Last checked at 30 Oct 2018 07:00
microgen
www.microgen.com
30 October 2018
TRADING UPDATE
Microgen plc (LSE: MCGN) has continued to make good progress in the second half of the year.
Aptitude Software has achieved further success with its strategically important Aptitude Insurance Calculation Engine ('AICE'), an application which enables insurers to address the requirements of IFRS 17, an accounting standard focussed on insurance contracts and effective for accounting periods commencing on 1 January 2021. Building on the previously announced new business contracts for AICE in the first half of the year, in September the application was licenced to an existing Aptitude Accounting Hub user, a major global reinsurer headquartered in Europe, demonstrating the opportunity to increase Aptitude Software's footprint within existing clients as the suite of Aptitude Software's applications grows. The business has a number of additional very well qualified material opportunities for AICE in Asia, Europe and North America.
Aptitude Software has also made further progress with its Aptitude Lease Accounting Engine ('ALAE'), an application which allows organisations to address the requirements of IFRS 16 / ASC 842, the new lease accounting standards effective for accounting periods commencing on or after 1 January 2019. A number of new business sales for this application, provided as Software as a Service, have been completed in recent months. The leverage of the cloud platform acquired with the 2017 RevStream acquisition to Aptitude Software's core applications continues to be of great benefit to the business. RevStream sales activity remains strong with further sales expected in 2018 to build on the new business successes for this application in the first half of the year.
Microgen Financial Systems has achieved new business success for its leading Microgen 5Series application focussed on the Trust & Fund Administration market. New clients have been secured in both the Caribbean and Europe in the second half of the year with a number of further opportunities being progressed.
The Board expects the Group to meet management expectations for 2018. The outcome has only a limited amount of dependency on new business to be won during the remainder of the year.
The Board further announces that Simon Baines has stepped down with immediate effect as Chief Executive Officer of Microgen Financial Systems, a board position of Microgen plc. Simon Baines will leave the employment of the Group in April 2019 to pursue other opportunities.
Microgen Financial Systems, as one of the Group's two software businesses, contributed 29% of Microgen plc's 2017 revenue. Philip Wood, Chief Financial Officer of Microgen plc, will assume the role of Acting Chief Executive Officer of Microgen Financial Systems whilst a long term successor for the role is identified for this business. Tom Crawford continues in his role as Chief Executive Officer of the Group's Aptitude Software business.
Information in relation to payments to be made to Simon Baines will be included in a statement on the Company's website in accordance with Section 430(2B) of the Companies Act 2006.
Ivan Martin, Non-Executive Chairman of Microgen plc, commented:
'Simon Baines joined the Group in 2010 to lead the Microgen Financial Systems business. Under his leadership Microgen Financial Systems has developed into a leading provider of software to the Trust & Fund Administration market, overseeing five acquisitions during his tenure. The Board thanks Simon for his contribution to the business and wishes him well for the future.'
Contacts
Ivan Martin, Chairman 0203 880 7100
Philip Wood, Chief Financial Officer 0203 880 7100
Junya Iwamoto, Investec 0207 597 5970