Tuesday, 3 November 2009

Microgen sells billing services division as trading improves

(By Philip Carnelley, 3 Nov 09, 09.30) Microgen reports that it has entered into a conditional agreement for Swiss Post Solutions Ltd., part of the publicly owned Swiss postal service, to buy its Billing Services Division (BSD) for £7.5m in cash. The disposal will require shareholders’ agreement, to be sought at a meeting on 30 November. BSD, at £2.9m in revenues, accounted for c18% of Microgen’s revenue and 27% of operating profit in the first half of this year. The company also said that 76% of its revenue for the first half came from software-based activities – up from 73% in the prior (full) year.

Microgen has also issued an IMS for the 3 months to Sept 30, saying that results are “ahead of the annual plan.” The company now has £17.5m of cash - before the BSD disposal, which will yield £7m after costs - including £0.8m from the disposal of 54% of the Group's shareholding in Scisys plc. The company comments that its “strong balance sheet… provides the resources to consider acquisition opportunities…”

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