SIR.L Regulatory News (SIR)

19 Jan 2006 07:00

Sirius Financial Solutions PLC19 January 2006 Sirius Financial Solutions plc Pre-close trading update - Year ending 31 December 2005 Sirius Financial Solutions plc, the specialist supplier of software and servicesto the international insurance and financial services industry, today issued thefollowing trading update for the year ended 31 December 2005. The Group continued to show good growth across all key activities and expects toreport revenues and operating profit (before goodwill and an exceptionalproperty charge) in line with market expectations. During 2005, Sirius continuedits focus on winning new customers as well as the provision of managed services,support and services and increasing the Group's recurring revenues. Within the Insurance Broking business, sales of 'Sirius 21', have gatheredmomentum month-on-month since its launch in January 2005 with 91 brokers havingsigned up, 65 of whom are now live. These include some significant winsdisplacing competitor systems. In the Insurance Division, Sirius achieved its stated aim of making 2005 a'record year' for the sale of S4I software for insurance companies with 11orders confirmed in the period. As well as new contracts in the Group'straditional geographies of Europe, US, Caribbean and Australia, significantlytwo of these wins were in new territories: South Africa and India. Both of thesewins were a product of the Group's growing alliance with Hewlett Packard underthe teaming agreements in place in both countries. India is particularly notable. In 2004 Sirius established a development centrein Delhi, in order to exploit the offshore capabilities in India and reducecosts. This operation has continued to grow and deliver successfully.Subsequently, the Group identified a rapidly emerging market locally forinsurance products and services, following recent changes to legislationallowing privatisation and de-tariffing of insurance. In December Siriussecured its first licence contract with a significant Indian company. Although the freehold element of the Group's old head office was successfullydisposed of in November 2004, the leasehold element remains unlet at the yearend. The Board currently anticipates that under FRS 12 accounting rules, Siriuswill have to make a one-off exceptional provision in respect of the anticipatedunlet period. The lease expires during May 2015 and the current annual rental is£150,000. The Board is reviewing the extent of the required provision inconsultation with its letting agents. The Group has started 2006 with a strong pipeline of new win business and ahealthy order book for professional services with its recurring revenues for2006 expected to increase over 2005. The offshore development centre in Indiais expected to grow staff numbers to 55 staff in 2006 with further recruitmentplanned over the following two years. The utilisation of this centre willcontinue to have a positive impact on margins. Further cost benefits areenvisaged from the reduced customer support requirements following thesuccessful take up of Sirius 21. Sirius expects to publish its preliminary results during April. 19 January 2006 EnquiriesSirius Financial SolutionsStephen Verrall/ Richard Bowser 0121 779 8400 College HillAdrian Duffield 020 7457 2815 Notes to editors: Sirius celebrates two decades of profitable growth as the market-leadingprovider of insurance software solutions. Sirius's end-to-end, internet-basedsolutions significantly improve business control, productivity & efficiency. Andwith over 17,500 users in over 50 countries, Sirius is the solution of choicefor insurance professionals worldwide. This information is provided by RNS The company news service from the London Stock Exchange