MPS Minorplanet

 

TIDMMPS 
 
RNS Number : 3151Q 
Minorplanet Systems PLC 
08 April 2009 
 

 
 
 
 
Minorplanet Systems plc 
("Minorplanet", the "Company" or the "Group") 
 
 
TRADING UPDATE 
 
 
The Board of Minorplanet is issuing this trading update in advance of its 
interim results for the six months ended 28 February 2009, which are expected to 
be announced on 6 May 2009. 
 
 
Substantial progress achieved in larger corporate sales, which increased by 169% 
in the UK on the comparable period last year, has been more than offset by a 
marked downturn in revenues from SME businesses, particularly in the UK. The 
restricted availability of lease finance for Minorplanet's customers in this 
sector has had a profound impact on revenues in the period. Significant order 
volumes have been received by the Company which it has been unable to complete, 
as customers have not been able to obtain finance from third party leasing 
providers. The Board is pursuing new funding options for the Group's products in 
all its key markets. 
 
 
As a result, the Group will be loss making in the six months to 28 February 2009 
and the Board expects that the Company's results for the full year to 31 August 
2009 will be significantly below current market expectations. 
 
 
Actions taken 
 
 
Significant headcount reductions have been made, particularly in the UK (15%) 
and Australia (18%), to counter the decrease in sales. The Company's bank 
remains supportive of the business and the Board expects the Group to generate 
positive cash flow from trading in the second half of the year. Working capital, 
however, currently remains under pressure and the Board is exploring options to 
address the Group's short term funding requirements. 
 
 
 
Despite trading difficulties, the Group has made progress in a number of 
important areas since the year end: 
 
 
+-------+-------------------------------------------------------------------+ 
| *     | The Australian subsidiary was certified as an Intelligent Access  | 
|       | Program ("IAP") Service Provider in December 2008. The IAP is an  | 
|       | Australian Government sponsored scheme for providing improved     | 
|       | road network access for heavy goods vehicles. This certification  | 
|       | is expected to help generate substantial growth for Minorplanet's | 
|       | Australian business in the medium term;                           | 
|       |                                                                   | 
+-------+-------------------------------------------------------------------+ 
| *     | Minorplanet's agent in Malaysia and Singapore has secured two     | 
|       | significant accounts which will enable them to have the potential | 
|       | to reach their target for the year;                               | 
|       |                                                                   | 
+-------+-------------------------------------------------------------------+ 
| *     | Both the Dutch and German subsidiaries significantly reduced      | 
|       | their losses and are now trading close to breakeven;              | 
|       |                                                                   | 
+-------+-------------------------------------------------------------------+ 
| *     | Monitcom, the Group's Irish business, remains profitable, despite | 
|       | very challenging market conditions in the territory;              | 
|       |                                                                   | 
+-------+-------------------------------------------------------------------+ 
| *     | The Company has continued to invest in its hardware and software  | 
|       | functionality to maintain its position as a leading global        | 
|       | provider of vehicle management systems; and                       | 
|       |                                                                   | 
+-------+-------------------------------------------------------------------+ 
| *     | A number of important new corporate contracts have been won by    | 
|       | the UK sales team, particularly in the public sector.             | 
+-------+-------------------------------------------------------------------+ 
 
 
Despite the current short term difficulties being experienced by the Company, 
the Board believes that the steps it has taken to reduce costs and its 
continuing commitment to technological advancement and service will ensure 
Minorplanet is well placed to take advantage of any improvement in market 
conditions. 
 
 
 
 
For further information, please contact: 
 
 
+------------------------------+----------------+----------------------------------+ 
| Minorplanet Systems plc      |                |               Tel: 0113 346 7733 | 
+------------------------------+----------------+----------------------------------+ 
| Terry Donovan, Chief         |                     terry.donovan@minorplanet.com | 
| Executive                    |                                                   | 
+------------------------------+---------------------------------------------------+ 
| Richard Hopkin, Finance      |                    richard.hopkin@minorplanet.com | 
| Director                     |                                                   | 
+------------------------------+---------------------------------------------------+ 
|                              |                |              www.minorplanet.com | 
+------------------------------+----------------+----------------------------------+ 
|                              |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
| Shore Capital & Corporate    |                |               Tel: 020 7408 4090 | 
| Ltd                          |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
| Guy Peters                   |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
| Pascal Keane                 |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
|                              |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
| Rawlings Financial PR        |                |               Tel: 01653 618 016 | 
| Limited                      |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
| Catriona Valentine           |                | catriona@rawlingsfinancial.co.uk | 
+------------------------------+----------------+----------------------------------+ 
|                              |                |      www.rawlingsfinancial.co.uk | 
|                              |                |                                  | 
+------------------------------+----------------+----------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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