Corero Network Regulatory News (CNS)

3 Jan 2007 07:00

Mondas PLC03 January 2007 Mondas plc ("Mondas" or the "Company") Announcement of Contracts and Trading Update for the year ended 31 December 2006 Contracts Mondas is pleased to announce significant contracts to extend the use of BlueCurve with its major clients and a new customer in the US. ING and Vontobel have extended their licence terms and Evolution Securities hasboth extended its licence and added further users, resulting in significantrevenues for the year. At the end of the year Mondas secured a second US clientfor its Blue Curve product. The client is a West Coast based investment bank andwill use Blue Curve to automate the creation and distribution of its research. Trading Update Mondas has made strong progress during the year, achieving record revenues andprofits. The Blue Curve division has had a particularly successful year and hasmore than doubled its revenues compared to 2005. Significant licence revenueshave been derived both from existing customers, and from new clients addedduring the year. The Company expects to produce annual operating profits before taxation,acquisition integration costs and amortisation charges of approximately £400,000on revenues of approximately £6.3 million which is a turnaround of just under£1.2million from the £770,000 loss incurred in the previous year. This is lessthan market expectations, due entirely to the slippage of a large licenceextension agreement from an existing customer for its Mondas corporate actionsprocessing system, Radica CAPS. This slippage arose from a procurement delay andit is expected that this licence extension agreement will be signed shortly,significantly augmenting the first half of 2007 and the year as a whole.Consequently, the directors' aggregate profits expectations for 2006 and 2007remain unchanged. The Company expects to report that all business units were profitable. Theaddition of 26 new clients has substantially increased and broadened Mondas'customer base, particularly in the Financial Markets division. Contractedsupport revenues for 2007 have increased by 47 per cent to £2.8 million.Finally, the Company has substantially improved its working capital position andoperating cashflow is positive, putting it in an excellent position to takeadvantage of the momentum built during the year and the opportunities that havebeen created across all its business units The Company will report its preliminary results for the year ended 31 December2006, in March 2007. 3 January 2007 ENQUIRIES: Mondas PLC Tel: 020 7392 1300 Jarlath McGee , CEO Ian Selby, FD John East and Partners Tel: 020 7628 2200 John East Virginia Bull College Hill Tel: 020 7457 2020 Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange