Tissue Regenix Group Regulatory News (TRX)

16 May 2005 07:01

Torex Retail PLC16 May 2005 16 May 2005 TOREX RETAIL PLC TOREX RETAIL EXPANDS INTO US MARKET WITH ACQUISITION OF LEADING RETAIL SYSTEMS PROVIDER • Acquisition represents first strategic entry into the US • Provides access for Torex Retail's leading edge product portfolio, including LUCAS, into the world's largest single market for retail management systems • Gives further support for customers to run common systems across international estates • Earnings enhancing in the first 12 months Torex Retail Plc ("Torex Retail" or "the Group"), the leading supplier of retailmanagement systems to major European retailers, is pleased to announce that ithas completed the acquisition of Retail Store Systems Inc. ("RSS" or "theCompany") for US$27.9 million. About Retail Store Systems Inc. ("RSS") RSS is a leading supplier of retail management systems to medium and large USretailers. RSS provides a full range of systems integration services includingthe supply of Electronic Point of Sale ("EPoS") software, hardware procurement,bespoke development, systems build and implementation. The Company is one of thelargest resellers of IBM hardware to the US retail sector and is a long standingand well respected supplier with an excellent reputation for customer service.Its blue chip customer base includes Barnes & Noble College Book Services, IKEA,Steinmart, Comp USA and BJ's Wholesale. RSS has over 15,000 EPoS installationsin 30 countries including a small presence in the UK market. RSS has some 100employees providing nationwide coverage from its head quarters in Cumberland,Rhode Island and sales office in Fountain Valley, California. US market opportunity Entry into the US is a key part of the Group's strategic growth plans andprovides Torex Retail with access for its best of breed solutions to the world'slargest single market for retail management systems with annual estimatedsoftware sales alone of some $1.5 billion. The US retail systems market iscurrently experiencing strong growth with analysts predicting that some 76% ofUS retailers will replace their EPoS systems over the next five years. RSS is extremely well positioned to immediately commence the marketing of LUCAS(Torex Retail's leading JAVA EPoS product) as the Company is the Group's mainimplementation and support partner in the US and assisted in the recentsuccessful Mont Blanc installation. Since 2004 Torex Retail has alreadysuccessfully won three customers for LUCAS in the US and RSS can build on themomentum of these valuable reference sites going forward. The recent majorcontract win to supply the leading fashion retailer Ann Taylor withSmartdecision also provides a strong launch platform for this product in the USmarket. These initial US sales have been made directly from the UK. With such adedicated and very experienced local presence, the Directors of Torex Retail areconfident of achieving significant sales in the US going forward. In addition to new sales to major US retailers, RSS will give the Group theability to support major European retailers with US interests. Torex Retailalready have a number of customers and prospects who are seeking to run commonsystems across their international estates. Ownership of RSS will thereforeenable Torex Retail to provide a significantly enhanced level of support andservice to these retailers in the world's largest retail market. 2004 Financial Performance & Consideration In the year ended 31 December 2004, RSS achieved EBIT of US$2.4 million onrevenues of US$41.7 million. The consideration of US$27.9 million has beensatisfied by the payment of cash on completion of US$17.1 million together withthe issue of 5,423,865 new ordinary shares in Torex Retail to the vendors. TorexRetail has today applied to AIM for admission of these new ordinary shares,which is expected to become effective on 20 May 2005. The Board believes that this acquisition will be earnings enhancing during thefirst twelve months. RSS Management Steve Tilley, the President and founder of RSS, has entered into a two yearservice agreement with Torex Retail and will play a leading role in implementingthe Group's strategy and growth plans for the US. At the same time he will workwith the existing management team to ensure that the successful financial trackrecord of RSS is maintained. Chris Moore, CEO of Torex Retail Plc, commented: "This is a fantastic opportunity for Torex Retail and represents a majormilestone in the strategic development of our business. As a leading US retailsystems provider and an established business with a strong management team andcustomer service record, RSS provides a great platform for Torex Retail toexpand into the fast growing US market". Ends. Contacts: Torex Retail Plc 0870 050 9900 Chris Moore - Chief Executive Mark Pearman - Business Development Director Richard Thompson - Finance Director Citigate Dewe Rogerson 020 7638 9571 Ginny Pulbrook Seb Hoyle For further information on RSS please see www.rss.com About Torex Retail plc - www.torexretail.com Torex Retail plc is a leading independent provider of retail technologysolutions to many of the UK and Europe's leading retailers. In Spring 2004 thecompany was bought out from healthcare software provider Torex plc andre-floated on London's Alternative Investment Market. With a marketcapitalisation of more than £100M, Torex Retail's product and solution set spanshigh street and out-of-town retail and the petroleum and convenience sectors andthe company's customers include Dixons, Woolworth, Selfridges, Shell and Argos.The company's products cover EPoS and a range of in-store and head office, lossprevention, logistics and performance and productivity solutions. Torex Retailhas more than 1,000 staff based in the UK, Germany, Benelux and Eire. This information is provided by RNS The company news service from the London Stock Exchange