Trading Update

IPPLUS PLC (AIM: IPP), the Ipswich based services company covering call centre services, call centre software, archiving, disaster recovery, telephony and payment card industry (PCI) compliant solutions, provides the following trading update for the financial year ended 30 June 2014.  Comparable figures relate to the corresponding twelve-month period to 30 June 2013.

While the performance of the Group's different businesses has been mixed, the Board is pleased to be able to report that it expects IPPlus to report revenue of £9.1 million and profit before tax of £0.5 million for the full year (2013: £8.1 million and £0.35 million respectively).  The substantially improved headline performance for 2014 does, however, include a one-off profit on lease surrender of £0.35 million arising from the purchase of the Company's first floor office space, as reported in the interim results.

The overall result reflects: a reasonably strong performance of the Group's Ansaback call centre division (incorporating IP3 Telecom), which continued to perform in line with the Board's expectations (with growth in both revenue and new contracts wins); a weaker than expected performance for CallScripter, the Group's software division; and, a loss for Ancora. 

CallScripter sales for the recently ended period will show a reduction of approximately £0.4 million from the June 2013 sales level of approximately £1.5 million. This sales shortfall, as well as additional software division staffing and restructuring costs, will mean that growth elsewhere in the Group has been negated, resulting in a small overall loss for the Group in the second half of the year.

Looking ahead, the Group is aware that certain fixed seat fixed term call centre contracts will be ending in the current financial year and that the Ansaback sales team will be required to win additional new business to compensate for this.

The Group's cash position at 30 June 2014 of approximately £0.5m (2013 £0.6m) remained healthy and net indebtedness at that date was approximately £0.7m (including the building mortgage of approximately £1.2m).

Commenting for IPPLUS, Chief Executive Officer, William Catchpole said:

"It has been an excellent year for our call centre business whilst the prospects for our PCI solution and its sales pipeline are most encouraging. It is of course frustrating to have seen a reduction in the software divisional sales in the year, however, we anticipate that this will recover its momentum as the CallScripter software is a market leader utilised in call centres around the world. The Group has good recurring revenue and an adequate capital position. The Board remains confident that the Company has good prospects ahead."

The Company expects to announce its final results for the year ended 30 June 2014 during the first half of September 2014.

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