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Trematon Capital Investments Limited
(Registration number 1997/008691/06)
(Registered in the Republic of South Africa)
("Trematon")
Trematon investment in Intec Telecom Systems Plc ("Intec") affected by market
conditions
As Trematon's attributable investment in Intec (a London listed company),
comprises some 90% of Trematon's asset value and Intec today published a
Trading Statement in London, Trematon, with the consent of Intec, is publishing
this statement on SENS in the interest of providing South African investors
with information considered by Trematon to be price-sensitive in relation to
this investment, and thus Trematon's share price.
C W Garvie
Secretary
30 March 2001
Durban
Intec Telecom Systems PLC ("Intec" or "the Group")
29 March 2001
Intec Trading Statement
The Board of Intec provides an update on trading for the quarter ending 31
March 2001 and the current outlook for the year ending 30 September 2001.
The Group has leading products which assist telecoms operators with revenue
assurance. Effective mediation and interconnect solutions enhance operational
efficiencies and provide significant return on investment. The Board believes
that as capital expenditure decisions are prioritised by operators, sales of
the Group's products will benefit over less compelling investments which do not
contribute directly to operator profitability. Nevertheless, in the current
environment, we are experiencing longer sales cycles and delays in procurement
decisions.
In this context, as at the close of business on 28 March 2001, revenues for the
quarter ending 31 March 2001 stand at approximately #8.4 million. The Board
therefore expects that revenues for this quarter will be around 20 per cent.
less than current market expectations and that in the current market
environment a similar percentage reduction will occur in full year revenues.
The Board expects that the Group will be profitable (before goodwill
amortisation) for the quarter ending 31 March 2001 and for the full year.
However, profits will be impacted to a greater extent than the level of revenue
reduction due to the operational gearing of the business.
The order book and prospect list remain at record levels. Integration of the
recently acquired businesses is proceeding very satisfactorily and performance
of those businesses is in line will the Board's expectations. Our installed
and target customer base primarily comprises PTT's and large carriers.
Therefore, we have low exposure to the emerging operator market. The Group has
not seen any major variations in the competitive landscape. The Group's
overall bid conversion ratios remain broadly consistent with what has been
achieved in previous trading periods.
As a consequence of the Board's continued belief in the Group's business model
and the ability of the Group to win business, albeit in a longer sales cycle,
there are no plans to cut current costs in the areas of product development and
geographic expansion. The Board also believes that integration costs arising
from recent acquisitions will be less than previously expected. Therefore,
overall, the Board remains very positive about the medium and long term
prospects for the business and the Group's sustainable competitive advantage.
The results for six months ending 31 March 2001 will be released on 10 May
2001.
Contacts
Intec Telecom Systems
Mike Frayne, Executive Chairman 01483 745800
Kevin Adams, Chief Executive 01483 745800
Cubbit Consulting
Fergus Wylie 0207 367 5100
About Intec Telecom Systems plc
Intec Telecom Systems PLC is a leading provider of Operational Support Systems
("OSS") for telecoms companies, with over 150 customers for its products
worldwide. It is the leader, by market share, of packaged interconnect billing
and settlement software, with more installations and more telecom operators,
including many PTTs, using its solution than any competitor. Intec is also now
a leader in 'convergent mediation' with the acquisition of Computer Generation,
Inc. Intec's billing product, InterconnecT, is a software platform which
allows billing and settlement between telecommunication operators to occur
reliably, accurately and speedily. Intec's convergent mediation product,
Inter-MediatE, allows network event data for both conventional and unswitched
(IP) communications to be collected and processed for use in billing and other
OSS systems. Intec has also recently launched Maxi-routE, its new least cost
routing and margins analysis system.
Intec's billing customers base includes, amongst others, MCI Worldcom, COLT
Telecommunications, France Telecom, Swisscom, Thus and Telkom South Africa.
Intec's mediation customer base includes, amongst others, Bell South, Telstra,
Cable and Wireless, ITXC, Verizon, US Wireless and Telia. Other product
offerings include InterconnecT ITU for settlement based on ITU rules and the
InterconnnecT ASP service. Founded in 1997, Intec, a FTSE 250 and techMARK 100
company, was listed on the London Stock Exchange (code: ITL) in June 2000.
Certain statements made in this announcement may be forward-looking in nature.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performance and
achievements of the Group to be materially different from any future results,
performance or achievements implied by such forward-looking statements.
End.