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17 Feb 2009 07:00
17 February 2009
Electronic Data Processing PLC (EDP)
Interim Management Statement
EDP, an IT solution provider to the UK wholesale distribution industry and a supplier of Sales Intelligence software more widely, today publishes an Interim Management Statement covering the period from 1 October 2008 to 16 February 2009.
Material Events and Transactions
On 3 December 2008 EDP confirmed the termination of discussions regarding a possible offer for EDP from its management.
On 30 January 2009 EDP announced that it intends to buy-back a significant proportion of its issued share capital by way of a tender offer subject to the posting of a circular to shareholders and shareholder approval. The buy-back will be at a price of 50p per EDP ordinary share.
There were no other material events or transactions during the period under review.
Financial Position and Performance
The markets which EDP serves have continued to experience difficulties due to the ongoing extreme macroeconomic conditions. Customers and prospects are generally finding trading conditions to be extremely challenging which is causing their IT spending decisions to be delayed.
Our new business sales force remains active and continues to build our order pipeline based on continuing strong interest in the Group's software products. However, we have generally found the sales cycle to be significantly longer than normal which has had an impact on levels of non-recurring turnover.
The Group's recurring revenues (which relate mainly to contracted annual software licences and application hosting charges and accounted for 69% of turnover in the year to 30 September 2008) remain strong and at similar levels to the same period last year.
The Group continues to have a very strong, debt free balance sheet.
Outlook
We remain cautious about the outlook for the rest of the year. However, with our strong recurring revenues and carefully managed cost base, we are well positioned to weather the current economic situation.
For further information please contact:
Julian Wassell Toby Mountford
Chief Executive Citigate Dewe Rogerson
0114 2622007 020 7638 9571 m:07710 356611
www.edp.co.uk
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