9th Apr 2009 07:00
9 April 2009
Innovation Group plc
Trading update
Innovation Group plc (LSE: TIG.L) ("Innovation" or "the Company" or "the Group"), the leading provider of enterprise software, business process outsourcing (BPO) and repair and service network management solutions to the global Property and Casualty industry today publishes a trading update for the six months ended 31 March 2009.
Financial Trading Summary
The Board is pleased to announce that in the six months to 31 March 2009 both revenue and adjusted profit before tax have increased on the same period last year.
Our more mature markets of the UK, Germany, South Africa and Australia have performed well with all achieving double digit margins at the adjusted operating profit level. As forecast, both the US outsourcing business and the sub-scale areas of our European business continued to report significant operating losses in the first half year as volumes from already secured contracts ramp to scale. However, we are fully engaged in making sure that all of these segments will make good progress towards run-rate profitability in the second half of the year.
The gross cash balance at 31 March 2009 was ahead of expectations at approximately £25m (net cash approximately £2m). This figure is after addressing the opening working capital imbalance disclosed at the 2008 results presentation and absorbing the significant first-half weighted capital expenditure on Project Enterprise.
Outlook
While the general outlook for the economy remains uncertain, our customer service continues to track well across the globe. Our pipeline continues to be strong, assisted by the recent launch of Innovation Insurer and conversion rates are good as evidenced by the recent contract win announcements.
The Group is making excellent progress towards meeting its full year market expectations.
The Board will update the market further when it announces its unaudited interim results for the six months ended 31 March 2009 on 7 May.
For more information:
|
The Innovation Group Hassan Sadiq, Chief Executive Officer Jane Hall, Acting Finance Director |
Tel: +44 (0) 1489 898300 |
|
Financial Dynamic Edward Bridges / Juliet Clarke / Erwan Gouraud |
Tel: +44 (0) 20 7831 3113 |
Notes to Editors
Innovation Group plc (LSE: TIG.L) is the leading provider of enterprise software, business process outsourcing and repair and service network management solutions to the global Property and Casualty industry. Innovation provides contact centres, repair networks, process management, supply chain and technology operations, and decision support analytics, to support accident management, repair and estimation and claims management services.
Innovation has over 1,000 global clients including AXA Insurance, RSA, AAA of Northern California, LeasePlan, The Ford Motor Company, Aviva, Toyota (South Africa) and Zurich (UK). The Group processes more than 4 million claims per year with 20% direct claims cost saving achieved. Our 2,400 people are located in United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, Netherlands, Pakistan, South Africa, Spain, United States. Innovation achieved revenues of UK £143 million in the financial year ending September 2008
www.innovation-group.com
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