BDI.L Regulatory News (BDI)

9 Dec 2009 10:44



Bond International Software plc

Trading Statement

Bond International Software plc, the specialist provider of software for the international recruitment and human resources industries, with operations in the UK, USA and Australasia issues the following update for the year ended 31 December 2009.

Since the announcement of its interim statement, the group has seen a deterioration in trading conditions in some of the markets in which it operates. In particular, the company has seen a decrease in order intake from its existing clients and a number of key contracts which the group had expected to sign in 2009 have been deferred. In addition, a number of major implementations in progress have been delayed or elongated as a result of the changing circumstances for the group's clients and a faster than expected change in the business model from capital sale to rental and Software as a Service (SAAS) has made the shortfall appear worse. Taken together, these issues will have a negative impact on the Group's outcome for the year.

Whilst 2009 has been a challenging year for the group, there are a number of indicators which point to more favourable conditions ahead. The group has a record level of recurring income across all divisions, and its business development teams are beginning to see a greater number of enquiries from prospective clients looking forward into the new year. Despite the short term negative impact on sales and profit, the process of changing the business model from traditional capital sale to a combination of software sale and software rental will have a benefit on visibility and the quality of future earnings. As a result, the Directors remain optimistic about the group's prospects for 2010 and beyond. The group will announce its preliminary results for the year ended 31 December 2009 on 14 April 2010.

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