17th Apr 2008 07:00
Appian Technology PLC17 April 2008 Appian Technology plc / Ticker: APN / Market: AIM / Sector: Technology 17 April 2008 Appian Technology plc ('Appian' or 'the Company') AGM Statement At its Annual General Meeting to be held at 10 a.m. today, Pat Ryan, Chairman ofAppian Technology plc, the AIM listed provider of Automatic Number PlateRecognition systems ('ANPR') and traffic management products and solutions, willprovide the following update on activities. The Company's focus over the last six months has been on improving sales andmarketing, reducing costs, streamlining and improving the management team andBoard, progressing its product development programme and strengthening thebalance sheet. The Company has made strong progress in the second quarter aftera slow start in the first quarter and the Board is greatly encouraged by theperformance of the business. Sales and Marketing I am pleased to report that Appian has had its best half year for order intake.Business in hand to date is £4.42 million, which is anticipated to be deliveredby the end of the current financial year. This includes all orders received inthe year to date and annual maintenance revenue. Total sales in the lastfinancial year amounted to £4.77 million. Going into the second half of the financial year, our sales pipeline is strongand the Board is optimistic about the Company's prospects for the remainder ofthe financial year and beyond. Appian continues to make good progress in all itsmarkets in the UK, Ireland, the Middle East and the Americas. In particular, theCompany has been successful in terms of winning tenders from UK police forces. Gross Margins Appian's gross margin is dependent on the mix of sales between hardware, whichgenerally has lower margins, high margin software and maintenance. For the yearto date, the gross margin is in excess of 45%, which compares with a range ofhistoric levels of 43% to 55%. The Board expects the current level to bemaintained or improved in the second half. Costs The Board has taken significant action and implemented a cost reductionprogramme. This is anticipated to result in annual cost savings of approximately£650,000 per annum, following its completion in July 2008, by which time theannualised cash cost base will be reduced to approximately £3.5 million. Furtheropportunities to reduce costs are being assessed and will be taken whereappropriate. Board and Management The following Board and management changes have been made to ensure that theCompany maximises its potential and remains at the forefront of ANPR technologydevelopment and provision. The Board is in the process of searching for a non-executive Chairman and is dueto appoint a search consultancy to source a suitable candidate. On the management side, Tom Keene is Commercial Director and is responsible forsales and marketing; Peter Csakany was appointed Head of Development in December2007 and Tony Price has been Head of Operations since February 2007. Further to David Hearn's previously announced intention to leave the Board, hestepped down with effect from 14 April 2008 and has left the Company. We wish himwell in his future career. Philip Lindsell, who has been Interim CFO sinceNovember 2007, will depart at the end of this month. Simon Michaels joined Appian as Finance Manager in April 2008 with a view to afuture appointment to the Board and will assume all financial responsibilities.Simon, aged 40, is a Chartered Accountant, who has wide ranging businessexperience at plc level having previously held positions with Coopers & Lybrand,RP Corporate Strategy, Finance Director UK and US Operations for Harvey NashGroup plc and Group Finance Director and Company Secretary of Mercury Group plc. Product Development The Company continues to upgrade its Cobra range of cameras, which has sold verysuccessfully since its introduction in January 2007, and has rolled out its newStinger and Viper range of ANPR cameras. The Cobra and Stinger products arefocused primarily on fixed site applications. The Stinger is an enhanced Cobrawith inbuilt processing and communications capabilities, while the Viper is anin-car dual purpose video and ANPR camera for the police market. Balance Sheet In this financial year, Appian has raised £1.39 million net from a placing ofnew shares in December 2007 and £737,000 through the issue of Convertible LoanNotes last month. Certain directors have contributed significantly to theseissues. Summary In summary, with a record period for order intake, steady gross margin and theimplementation of an aggressive cost cutting programme, we believe we are ingood shape for the future. We remain committed to being at the forefront of ANPRtechnology and we believe the improvement in order intake reflects that ourproducts are gaining further recognition both in the UK and internationally. * * ENDS * * For further information visit www.appian-tech.com or contact: Pat Ryan Appian Technology plc Tel: 01628 554 754 Isabel Crossley St. Brides Media & Finance Tel: 020 7236 1177 Tom Griffiths Arbuthnot Securities Tel: 020 7012 2000 Notes to Editors: Appian Technology plc is a leading provider of Automated Number PlateRecognition (ANPR) based enforcement, crime reduction, counter terrorism andtraffic management systems and products. It provides products to a diversegrowing global market, helping both governments, local authorities, national andinternational police forces and commercial organisations in all aspects ofsecurity, surveillance and traffic management. Appian's key products include the world leading Talon ANPR solution as well asthe recently launched Cobra and Stinger range of ANPR products. The Cobra ANPRcamera has the unique capability of reading vehicle license plates at a range of45 metres whilst the Stinger ANPR camera can be used on both mobile and roadside applications. The Company has an active R&D department, which continues todevelop and customise new products for international markets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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