APN Appian

RNS Number:5154S
Appian Technology PLC
17 April 2008


     Appian Technology plc / Ticker: APN / Market: AIM / Sector: Technology


17 April 2008

               Appian Technology plc ('Appian' or 'the Company')

                                 AGM Statement


At its Annual General Meeting to be held at 10 a.m. today, Pat Ryan, Chairman of
Appian Technology plc, the AIM listed provider of Automatic Number Plate
Recognition systems ('ANPR') and traffic management products and solutions, will
provide the following update on activities.


The Company's focus over the last six months has been on improving sales and
marketing, reducing costs, streamlining and improving the management team and
Board, progressing its product development programme and strengthening the
balance sheet. The Company has made strong progress in the second quarter after
a slow start in the first quarter and the Board is greatly encouraged by the
performance of the business.


Sales and Marketing


I am pleased to report that Appian has had its best half year for order intake.
Business in hand to date is �4.42 million, which is anticipated to be delivered
by the end of the current financial year. This includes all orders received in
the year to date and annual maintenance revenue. Total sales in the last
financial year amounted to �4.77 million.


Going into the second half of the financial year, our sales pipeline is strong
and the Board is optimistic about the Company's prospects for the remainder of
the financial year and beyond. Appian continues to make good progress in all its
markets in the UK, Ireland, the Middle East and the Americas. In particular, the
Company has been successful in terms of winning tenders from UK police forces.


Gross Margins


Appian's gross margin is dependent on the mix of sales between hardware, which
generally has lower margins, high margin software and maintenance. For the year
to date, the gross margin is in excess of 45%, which compares with a range of
historic levels of 43% to 55%. The Board expects the current level to be
maintained or improved in the second half.


Costs


The Board has taken significant action and implemented a cost reduction
programme. This is anticipated to result in annual cost savings of approximately
�650,000 per annum, following its completion in July 2008, by which time the
annualised cash cost base will be reduced to approximately �3.5 million. Further
opportunities to reduce costs are being assessed and will be taken where
appropriate.


Board and Management


The following Board and management changes have been made to ensure that the
Company maximises its potential and remains at the forefront of ANPR technology
development and provision.


The Board is in the process of searching for a non-executive Chairman and is due
to appoint a search consultancy to source a suitable candidate.


On the management side, Tom Keene is Commercial Director and is responsible for
sales and marketing; Peter Csakany was appointed Head of Development in December
2007 and Tony Price has been Head of Operations since February 2007.


Further to David Hearn's previously announced intention to leave the Board, he
stepped down with effect from 14 April 2008 and has left the Company. We wish him
well in his future career. Philip Lindsell, who has been Interim CFO since
November 2007, will depart at the end of this month.


Simon Michaels joined Appian as Finance Manager in April 2008 with a view to a
future appointment to the Board and will assume all financial responsibilities.
Simon, aged 40, is a Chartered Accountant, who has wide ranging business
experience at plc level having previously held positions with Coopers & Lybrand,
RP Corporate Strategy, Finance Director UK and US Operations for Harvey Nash
Group plc and Group Finance Director and Company Secretary of Mercury Group plc.


Product Development


The Company continues to upgrade its Cobra range of cameras, which has sold very
successfully since its introduction in January 2007, and has rolled out its new
Stinger and Viper range of ANPR cameras. The Cobra and Stinger products are
focused primarily on fixed site applications. The Stinger is an enhanced Cobra
with inbuilt processing and communications capabilities, while the Viper is an
in-car dual purpose video and ANPR camera for the police market.


Balance Sheet


In this financial year, Appian has raised �1.39 million net from a placing of
new shares in December 2007 and �737,000 through the issue of Convertible Loan
Notes last month. Certain directors have contributed significantly to these
issues.


Summary


In summary, with a record period for order intake, steady gross margin and the
implementation of an aggressive cost cutting programme, we believe we are in
good shape for the future. We remain committed to being at the forefront of ANPR
technology and we believe the improvement in order intake reflects that our
products are gaining further recognition both in the UK and internationally.


                                  * * ENDS * *


For further information visit www.appian-tech.com or contact:

Pat Ryan Appian Technology plc Tel: 01628 554 754

Isabel Crossley St. Brides Media & Finance Tel: 020 7236 1177

Tom Griffiths Arbuthnot Securities Tel: 020 7012 2000


Notes to Editors:


Appian Technology plc is a leading provider of Automated Number Plate
Recognition (ANPR) based enforcement, crime reduction, counter terrorism and
traffic management systems and products. It provides products to a diverse
growing global market, helping both governments, local authorities, national and
international police forces and commercial organisations in all aspects of
security, surveillance and traffic management.


Appian's key products include the world leading Talon ANPR solution as well as
the recently launched Cobra and Stinger range of ANPR products. The Cobra ANPR
camera has the unique capability of reading vehicle license plates at a range of
45 metres whilst the Stinger ANPR camera can be used on both mobile and road
side applications. The Company has an active R&D department, which continues to
develop and customise new products for international markets.




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