Last checked at 26 Jul 2007 07:00
Embargoed for release at 7.00am on 26 July 2007 Corero plc ("Corero" or "the Company") Directorate Change and Trading Update
Corero plc, the specialist provider of software solutions to the banking & securities and education markets, announces a number of changes to its Board.
On 29 March 2007, in our final results announcement for the year ended 31 December 2006, we described how Corero had been restructured into two operating divisions. These are the Financial Markets division, which comprises the Blue Curve and Radica product lines, and the Business Systems division, which comprises the Eclipse and Resource products focused on the public sector, in particular the education market.
This structure is designed to allow each division the operational freedom necessary to achieve organic growth in their respective markets. To complete our restructuring, we are pleased to announce two appointments to the Board. Mark Robertson, the co-founder of Blue Curve, joins the Board as the Managing Director of the Financial Markets division, and Bernard Snowe joins the Board as the Managing Director of the Business Systems division. Further information on Mr Robertson and Mr Snowe, in accordance with the AIM Rules, is set out as a footnote to this announcement.
With each of our two divisions now headed by main Board managing directors, we do not believe a separate CEO position is currently necessary. Consequently, Peter Waller, previously Non Executive Chairman, has been appointed Executive Chairman and Jarlath McGee has agreed to resign as Chief Executive and step down from the Board. He will remain with the company in a consultancy role for the next three months. The Board takes this opportunity to express its gratitude to Jarlath for his significant contribution to the business in his seven years with the Company. The above changes are effective immediately.
Trading Update
The Company's trading performance for the six months to 30 June 2007 has been below our expectations. Revenues were approximately comparable to those in the first half of 2006. This was in large part due to a customer delay within the Financial Markets division, as disclosed previously, which has slowed the implementation of certain key projects and has also delayed certain licence extensions.
The Business Systems division has traded strongly, having signed twelve new name clients since the start of the year, including nine more City Academies.
Costs increased compared to the first half of 2006 due to planned investment necessary for the continued growth of the Financial Markets division. Central costs increased compared to those in 2006 due to investment in infrastructure made in the second half of 2006 and the cost of the re-branding exercise carried out in early 2007. The company therefore expects to report a loss after interest for the six month period.
Our interim results for the six months to 30 June 2007 will be announced at the end of September and will be reported for the first time under International Financial Reporting Standards.
Outlook
As a result of the delayed contract and associated services revenues, combined with further delays in the market for corporate actions solutions, we believe it is prudent to reduce expectations for the year to 31 December 2007. As ever the full year outlook depends on our ability to recognise significant licence sales from new and existing customers, however, we still expect that our forecast sales, committed projects and cost reductions through restructuring will produce a strong second half with annual revenues ahead of those in 2006.
Contacts Corero PLC Peter Waller (Executive Chairman) 07785 228080 Ian Selby (Finance Director) 01923 695191 John East and Partners Limited 0207 628 2200
John East/Virginia Bull College Hill Associates 0207 457 2020
Matthew Smallwood/Jamie Ramsay
26 July 2007
Additional Information
Mark Robertson, aged 39, is currently a director of Blue Curve Limited, Blue Curve North America Inc, Blue Curve Research.Net Limited, Corero Systems Limited and Hillgate 255 Limited. Mr Robertson was formerly a director of Appareo Limited.
Mr Robertson currently holds 4,591,484 ordinary shares in the Company, equivalent to 10.08 per cent. of the issued voting share capital. In addition, Mr Robertson has options over 488,992 ordinary shares in the Company.
Bernard Patrick Snowe, aged 48, currently holds 40,000 ordinary shares in the Company, equivalent to 0.09 per cent. of the issued voting share capital. In addition, Mr Snowe has options over 488,992 ordinary shares in the Company.
Mr Robertson and Mr Snowe have confirmed that there is no further information required to be disclosed under Rule 17 of the AIM Rules.
CORERO PLC