TORONTO, June 27 /PRNewswire-FirstCall/ -- Dear shareholders and colleagues,
Firstly perhaps I should apologize to you all for not communicating with you before on the recent activities of CMT. Each time I was close to putting this down on paper another of our initiatives was close to execution and I wanted to provide the overall picture as CMT is now looking very interesting. Since we have just recently completed what we loosely termed as 'phase 1' of our strategy, I now feel it is an appropriate time to share some of our excitement!
As a quick reminder, CMT is in the business of automating inefficient (often manual) operational processes in the back offices of financial institutions and large corporate. Three factors currently drive the business CMT is in; globalization, regulation, and the credit crunch. I know that for many of you the credit crunch represents a difficult period but for CMT the credit crunch could not have arrived at a better time. With regulatory events already conspiring to force our target customers to consider outsourcing their back offices, the credit crunch has seriously accelerated this activity, resulting in a much more significant opportunity for CMT's subsidiaries in the short and medium term.
Phase 1 of CMT's strategy was based on acquiring companies in three business areas; people; services and technology. With these areas of business under the CMT umbrella, we are now well positioned to enlarge on the model and cross-sell the products and services of each of the organizations. In summary CMT has achieved all the targets we set ourselves at the end of 2007. The highlights are as follows;
- Six companies have been acquired underpinning CMT's strategy and providing visibility on revenues of between (pnds stlg)8.5-10m in 2008, and rising to (pnds stlg)20m in 2009 if no further acquisitions were made - Our target acquisitions have been completed and all financials according to UK policies are currently being converted to US GAAP. - In addition to multiple tier-one financial institutions as customers, strategic relationships have been forged with three of the world's largest banks providing a strong pipeline of sales leads over the next 24 months - With CMT's European hub in place, a second regional financial technology hub is under consideration for launch in Dubai, UAE - Further acquisition targets have been targeted which will add significant value to the group
Needless to say I'm very excited about our prospects. The company is now in a very strong position to capitalize on its efforts to date and we are surging ahead with phase 2 of our plan which includes consolidating some of our operations and continuing to grow our customer base.
Events on the horizon include the Fund Forum in Barcelona next week at which I will be speaking on CNBC Europe, CMT's presence at SIBOS in September where I am a guest speaker on one of the main panels, and our presence at Euro Finance in October with some of our Advisory Board members. These events are the largest and most important globally for the financial technology community and achieve significant attention from trade media representing every major financial centre in the world.
Milestones include the delivery in Q4 to pilot customers of CMT's new automated messaging hub which has already attracted widespread interest from the investment banking community in Europe.
I expect to be able to update you all again within the coming months when there will undoubtedly be more exciting news. In the meantime please do feel free to contact CMT with any questions you may have about the information in this update.
My continued thanks for your support in our efforts, Jack Bouroudjian Chairman Capital Markets Technologies Inc. FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release that are not based on historical facts are "forward-looking statements" and are prospective. These statements may appear in a number of different places in this news release and can be identified by words such as "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for CMT's future operations, plans and statements about future market conditions, supply and demand conditions, forecasts of future costs and expenditures, and other expectations, intentions and plans that are not historical fact. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of CMT. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance those actual results or developments anticipated will be realized.
Section 21E of the Securities Exchange Act of 1934 as amended, and is subject to the safe harbors created thereby. Such statements involve certain risks and uncertainties associated with an emerging company. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors discussed in Capital Markets Technologies reports that will be on file with the US Securities and Exchange Commission.
