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Vicorp Group PLC (VICP)

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Tuesday 17 February, 2009

Vicorp Group PLC

Statement re: financial posit

RNS Number : 4574N
Vicorp Group PLC
17 February 2009
 



1February 2009 


Vicorp Group Plc

('Vicorp', 'the Group', or 'the Company')




Statement re: financial position


The board of Vicorp is currently undertaking initiatives to strengthen the balance sheet of the Company through the following:


  • The Company has applied for a loan for £600,000 from Royal Bank of Scotland backed by the new Enterprise Finance Guarantee; and


  • undertaking an equity placing of up to £500,000 conditional on the board receiving authority from shareholders at a general meeting.


These measures are designed to ensure that Vicorp can insulate itself from the current economic conditions for the foreseeable future. The board recently highlighted that trading was below expectations and this continues to be the assessment of the board.


If these initiatives do not come to fruition then the board will seek alternative financing routes where available. However, it is important to acknowledge that the company must raise further capital to ensure its viability in the foreseeable future. 


General Meeting


The Board will issue notice of the general meeting, which will be held on 13 March 2009, at which the appropriate authorities will be sought for the issue and allotment of new equity in due course. An announcement will be made when the circular is posted later today.



Change of Broker


The Company has appointed Rivington Street Corporate Finance as its sole broker with immediate effect in order to provide new opportunities to seek equity capital.




Cost Savings


The board have identified a number of potential cost savings which, if fully implemented, should result in savings of approximately £500,000 on an annualised basis. The board intends to achieve the lower cost base within 6 months.




Nortel and Vicorp


Nortel has recently announced it entered into administrative receivership in the UK which has affected the plans of many large enterprises and Telco's that depend on Nortel infrastructure for their telephony services. Vicorp provides its solutions on the Nortel platform, amongst others, which means that in some cases the progress of our projects is being temporarily delayed whilst those companies affected by this development decide how to manage the situation.


However, In Vicorp's favour, its products enable clients to build voice solutions that are completely independent of any underlying data and telephony infrastructure. This means that our business is now well positioned as being the vendor of choice for voice applications as large enterprises need to detach themselves from telephony infrastructure-based solutions. The directors of Vicorp are of the opinion that many large enterprises will now seek to migrate their voice services onto independent platforms such as Vicorp xMP.


In the short term the directors will take action to ensure that any delays caused by internal reviews can be absorbed and in the medium term the directors will take action to address the new and significant opportunity that is now opening up across the Enterprise market, to move applications that have been locked into existing infrastructure and make them fully portable and safe from changes in any telephony network. Vicorp is actively looking to expand its existing product offering through a number of means to enable it to better address the opportunities created by this market disruption, and to build a broader product infrastructure that will enhance the capabilities of its new services portfolio.

 





For further information, please contact:


Brendan Treacy, Chief Executive, Vicorp Group PLC                                     01753 660 500
www.vicorp.com
 
Monisha Varadan, Rivington Street Corporate Finance                                   0207 562 3389
 
Ray Zimmerman/Jonathan Evans, Zimmerman Adams International Limited     0207 060 1760


 






This information is provided by RNS
The company news service from the London Stock Exchange
 
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