe, Chairman of Microgen plc ("Microgen" or the "Group"), will provide the following trading update at the Annual General Meeting to be held at 9.00am this morning.
"The Board is pleased to confirm that the results for the four months ended 30 April 2015 are ahead of the comparable period in 2014 and ahead of the Board's expectations and plans for the current year.
The Group maintains good visibility of its full year revenue with 84% of total planned revenue for 2015 already contracted and 95% of current year revenue expected to be generated from this customer base. This high level of forward revenue visibility is derived from the Group's annual licensing model.
Aptitude Software is progressing satisfactorily, with increased services demand in the year to date and a good pipeline of new business opportunities, particularly for the Aptitude Revenue Recognition Engine, an Aptitude-based finance application which addresses the IFRS 15 accounting requirements. Microgen Financial Systems has also continued its success with the 5Series Trust & Fund Administration product and has successfully completed the integration of the Unity acquisition.
Following the completion of the £20 million B/C Share Scheme in April 2015, Microgen has now returned £70 million to shareholders since October 2008. In line with the Group's seasonal cash flow cycle, the Group had cash at 30 April 2015 of £18.6 million (31 December 2014: £40.9 million) and net funds of £3.1 million (31 December 2014: £24.6 million).
In summary, the Board are pleased with the start to the year and anticipate continuing the Group's track record of resilient financial performance.
Following the Group's Preliminary Results announcement in February, the Board received an unsolicited approach from a UK private equity organisation which, following a period of due diligence, resulted in a proposal to acquire the Aptitude Software business. While the proposal provided an affirmation of the Group's market valuation and the Aptitude strategy/potential, the Board did not consider this proposal to be in the best interests of Microgen shareholders and discussions were therefore terminated."
With regard to the Board succession announced in February, Martyn Ratcliffe has advised the Board that he will be retiring as a Director after the release of the interim results in July but will remain an employee of the Group until the end of September to provide a transition. In accordance with his personal investment practice, Mr Ratcliffe has informed the Board that he will be realising his 17 year investment in Microgen and the Board will be working closely with the Company's broker, Investec, to place this holding with institutional shareholders in a timely manner. The process to appoint a new Chairman is underway and an announcement will be made in due course.
Contacts
Martyn Ratcliffe, Chairman 020-7496-8100
Philip Wood, Group Finance Director
Andrew Pinder, Investec 020-7597-4000
Lucy Delaney, FTI Consulting 020-3727-1131