Trading Update and Changes to the Board

RNS Number : 0414M

Coms PLC

11 July 2014

 



11 July 2014                                                                            

Coms plc

("Coms", the "Company" or the "Group")

Trading Update and Changes to the Board

Ahead of the Annual General Meeting to be held at 10.00 a.m. today, the Board of Coms plc (AIM: COMS) is pleased to provide an update on trading and to outline a number of initiatives that are being implemented.

To date, trading across all of the Group's business has been encouraging and, as stated in the announcement of the results for the year ended 31 January 2014, the Board remains confident that the Company is on track to meet market expectations for the current financial year.

The various divisions of the business, Wholesale Telecoms, Retail Telecoms, Media, Mobile and Infrastructure and ICT Management are performing well with pleasing results and opportunities for organic growth.

Following Coms' various recent acquisitions, the process of restructuring the Group in order to ensure that duplicated costs and services are, wherever possible, removed is ongoing and there is continued focus on further savings being made through operational efficiencies.  As previously highlighted, this will impact the outcome of the first half of the current financial year, such that whilst there has been further significant increases in revenue compared to the second half and final quarter of last year the Board expects that the Company will report a loss before tax for the six months to 31 July 2014, when including one-off reorganisation costs.  The Board is confident that the majority of these one off re-organisation costs will be limited to the first half and that, as such, the second half of the year will see a significant improvement in profitability.

In light of the technical difficulties surrounding the release of the annual results for the year ended January 2014 the Board intends to undertake a review of the Company's audit function.  

Turning to the Board, Sue Alexander has decided to step down from her role as the Company's Finance Director with immediate effect but will remain with the Company.  A search has commenced for an experienced public company CFO who can strengthen the finance team and further support Dave Breith, both in the development of the Group and in his interaction with shareholders and investor audiences.  Further announcements will be made as appropriate.

Iain Ross has, with immediate effect, resigned his post as Chairman of the Group for personal reasons. 

The Board is pleased to announce that Frank Beechinor has today joined the Coms' board as a Non-Executive Director and Chairman.  Frank brings significant corporate experience, particularly of IT and Software services and is currently Non-Executive Chairman of dotDigital Group plc and CEO of Cadence Performance Limited. Frank was previously founder and CEO of OneClick HR plc from 1997 to 2011.

Finally, Barry French, who recently joined Coms as General Counsel will take on the responsibilities of Company Secretary.

Frank Beechinor, Chairman commented: "Coms is a fast growing organisation.  The financial results for the year ending January 2014 were outstanding and current trading remains in line with expectations.  In order for Dave Breith, CEO, and his team to continue to build this Company the Board wants to ensure that Coms has the appropriate systems and resources in place to support that growth and hence after a thorough review the Board has taken the steps it believes are necessary to achieve that goal."  

As part of Frank Beechinor's remuneration he has been awarded 4 million warrants to subscribe for new ordinary shares. The first 1 million warrants have been awarded on appointment as Chairman and have an exercise price of 6 pence and the remaining 3 million warrants have an exercise price of 7 pence, with 1 million vesting after 6 months and the remaining 2 million after 12 months.  The warrants will be capable of exercise until 9^th July 2019.

Dave Breith, CEO stated: "The Company is performing well and, whilst the integration of the various businesses acquired has also gone well, it will take time to see the full benefit of the cost synergies we have identified.  We have a strong pipeline of potential contracts, of varying sizes and terms, and I remain extremely confident in the Company's ability to deliver against market expectations.

"I wish to welcome Frank as Chairman and look forward to working with him over the coming years.

"I would also like to thank Iain Ross and Sue Alexander for the time they have given to Coms during our transformation. Iain has been a real asset to the business and to myself and I wish him every success for the future. Thanks also to Sue for her significant contribution and hard work over the last year and I am pleased that she has agreed to stay with the Company."

For further information, please contact:

Coms plc                                                                                [phone]

David Breith (CEO)

Frank Beechinor (Chairman)

Charles Stanley Securities                                                  [phone]

(Nominated Adviser and Broker)

Karri Vuori/Philip Davies

Blytheweigh

(Financial Public Relations)

Halimah Hussain / Alex Shilov / Paul Weigh                [phone]

Notes to Editors

Coms is a leading organisation in the provision of end-to-end communication, connectivity and business services:

Business infrastructure

Cloud based solutions

Connectivity

Creative marketing and media solutions

Integrated and hosted telephony

IT support

Mobile

Smart buildings

We put stakeholders at the heart of everything we do, and by innovating and offering other robust technologies our solutions are resilient and cost effective. For more information, please visit: www.coms.com

 

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