PLM Plasmon

    RNS Number : 9353A
  Plasmon PLC
  08 August 2008
   

    Plasmon Plc

    Interim Management Statement and Trading Update

    Plasmon Plc, a leader in professional archival solutions, has today issued its first interim management statement for the year ending 31
March 2009 and an update on trading.

    The overall strategy outlined in February 2008 is being executed, with several key elements on track or ahead of plan. In particular,
the market opportunity for the Group's Archive solutions has been validated and continues to be highly attractive; the new direct Sales team
has been recruited, trained and is focusing on 8 specific segment opportunities; a major partnership agreement has been reached with NetApp
and a new solution has been launched with FileNet, these significantly broaden the scope of our business solutions offer. As a result, the
pipeline of sales opportunities has doubled in recent weeks to an unprecedented level, which is promising for the 2nd half of FY2009 and
beyond.

    However, the sales performance in the first quarter was disappointing, and approximately 20% below the Board's expectations. Legacy and
component products have declined faster than anticipated and the sales cycle for new Archive Solutions is proving longer than anticipated.
This is reflected in the growth of the future sales pipeline whilst actual sales in recent months have been relatively weak. In particular,
during the current market and financial uncertainty, customers have been deferring capital expenditure on solutions such as ours which,
whilst essential to the medium-term storage infrastructure of many businesses, may not be essential in any given month or quarter. 

    Consequently, the Board has reduced its overall sales expectations for the year and initiated a further programme of cost reduction and
financial restructuring. The Board continues to expect that the Group will attain a positive adjusted EBITDA run rate in Q4 of FY2009, but
not a positive cash generation until FY2010. The Board remains confident that Plasmon has a compelling solution in a highly attractive
market, and has the view that current economic conditions are delaying the 'inflexion point' of the Group's turnaround by 1-2 quarters.
However, in light of this, the Group requires additional financing and the Board has engaged in a process to secure this within an
appropriate timescale. A further announcement in respect of the financing process will be made in due course.

    Enquiries:

 Plasmon Plc                           
 Steven FX Murphy: Chief Executive    01763 261 466
                                      01763 261 466
 Timothy Arthur: Finance Director

 Citigate Dewe Rogerson               020 7638 9571
 Martin Jackson / Angharad Couch


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

Plasmon plc (LSE:PLM)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Plasmon plc (LSE:PLM)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024