Troubled CMS invites M&A approaches
24 May 2007 | 2875 views | 0
After failing again to secure any new sales of its proprietary TDI ticker plant software, loss-making market data technology vendor CMS WebView has put itself up for sale.
London-based CMS has been struggling in recent years after sales of its TDI product dried up in 2004. In a bid to generate contracts the vendor introduced a new sales model last September where it sells the intellectual property (IP) for TDI to clients. The firm also recruited former head of LCH.Clearnet David Hardy as an advisor to provide practical support using his business contacts in the banking technology sector.
But in its finacial results statement CMS says despite arranging more than 30 appointments with IT managers at financial data organisations, "no new TDI sales have yet resulted".
The company has posted a 25% fall in turnover to £697,000 (2005: £934,000) for the year ended 31 Dec 2006, although it did manage to narrow pre-tax losses by 28% to £399,000 (2005: £553,000), despite incurring £112,000 of redundancy costs.
At year end the company had cash in the bank and in hand of £382,000 (2005: £844,000). CMS chairman Keith Young says the current cash position requires other "corporate actions to be considered".
"Acting in the best interests of shareholders, CMS directors are open to corporate deal opportunities with companies that might find significant value in CMS's 'clean' balance sheet and our proven TDI product or in realising the value of CMS's intellectual property assets," says Young.
Last year CMS was approached by two separate potential bidders but talks with both parties fell through.