REG - IPPlus PLC - Trading Update <Origin Href="QuoteRef">IPPL.L</Origin>

PCI- PALAnnouncement

06/09/2014 16:39

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RNS Number : 4128M
IPPlus PLC
16 July 2014 
 
For immediate release 
 
16 July 2014 
 
IPPLUS PLC 
 
("IPPLUS" or the "Group") 
 
Trading Update 
 
IPPLUS PLC (AIM: IPP), the Ipswich based services company covering call centre
services, call centre software, archiving, disaster recovery, telephony and
payment card industry (PCI) compliant solutions, provides the following
trading update for the financial year ended 30 June 2014.  Comparable figures
relate to the corresponding twelve-month period to 30 June 2013. 
 
While the performance of the Group's different businesses has been mixed, the
Board is pleased to be able to report that it expects IPPlus to report revenue
of £9.1 million and profit before tax of £0.5 million for the full year (2013:
£8.1 million and £0.35 million respectively).  The substantially improved
headline performance for 2014 does, however, include a one-off profit on lease
surrender of £0.35 million arising from the purchase of the Company's first
floor office space, as reported in the interim results. 
 
The overall result reflects: a reasonably strong performance of the Group's
Ansaback call centre division (incorporating IP3 Telecom), which continued to
perform in line with the Board's expectations (with growth in both revenue and
new contracts wins); a weaker than expected performance for CallScripter, the
Group's software division; and, a loss for Ancora. 
 
CallScripter sales for the recently ended period will show a reduction of
approximately £0.4 million from the June 2013 sales level of approximately
£1.5 million. This sales shortfall, as well as additional software division
staffing and restructuring costs, will mean that growth elsewhere in the Group
has been negated, resulting in a small overall loss for the Group in the
second half of the year. 
 
Looking ahead, the Group is aware that certain fixed seat fixed term call
centre contracts will be ending in the current financial year and that the
Ansaback sales team will be required to win additional new business to
compensate for this. 
 
The Group's cash position at 30 June 2014 of approximately £0.5m (2013 £0.6m)
remained healthy and net indebtedness at that date was approximately £0.7m
(including the building mortgage of approximately £1.2m). 
 
Commenting for IPPLUS, Chief Executive Officer, William Catchpole said: 
 
"It has been an excellent year for our call centre business whilst the
prospects for our PCI solution and its sales pipeline are most encouraging. It
is of course frustrating to have seen a reduction in the software divisional
sales in the year, however, we anticipate that this will recover its momentum
as the CallScripter software is a market leader utilised in call centres
around the world. The Group has good recurring revenue and an adequate capital
position. The Board remains confident that the Company has good prospects
ahead." 
 
The Company expects to announce its final results for the year ended 30 June
2014 during the first half of September 2014. 
 
For further information, please contact: 
 
 IPPLUS PLC                                                                        Tel: +44 (0)1473 321 800  
 William Catchpole, Chief Executive OfficerStuart Gordon, Chief Financial Officer                            
                                                                                                             
 N+1 Singer (Nomad & Broker)                                                       Tel: +44 (0)20 7496 3000  
 Aubrey Powell Alex Wright                                                                                   
 
 
This information is provided by RNS
The company news service from the London Stock Exchange