9th Mar 2009 07:00
Monday 9 March 2009
Innovation Group plc
Appointment of non-executive Chairman
The Board of Innovation Group plc ("Innovation" or "the Company" or "the Group") (LSE: TIG.L), is pleased to announce the appointment of Andrew ("Andy") Roberts as non-executive Chairman of the Group with effect from today. He replaces David Thorpe, currently interim Chairman of the Group, who will remain as a non-executive Director of Innovation.
Mr Roberts brings to Innovation a significant track record in the Software and Computer Services and Business Process Outsourcing (BPO) sectors.
Mr Roberts has taken a number of non-executive roles with both listed and private companies over the past decade. He is the non-executive Chairman of Kewill plc, the leading international supply chain software business where he has successfully worked with the executive management team to reinvigorate the company's product line and financial performance. He is also a non-executive director and Chairman of Civica, a leading UK IT services business. Mr Roberts was also non-executive Chairman of Vega Group plc until its sale in 2008 to Finmeccanica SPA for £61 million.
Mr Roberts started his career at ICL and then led the management team that turned-around private-equity owned Data Sciences (then a leading BPO business), which was sold to IBM in 1996.
Commenting on the appointment of Mr Roberts, David Thorpe said today:
"I am absolutely delighted to be able to announce the appointment of Andy Roberts as non-executive Chairman. He has very specific and relevant experience in our sector as well as a first class track record of working with executive management teams to create significant shareholder value. Ours is a growth business and we look forward to working with Andy to leverage the market opportunities available to Innovation and drive profitable growth."
Andy Roberts added:
"Innovation Group is a business that has a unique and market-leading combination of software and BPO services for the insurance sector, one that is rapidly embracing outsourcing for many of its business processes. The current management team has worked hard to get the business into a strong strategic position in its global markets and I look forward to working with them to create shareholder value through growth in both profits and cash generation."
The following information is disclosed pursuant to Rule 9.6.13 of the Listing Rules of the UKLA.
Mr Roberts is a director of main market listed company Kewill PLC (LSE:KWL) and was formerly on the board of Vega Group plc, whose shares were de-listed from the main market of the London Stock Exchange on 14 February 2008 following its acquisition by Finmeccanica SPA.
A.R.M. Management Limited, Mr Roberts' own consultancy vehicle was wound up voluntarily in March 2006 with no shortfall to creditors.
Mr Roberts will receive an annual fixed fee of £90,000 and, in the first year of his appointment only, he may earn further renumeration, not exceeding £75,000, by reference to time spent on the Company's business. In addition, Mr Roberts has undertaken to invest £100,000 by way of subscription for new shares in Innovation at the prevailing mid-market price and Innovation has agreed to make a matching award of shares to that value to Mr Roberts at nil cost (less associated tax and NI).
Notes to Editors
About Innovation Group
Innovation Group plc ("Innovation" or "the Group") provides BPO services and software solutions to insurers and other risk carriers. The software solutions are designed for the handling of policy and claims administrative processes within the insurance industry. The solutions can be utilised in connection with the Group's BPO operations or implemented on a stand alone basis. Approximately 84% of the Innovation Group's total revenues are now recurring with the remainder coming from the sale and support of its software solutions. The Group provides software and outsourcing services on a non-branded basis.
Industry analysts expect the BPO market to continue to grow across all geographic areas. According to a Gartner* report (July 2008) in the financial services industry this is forecast to be 10.5% compound annual growth rate (CAGR).
Innovation has over 1,000 global clients including Allstate, LeasePlan, The Ford Motor Company, Aviva, AXA Insurance, RSA, Toyota (South Africa) and Zurich (UK). The Group processes more than 4 million claims per year with 20% direct claims cost saving achieved. The software operates in 8 languages and the Group has approximately 2,400 people across offices in United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, Netherlands, Pakistan, South Africa, Spain, United States.
*Gartner: Insurance BPO: Key Trends by Kimberly Harris Ferrante, July 2008
www.innovation-group.com
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