Merged BCS operational risk group to float on AIM

Merged BCS operational risk group to float on AIM

BCS Group, a company formed by the merger of City software house B2B Systems and consultancy Buttonwood Tree is to float on the UK AIM market via a proposed reverse takeover of Honeysuckle Group PLC.

The B2B/Buttonwood merger was consummated in January. For 18 months prior to the merger, both companies had been operating a compliance software joint venture VCM. This specialises in supplying operational control software designed to mitigate the exposure of senior management to regulatory, financial and reputational risk.

Combined revenue from the two companies for the year ended December 2004 - excluding VCM - was £8.4m with operating profits of £1m and pre tax profits of £948k.

The BCS reverse takeover by Honeysuckle values the group at £19 million. The combined group will operate a software and services business employing approximately 70 staff from is headquarters in Peterborough, UK.

BCS Group is pricing itself at 10p per share giving it a market capitalisation of £22.1m. Trading in shares will begin on 1 June 2005, after the company's EGM scheduled for 31 May.

The companies say the flotation will "bring a clearer proposition to the market and will accelerate growth" through the development and sale of new products and the expansion of partner activities.

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