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AUS Amteus

7.75
0.00 (0.00%)
26 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Amteus LSE:AUS London Ordinary Share GB00B0NBKL01 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 7.75 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Trading Statement

21/08/2008 11:46am

UK Regulatory


    21 August 2008

                                  Amteus plc                                   

                          ("Amteus" or the "Company")                          

                                Trading update                                 

Amteus announces that a placee who entered into a binding commitment to
subscribe for 666,667 Amteus ordinary shares at 15p per share, in the placing
announced by the Company on 23 April, has failed to honour the commitment.
Amteus has now instigated legal proceedings against the defaulting subscriber.

In order to raise the working capital which this subscription would have
generated, the Company has given notice to draw down a standby facility of £
100,000 from Jeffrey Morris, deputy chairman of the Company, in the form of an
unsecured interest free loan. Under the AIM Rules, the independent directors
consider, having consulted John East & Partners Limited, that the terms of the
facility are fair and reasonable insofar as the shareholders of the Company are
concerned.

The Company further announces that sales of the relationship product which it
sells on behalf of its related company, The Media Buzz Limited, are now being
generated at record levels and totalled £169,000 in its first three months of
sales of this product ended 30 June 2008 with a further £100,000 in July 2008.
Orders continue to grow.

As referred to in the Company's interim statement issued on 30 June 2008, the
Company is working closely with its reseller partner in the education sector.
This reseller has signed a memorandum of understanding ("MOU") with a
Government sponsored schools trust ("the Trust") to provide the Amteus secure
communications system for schools. The MOU also states that the reseller is
required to develop a web 2.0 version of the product and the Company is
currently developing this product. The Directors believe that the Trust and the
schools see the potential of the school based closed community networking and
collaboration tool developed by Amteus as a way to promote the interaction of
schools and communities including parents, teachers and students in a safe and
secure environment.

The Trust has identified an initial target market of 1,000 schools within the
next 12 months which represents a potential estimated one million users,
including parents, teachers and students. The product is intended to be sold at
a price of £4.80 per user per year to be financed partly by subscription and
partly by sponsorship. The MOU, which has a 10 year term, requires the Trust to
endorse and promote the Company's products on an exclusive basis during the
term of the agreement. The revenue derived from each subscriber will be shared,
in proportions to be determined, between the reseller and Amteus. The Trust
will receive a royalty based on each qualifying subscriber.

The MOU also provides for the Company's reseller, with the assistance of
Amteus, to identify and work with sponsors for the product at a national,
regional or local level. Early stage discussions have commenced with a number
of potential national sponsors who have expressed considerable enthusiasm for
the opportunity to access such a large defined audience of users.

The cost of developing the educational product, combined with the fact that the
Company has not yet achieved sufficient levels of sales in the past four months
to achieve profits and cash breakeven, has resulted in continuing losses. The
Company is currently exploring ways of raising additional capital both to
provide working capital and to exploit fully this exciting opportunity in
education. The Company is discussing with its major shareholder and Deputy
Chairman the provision of immediate financial support for the Company which he
has provided in the past. Should Amteus be unsuccessful in raising the
necessary finance then this will have a material adverse effect on the
Company's financial position and operations and it would be obliged to seek
alternative financing solutions including an early sale of the business.

Enquiries:

Amteus plc                                                     01653 618016
                                                                           
Michael Abrahams (Chairman)                                   020 7628 2200
                                                                           
John East & Partners Limited                                   01653 618016
                                                                           
John East/Simon Clements                                                   
                                                                           
Rawlings Financial PR Limited                                              
                                                                           
Catriona Valentine                                                         

John East & Partners Limited, which is authorised and regulated by the
Financial Services Authority, is acting exclusively for the Company and no one
else in connection with the matters set out herein and will not be responsible
to anyone other than the Company for providing the protections afforded to
customers of John East & Partners Limited or for providing advice in relation
to the matters set out herein or any transaction.



END



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