The UCS Group has renewed a cautionary announcement concerning an expression of interest to the board of directors of Argility Limited, regarding a possible acquisition of Argility's issued share capital.
Argility, wtih its assets, was unbundled from UCS during 2007.
However, UCS warns shareholders that the expression of interest does not constitute a notice of a firm intention to make an offer as contemplated in terms of the Securities Regulation Code on Takeovers and Mergers and the Rules of the Securities Regulation Panel.
The expression of interest serves to engage the board of directors of Argility in a process which could, if successful, result in a firm offer being made by UCS in respect of the possible transaction," it states.
"The implementation of the possible transaction remains at the sole discretion of the UCS board of directors."
Yesterday, UCS also reported its reviewed results for the year ended September 2009.
These shows a 22% increase in revenue, 19% increase a annuity revenue, a 10% normalised EBIDTA and 44% of cash generated from operations.
CEO of UCS Group John Bright comments: "Local and international market conditions remained very challenging during the past year, especially for businesses such as UCS with a large exposure to the non-food retail sector which was hard hit by the decrease in consumer spending. In spite of this, the results demonstrate the strength of the group's focus on the generation of predictable cash flows through consistent annuity revenue streams.
"Looking ahead, UCS remains well-placed, strategically and operationally, to continue to weather sustained difficult market conditions and we look forward with cautious optimism to gradual improvements in trading conditions across our targeted international markets during 2010."