Pre-close trading update - 02 August 2010

RNS Number : 2763Q

Rubicon Software Group PLC

02 August 2010

RUBICON SOFTWARE GROUP PLC

(AIM: RUBI)

Pre-close trading update

Rubicon Software Group plc ("Rubicon" or "the Company") today announces its pre-close trading update.  Underlying trading performance is in line with the announcement on 28 May 2010.  This announcement stated that the Company anticipates revenue for the full year to be approximately 28 per cent. lower than reported in the last financial year.

 

In addition, the Company can announce that it has taken the opportunity to strengthen its balance sheet by granting First Response Finance Limited ("FRF") a perpetual licence to Rubicon's automated underwriting and loan processing CRM system ("the Software").

 

This has the accounting effect of recognising the full remaining contract value upfront through the income statement thereby improving the net asset position.  There is no cash impact and receipts from FRF will continue to be received annually as per the agreed profile.  This new agreement will mean that there will be no further licence revenue from FRF regarding the Software and from 2014 FRF will retain the licence to the Software without further charge. 

 

The net effect of this will be a one-off improvement in revenues of between £500,000 and £600,000 to be recognised in the year ended 30 June 2010.  As a result, it is expected that the Company will report a profit for the year.

 

The directors consider strengthening the balance sheet in this way will enable Rubicon to be better positioned to win new business.

 

Rubicon expects to release its full year results for the year to 30 June 2010 during October 2010.

 

The Company also announces that David Webber, Non Executive Director, is leaving with effect from the Company's year end having served a 4 year term since flotation. The Board wishes to record its wholehearted appreciation to David for his contribution and wise counsel during that period.


For further information, please contact:

 

Rubicon Software Group PLC

www.rubiconsoftware.com

Alistair Hancock, Chief Executive Officer

+44 (0) 1276 706 900

 

WH Ireland Limited

www.wh-ireland.co.uk

John Wakefield / Marc Davies

+44 (0) 117 945 3470

 

Posted on 2nd August 2010