2nd May 2008 12:20
Clarity Commerce Solutions PLC02 May 2008 Clarity Commerce SolutionsDisposal2 May 2008 Clarity Commerce Solutions plc Successful disposal of non-core services business Clarity Commerce Solutions plc (AIM: CCS, "Clarity" or the "Company"), a leadingsupplier of mission critical transaction processing solutions, is pleased toannounce that it has successfully disposed of one of its non-core servicesbusinesses. The Company announced the results of its strategic review on 7 April 2008, whereit indicated it would undertake a small operational restructuring, as well asseek to divest itself of two non-core service businesses. Cyntergy Services Limited ("Cyntergy"), which provides help desk and trainingservices to a wide variety of retail, leisure and software companies throughoutthe UK and mainland Europe, has been sold to Lumos Services Limited ("Lumos"). The maximum consideration receivable by the Company for the disposal is£1,000,000 payable entirely in cash. Of this sum, £400,000 has been paid oncompletion with a further £100,000 payable within twelve months. The balancingconsideration, of up to £500,000, arises in respect of training or help deskbusiness introduced by Clarity to Cyntergy in the three year period followingcompletion. The exact sum payable will be calculated annually as a proportion ofagreed gross profits generated on business introduced to Cyntergy for thesucceeding twelve months of any such new contract introduced. Such additionalsums would be payable to Clarity shortly after each anniversary of completion. Peter Walker, a previous Executive Director of Clarity, owns 27.5% of Lumos andis a Director of that company. Further Tim Bittleston, a previous non-executiveDirector of Clarity, owns 4.5% of Lumos. As Messrs Walker and Bittleston haveboth been directors of Clarity within the last 12 months, and together controlmore than 30% of Lumos, this transaction is deemed, for the purposes of the AIMRules, to be one with a related party. In accordance with the AIM Rules theDirectors consider, having consulted with the Company's Nominated Adviser, thatthe terms of the transaction are fair and reasonable insofar as Shareholders areconcerned. For the financial year ended 31 March 2007, being the last statutory accountsprepared for the disposed company, Cyntergy reported profits on ordinaryactivities before tax of £230,000 and net assets of £199,000. Clarity intends to use the funds raised from this disposal, after settlement ofrelated costs, to support both its working capital, to reduce its term debt, andallow the Company to investigate further acquisition opportunities in its coremarketplace. Again, this is in line with the Board's stated strategy. Commenting on the disposal, Ken Smith, Clarity CEO stated: "This transaction is a key milestone in the implementation of Clarity'srecently-stated strategy. Clarity will retain the benefit of Cyntergy as animportant support partner, whilst focussing on the Group's software andsolutions businesses where the Board believes Clarity's key value lies. Clarity's business has been dramatically changed over recent months and withfull shareholder support now behind us we are following a strategy which willenable the Group to do what it does best - providing software and solutions intoour blue chip client base. I look forward to updating shareholders with furtherprogress in due course. The Clarity Board wishes Peter and his team every success, and will be workingclosely with Cyntergy in both parties' interests" Peter Walker, CEO of Lumos, stated: "This is an exciting opportunity for the new and the existing management andstaff of Cyntergy, to grow the business through a more focussed, serviceorientated, business strategy. We will create new products and services for the existing client base and expandour market. We are pleased to be asked to continue to provide cost effectiveservices to Clarity's customers." Enquiries Clarity Commerce Solutions plc Ken Smith, CEO Tel: 01256 365150 Grant Thornton (Nomad) Fiona Kindness Tel: 020 7728 3414 SVS Securities PLC (Broker) Ian Callaway Tel: 020 7638 5600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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