SSY.L Regulatory News (SSY)

21 Jul 2005 07:00

CODASciSys PLC21 July 2005 CODASciSys plc Acquisition of Simple Concepts AB for CODA Divisionand brief trading update ACQUISITION CODASciSys plc ("CODASciSys", stock code: CSY), the IT software and servicesprovider, announces the acquisition of the entire share capital of SimpleConcepts AB ("Simple Concepts"), a financial consolidation software specialist,for an initial cash consideration of €3.25m together with further incentivebased payments of €0.25m plus 5% of OCRA product licences sold over the nextthree years. Simple Concepts' operation, based in Stockholm, Sweden, will provide the CODADivision with a base from which to market the full range of CODA's solutionsinto the Nordic region. CODA already has a strong client base in the area,including global shipping group Wallenius Wilhelmsen and OMX, operators of StockExchanges across the Nordic and Baltic region. The new operation will providesales, support and consulting services to users in the region as well as seekingto attract new clients. Simple Concepts also operates in Tallinn, Estonia,which will now become CODASciSys' first directly owned operation in the BalticStates. The CODA Division does not plan any major restructuring as a result ofthe acquisition, with the services of all management and staff being retained.Simple Concepts employs 19 people. The acquisition will also bring ownership of OCRA, a leading industry-recognisedsoftware suite for financial consolidation and treasury. The addition of thesefunctions to its existing product range will allow CODA to offer a directlyowned comprehensive solution for the finance department covering financialaccounting and procurement; consolidation and treasury, planning and budgeting;reporting and analytics; and process control and compliance management. The OCRAproduct range will be promoted to CODA's 2500 clients as an integrated part ofthe CODA suite and to new prospects as a stand-alone accounting consolidationsolution. In the year to December 2004, Simple Concepts' turnover was €1.8 m. and theoperating profit before tax (adjusted according to CODASciSys accountingpolicies and changes arising as a result of this transaction) was €200,000. Netassets as at December 2004 were not material. Planned investment in thebusiness during the second half of 2005 is expected to result in an approximatebreak-even result for the remainder of this year. Commenting on the acquisition, Graham Steinsberg, CODASciSys Group CEO, said: "This acquisition represents the next stage in the development of our Europeanexpansion strategy, following on from our recent acquisition in France and ouroffice opening in Germany last year. It allows CODA to provide enhanced levelsof service to our Nordic clients and to offer all our existing and potentialclients worldwide a complete finance solution which will now include a wellestablished consolidation and treasury suite. We are delighted with thisacquisition which we expect to be earnings enhancing during 2006." BRIEF TRADING UPDATE The CODASciSys Group also announces today that, following the end of its firsthalf of 2005, it continues to expect its results for 2005 to be in line withmarket expectations. Background Information The CODASciSys Group The CODASciSys Group, based in the UK, provides IT services and businesssolutions to a broad, worldwide base of clients. It comprises two maindivisions, the CODA Division (CODA) and the SciSys Division (SciSys), and iscommitted to delivering quality services, solutions and consultancy that deliverreal business benefits. CODA is focused on the delivery of financial intelligence through solutionsbased around financial analytics and accounting. SciSys concentrates ondelivering professional software services and on designing and building systemsthat incorporate third party packaged software. Each Division addresses well defined markets and together they serve a largeinternational client base. The Group supplies solutions that include financialaccounting and intelligence systems, management information systems andreal-time control systems. It supplies services that include consultancy,project management, system design, implementation and support and maintenance. The market sectors in which the Divisions operate include Utilities, Defence,Government, Communications, Retail, Business Services, Space, Transport, Bankingand Insurance. Clients are typically blue chip organisations, and largegovernment or quasi-government institutions. Within the UK, the Group has offices in Chippenham, Harrogate, Bristol, Readingand Nottingham. It services clients internationally through a network of directoffices in North America, The Netherlands, Belgium, France, Germany, Singapore,Malaysia and Australia and partners throughout the rest of the world. For further information please contact:Bryan Hucker, Group Finance Director, CODASciSysTelephone 01249 466466E-mail: investorrelations@codascisys.co.uk Barrie Newton, Rowan DartingtonTelephone 0117 933 0011 This information is provided by RNS The company news service from the London Stock Exchange