CBUY.L Regulatory News (CBUY)

31 Jul 2006 07:02

@UK PLC31 July 2006 Immediate release 31 July 2006 @UK PLC ("@UK") Trading update @UK PLC (AIM:ATUK), a leading provider of software solutions that facilitateeCommerce and eProcurement in the local government and Health sectors, todayissues an update on trading. @UK has continued to make progress in building its buy-side customer base, andis now working with 82 public sector organisations. In February, @UK startedworking with Leeds Trust, the largest Trust in the UK with the biggest teachinghospital in Europe. Leeds Trust employs over 14,000 staff across eight sites,treating around a million patients a year with a budget of £730 million. Duringthe first half, @UK has been forging new ground, working with its public sector(buy-side) customers to adopt their suppliers onto the @UK eCommerce platform.However, due to administrative delays by the Local Authorities mailing out totheir supplier base, the anticipated initial rise in the number of suppliersusing @UK's system has taken longer than planned. @UK has now taken this processinto its own control and anticipates a more efficient and productive process.The results of this exercise will not enable the Company to catch up with marketexpectations in this financial year. The Board believes that it has taken the necessary steps to address the slippagefrom the first half of the year including increasing and focusing the @UK salesforce for the supply-side customers. As a result of these steps, the number ofmailings to suppliers in July exceeded the number of mailings for the entirefirst six months of the year and during the summer quarter a newly recruitedgraduate telesales team will be trained and begin active selling. Integration of Coding International, acquired in May for an initialconsideration of £50,000, is now complete, giving @UK strategically importantcoding capability whilst increasing its client base. Work has commenced on thecontract with the North West London Collaborative Hub of NHS Trusts announcedearlier this month. The market opportunity for @UK remains unchanged and the Board expects to seeincreased growth in the number of suppliers adopting the @UK platform during thesecond half of 2006 which should build a solid base to begin 2007. @UK intends to announce interim results in late September. For further information please contact: @UK PLC +44 (0) 118 963 7000Lyn Duncan Managing DirectorBernard FisherShore Capital +44 (0) 151 600 3700Mike SawbridgeSmithfield +44 (0) 20 7360 4900Sara MusgraveTania Wild Notes to Editors:eCommerce can be defined as the buying and selling of products and services overthe internet. eProcurement is the particular process by which largeorganisations carry out their purchasing using eCommerce. @UK offers a uniquesolution within the field of eCommerce/eProcurement. Using its online network,public sector bodies such as local authorities, schools and hospitals andprivate sector enterprises can buy online from small to medium enterprises(SMEs), as well as larger suppliers. At the same time those suppliers generallyset up a trading website on @UK which can be used to sell online to otherbusinesses and even consumers worldwide. @UK is currently focused strongly onselling this approach to buyers throughout the public sector since this sectoroffers specific opportunities as a result of the UK Government's statedrequirements for eProcurement. Currently, there are over 1,000 public sector bodies spending over £100 billionannually on goods and services with around one million suppliers. These publicsector bodies have now been given specific performance targets in connectionwith eProcurement, and substantial sums have been invested by the Government ineCommerce platforms in both central and local Government. These projects form a core part of the 'Gershon' efficiency drive to save thepublic purse more than £20 billion annually by 2007/08. This drive followed thepublication in July 2004 of Sir Peter Gershon's report, 'Releasing resources tothe front line: Independent Review of Public Sector Efficiency'. In addition,the Government encourages public sector bodies to engage with local companiesand stimulate their adoption of eCommerce. The Directors believe that @UK is ideally positioned to experience significantgrowth as these public sector bodies put in place the necessary online linkswith their suppliers. @UK listed on AIM in December 2005, raising £8 million before expenses at anissue price of 60p. It purchased Coding International, its first acquisitionsince becoming a quoted company, in May 2006. @UK is included in the Softwareand Computer Services Sector (9530). For further information please visitwww.ukplc.net. This information is provided by RNS The company news service from the London Stock Exchange