Manpower Software PLC
21 June 2005
21 June 2005
MANPOWER SOFTWARE PLC (the "Company")
Trading Update
The Directors of Manpower Software plc announce today that, following their
initial review of the results for the year ended 31 May 2005, turnover is likely
to be about £5.8 million - £5.9 million. In addition, operating profit for the
year as a whole is expected to be in the range £0.2 million - 0.3 million. At
the year-end cash balances were £1.5 million.
These results reflect a significant increase in turnover in the second half.
Although they slightly under-perform current market expectations, with the
breadth of actions taken by the management team during the year, the Directors
have confidence the Company will achieve profitable growth in the current year
and beyond.
The following substantial changes have taken place within the Company.
• In Defence, contracts secured with the British Army, Defence Medical
Services and NATO have given the Company critical mass to supply its Force
Generation and Force Modelling products to military forces external to the
UK. The partnership agreement signed with Alphawest Services Pty Ltd in
Australia has positioned the Company to achieve the first of these non-UK
sales in the Asia/Pacific region.
• In Health, the foundations for growth into the UK NHS Trusts' requirement
for ward and theatre rostering have been established. The sales team has
been expanded and an Alliance Agreement has been signed with Specialist
Computer Centres plc, to facilitate G-CAT (Government IT Catalogue)
approved sales in accordance with the provisions of the Office of
Government Commerce. Two sales of MAPS Healthroster were closed in May 2005
under this Agreement, further details of which are given below.
• In Maritime, the first sales of MAPS Framework and MAPS Quick Start were
achieved.
• The Company's sales teams have been expanded in all three vertical markets,
particularly to broaden the UK Defence customer base into the worldwide
military arena, where the opportunities are considerable in both size and
number but the costs of selling and timescales to sell are greater.
• The services function across the Group has been re-organised to enable
shorter procurement and delivery times, delivering standard and consistent
products that have high quality design and the ability to scale without
significant support. The focus is on achieving new licence fee sales.
• Considerable work has been undertaken in standardising the MAPS products to
address the specific requirements of the three verticals.
• Mr Mark Loveland joined the Company's Board. Mark has considerable
experience in the support and development of software technology companies.
During the second half of the financial year, the Company closed three strategic
contracts.
• At Headquarters Land Command, British Army, the Company agreed a sale of
its software valued up to £4 million over 6 years. The British Regular and
Territorial Armies are now using MAPS for Force Generation, Force
Modelling, state of readiness and training management. Manpower Software
has been supporting HQ Land for some time in delivering this capability and
has previously provided a software tool for Force Generation ("FORGE") to
enable HQ Land to manage its reserve forces with greater efficiency and
clarity. This capability has now been extended to the whole Army, Regular
and Reserve.
• Working through its partner, Specialist Computer Centres plc ("SCC"), the
Company has agreed the sale of its ward and theatre duty rostering
software, MAPS Healthroster, to Ashford & St Peter's NHS Trust and North
Tees and Hartlepool NHS Trust. In each case the order covers Trust-wide
implementation of MAPS Healthroster and follows a successful pilot
installation. The Company is now working closely with SCC to deliver
further sales of MAPS Healthroster to other NHS Trusts in the UK and will
be expanding its sales team further to take advantage of the opportunities
open to it.
Additional licences were also sold under existing contracts to Defence Medical
Services and AP Moller.
It is expected that the preliminary results of the Company for the year ended 31
May 2005 will be announced during end-July/early August 2005.
A further improvement in revenue in 2005/6 is expected. Costs will continue to
be tightly controlled and investment for growth made. As mentioned above, the
Directors remain confident of the ability of the Company to achieve profitable
growth in 2005/6 and beyond.
Enquiries:
Manpower Software plc
Simon Thorne, Finance Director 020 7389 9500
Shore Capital
Alex Borrelli 020 7408 4090
This information is provided by RNS
The company news service from the London Stock Exchange
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