Portfolio Company Trading Upd

RNS Number : 5264W

Eurovestech PLC

30 July 2009

 



30 July 2009

Eurovestech plc 

('Eurovestech')

KSS Limited and KSS Retail Limited Trading Updates

As previously announced and following the change to its accounting reference date, Eurovestech will publish its results for the 15 month period ended 30 June 2009 at approximately the same time as its results for the year ended 31 March 2009 would have been reported, being in the latter part of September 2009. Eurovestech's subsidiary companies, KSS Limited ('KSS') and KSS Retail Limited ('KSS Retail') both have June year ends. The Company is providing the following trading update on KSS and KSS Retail.

KSS Limited

KSS provides price optimisation solutions for fuel retailers and refiners and is wholly-owned by Eurovestech.

In April 2009, we reported that some decisions to close deals had slowed in 2009. This trend continued in the quarter to 27 June, with the considerable volatility in oil and gas prices leading to deferrals of some orders. As a result, KSS achieved unaudited revenue for the year to 27 June 2009 of £5.1 million and an unaudited operating profit of £40,000. In the year ended 27 June 2008, KSS achieved revenue from continuing operations of £5.4 million and an operating profit of £35,000. KSS continues to be cash generative.

The management of KSS believes that a number of delayed transactions will be signed in the coming weeks and months and as result, the directors of KSS are anticipating a substantial increase in revenues and operating profits for the year to June 2010.

KSS Retail Limited

KSS Retail provides price optimisation solutions to retailers and is wholly-owned by Eurovestech.

In April 2009, we reported that KSS Retail was cautiously optimistic about its prospects. Despite the economic downturn, we now believe that the last year has been a breakthrough year for KSS Retail.  Several large new customers were signed during the year and, as announced in June, KSS Retail signed a strategic alliance agreement with dunnhumby USA, LLC ('dunnhumby'), a joint venture between The Kroger Company of the US and dunnhumby - a subsidiary of Tesco plc. 

KSS Retail more than doubled its unaudited revenue for the year to 30 June 2009, with an unaudited profit before and after tax of £1.2 million, the company's maiden profits. We are very pleased with the tremendous progress made by the company over the past 12 months and are confident that this year's achievements will underpin further strong growth in revenue and profits in the years ahead. As a result, the Directors of Eurovestech believe that the full year results to 30 June 2009 will reflect a substantial uplift in the current £2.5 million carrying value of KSS Retail.

Richard Bernstein, Eurovestech's Chief Executive commented: 'Whilst the delay in some orders at KSS is disappointing, the business remains cash generative and near-term prospects for customer wins are encouraging. KSS Retail has performed considerably ahead of our expectations and importantly, its financial results and prospects are now starting to reflect the scalability of its business model and the significant value of its solutions to blue chip global retailers.'

Further information:

Eurovestech plc

Richard Bernstein Tel: [phone]

Chief Executive

John East & Partners Limited

Simon Clements / David Worlidge Tel: [phone]

About KSS Ltd

KSS is the global leading provider of pricing analytics, price management, rules-based pricing and optimisation technology and services to fuel retailers and wholesalers in the oil and gas, convenience store, grocery and big box retail industries. KSS clients include global, national and regional companies managing more than $175 billion in revenue through 25,000-plus fuel sites and rack terminals throughout the world. KSS US headquarters are located in Florham Park, N.J. and European headquarters are based in Manchester, U.K. For more information please visit the KSS web site at www.kssg.com 

About KSS Retail Ltd

KSS Retail provides pricing software and services to help organisations make more effective pricing & promotion decisions that consistently meet their customer needs and achieve performance objectives. KSS Retail solutions deliver a consistent, company-wide platform for pricing management, reporting & price decision-making that facilitates best practice processes & the efficient sharing of expertise. For more information please visit the KSS Retail website at www.kssretail.com 

 

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