Crossword Cybersecurity Regulatory News (CCS)

7 Apr 2008 13:04

Clarity Commerce Solutions PLC07 April 2008 7 April 2008 Clarity Commerce Solutions plc("Clarity" or the "Company") Strategic Review Building on the financial stability and opportunities provided by the recentsuccessful fundraising programme the Board is pleased to announce the findingsof a review of the Company's strategy as conducted by a combined Board andsenior management group. Strategic Review Summary Having benefited greatly from the experience of our previously-announcedstrategic review, Clarity has decided to retain and enhance its focus on sellingsoftware into the leisure, retail, hospitality and ticketing markets. However,the Group will look to increase its efforts to maximise cross-sellingopportunities, presenting itself as a leading provider of mission-criticaltransaction processing solutions. Clarity will also undertake a small restructuring with the creation of aGroup-wide Solutions Delivery Group. It also intends to divest itself of twonon-core service businesses, enhance its sales and marketing function, and lookfor further cost efficiencies. Background to the business Clarity primarily provides transaction processing solutions to a wide variety ofhigh-profile clients in mission-critical situations. Typically, the areas inwhich this software is used include point of sale transactions for majorretailers, reservations and bookings for hotels and leisure centres, andticketing transactions to cinemas and theme parks around the World. The Company enjoys a trusted relationship with its customers throughout thesesectors and these customers rely on the strength of Clarity's offerings and thedepth of Clarity's ongoing support to keep their businesses functioning. Key Business Divisions The Company has already amalgamated its businesses into four operating divisionsfocusing on the leisure, retail, hospitality and ticketing markets. Each division is headed by its own management team which is responsible fordeveloping and adhering to its own projections and business plan, reporting tothe central group management and Board. This has been designed to ensuremanagement takes ownership of divisional objectives and is motivated andpositioned to drive growth in its division. The Board sees many opportunities to build considerable value within each ofthese businesses. Cross-selling Opportunities The strategy review identified a number of opportunities for cross-divisionalcooperation and the Company believes revenues can be enhanced by marketingproducts designed for one business division into another without the need forsignificant adaptation. For example, the Ticketing Division covers primarilycinema ticketing, whereas all the Company's theme park ticketing products fallwithin the Retail Division. Competition Clarity enjoys a fortunate position with regards to both larger and smallercompetitors. Nevertheless, correct positioning against competitors is a vitaltask for management to address. In comparison to smaller, primarily single product competitors Clarity has thefinancial resources, experience and staff to provide much more compellingsolutions to its customers. Against larger competitors, Clarity is small and agile enough to react quicklyand respond to customer needs and capture opportunities. There are many examplesof smaller companies succeeding where larger companies have been slower and lessflexible. In order to maximise its advantages, Clarity will invest in additional salesresources, and enhance its marketing function. Restructuring Finally there are within the Group two service businesses which lack the abilityto scale afforded by the Group's software businesses and the Board plans todivest these businesses in the near future. The Board plans to augment Clarity's software businesses by adding a Group-wideSolutions Delivery Group, with skills and resources to provide comprehensivesolutions across different market areas. While existing businesses may be complemented by the addition of one or twocarefully-selected acquisitions, the Board's key focus and efforts will remainon improving financial performance through the revised structure, refocusedmanagement and divestments and the efficiencies created as a result. Costefficiency will remain a key focus, with an ongoing review likely to bringfurther savings. Our strategic review has clearly identified the depth of skills inherent in itspeople and the huge amount of specialised domain knowledge held by staff in keymarkets. This provides a solid foundation for medium and long term growth. For further information, please contact Ken Smith, Group Managing Director (Please call Jacquie Mitchell)Clarity Commerce Solutions plc 01932 778001 Fiona KindnessGrant Thornton UK LLP (Nominated Adviser) 020 7383 5100 Ian CallawaySVS Securities plc (Broker) 020 7638 5600 This information is provided by RNS The company news service from the London Stock Exchange