TIDMBOS
RNS Number : 5295H
BOS GLOBAL Holdings Limited
08 June 2017
BOS GLOBAL Holdings Limited
ACN 009 087 852
AIM Release
8(th) June 2017
Shareholder Update
As shareholders will know, the aim of BOS GLOBAL Holdings
Limited ("BOS GLOBAL" or "the Company") is to build a global
company that is focused on improving productivity and creating
operational efficiencies in the workplace, primarily by collecting
and generating workplace analytics. We have made excellent progress
and the Company believes we have the platform in place to create a
truly global business with a state of the art product
portfolio.
Having recently received comment regarding the business,
strategy, funding and structure, we are pleased to draw together
key points from the last few months' RNS's and provide a further
update of the Company's progress.
Our strategy remains focused on building a global business and
generating shareholder value. We have our own service range which
has been recently augmented by the launch of the patented BOS360
Work Patterns(TM) Platform as a Service (PaaS) (www.bos-360.com)
along with our core patented product, BOS Time(TM). These products
strengthen our offering which already includes BOS Meet and BOS
Automate, which are gaining traction in the market place.
In tandem with our own service range we have been identifying
complementary businesses that will accelerate our global growth.
Accordingly, we were delighted to have completed the investment of
a 40% interest in Australian based Call Design Pty Ltd ('Call
Design') (www.calldesign.com.au) announced 23(rd) May 2017, for a
consideration of GBP280,000 from internally generated cash and the
issue of 5,040,000 Ordinary BOS GLOBAL Shares (the "Consideration
Shares"), which are subject to a 12-month lock-in. The total market
value of the consideration at investment closing represented a
multiple of 6.4x EBIT (Call Design 2016 Actual, 40% attributable
basis). This investment represents a major step in our development,
particularly with the potential operating synergies that both
parties recognise. Call Design generates contracted revenues from
its 60 clients worldwide, with the majority of its clients
averaging five years tenure, and strong organic growth prospect,
particularly from its North America business.
Call Design is a great fit as a BOS GLOBAL partner. It is a
profitable, global provider of workforce optimisation tools,
focused particularly on call centre services, which has an
established blue-chip client base. It has significant multi-sector
exposure, which includes all four of Australia's major banks,
leading international telecommunications companies, blue chip
insurers and governmental bodies, and a current operational reach
spanning 26 countries.
The investment fits ideally with BOS GLOBAL's global growth
strategy - BOS GLOBAL to initially target the Australian, UK and US
markets, with a primary focus on securing customers in the
financial and government sectors. As part of the investment,
Michael Travia has assumed a position on the Board of Call Design
to maximise the potential for realising operational synergies as we
look to increase our sales and marketing channels. The penetration
of Call Design and its contract profile was highlighted in the
recent announcement of an additional contract extension with a
major Australian Banking and Finance organisation with a value in
excess of A$1.3m (see BOS GLOBAL RNS of 5 April, 2017).
Furthermore, Call Design is an official Innovation Partner with
discounted license fees paid monthly in advance for each of the BOS
GLOBAL products in addition to being signed as a Platinum Reseller,
thereby automatically receiving our additional products as they are
launched to market over the next three years. Both parties are
committed to a long-term relationship and growing successful
businesses. This relationship is further underlined by the stock
component of the transaction and the further commitment by the
Directors of Call Design to provide us with First Right of Offer
and First Right of Refusal to acquire the 60% balance of Call
Design at the same proportional rate of cash and shares as applied
to the initial 40% Investment. Call Design anticipates materially
growing its revenues in the Financial Year ending June 2018 from
the sale and licenses of BOS GLOBAL products. We believe this is a
strong vote of confidence in the mutual benefits to be gained as a
result BOS GLOBAL and Call Design executing the Call Design
Shareholder Agreement on the 23(rd) May 2017.
On a wider level, we continue to expand our reseller network to
increase market penetration, entering into an agreement with a
London based reseller to enter the UK market. A trial is currently
underway with a client of the reseller ahead of targeting
commercial roll out amongst corporate clients. We have additionally
bolstered our sales support function by employing personnel as part
of an ongoing recruitment campaign to support new and future
channel partners. In essence, we are building a platform that we
can leverage to grow market share.
We have also formed a new Global Project Management Office
("Global PMO") to handle single transactions that have a value in
excess of US$20 million within a three-year period, including
acquisitions, Innovation Partnerships, or Platinum Reseller
agreements. As part of this initiative the Company is establishing
three primary regional divisions within its primary target markets
- namely BOS North America, BOS EMEA (Europe, Middle East and
Africa) and BOS Asia-Pacific - which will work alongside the Global
PMO to identify new business opportunities and support the
continued roll-out of BOS GLOBAL's innovative software portfolio.
We also made a number of key appointments including; Mr. Bill
Brooks as Director of the Global PMO and Managing Director
Designate of BOS GLOBAL Asia Pacific; Mark Bremberg as Head of
Sales of BOS GLOBAL, and an Executive Member of Global PMO; as well
as Greg Mason as General Manager of Australia and an Executive
Member of the Global PMO with responsibility for Technology and
Investments. We believe this both underlines our growth ambition
and, due to the quality of the individuals, validates our
proposition.
With regards to funding, the Company continues to draw down
funds in accordance with its GBP1.392m Convertible Note agreement
('Note') with Innovation Corporation Limited. As mentioned in the
notification of the most recent drawdown of GBP116,000 at a fixed
rate of 16 pence per share, these drawdowns are subject to the
Company not being in a closed period as defined by the Market Abuse
Regulations ('MAR'). After this drawdown, GBP886,000 remains
available to the Company under the Note. Additionally, the Company
anticipates receiving the proceeds upon completion of the
transaction for the disposal of the Company's 75% interest in its
legacy resource asset, Copper Range (SA) Pty Ltd ('CRSA') for
approximately GBP386,000 before costs as announced on 12th May
2017. Updates will be provided on the progress of the Copper Range
transaction in due course.
As part of the Company's global strategy, and as announced
recently, the Board has taken the decision to commence the process
of moving its headquarters to London. Coupled with this decision,
BOS GLOBAL also resolved to restructure its Board so that the
make-up consists of individuals who have both the experience in the
relevant sectors and are also connected to London. The first phase
of this involved David Ireland, an existing Independent
Non-Executive Director of BOS GLOBAL, taking over the role of
Independent Non-Executive Chairman replacing Larry Shutes, and
Executive Director Murray Bergin stepping down from the Board to
focus his energies on an increasing workload within the senior
management team. The second phase, as noted in the recent
announcement, is progressing, with the Company actively undertaking
a process to identify and appoint additional directors, including a
Financial Director, with the relevant credentials to drive the
Company's growth.
On an opportunity level, we believe there is a huge market for
our service offering. The world is changing rapidly and companies
are seeking to maximise efficiencies, through technological
innovation, in an increasingly competitive world. A recent note On
BOS GLOBAL published by Capital Networks emphasised the market
potential of the Company's services. The Capital Networks note
concluded that, based on an analysis of peer industry fields, in
particular Client Relationship Management systems, the potential
scale of the global market by 2020 for the type of capability
offered by BOS GLOBAL (BOS360) is at least $100bn by revenue. The
report also went on to say that the route to market offers rapid
scalability, due to the flexibility of the PaaS service model, and
the potential benefits of partnering agreements. Furthermore, the
Capital Networks report also put forward an opinion that BOS GLOBAL
only has to capture a small relative share of the addressable
market to justify a market valuation which would be a multiple of
where the shares were valued at the time, and incidentally, where
they are valued today. A copy of the report is available on
https://bosglobal.com/optin9991102.
The Company has made excellent progress this year with multiple
milestones reached and the advancement of our development start to
become a global player in operational efficiencies. We have
achieved first sales and gained a significant number of subscribers
across our core geographic markets of the UK, USA and Australia. We
believe that key commercial milestones during the next six months
could deliver good news for shareholders and improve the visibility
of our opportunity. On the back of all these achievements since the
Admission of BOS GLOBAL to trading on AIM and the strong future
prospects that we continue to lay the foundations, we believe that
we have an exciting business and investment proposition.
Our shareholders are important and we have scheduled a
shareholder call for Tuesday 13 June 2017, 11.30am GMT, the details
of which can be found below. Finally, we thank you for your support
and look forward to updating shareholders as we grow the
business.
Kind regards
Michael Travia
To participate in the shareholder conference call, please dial
0808 109 0701, or +44 (0) 20 3003 2701 if you are calling from
outside of the UK, and enter participant code 5166737# when
prompted to do so. Please note that all lines will be muted except
for the BOS GLOBAL management, however the Company invites
shareholders to submit questions to its public relations adviser,
St Brides Partners Ltd, ahead of the call via email to
shareholderenquiries@stbridespartners.co.uk.
The management team will strive to answer as many questions as
possible during the call. A recording of the call will also be made
available on the Company's website.
If you have any problems accessing the call, please contact St
Brides Partners Ltd on shareholderenquiries@stbridespartners.co.uk
or call +44 (0) 20 7236 1177.
**ENDS**
For further information please visit www.bosglobal.com or
contact:
Michael Travia BOS GLOBAL Holdings Tel: +61 (0) 8 9322
Managing Director Limited 4071
E: shareholder@bosglobal.com
=================== ===================== ==============================
Andrew Thomson RFC Ambrian Tel: +61 (0) 8 9480
NOMAD Limited 2500
=================== ===================== ==============================
Charles Goodfellow Peterhouse Corporate Tel: +44 (0) 20 7220
/ Lucy Williams Finance Limited 9791
Broker
=================== ===================== ==============================
Elisabeth Cowell St Brides Partners Tel: +44 (0) 20 7236
/ Charlotte Page Ltd 1177
Financial PR
=================== ===================== ==============================
About BOS GLOBAL
BOS GLOBAL is a Software Company dedicated to making workplaces
more productive.
It does this through its patented platform built to capture and
analyse activities as a smart way to help individuals to achieve
greater levels of workplace efficiency.
The platform known as BOS360 Work Patterns Platform as a Service
('BOS360 PaaS'), launched in May 2017, is unique in its ability to
digitally render real time views of productivity in the form of
Work Patterns at an individual, team or organisation level.
The platform comprises of three main business competencies;
1. Workplace Automation - How digital information (records and
documents) is managed in the workplace.
2. Workplace Productivity - How people are spending their time at work
3. Workplace Integrity - How workplace information is secured and validated.
Each of these competencies are supported by a range of
enterprise grade software products designed to perform a specific
set of workplace functions. These products also act as both
collectors and feeders of information to the BOS360 PaaS for use in
the generation of Work Pattern reports and Workplace Analytics.
In addition to BOS Meet and BOS Automate, which were launched in
December 2016 and January 2017 respectively, BOS Time will be
launched this month in tandem with BOS360 PaaS.
BOS GLOBAL aims to generate re-occurring income through
subscriptions of its BOS360 PaaS and supporting products, as well
as through licensing of its patented Work Pattern technology. The
Company's sales strategy is focussed on building a global
distribution partner network via Enterprise Software Vendors,
Professional Services organisations and Consulting Practices.
The Company has a 40% equity interest in Call Design Pty Ltd, a
profitable, Australian based, global provider of workforce
optimisation tools, focused particularly on call centre services,
which has an established blue chip client base. This highly
synergistic investment is expected to provide multiple
cross-selling opportunities to both companies in line with BOS
GLOBAL's strategy to deliver a comprehensive business optimisation
offering globally. This investment includes the 1(st) Rights of
Offer and Refusal for BOS to acquire the balance of Call Design on
the same financial terms as the initial 40% investment
Call Design sets a new standard for Workplace Optimisation,
while BOS GLOBAL's software sets a new standard for Workplace
Efficiency. Both products will be offered through BOS360 PaaS,
setting a new standard for Workplace Analytics to give companies
greater control in making informed, fact-based decisions on their
operational activities; Workforce Analytics is a combination of
software and methodology that applies statistical models to
worker-related data, allowing enterprise leaders to optimise human
and machine resources.
BOS GLOBAL Holdings Limited is an AIM listed company
incorporated in Australia, operating from offices in Melbourne,
Sydney and Brisbane. The Company also has a regional office in Hong
Kong, responsible for the Asia-Pacific region and processing of
large scale enterprise product sales with a greater than US$20
million revenue stream over an initial three-year contract term.
Such deals include acquisitions and investments like the size of
Call Design.
The Company is working towards its expanded London Office with
its planned move of both Corporate and Board function to London in
late 2017. Further, plans are well underway to increase its
representation in Europe, the Middle East and Africa (EMEA) and
North America with that of Call Design, and with offices on track
to be established in 2017 in London and San Francisco
respectively.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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June 08, 2017 04:20 ET (08:20 GMT)
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