Last checked at 25 Sep 2009 16:44
| 25 September 2009 | (AIM: AVI) |
Avisen plc
("Avisen" or the "Company")
Intention to appoint administrator to subsidiary
The Company announced the acquisition of Inca Holdings Limited ("Inca") on 17 July 2009. Inca and its wholly owned subsidiaries (together "the Inca Group") principally act as a reseller of IBM Cognos software, through Inca Software Limited ("Inca Software"), and develop their own enterprise planning software product called 'Inca Planning', through Inca Technology International Limited ("Inca Technology").
The directors of Avisen have recently completed a full review of the Inca Group's business within the context of the Company's operations and as a result have decided to discontinue the operations of Inca Technology.
Inca Technology's financial performance has been and continues to be poor. In the year ended 28 February 2009, it made a net loss of £907,994 on a turnover of £379,588. In addition to needing continuing financial support from Avisen, Inca Technology also requires significant management time which could be better utilised in focusing on Avisen's core activities. In contrast, Inca Software's business remains core to Avisen having enabled it to become a leading reseller of IBM Cognos software in the UK.
The Company has, therefore, filed a Notice of Intention to Appoint Administrators ("Notice") in respect of Inca Technology today at the High Court in London. Leonard Curtis, Insolvency Practitioners, have been instructed to assist the directors in this regard. The filing of the Notice will provide Inca Technology with protection from its creditors for a period of 10 business days, during which time, the directors will seek to initiate discussions with interested parties for a sale of the business and assets of Inca Technology as a going concern.
This process does not affect any other company within the Avisen group. A further announcement will be made in due course.
Louis Peacock, a director of Avisen, is also a director of Inca Technology.
Marcus Hanke, CEO of Avisen, commented:
"Avisen has been following an aggressive growth strategy through acquisition and we are keen to ensure the best returns for shareholders. To this endeavour we have decided the best recourse is to cease trading of the non-profitable entity, which will be to the benefit of the Group as a whole."
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For further information, contact:
| Avisen plc | |
| Marcus Hanke (CEO) | Tel: +44 (0)870 880 2978 |
| Louis Peacock (Executive Director and Acting CFO) | Tel: +44 (0)7899 667533 |
| NOMAD and Broker: | |
| John East & Partners Limited, a subsidiary of Merchant Securities PLC | Tel: +44 (0)20 7628 2200 |
| Bidhi Bhoma | |
| Financial PR: | |
| Bishopsgate Communications | Tel: +44 (0)20 7562 3355 |
| Robyn Samuelson/Siobhra Murphy | |
| avisen@bishopsgatecommunications.com | |
Notes to Editors:
Avisen
Avisen is a business and technology consultancy specialising in performance management with a focus on strategy creation, development and implementation. It provides advisory services and software distribution of solutions in the corporate performance management market. Avisen aims to provide specialist advice to enable organisations to build more effective capabilities to manage the performance of their businesses and allow them to achieve their desired targets.