Coda weighs up takeover approach
SOFTWARE specialist Coda today said it was weighing up an approach from a Dutch company which if successful would create one of the biggest groups in its field in Europe.
Harrogate-based finance systems specialist Coda has been approached by Unit 4 Agresso.
Although Coda said there was no guarantee of a full offer being made for the company, it has opened due diligence proceedings.
If a deal was completed, the enlarged group would have combined turnover of around £200m and operations in 19 countries. It would also see Coda access new markets, a strategy it is keen to pursue.
A further update on the approach is expected before the end of this month.
In a trading update today Coda, which operates in 14 countries and creates and markets software systems specifically for financial directors and finance departments, said earnings and revenue for the year to December 31 would be ahead of its management's expectations.
The AIM-listed company said cash flows had been strong during the year with a cash balance of approximately £12.8m compared to £1.8m for the same period for the previous year.
It said it had won a number of new contracts with organisations including BAE Systems Surface Fleet Solutions and Equity Trust, while other clients had renewed deals.
Coda's executive chairman Graham Steinsberg said: “The outlook for 2008 remains positive. Pipelines are strong for all product streams.
“They show a healthy mix of higher value prospects, which typically have a longer sales cycle and lower value opportunities which have shorter sales
cycles.”
For the six months to June 30 Coda's revenues increased by 8.1% to £28.1m, while operating profit was up by £2.7m to £7.2m.
Preliminary results for the full year are expected to be announced on March 13.
