Charteris PLC Transfer of Business (1621P)

TIDMCAE

RNS Number : 1621P

Charteris PLC

27 September 2013

Charteris PLC

27 September 2013

Charteris plc

('Charteris' or 'the Company')

Transfer of business

Charteris, the provider of business and IT consultancy services, today announces that it has reached agreement to transfer its Microsoft Dynamics implementation practice to Hitachi Solutions Ltd ('Hitachi'). The transfer takes place with effect from 1st October 2013. 15 staff associated with this business will move over to Hitachi.

Charteris will remain responsible for existing implementation projects and support responsibilities, but these will be delivered using resources subcontracted from Hitachi. Charteris and Hitachi will work together over the coming 12 months to secure the transfer or novation of these contracts to Hitachi, subject to individual customer agreement. The two companies will also work together to secure further Dynamics business where this is commercially advantageous.

In recognition of this transfer of staff and business, Hitachi has agreed to pay Charteris a consideration of GBP96,000. An enduring trade agreement to cover future business arrangements for Microsoft Dynamics has also been concluded, which includes an agreement that Charteris will deliver any future Dynamics requirements using Hitachi resources. In the half year ending 31st January 2013 the revenue for the Dynamics business was GBP1,035.9k and made a loss before allocation of central costs of GBP105.8k.

Trading in the other parts of Charteris continues to be difficult. While customer demand for services remains quite strong, delays in projects and customer decisions makes achievement of financial objectives challenging. Revenue continues to be relatively stable, but achieving month-by-month profitable performance is still some way off.

Steve Vaughan, Chairman of Charteris, said "The Microsoft Dynamics part of our business had failed to achieve critical mass and was something of a financial problem for the company. This agreement with Hitachi, an acknowledged leader in this field, provides a good home for the transferring staff, and a secure and dependable delivery partner for our Dynamics customers. We look forward to working with Hitachi over the coming year to ensure we meet our customer requirements and look for new opportunities. Most importantly, it allows the remainder of Charteris to concentrate on those of our services where we have real strength and credibility. Cessation of losses from the Dynamics part of the business will help towards reaching our goal of profitable operation, but more remains to be done."

Enquiries:

Allan Barr, Charteris plc Tel: [phone]

   Roland Cornish, Beaumont Cornish Limited (Nominated Adviser)      Tel: [phone] 

This information is provided by RNS

The company news service from the London Stock Exchange

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