CBUY.L Regulatory News (CBUY)

14 Dec 2005 08:01

@UK PLC14 December 2005 @UK PLC launches on AIM to fund roll out of innovative e-procurement service First day of dealings @UK PLC ("@UK"), a leading developer of software solutions to facilitatee-procurement, the trading of products and services between purchasers (such aspublic sector bodies) and suppliers (such as SMEs as well as larger companies)announces the commencement of dealings in its Ordinary Shares on AIM of LondonStock Exchange today under the ticker code ATUK.L and the ISIN numberGB00B9Y8Y28. @UK's market capitalisation at the placing price of 60p per shareis approximately £22.5 million. Placing statistics Placing price per ordinary share. 60pNumber of Ordinary shares placed on behalf of the Company 13,333,333Gross proceeds of the Placing (before expenses) £8.0 millionMarket capitalisation at the placing price £22.5 millionPlacing Shares as a percentage of the Enlarged Share Capital 35.49%Number of Ordinary shares in issue on admission 37,565,394 Shore Capital is the nominated adviser and Broker. Lyn Duncan, @UK Chief Executive said: "Securing the support of a number of blue chip institutions is a hugeendorsement of our strategy to take advantage of the window of opportunity thatnow exists to roll out our e-procurement solutions to government bodies acrossthe UK. The Government is committed to e-Procurement as it is key to achievingtargeted efficiency savings in the Public Sector. "We have developed the technology and have the proven expertise to provide thetrading connection between the thousands of local, regional and nationalgovernment bodies and their one million suppliers." 14 December 2005 Enquiries: @UK plcLyn Duncan, Chief Executive +44(0) 118 963 7000John Aiken, Finance Director Shore CapitalMike Sawbridge/Margaret Standish +44(0)151 600 3700 College HillAdrian Duffield/Clare Warren 020 7457 2815/2055 Notes to editors The business @UK has developed software solutions that facilitate e-procurement, the tradingof products and services between purchasers - public sector bodies such as localauthorities, schools and hospitals and private sector enterprises - andsuppliers, such as SME's as well as larger companies. The Company's approach has been to work with the public sector on seeking themost efficient way to engage suppliers so that they link to an 'e' based marketplace. In developing its solution, @UK has also worked closely with partnerssuch as Sage, which has a strong position in the SME market place, and CapitaEducation Services, which has a dominant position in the supply of managementinformation systems to schools in England and Wales. The Directors believe thatthe Company has developed an attractive, low-cost, value for money offer for thesuppliers of goods and services to the public sector. The Company's offering to the public sector purchasing bodies enables them totrade with SME suppliers through a 'closed market place'. A closed market placegives the public sector client the ability to control which of the suppliersthat the users within the public body are allowed to trade with and integrateswith that organisation's back office systems. Project Zanzibar The Office of Government Commerce (OGC) has recognised the key issues involvedin e-procurement and considered engaging with suppliers on a number of levels toachieve its goals. A part of the solution to the OGC's objective is the launchof an electronic Government market place available to Government Departments andAgencies, inviting suppliers to participate using standardised tools on a highlycost effective basis. This is known as Project Zanzibar. OGC has chosen aconsortium headed by PA Consulting for the provision of the project. @UK is akey participant in the PA Consortium. Other products and services @UK is a leading on-line company registration and formation agent including theprovision of company secretarial services. @UK also provides a domain nameregistration service and traditional web hosting services. The Company intendsto continue providing these services. The market The Gershon Report in 2004 identified potential efficiency gains of over £20billion in 2007-08 across the public sector. These savings were agreed as atarget in the Treasury's 2004 Spending Review. e-procurement is seen byGovernment as a key enabler to achieving greater public sector efficiency, withone third of the efficiency savings expected to come from procurement. The UKGovernment has put targets in place for public sector bodies in connection withprocurement. How the targets are set depends on the sector. For example, in thecase of local authorities there are specific targets for e-procurement systemsto be in place by the end of 2005, whereas, in the case of the NHS, the targetis to achieve the annual efficiency gain of £6.5 billion by 2007-08, with theNHS Purchasing and Supply Agency and the OGC jointly educating NHS management ofthe benefits of e-procurement. The need to ensure that local authority procurement is done inclusively withSMEs was recognised by the Government's Better Regulation Taskforce. This hascarried through into the targets set for local authorities, which have to workwith local suppliers to equip them to take advantage of e-procurementactivities. Development strategy The Company intends to continue to focus strongly on the public sector as thisopportunity is time driven by the Government's stated deadlines for publicbodies to have e-procurement in place. The aim is to sell closed market placesto all public sector buying organisations. Where this is not possible, @UK willaim to provide the supplier enablement for SMEs where another provider issupplying the main market place. Reasons for Admission and use of proceeds The Placing has raised £8 million for the Company before expenses. The netproceeds of the Placing will be used to enable the Company to put in place theresources required to take advantage of its growth opportunity by: • increasing sales and marketing resources for signing up buying organisations; • increasing staffing to sign-up suppliers; • continued development of @UK technology to support activities; and • creating a second data centre to increase the resilience of the service as the business grows. Listing the Company will also: • raise its profile with customers and suppliers; • enhance opportunities to reward and encourage staff through the introduction of share incentive schemes and assist in the recruitment of new staff. Current trading and future prospects The current financial year is progressing well with revenues in the first sixmonths significantly (approximately 42%) ahead of the same period in 2004, andeCommerce revenues up by approximately 160%. In addition, the Company has signeda number of new contracts with public sector organisations and continues to signup suppliers on existing public sector contracts. A significant number ofcontracts are at an advanced stage of negotiation and the Directors areconfident that a number of these will be signed in the near future. TheDirectors remain confident about the future development and prospects for @UK. Directors and key employees Bernard Fisher - 54 (Non Executive Chairman) Bernard has over 30 years' experience in the IT sector, including roles both inthe industry as well as an external advisor. The first half of Bernard's careerwas spent in a series of technical roles, starting with the BBC and culminatingas European Technical Director for the ICL Group of companies. Since March 2004Bernard has been Executive International General Manager of Popkin Software andServices. Prior to that, he focused on being an entrepreneur in the technologyarena. He has extensive international managerial experience and was anindependent non-executive director on the board of The Sage Group plc between1989 and 1996. Bernard currently holds several directorship roles. Lyn Duncan - 47 (Chief Executive) Lyn Duncan co-founded @UK in 1999, having gained a particular interest in theprocurement field and has been actively working in this area since the late1980's when she worked with Henley Management Consultants on a product whichintegrated purchasing and marketing processes. Her wider interest in technologydeveloped when working for BT as a manager of emerging technologies such asshared computing and email into BT's corporate client base through a series offlagship business centres. Prior to founding @UK she worked as a managementconsultant (both at Oasis and as an independent consultant leading on nationalinitiatives within the NHS) gaining over 10 year's experience of leadingtechnology driven change initiatives in the public and private sector. John Aiken - 46 (Finance Director) John Aiken is a Chartered Accountant, qualifying in the London office of KPMG,and is experienced in managing technology businesses. Since leaving KPMG, he hassubsequently been Finance Director at two listed groups, Usborne plc and SEPIndustrial Holdings plc, prior to a reverse takeover by iRevolution plc. Hejoined @UK in 2005 from Hamsard Group plc where he was Group Finance Manager. Ronald Duncan - 43 (Technical Director) Ronald Duncan co-founded @UK in 1999. Prior to @UK, he spent 10 years runninghis own computer software consultancy, servicing projects using a range oflanguages and platforms. Ronald Duncan studied Physics at Cambridge and is aChartered Physicist and Member of the Institution of Analysts and Programmers.He is a former UK downhill ski champion who competed internationally for 10years, including at two Olympics. Chris Hoar - 53 (Commercial Director) Chris Hoar joined @UK in 2003 having been a UK Sales and Marketing director atSaint-Gobain/Solaglass, Compass Services and Norwest Holst Construction.Subsequently he worked as an independent business consultant specialising insales, marketing and IT and internet strategy for SMEs. Dudley George - 53 (Marketing Director) Prior to joining @UK in 2003 Dudley George was a director of The Consortium, aleading supplier to the public sector, and designed and implemented EP4Free, ane-procurement system aimed at local authorities. Dudley previously worked in theFMCG sector as a marketing manager for organisations such as Nabisco and W HSmith. Dudley is a Fellow of the Chartered Institute of Marketing. Mike Tobin - age 41 Mike is Chief Executive Officer of Redbus Interhouse plc, having previously beenDirector of Sales and Marketing . He has over 20 years' experience in the ITindustry, having held various roles based across Europe . Prior to joiningRedbus, he was General Manager of ICL Fujitsu's eBusiness operation in Germany,having previously been General Manager of ICL 's Outsourcing Division in Denmark. Prior to that he was involved in start-up and turnaround businesses including10 years in France where he served as General Manager of Goupil Systems and withICG (International Computer Group) where he was responsible for BusinessDevelopment. Jo Connell - 57 (Non Executive) Until March 2003, Jo Connell was the managing director of Xansa plc, overseeinga period of significant growth. She joined Xansa in 1977, after spending fiveyears at CMG, becoming a member of the Xansa board in 1991 and chief operatingofficer in July 1997. Jo is also a non-executive director of Cornwell ManagementConsultants plc, Thus plc and is a governor of the University of Hertfordshire. Director and Major Shareholders Ordinary Shares Ordinary Shares Post AdmissionH L Duncan 7,064,039* 18.80R J Duncan 12,214,285* 32.60W J Aiken 37,778 0.10D R C George 300,000 0.80C D Hoar 275,000 0.73 \* The interests shown for HL and RJ Duncan each include a joint interest in7,000,000 Ordinary Shares. Ordinary Shares As at the date of this document Percentage of issued Ordinary SharesGartmore 5,000,000 13.31Morley Fund Management 1,621,666 4.31Rathbone Nominees Ltd 1,661,110 4.42Michael Louis Pasternak 1,150,000 3.06 -------------------------- This information is provided by RNS The company news service from the London Stock Exchange