This sale of HED will leave U-Plex to focus on the development and marketing of its insurance fraud detection solution, FraudScope, which is being developed and tested in conjunction with some of the worlds largest insurers with positive results.
Could we soon see Plexus team up with a major European insurance group???
Plexus has approx. 177 million shares on issue of which the top 20 hold around 78% I believe. In the scond half of last year they made a non-renounceable rights issue of around 58 million shares at 2 cents underwritten by EL& C Baillieu. Since this issue the price has barely traded above 2 cents so not many shareholders making a profit yet.
As can been seen from the last quarterly statement in March, sales revenue for the past 9 months was $31 million, and $10 million for the past quarter. Ie They look like bringing in between $30 and 40 million in sales for the year. Still not showing a profit but they are almost cash flow positive. The development of Fraudscope, a new software program for the insurance industry, with a focus on Europe is said to be going well and close to a full scale launch. At under 2 cents PLexus looks like a very interesting prospect. One to watch closely I think.
Cash flows related to Current Year to date operating activities Quarter (9 months) AUD'000 AUD'000
1.1 Receipts from customers 10,731 31,622 1.2 Payments for (a) staff costs (950) (3,090) (b) advertising & marketing - - (c) research & development (185) (557) (d) leased assets (15) (60) (e) other working capital (9,835) (29,481) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received - 16 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - -
1.8 Net Operating Cash Flows (254) (1,550)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) - (442) (b) equity investments - - (c) intellectual property - - (d) physical non-current assets - - (e) other non-current assets - - 1.10 Proceeds from disposal of: (a) businesses - - (b) equity investments - - (c) intellectual property - - (d) physical non-current assets - 34 (e) other non-current assets - - 1.11 Loans to other entities - - 1.12 Loans repaid by other entities - - 1.13 Other - research & development - 280
Net investing cash flows 0 (128)
1.14 Total operating and investing cash flows (254) (1,678)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. - 1,161 1.16 Proceeds from sale of forfeited shares - - 1.17 Proceeds from borrowings - 50 1.18 Repayment of borrowings - (100) 1.19 Dividends paid - - 1.20 Other (provide details if material) - -
Net financing cash flows 0 1,111
Net increase (decrease) in cash held (254) (567)
1.21 Cash at beginning of quarter/ year to date 577 787
1.22 Exchange rate adjustments to item 1.20 (17) 86
1.23 Cash at end of quarter 306
NOTE:THis cash figure does not include the recent announcement in regards to the sale of HED, for those that missed it the announcement is included below.
PLEXUS INTERNATIONAL LIMITED 2002-05-15 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ On 12 February 2002, Plexus International Limited ("Plexus") advised the market that U-Plex plc ("U-Plex"), its 73.5% owned UK subsidiary, had received an offer to acquire all of its shares in the U-Plex subsidiary, Home Electrical Direct Limited ("HED"). Since that time, the potential acquirer has completed extensive due diligence and, based on the outcome of this due diligence process, a new Heads of Agreement has been executed.
The sale is subject to the final agreement of formal sale and acquisition documentation and to the approval of Plexus shareholders.
Under the Heads of Agreement, U-Plex will receive a total consideration of GBP2.5 million (approx A$6.67 million) subject to finalisation of completion accounts. This consideration will be paid as follows:
* A payment of a deposit of GBP100,000 (approx A$270,000) on 13 May 2002.
* A payment of GBP250,000 (approx A$675,000) on execution of the sale and acquisition agreement.
* A payment of GBP560,000 (approx A$1.51 million) to be made in seven monthly payments of GBP80,000 commencing on 1 August 2002.
* A single payment of GBP90,000 (approx, A$240,000) on 1 March 2003 to bring the payments, to this date, to a total of GBP1 million. This last payment will be adjusted to reflect any variations in the net asset position of HED between 31 March 2002 and the completion date.
* Commencing on 1 April 2003, quarterly payments representing 1.5% of the turnover of HED for the previous quarter will be made, subject to each payment being a minimum of GBP93,750 (approx A$250,000), until such time as the total consideration amounts to GBP2.5 million. Any agreed residual inter-company debts owed to HED, as at the deal completion date, will be offset against the final payment/s.
U-Plex will accept responsibility for the discharge of an accumulated debt of HED due to a major supplier, Hughes Electrical Limited ("Hughes"). This debt amounts to approximately GBP700,000 (approx A$1.87 million) and will be repaid through the allocation, to Hughes, of a proportion of the total consideration as received by HED.
After the sale of HED, the principal focus of U-Plex will be the commercialisation of the Plexus insurance fraud detection product, FraudScope. As previously reported, several pilot implementations of the first FraudScope module, relating to motor theft fraud, are underway. The results to date are meeting the expectations of both U-Plex and the insurance companies undertaking the pilots.
CHANGE OF ADDRESS FOR REGISTERED OFFICE
As from 15 May 2002 the registered office for Plexus International Limited will be located as follows:
c/o Horwath Perth 128 Hay Street Subiaco WA 6008
The email address, postal address and facsimile address remains unchanged.
D Brown COMPANY SECRETARY
PLX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held