Brulines (Holdings) PLC
15 October 2007
Press Release 15 October 2007
Brulines (Holdings) plc
('Brulines' or 'the Group')
Trading Update
Brulines (Holdings) plc (AIM:BRU), the leading provider of volume and revenue
protection systems for draught alcoholic drinks in the UK licensed on-trade,
announces an update on the Group's acquisition of Nucleus Data ('Nucleus') and
its trading performance for the half year ended on 30 September 2007.
The acquisition, which is conditional on the Office of Fair Trading ('OFT') not
referring the proposed merger to the Competition Commission, is under review by
the OFT. This review has been voluntarily migrated from the fixed timelines of
a 'statutory' review process to an 'administrative' review process, which allows
the OFT sufficient time to consider the full merits of the merger. Assuming no
such referral is made under the new timelines, it is anticipated that completion
of the acquisition will take place in December 2007.
The proposed acquisition of Nucleus is an important strategic development in the
Group's growth plans as it enhances product development, further strengthens the
senior team and provides a solid commercial platform from which to accelerate
our entry into new markets, whilst the Board believes the financial synergies on
core operations will make the acquisition earnings enhancing in the next
financial year.
Encouragingly, customers of both Nucleus and Brulines have reacted positively to
the acquisition announcement.
The Board is also pleased to announce that trading, in the first half of the
financial year, has been as anticipated. Consequently, the Group's Interim
Results for the half year ended 30 September 2007 are expected to be in line
with market expectations.
New installations, system replacements and upgrades have progressed
satisfactorily and continue to generate an ongoing year-on-year growth in
recurring revenue and the higher margins associated with support services.
Increased market penetration and broadening of our customer base for dispense
monitoring have been the primary drivers of this growth.
The Group has made solid progress on the commercial development of its Brand
Quality Monitoring product range within both the national tenanted and managed
sectors, including the completion of 100 new installations for Punch Taverns,
and expects to commence further commercial installations during the course of
the second half year.
Machine Insite, the AWP data management business, with its industry leading
database and data management software that includes web based reporting, has
continued to trade profitably and has grown its contribution to Group profit
with further new business gains.
The integration into the Machine Insite business of the operations and
technology acquired with Coin Metrics is progressing well, creating excellent
prospects for enhanced AWP monitoring products, such as remote data capture and
advanced machine reporting across customers within the pub, club and leisure
markets. The Group is strongly positioned to accelerate the growth of its AWP
data management business to a market leading position through real-time remote
download of data from AWP machines, whilst also opening up new applications and
markets, such as vending for the next generation of wireless data capture
systems.
The Directors intend to seek authority from shareholders to purchase the Group's
own shares at an Extraordinary General Meeting of the Group, notice of which is
expected to be sent to shareholders shortly. The Directors would use the share
purchase authority with discretion and purchases would only be made from funds
not required for other purposes and in the light of market conditions prevailing
at the time.
In line with its stated intent at the time of the flotation, the Board intends
to declare a dividend in respect of its Interim Results for the half year ended
30 September 2007. These results will be announced on Tuesday, 11 December 2007.
An analyst briefing on the Interim Results, given by James Dickson (Chief
Executive) and Mark Foster (Finance Director) will be held at 9.30am on Tuesday,
11 December 2007 at Abchurch Communications, 5th Floor, 100 Cannon Street,
London, EC4N 6EU.
- Ends -
Enquiries:
Brulines (Holdings) plc
James Dickson, Chief Executive
Mark Foster, Finance Director Tel: +44 (0) 1642 358 800
mark.foster@brulines.com www.brulines.com
Grant Thornton UK
Gerry Beaney
Fiona Kindness Tel: +44 (0) 20 7383 5100
www.gtuk.com
Media enquiries:
Abchurch
Justin Heath / Emma Johnson Tel: +44 (0) 113 203 1340
emma.johnson@abchurch-group.com www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
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