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1 Jul 2008 07:31
Clarity Commerce Solutions PLC
01 July 2008
Clarity Commerce Solutions plc
Successful business sale - 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 successfully sold the trade and some fixed assets of its Romulus Enterprises Limited business consultancy for a cash consideration of £497,000 which is payable on completion.
The Company announced the results of its strategic review on 7 April 2008, in which 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 Enterprises Limited ("Romulus"), a business intelligence consultancy specialising in management reporting and IT support, has been sold to Linegem Limited ("Linegem").
Clarity will receive cash of £497,000 for the disposal of Romulus, payable on completion, and retain the cash benefit of contracts paid in advance of £130,000. In addition, Clarity will continue to benefit from free-of-charge support over the coming 3 years. Furthermore, should Linegem sell Romulus 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 former Directors of Romulus within the last 12 months, will become directors of Linegem. This transaction is deemed therefore, for the purposes of the AIM Rules, to be one with a related party. In accordance with the AIM Rules the Directors of Clarity consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
For the financial year ended 31 March 2007, being the last statutory accounts prepared for the disposed company, Romulus reported turnover of £1,745,502, a loss on ordinary activities before tax of £22,206 and had gross assets of £15,500.
This sale follows the Company's recent disposal of Cyntergy, an IT help desk business, for a maximum cash consideration of £1 million depending on certain criteria being met.
Clarity's planned disposals of non-core businesses are now complete and the management team is now focused on building its software businesses and 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.
Ken Smith, Clarity's CEO commented;-
"In line with our stated strategy, 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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