@UK PLC Trading Update

@UK PLC, the cloud e-commerce marketplace, today gives an update on trading for the year ended 31 December 2011.

The Group experienced improved trading during the year and consequently expects to announce results ahead of market expectations. Revenues are expected to show an 18% increase on the prior year to approximately £2.415m, while the loss before tax is expected to have decreased by 76% to approximately £0.14m. The Company’s e-commerce business, its main growth engine, delivered a stronger than expected performance with 61% growth in revenues.

2011 was a transformational year for @UK, evidenced by a number of major successes, including: –

• National Audit Office’s use of SpendInsight technology for a review of NHS consumable spending;
• GeM marketplace win for all Universities and Colleges (the only major e-marketplace contract that was available during the year);
• Selection for NHS Carbon Footprint Project; and
• First global e-commerce site for a GeM supplier.

Only £0.46m in revenue was recognised from these contracts in 2011, with a further £1m to be recognised over the next three years, plus a significant amount of additional revenues already agreed for further work against these contracts.  

Following successful equity fund raisings undertaken during the year from both existing and new investors, along with capitalisation of software, the Company now has a robust balance sheet and a strong cash position, which is expected to improve @UK’s position significantly when competing for future large Government contracts.

The Company is in the process of installing a telesales team focusing on selling SpendInsight and GreenInsight across the Public and Private sectors. We have already recruited our first two team members, who are focusing on the NHS in support of the NHS Carbon Footprint project and also to Local Government, with two more joining in the next few weeks, who will focus on Universities, Housing Associations and Central Government.  In all we have identified 10,000 UK-based prospects for our analysis offerings at £10,000 each for either Spend Analysis or Green Analysis.

The Board therefore believes that the Company now has both the necessary products and resources to grow revenues and profits significantly.

Chairman Ronald Duncan said: “I am delighted with the progress that we have made in the last year and with the strong demand that there is for our services. We have seen significant growth in the year, in particular from our e-commerce business, and with an expanded sales team and a strengthened balance sheet look forward to another successful year in 2012.”