DXS INTERNATIONAL PLC
Trading Update and Grant of Options under EMI scheme
The Directors of DXS International plc, the provider of clinical decision support systems to Clinical Commissioning Groups, GPs, doctors and health care professionals are pleased to announce that trading in the last quarter of the financial year ending 30th April 2013 has been exciting for the Company.
The current CCG initiative has gained increasing momentum and in the past three months and DXS has signed up additional more CCG's ("Clinical Commissioning Groups") bringing the total under contract to 9. A further 5 CCGs have confirmed that they will be proceeding with DXS and are in various stages of negotiation. To ensure that the Company continues to build on this growth, DXS has recently recruited two experienced sales people.
In January DXS announced that the EMIS integration was complete and to date has deployed "DXS Best Pathway" to over 50 EMIS practices with positive results. DXS is pleased to note that pharmaceutical revenue, which was flat in the third quarter, has grown and this, combined with the new CCG revenue, means that the current annual run rate is £1.8 million per annum.
DXS is also able to confirm that, in response to meet growing customer needs, DXS has researched and developed during the past four months, a new product branded "DXS Best Triage". This triage product which enables practices to electronically send referral forms to their own triage centre, is now running at its first CCG customer and delivers cost savings and improved accuracy to the practices deploying it.
In the light of the continuing success of the Company, and in order to recognise the continuing contribution of the executive directors, the Board has agreed to enhance the current share option schemes for David Immelman, the Chief Executive, and Steven Bauer, the Sales Director with further options setting even higher revenue targets than before. Under the terms of the new Enterprise Management Incentive Scheme options over 1,000,000 shares have been granted to each of Mr Immelman and Mr Bauer. The Options have a vesting period of 3 years, are conditional upon the Company achieving audited turnover of £5 million in any financial year and have an exercise price of 20p each.
As a result of the grant of these options there are 2,076,923 unexercised options in favour of management at 13p and 2,000,000 unexercised options 20p over the Company's shares. Assuming full dilution and the exercise of all existing options and warrants Mr Immelman and Mr Bauer will each hold,1,923,077 options constituting 5.47% of the issued ordinary share capital of the Company as enlarged.
The Company has also agreed to extend the term of the existing warrants in favour of the City & Merchant group for a further 5 years. The warrants have an exercise price of 26p each and now expire on 31st July 2018.
The Directors of DXS International plc accept responsibility for this announcement.
Contact Information:
David Immelman
Unit 6, Abbey Business Park,
Monks Walk, Farnham,
Surrey
GU9 8HT
Tel: 01252 719800
Website: www.dxs-systems.com
Corporate Adviser:
David Papworth
City & Merchant Limited,
Salisbury House,
29 Finsbury Circus,
London
EC2M 5QQ
Tel: 020 7101 7676