INVU Invu

 

TIDMINVU 
 
RNS Number : 7606N 
Invu plc 
24 February 2009 
 

 
 
 
 
24 February 2009 
Invu plc 
 
 
Trading Update 
 
 
The Board of Invu plc (LSE, AIM: INVU) provides the following update on trading 
following the end of its financial year to 31 January 2009. 
 
 
Since its announcement on 22 December 2008, Invu Plc ("Invu" or the "Group") has 
completed the cost cutting exercise and reduced operating overheads by 20%, 
equating to annual savings of GBP1.2m. A review of the Group's revenue 
recognition policy, in conjunction with its auditors, has resulted in the 
adoption of a new policy as from 1 February 2009 where revenue will be 
recognised on the earlier of either cash payment or shipment of product for a 
specific end user order. The Board believes that this revenue recognition policy 
will bring greater visibility of the performance of the Group's reseller 
channel. 
 
 
At the same time as adopting this new policy, the Board has decided that 
significant other measures are necessary to commence the new trading year from 
an unequivocal and unhindered starting point. To this end, the Group plans to 
make GBP7.3m of debt provisions against all debts that are greater than 6 months 
old and for which payment cannot be guaranteed by April 30, 2009. These 
provisions will appear in the Group's profit and loss account for the year to 31 
January 2009 and will result in it reporting a loss for the year of 
approximately GBP9.3m on sales of approximately GBP3.8m. The Group continues to 
operate within its banking facilities and the cash position is improving. 
 
 
Trading to date in calendar 2009 is in line with management's 
expectations. However, there is no material change in the underlying market 
conditions and customers are still taking longer to make purchasing decisions. 
The Group's Series 6 product is now receiving very high satisfaction levels 
among the Group's reseller and customer base, which continues to grow. A number 
of additional integration products will be added to the product suite to further 
enhance sales opportunities. 
 
 
The Board is also exploring further revenue enhancing opportunities with regards 
to business continuity managed services and a SaaS document management suite, 
both based on monthly subscription models. Negotiations are also underway with 
potential distribution partners and the Group plans the imminent launches of 
Invu for Enterprise and Invu for Accountants. 
 
Outlook 
 
 
The Board fully recognises the impact of the global economic downturn and the 
challenges that the Group faces. Nevertheless the Board is heartened by the 
continuing recognition of the benefits of the Group's product to its core 
customer base, the continuing demand for document management solutions in 
response to regulatory and compliance requirements, as well as recent indicators 
(particularly from IDC*) that the document technology market sector is still 
growing at a significant rate. 
 
 
Despite the extremely disappointing performance for the year ended 31 January 
2009, the Board is confident that the cost cutting undertaken and changes 
announced to the revenue recognition policy will provide the Group with a sound 
corporate structure. This should provide a core from which the business, with 
additional strategies of complementary products and new distribution 
opportunities, can develop, with a view to returning the Group to growth and 
profitability as soon as reasonably practicable.  However, the Board remains 
mindful of the difficult trading environment and continues to assess the Group's 
cost base and its strategy relative to its operational requirements. 
 
 
Daniel Goldman, Invu Chairman, said, 
 
 
"We have taken the first steps in the last couple of months to strengthen the 
business. We have now reduced costs across the Group and have adopted a revenue 
recognition policy which will provide greater visibility of trading across the 
Group. Although the economic backdrop continues to be challenging, the Board 
believes that the recent measures taken will put the Group in a better position 
for the year ahead and beyond." 
 
 
*IDC, Worldwide Capture and Inage Management Software 2008-2012 Forecast and 
Analysis, Melissa Webster, December 2008 
-ends- 
 
 
Enquiries: 
 
 
+-------------------------------------------------------+----------------+ 
| Invu plc                                              | 01604 859893   | 
+-------------------------------------------------------+----------------+ 
| Daniel Goldman, Non Executive Chairman                |                | 
+-------------------------------------------------------+----------------+ 
| Bernard Fisher, Interim CEO                           |                | 
+-------------------------------------------------------+----------------+ 
| John Agostini, CFO                                    |                | 
+-------------------------------------------------------+----------------+ 
|                                                       |                | 
+-------------------------------------------------------+----------------+ 
| Financial Dynamics                                    | 020 7831 3113  | 
+-------------------------------------------------------+----------------+ 
| Juliet Clarke / Haya Chelhot / Emma Appleton          |                | 
+-------------------------------------------------------+----------------+ 
|                                                       |                | 
+-------------------------------------------------------+----------------+ 
| Arbuthnot Securities                                  | 020 7012 2000  | 
+-------------------------------------------------------+----------------+ 
| Tom Griffiths  / Ben Wells                            |                | 
+-------------------------------------------------------+----------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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