@UK PLC (“@UK” or the “Company”), has raised £8 million via a placing with institutional and other investors. @UK is a leading developer of software solutions to facilitate e-procurement, the trading of products and services between purchasers, such as public sector bodies, and suppliers, such as SMEs as well as larger companies. The market capitalization of the Company at the placing price of 60p per share is approximately £22.5 million. Placing details
- Placing of 13,333,333 Ordinary Shares at 60p per share to raise £8 million for the Company, to take advantage of the growth opportunity resulting from the significant investment in Government e-systems and the Government’s commitment to e-procurement for the public sector
- Unconditional dealings are expected to commence on AIM at 8.00 a.m. 14 December 2005
- Shore Capital is acting as Nominated Adviser and Broker
- @UK has developed software solutions that facilitate e-procurement, the trading of products and services between purchasers – public sector bodies such as local authorities, schools and hospitals, and private sector enterprises – and suppliers, such as SMEs as well as larger companies
- There are over 1,000 public sector bodies spending over £100 billion annually on goods and services with around one million suppliers. These public sector bodies have now been encouraged by Government to implement an e-procurement solution
- @UK is positioned to experience significant growth as these public sector bodies put in place the e-procurement link with their suppliers
- @UK’s offering to the public sector purchasing bodies enables them to trade with SME suppliers through a “closed market place” over the Internet. It gives the public sector procurement departments the ability to control which suppliers are traded with
- @UK has developed scaleable products and services which are already revenue generating in a market with limited competition
- @UK has a proven capability to integrate with the enterprise management systems of public sector bodies and the “back office” financial packages (such as Sage) of SMEs
- The Company has a number of established contracts, which are increasing steadily
- The business model is based on recurring revenues, as @UK signs contracts with both the buying organisation (typically three-year contracts) and suppliers (annual rolling); the former also provides a sales channel to the latter.
Lynn Duncan, Chief Executive, said:
"The public sector spends over £100 billion per annum on goods and services with around 1 million suppliers, most of which are local SMEs. The 2004 Gershon report identified potential for savings of over £20 billion per annum by 2007/8. The Government has now set deadlines of December 2005 for all local authorities to initiate e-procurement and by the end of March 2008 for the NHS."
"We are strongly positioned to capitalise on this opportunity arising from the Government’s timetable and its commitment to e-procurement. We have the proven technology to enable the public sector to trade on-line with their myriad of local and national suppliers, easily and cheaply. The listing will raise our profile and enable us to significantly strengthen our sales and marketing team and exploit this window of opportunity."
The full text of the announcement can be found athttp://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1121983&source=RNS