Loqus Holdings plc - Interim Directors’ Statement

Thursday, May 15th, 2014

On 15 May, Loqus Holdings plc issued its Interim Directors’ Statement updating the market on its performance during the third quarter of its financial year ending 30 June 2014.

During the period under review, the Group’s financial situation remained relatively stable. It registered a minor improvement in profitability due to the anticipated decrease in the amortisation charge. The decrease in the amortisation charge was due to the reduction in generic research and development by the Group over the last three years as it utilised two ERDF funded research and development projects. The Directors noted that the Group has in this current financial year returned to its previous self-funded R&D investment policy.

As announced in March 2014, the Group acquired CCG Investments Ltd (acquisition completed in May 2014) as part of its strategy to create a standalone public sector arm. In the meantime, the Group successfully launched a number of new projects including the system for the municipal police of Rome as well as other projects in Italy and the UK. The Group also launched a new version of its next generation fleet management systems which is producing substantial recurrent revenues.

The Directors also explained that management is still pursuing the strategy to sell-merge its Fleet Management IPR business and assets (to be placed under a new subsidiary called Loqus Fleet Ltd) via a share transfer in order to provide cash injections and enhance growth in these areas. In this respect, the Directors approved a non-binding Memorandum of Understanding (MoU) with Innovation Capital SGPS SA operators of Inosat in Portugal, Movildata Internacional SL of Spain and Ventriga GmbH operator of Enaikoon in Germany. The MoU establishes the parameters to finalise an agreement that creates a pan-European fleet management alliance.

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