Trading Update

3 Apr 2006 07:03

Clarity Commerce Solutions PLC03 April 2006 Clarity Commerce Solutions plc Trading Update and Issue of Circular Clarity Commerce Solutions plc ('Clarity'), a leading supplier of softwaremanagement solutions for the entertainment, ticketing, hospitality and leisuresectors, is pleased to provide the following update on current trading: Current trading The Board is pleased to announce that profits for the year ended 31 March 2006are in line with market expectations. In respect of the Sodexho contract announced in October of last year, theCompany is pleased to confirm that the supply of software and the implementationof that software within Sodexho's business are progressing well. This contracthas been an affirmation of the strength of Clarity's product range, and itsflexibility to work in a variety of retail environments. The company expects to publish its results for the year ended 31st March 2006towards the end of June. Issue of circular Further to the announcement on 29 March 2006 of the acquisition by the Companyof MATRA Systems Limited ("the Acquisition"), the Company announces that acircular has been sent to shareholders convening an Extraordinary GeneralMeeting of the Company on Tuesday 25th April 2006. As announced the initial consideration for the Acquisition is £3.0 million ofwhich up to £500,000 will be satisfied by the issue of Clarity shares ("theConsideration Shares") and the balance of £2.5m in cash. The Company intends tofund the cash element of the consideration through a mix of debt and equity. The purpose of this EGM is to seek authority from shareholders to: • Increase the authorised share capital of the Company from £5,000,000 to £6,250,000 by the creation of 5,000,000 new ordinary shares in the Company of 25p each; • Increase the Board's existing Section 80 authority to issue and allot up to a further 4,000,000 Clarity shares (in addition to the existing authority to allot 3,661,941 shares). This will allow the Board to issue and allot the Consideration Shares to the shareholders of MATRA and to issue and allot up to 3,000,000 shares ("New Shares") for cash; and • Increase the Board's Section 89 authority to issue and allot the New Shares on a non pre-emptive basis. This will allow the Board the flexibility to fund the cash element of the Acquisition with the most advantageous mix of debt and equity and to raise additional working capital. Completion of the Acquisition is conditional on the passing of the resolution atthe EGM and is expected to take place at the end of April 2006. 3rd April 2006 Enquiries: Clarity Commerce Solutions Graham York, Chief Executive Officer 01932 778000 College Hill Adrian Duffield/Ben Way 020 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange