Pre-Close Trading update'Continued performance and momentum'
Civica today reports on trading for the six months ended 31 March 2007 prior to entering its close period and ahead of interim results to be announced on 12 June 2007.
The company is pleased to confirm that trading and cash generation during the period has continued in line with expectations, with good growth in operating profits. The group has also made further progress in expanding its market position both in the UK and internationally.
Highlights during the period include:
- Continued sales momentum in local government with 27 new software contracts, increasingly for process improvement in front office service delivery, including the London Borough of Wandsworth, Dundee City Council and Walsall Metropolitan Borough Council in the UK and the Sydney Catchment Authority in Australia
- New customer wins in the housing sector, including East Thames housing group and homelessness charity Shelter, and delivery of the first phase of Manchester City Council’s housing project, one of the largest implementations of its kind
- Provision of additional customer business solutions, including chip & pin payment capability adopted by Liverpool City Council and systems to manage aspects of the local street environment for 10 local authorities
- Good progress in education, with the delivery ahead of schedule of the Singapore schools library service followed by award of an initial contract with the Ministry of Education in Brunei, and with 11 further library wins internationally including Southampton City Council in the UK and Hutt City Council in New Zealand
- Whilst market conditions in the enforcement sector remain demanding, the company has continued to develop new business, such as a shared project between Surrey Police and Surrey County Council to implement automatic number plate recognition
- The acquisition of VT Software Solutions in January for £3 million, with integration of the business in line with expectations and with continued customer confidence illustrated by new orders from the Ministry of Defence and the City of London Police
In respect of interim results to be announced in June, these are to be produced under International Financial Reporting Standards (IFRS) as a precursor to the consideration of a potential move from the AIM market of the London Stock Exchange to the Official List.
Civica also announced today the resignation of non-executive director Mark Pearman from the board of directors, in order to concentrate on his role as chief executive of XN plc. The board would like to extend its thanks to Mark for his contribution to the business. The company is currently reviewing its non-executive directorships in respect of the ongoing development of Civica.
For further information, please contact:
Civica plc 020 7760 2800
Simon Downing, Chief Executive
Mike Stoddard, Finance Director
Buchanan Communications 020 7466 5000
Tim Thompson / Nicola Cronk / Susanna Gale