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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