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19 Aug 2009 07:00
19 August 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 April 2009 to 18 August 2009.
Material Events and Transactions
On 6 April 2009 EDP completed the buy-back of almost half of its issued share capital by way of a tender offer at a price of 50p per EDP ordinary share. This returned £6 million of cash to shareholders.
There were no other material events or transactions during the period under review.
Financial Position and Performance
As expected there has been little change in market conditions during the period under review. Our customers and prospects are themselves facing challenging trading conditions which continue to cause their IT spending decisions to be delayed.
We have recently strengthened our new business sales force to address the challenges we currently face in converting interest in the Group's software products into orders. However, we continue to find the sales cycle to be significantly longer than normal.
The actions that we took in April to reduce our headcount, and therefore cost base, have proved effective. The one-off cost of the exercise was £200,000 which achieves annualised savings of £400,000.
The Group's recurring revenues (which principally relate to annual software licences and application hosting charges and which accounted for 74% of turnover in the first half of the financial year) remain strong and at similar levels to last year. These contracted revenues fully cover our day to day cash operating costs.
The Group has a 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 for the current economic situation and for the eventual recovery in the markets we address.
For further information please contact:
Julian Wassell Toby Mountford
Chief Executive Citigate Dewe Rogerson
0114 2622007 020 7638 9571
07710 356611
www.edp.co.uk
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