Vecta Corporation PLC (“Vecta” or “the Company”), the developer of sales intelligence software designed to help companies and their sales teams to increase revenues and profits, announces today its intention to float on the Alternative Investment Market of the London Stock Exchange (‘AIM’), and to raise capital via an institutional placing. The Nominated Adviser and Broker to the Company is Beeson Gregory.
Background to Vecta
Since being founded in 1996 by Justin Floyd, Kevin McGirl and Brian Spencer, the Vecta business has developed its Sales Intelligence Software (“SI”) software to address one of the most fundamental aspects of an organisations’ business drivers – its sales people. As with any data or information, sales intelligence must be managed effectively if it is to identify selling opportunities. Many organisations using CRM systems have found it generally ineffective in delivering measurable sales improvements. As a result, few companies have been successful in locating and deploying technology systems that empower them to achieve their desired sales results or have been accepted by their sales people.
Blue Chip Customers
Vecta targets customers who have high volume, multi-product sales. It has over 300 customers, many of which are in the healthcare, automotive and business supplies sectors. Vecta’s current customer base includes large organisations such as Biersdorf Smith & Nephew (a division of Smith & Nephew, one of the largest healthcare companies in the world), Corporate Express (UK) (the world’s largest office products distributor), Mitsubishi Pencil, Carlac (Automotive Supplies Distribution), Rapesco (Office Products Manufacturer and Datex Ohmeda (Medical Supplies) as well as mid-market manufacturing and distribution companies. Vecta’s software is currently being used by over 1,650 sales people as a tool to increase the efficiency of their sales efforts.
Vecta’s SI software
Vecta’s Sales Intelligence Software (“SI”) generates relevant, intelligent information from companies’ transactional sales data to identify specific marketing and sales opportunities, which give companies an increased competitive advantage, new business opportunities, improved customer service, and ultimately increased revenues and profit.
The Directors believe that the majority of business intelligence and CRM products currently available do not adequately address the needs of sales people. The Directors of Vecta believe its software is an innovative step towards exploiting the information captured by process automation, and provides Vecta’s customers with the ability to interpret and use this information for generating improved sales levels.
The key strengths of the Company’s software include:
· it appeals to sales people who use it to identify gaps in buying patterns and helps them sell more;
· fast track implementation (producing results in 3-5 days);
· functionally rich with user friendly interface;
· innovative pricing model reduces length of sales cycle;
· rapid demonstrable return on investment (“ROI”); and
· written to adopt best sales practices.
The overall objective of Vecta has been to empower companies and their sales people to increase sales with existing and potential clients using its leading edge SI software, and to achieve rapid ROI from using the Vecta suite of products.
Vecta had sales of approximately £3.5 million in the financial year ended 28th February 2002 (2001: £1.8m), operating profits of £200,000 (2001: £31,000), and pre-tax profits of £188,000 (2001: £25,000).
Reasons for the Flotation and Use of Proceeds
The proceeds of the Placing will be used for working capital to fund the Company’s expansion and accelerate growth in the UK by taking on additional sales people, to expand the core UK management team and to create distribution channels in the USA and Europe. In addition, funds raised will be used to continue the development of e-commerce, ASP and enterprise versions of Vecta’s software. The proceeds will also support the development of its organisation, marketing and technology initiatives.
Justin Floyd, Chairman and Chief Executive of Vecta, commented on its plans to float on the AIM:
“Vecta has grown rapidly through demonstrating its ability to increase its clients’ sales function through using the Company’s software and services. We have grown organically and profitably since inception through our ability of meeting and exceeding our clients’ expectations, and through developing a software platform that is revolutionary in its ability to generate rapid ROI for our clients. Having invested heavily in our technology, and in successfully breaking down the key difficulties between the effectiveness of sales teams and the use of advanced technologies, the Directors believe that the flotation of Vecta will provide the springboard to a significantly broader user base of our software and will take the Company onto its next stage of development”.
For further information:
Vecta Corporation PLC
Tel: 01865 381700
Justin Floyd, Chairman and Chief Executive
Beeson Gregory Limited
Tel: 020 7488 4040
Tel: 020 7466 5000
Beeson Gregory Limited, which is regulated in the UK by the Financial Services Authority, has approved this Memorandum solely for the purposes of section 21 of the Financial Services and Markets Act 2000.
Beeson Gregory Limited is acting exclusively for the Company and is not advising any other person or treating any other person as its customer in relation to the matters referred to in this Memorandum.
No person has been authorised to give any information or make any representation in connection with the matters referred to in this Memorandum, other than as contained in this Memorandum, and if given or made, such information or representation must not be relied upon as having been authorised by Beeson Gregory Limited.
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