13th Jul 2005 07:01
Microgen PLC13 July 2005 microgenInformation Management Solutions www.microgen.co.uk 13 July 2005 For release at 7-00am Trading Update Acquisition of Lynx Wealth Management Systems (Guernsey) Limited ("LWMS") The strong performance in Q1, as reported in the AGM trading update in April,provided a solid foundation for the first half of the year, although thecustomer caution experienced at that time continued through Q2. However throughprudent management the Board expects that results for the 6 month period ended30 June 2005 will be in line with the increased profit expectations, producing astrong performance in the half-year. Net funds at 30 June 2005 were £17.1million before the acquisition of R/Base Limited and LWMS. In recent years, Microgen has reported results in a timely manner. However, theperiod ended 30 June 2005 is the first reporting period under IFRS and,therefore, the Board intends to defer the release of the interim results toSeptember. Current indications are that the accounting changes required by theadoption of IFRS will not have a material impact on the results of Microgen plc. Acquisition of LWMS Microgen plc has acquired the entire issued share capital of LWMS, a leadingprovider of trust, fund and private banking systems. Further information on LWMScan be found at www.lynx-wms.com. The cash consideration paid in respect of the issued share capital of LWMS is£2.1 million. The net debt of LWMS as at 30 June 2005 was £1.6 million whichMicrogen intends to repay. There are no deferred payments. LWMS is headquartered in Eastleigh, Hampshire, with sales/support offices inGuernsey, Isle of Man and Cayman. For the 12 month period to 30 September 2004,unaudited consolidated management accounts report revenue of £5.6 million and anoperating profit before exceptional items of £0.06 million, although operatingperformance has deteriorated in the current financial year. As at 30 June 2005,LWMS had unaudited net liabilities of £2.4 million, including the net debt of£1.6 million. LWMS will be integrated into Microgen's Asset Management business within theGroup's Financial Services division. LWMS's current premises in Eastleigh willbe vacated in September without further liability to Microgen. Restructuringcharges associated with the integration are estimated to be in the order of £0.4million which will be incurred in the current financial year. Contact : Mike Phillips, Group Finance Director 01753-847122 Giles Sanderson, Financial Dynamics 020-7831-3113Ben Way, Financial Dynamics This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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