Earthport Regulatory News (EPO)

9 Jun 2008 07:00



9 June 2008 

Earthport plc ("Earthport" or the "Company")

Corporate Update

"Our strategic goal is to be the global, high volume, low value payments utility, for financial institutions and payments services providers."

Earthport plc, (EPO.L), the global payments utility, is pleased to announce the following:

Executing Strategy

As stated in the Strategy Update of 28 April 2008 the Company is advancing in a number of areas, specifically the USA, the Middle East and the Asia Pacific region.

In the USA, signings of Xennsoft and Xoom coupled with negotiations in progress are creating a solid base of business on which Earthport USA can build. Earthport USA has a strong pipeline and multiple opportunities and the Company is seeing clear benefits from its decision to establish a JV presence in this region.

The agreement with Standard Chartered announced on 20 May 2008 is the first of several significant engagements in the Middle East. A team from Earthport first visited the region on 28 April 2008 for the IAMTN conference and signed the Standard Chartered agreement on 16 May 2008, which gives some indication of the appetite for the Earthport UPN in the region. A team has been in the Gulf this past week and negotiations have progressed with a number of other financial institutions.

The agreements with E-Clearing (announced on 15 May 2008) and an Australian Financial Services Company, (announced on 7 May 2008), were significant steps forward in creating a solid platform in the Asia Pacific region. Negotiations are continuing towards closure with Australian based global financial institutions and it is believed that these will be successfully concluded shortly.

In addition to the business opportunities, the Company is enlarging its banking network in the Middle East and Asia Pacific regions, which benefits both existing and potential customers and has a positive effect on business costs. 

Following the success of the Company being on the IBM stand at Sibos in Boston in October 2007, Earthport will be on the IBM stand at Sibos in Vienna on 14-17 September 2008.

The business partner relationship with IBM is of great value to Earthport and the Company expects another highly successful Sibos. 

The Company has received several enquiries in relation to the collaboration with Adobe in the development and marketing of a secure trade financing solution to the Financial Services Community (announced 26 March 2008). As stated in that announcement Adobe and Earthport are working together to develop a portal, with one major financial institution already committed.

The recent funding round of 4 April 2008 raising £3.5m for the Company and the availability of some conversion of warrants and loan stock in the immediate future puts the Company in a strong financial position. The Directors believe that the Company is now fully funded to profitability. 

Mike Harrison, Executive Chairman, commented: "In summary, the pursuit of our strategy, coupled with recent business wins and the achievement of significant milestones has re-enforced Earthport's long term potential and value."

Board Changes

Having had to base himself in the USA for family health reasons, David Fife is formally relinquishing his role as Chief Executive Officer and leaving the Board of Earthport plc. This change is effective from today. 

James Bergman, Executive Director, is appointed Chief Executive Officer with immediate effect, being responsible for all operational activities of the Company. He will report directly to Mike Harrison, continuing in his role as Executive Chairman, who will also be concentrating on the Company's financial and corporate development. Asif Ali, MBA ACCA, presently Financial Controller, is being promoted to Director of Finance.

Mike Harrison, Executive Chairman, commented: "James has been demonstrating on a daily basis that he has the energy and drive to push the Company to achieve its vision. He has been a major factor in Earthport's recent contract wins and the establishment of a solid pipeline of potential future opportunities, thus reinforcing his position within the Company. I will be continuing as Executive Chairman and am very optimistic about Earthport's future prospects."

James Bergman, stated: "I am excited to be formally taking on the day to day operation of the Company at this important juncture for Earthport. The Company's significant potential is being unlocked and I believe that the Board's vision will be realised. Mike's achievements with Earthport speak for themselves and I look forward to continuing to build on our success for the benefit of the Company, its clients and its shareholders."

-Ends-