Clarity Commerce Solutions
Strategic Review
(RNS) 4 October 2007
Clarity Announces Results of Initial Strategic Review and Commencement of Second Phase of Review
- Clarity Commerce Solutions plc ("Clarity" or the "Group")
In our Preliminary Statement, the Group announced it had begun to review strategy and focus on reducing costs and improving accountability. Clarity has now implemented a number of changes in its structure, based around four trading divisions - Retail, Leisure, Hospitality and Ticketing
Under the supervision of Ken Smith, divisional management is now focusing on driving profitability through a higher number of lower revenue sales, and on completing the ongoing programme of cost reductions and cash-generation. Development expenditure is now being closely managed, at a much-reduced level, based on specific customer requirements. Furthermore, it is planned to link management remuneration to performance wherever practical.
In addition the Clarity Board has commissioned a second phase of the strategic review which will be led by Graham York, CEO, during the second half of the financial year. Clarity will analyse its markets and its competitive positioning and examine which of the Group's activities are core and can deliver greater profits and growth, particularly in the light of emerging trends in each of the markets in which the Group operates, and the very fluid competitor and IT landscape.
Such a review process will consider the divestment of non-core activities and property, and/or the strengthening of areas in which the Board sees growth potential.
By freeing the CEO from the day to day running of the business, yet ensuring that the Group Managing Director remains focused on operational effectiveness, Clarity is setting out to avoid the problems which have beset many companies in the past, where, because of an emphasis on strategy, the management has been distracted from its fundamental task of achieving profitability and positive cash flow.
Contacts:
Graham York, CEO or
Ken Smith, Group Managing Director
Clarity Commerce Solutions plc
01932 778001
Fiona Kindness, Director
Grant Thornton UK LLP (Nomad)
020 7728 3414
Ian Callaway, Director
SVS Securities plc (Broker)
Tel: 020 7638 5600
