VICP Vicorp

 

TIDMVICP 
 
RNS Number : 4574N 
Vicorp Group PLC 
17 February 2009 
 

17 February 2009 
 
 
Vicorp Group Plc 
("Vicorp", "the Group", or "the Company") 
 
 
 
 
 
 
Statement re: financial position 
 
 
The board of Vicorp is currently undertaking initiatives to strengthen the 
balance sheet of the Company through the following: 
 
 
  *  The Company has applied for a loan for GBP600,000 from Royal Bank of 
  Scotland backed by the new Enterprise Finance Guarantee; and 
 
 
 
  *  undertaking an equity placing of up to GBP500,000 conditional on the board 
  receiving authority from shareholders at a general meeting. 
 
 
 
These measures are designed to ensure that Vicorp can insulate itself from the 
current economic conditions for the foreseeable future. The board recently 
highlighted that trading was below expectations and this continues to be the 
assessment of the board. 
 
 
If these initiatives do not come to fruition then the board will seek 
alternative financing routes where available. However, it is important to 
acknowledge that the company must raise further capital to ensure its viability 
in the foreseeable future. 
 
 
General Meeting 
 
 
The Board will issue a notice of the general meeting, which will be held on 13 
March 2009, at which the appropriate authorities will be sought for the issue 
and allotment of new equity in due course. An announcement will be made when the 
circular is posted later today. 
 
 
 
 
Change of Broker 
 
 
The Company has appointed Rivington Street Corporate Finance as its sole broker 
with immediate effect in order to provide new opportunities to seek equity 
capital. 
 
 
 
 
 
 
Cost Savings 
 
 
The board have identified a number of potential cost savings which, if fully 
implemented, should result in savings of approximately GBP500,000 on an 
annualised basis. The board intends to achieve the lower cost base within 6 
months. 
 
 
 
 
 
 
Nortel and Vicorp 
 
 
Nortel has recently announced it entered into administrative receivership in the 
UK which has affected the plans of many large enterprises and Telco's that 
depend on Nortel infrastructure for their telephony services. Vicorp provides 
its solutions on the Nortel platform, amongst others, which means that in some 
cases the progress of our projects is being temporarily delayed whilst those 
companies affected by this development decide how to manage the situation. 
 
 
However, In Vicorp's favour, its products enable clients to build voice 
solutions that are completely independent of any underlying data and telephony 
infrastructure. This means that our business is now well positioned as being the 
vendor of choice for voice applications as large enterprises need to detach 
themselves from telephony infrastructure-based solutions. The directors of 
Vicorp are of the opinion that many large enterprises will now seek to migrate 
their voice services onto independent platforms such as Vicorp xMP. 
 
 
In the short term the directors will take action to ensure that any delays 
caused by internal reviews can be absorbed and in the medium term the directors 
will take action to address the new and significant opportunity that is now 
opening up across the Enterprise market, to move applications that have been 
locked into existing infrastructure and make them fully portable and safe from 
changes in any telephony network. Vicorp is actively looking to expand its 
existing product offering through a number of means to enable it to better 
address the opportunities created by this market disruption, and to build a 
broader product infrastructure that will enhance the capabilities of its new 
services portfolio. 
 
 
 
 
 
 
 
 
 
For further information, please contact: 
 
 
Brendan Treacy, Chief Executive, Vicorp Group PLC 
     01753 660 500 
www.vicorp.com 
 
Monisha Varadan, Rivington Street Corporate Finance 
     0207 562 3389 
 
Ray Zimmerman/Jonathan Evans, Zimmerman Adams International Limited     0207 060 
1760 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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