1st Jul 2005 07:00
Innovation Group PLC01 July 2005 1 July 2005 THE INNOVATION GROUP PLC Acquisition The Innovation Group ("TiG"), which specialises in providing transformational business solutions for the global insurance community that incorporate technology, outsourcing and supply chain management, today announces the acquisition of Websoft (Pty) Ltd ("Websoft") by its operation in South Africa for a consideration of approximately £1.0m in cash. Websoft specialises in the provision of back office administration software andinternet based brokerage administration bureau services to the short term insurance industry, predominantly on a recurring revenue basis. In its last audited accounts for the twelve months to 30 June 2004 Websoftreported turnover of approximately £3.5 million and made an adjusted pre taxprofit of approximately £0.5 million. Net assets are expected to be not lessthan £0.75 million at completion. Turnover for the twelve months to June 2005 isexpected to be in the region of £2.2 million with a break-even position inadjusted pre tax profit expected for the same period (before goodwillamortisation and exceptional items). The expected reduction in revenue andprofits in 2005 is primarily due to the sale of its non-core hardware supportdivision. The business is expected to grow revenues and be profitable in its newfinancial year. Hassan Sadiq, Chief Executive of The Innovation Group said: "The acquisition of Websoft by the South African operation allows us to offertechnology solutions in South Africa and gives us the opportunity to cross sellto our substantial client base in that region. In addition, as the major portionof the income of the company is of a recurring nature, this acquisition furtherstrengthens the TiG business model for repeatable revenue generation." Enquiries: The Innovation Group plc 01489 898300Hassan Sadiq, Chief Executive Officer Paul Smolinski, Group Finance Director Robert W. Baird Limited 020 7488 1212Shaun Dobson Smithfield 020 7360 4900Sara Musgrave/Sarah Richardson Notes to Editors About TiG The Innovation Group plc delivers innovative technology and process improvementsolutions to the insurance and associated industries that enable clients toincrease profit and improve the customer experience. To cater to the needs ofeach individual client, and to maximise impact and return on investment, TiG'ssolutions are delivered through two operating divisions: Technology SolutionsDivision (TSD) and Specialised Business Process Outsourcing (SBPO). The Group has provided services for leading blue chip companies around the globeincluding: ACG, ACSC, Allianz, Aviva, Axa, BMW, Chubb, Direct Line, Ford MotorCompany, Jaguar, RSA, Yasuda, and Zurich. Market leaders recognise that in order to improve profit margins they mustreduce the total cost of claims. Current industry statistics show that averageEuropean non-life expenditures are around 105% of premiums collected (combinedratio), with nearly 80% of this expense being claims related (totalling morethan £20 billion a year in the UK alone)*. TiG's claims technology enablesinsurers to decrease claims costs by around 5% to 20% and to improve customerexperience. * Source: The Economist Intelligence Unit, February 2003. About Websoft Websoft is one of the leading providers of administrative business softwaresolutions to the insurance and related intermediary markets in Southern Africa.It currently holds the exclusive rights to distribute and support the "INSIGHT"suite of software products for insurance administration throughout Africa, theMiddle East and Australasia. In addition it is also a leading provider of bureaubased administration services to the insurance intermediary market in SouthAfrica. The company is based in Rivonia, Sandton. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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