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1 Jul 2008 07:31
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Clarity Commerce Solutions PLC
01 JulyΒ 2008
Clarity Commerce Solutions plc
Successful business sale -Β rationalisation achieved
Clarity Commerce Solutions plc (AIM: CCS, "Clarity" or the "Company"), a leading supplier of mission critical transaction processing solutions, is pleased to announce that it has successfullyΒ soldΒ the trade andΒ some fixedΒ assets of its RomulusΒ Enterprises LimitedΒ business consultancy for a cash consideration of Β£497,000 which is payable on completion.
The Company announced the results of its strategic review onΒ 7 April 2008,Β in whichΒ it indicated it would undertake a small operational restructuring, as well as seek to divest itself of two non-core service businesses.
The trade and assets of Romulus EnterprisesΒ Limited ("Romulus"), a business intelligence consultancyΒ specialising in management reporting and IT support,Β has been sold to Linegem Limited ("Linegem").
Clarity will receive cash of Β£497,000 for the disposal ofΒ Romulus, payable on completion, andΒ retain the cash benefit of contracts paid in advanceΒ of Β£130,000. In addition, Clarity will continue to benefit from free-of-charge support over the coming 3 years. Furthermore, should Linegem sellΒ RomulusΒ within 18 months following the disposal Clarity will receive 25% of any increase over the initial consideration.
Robbie Crawford and Paul Lemon, who were both formerΒ DirectorsΒ ofΒ RomulusΒ within the last 12 months,Β will become directors of Linegem. This transaction is deemedΒ therefore, for the purposes of the AIM Rules, to be one with a related party.Β Β In accordance with the AIM Rules the DirectorsΒ of ClarityΒ consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar asΒ the Company's shareholders are concerned.Β
For the financial year endedΒ 31 March 2007,Β being the last statutory accounts prepared for the disposed company,Β RomulusΒ reportedΒ turnover of Β£1,745,502, a lossΒ on ordinary activities before tax of Β£22,206 and had gross assets of Β£15,500.
This sale follows theΒ Company'sΒ recent disposal of Cyntergy, an IT help desk business, for a maximum cash consideration of Β£1 million depending on certain criteria being met.
Clarity's planned disposalsΒ of non-core businessesΒ are now completeΒ andΒ the management teamΒ isΒ now focused onΒ building its software businesses andΒ securing the significant cross-selling opportunities that exist across the group.
Clarity intends to use the funds raised from this disposal, after settlement of related costs, to support its working capital, to reduce its term debt, and allow the Company to begin to investigate selective acquisition opportunities in its core marketplace.Β Β
Ken Smith, Clarity's CEO commented;-
"In line with our stated strategy,Β I am delighted to announce our second successful business disposal which now completes the sale of our non-core businesses.
Significant progress has now been made under the new management team in terms of restructuring and refocusing Clarity and I look forward to reporting further progress in due course."
Enquiries
Clarity Commerce Solutions plc
Ken Smith, CEO
01256 365150
Arbuthnot Securities (Nomad and Broker)
Alasdair Younie
020 7012 2139
Biddicks PR
Shane Dolan
0207 448 1000
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