Strategic Review

Clarity Commerce Solutions PLC 07 April 2008 7 April 2008 Clarity Commerce Solutions plc ('Clarity' or the 'Company') Strategic Review Building on the financial stability and opportunities provided by the recent successful fundraising programme the Board is pleased to announce the findings of a review of the Company's strategy as conducted by a combined Board and senior management group. Strategic Review Summary Having benefited greatly from the experience of our previously-announced strategic review, Clarity has decided to retain and enhance its focus on selling software into the leisure, retail, hospitality and ticketing markets. However, the Group will look to increase its efforts to maximise cross-selling opportunities, presenting itself as a leading provider of mission-critical transaction processing solutions. Clarity will also undertake a small restructuring with the creation of a Group-wide Solutions Delivery Group. It also intends to divest itself of two non-core service businesses, enhance its sales and marketing function, and look for further cost efficiencies. Background to the business Clarity primarily provides transaction processing solutions to a wide variety of high-profile clients in mission-critical situations. Typically, the areas in which this software is used include point of sale transactions for major retailers, reservations and bookings for hotels and leisure centres, and ticketing transactions to cinemas and theme parks around the World. The Company enjoys a trusted relationship with its customers throughout these sectors and these customers rely on the strength of Clarity's offerings and the depth of Clarity's ongoing support to keep their businesses functioning. Key Business Divisions The Company has already amalgamated its businesses into four operating divisions focusing on the leisure, retail, hospitality and ticketing markets. Each division is headed by its own management team which is responsible for developing and adhering to its own projections and business plan, reporting to the central group management and Board. This has been designed to ensure management takes ownership of divisional objectives and is motivated and positioned to drive growth in its division. The Board sees many opportunities to build considerable value within each of these businesses. Cross-selling Opportunities The strategy review identified a number of opportunities for cross-divisional cooperation and the Company believes revenues can be enhanced by marketing products designed for one business division into another without the need for significant adaptation. For example, the Ticketing Division covers primarily cinema ticketing, whereas all the Company's theme park ticketing products fall within the Retail Division. Competition Clarity enjoys a fortunate position with regards to both larger and smaller competitors. Nevertheless, correct positioning against competitors is a vital task for management to address. In comparison to smaller, primarily single product competitors Clarity has the financial resources, experience and staff to provide much more compelling solutions to its customers. Against larger competitors, Clarity is small and agile enough to react quickly and respond to customer needs and capture opportunities. There are many examples of smaller companies succeeding where larger companies have been slower and less flexible. In order to maximise its advantages, Clarity will invest in additional sales resources, and enhance its marketing function. Restructuring Finally there are within the Group two service businesses which lack the ability to scale afforded by the Group's software businesses and the Board plans to divest these businesses in the near future. The Board plans to augment Clarity's software businesses by adding a Group-wide Solutions Delivery Group, with skills and resources to provide comprehensive solutions across different market areas. While existing businesses may be complemented by the addition of one or two carefully-selected acquisitions, the Board's key focus and efforts will remain on improving financial performance through the revised structure, refocused management and divestments and the efficiencies created as a result. Cost efficiency will remain a key focus, with an ongoing review likely to bring further savings. Our strategic review has clearly identified the depth of skills inherent in its people and the huge amount of specialised domain knowledge held by staff in key markets. This provides a solid foundation for medium and long term growth. For further information, please contact Ken Smith, Group Managing Director (Please call Jacquie Mitchell) Clarity Commerce Solutions plc 01932 778001 Fiona Kindness Grant Thornton UK LLP (Nominated Adviser) 020 7383 5100 Ian Callaway SVS Securities plc (Broker) 020 7638 5600 This information is provided by RNS The company news service from the London Stock Exchange
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