KEWILL SYSTEMS BACK ON TRACK TO DELIVER

During the high tech bubble,there were few shares to match Kewill Systems for sheer exuberance.Its market value topped 2 billion on hopes of glory from Kewill.net.This was a promised revolution in the links between retailers and their suppliers.Orders and deliveries would whizz through a single portal,with Kewill harvesting hefty fees along the way.

The only problem with this vision was that Kewill.net was more imagination than reality.The software was not ready.This uncomfortable fact was never made clear over the following couple of years.Instead,Kewill spent puzzingly large amounts of money on research as it tried to build the portal,and its sales went down rather than up.

The story may yet have a happy ending.Last April,Kewill bought Globeflow from Vivendi Universal for e560,000.The cash-strapped media giant had spent over 20 times as much on Globeflow's software.The deal was a masterstroke,because it gave Kewill the capabilities that Kewill.net lacked.

Kewill can now handle the order placing,the packaging labelling and the tracking of the goods.A website that merely allows orders to be placed is nothing special.Globeflow allows Kewill to promise big savings quickly for customers,while most firms still label their deliveries manually.

Kewill is run by Paul Nichols,who was recruited from Logica last August.He plans to introduce Globeflow into the US in another 6 months,and expects US orders within 12 months.Currently,the US operations sell software for tracking package deliveries.These are low-value,high-volume sales.Globeflow contracts are typically worth 100,000 to 250,000,with the same revenue from services.

Kewill is likely to lose between 1 million and 1.5 million in the second half of this year.It will break even in the 6 months after this and then move into profits for the 6 months to March 2004.Cash will not fall much below 28p per share,so Kewill looks a seriously attractive share at 24P.
http://www.kewill.com/


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Kewill Automates Express Gifts Supply Chain
March 31, 2003

Latest Win Indicates Kewill.Trade Becoming Industry Standard for Direct Despatch Solutions

Express Gifts Ltd, one of the UK뭩 leading mail order gift companies, is the latest home-shopping customer to use Kewill.Trade, Kewill뭩 powerful supply chain execution solution. Express Gifts will utilise the web-based MTX application to enable goods to be delivered direct from its suppliers to customers.

Key to Express Gifts growth plans was a significant expansion of its direct despatch business. Working closely with Kewill, the company identified the need to increase electronic trading with its suppliers and carriers. However, the increasing volume of transactions expected and the need to maintain high customer service standards could not be managed by the existing manual systems, whilst the rollout of EDI-based software to a large number of suppliers would be too expensive and slow to implement.

Express Gifts chose Kewill.Trade because of Kewill뭩 leadership in direct despatch systems and the inherent flexibility of the solution. As Chris Pierce, Direct Despatch Manager at Express Gifts explains: 밢ur direct despatch supplier community will play an increasingly critical role in achieving our goals for customer service excellence and offering of a wider product portfolio. Managing this diverse and growing community more efficiently is key to our success and Kewill뭩 solution will help us grow this important side of our business based on increased revenue and customer satisfaction. We were impressed by the modular manner in which Kewill.Trade can be deployed, this will allow us to implement the solution to address our immediate business needs whilst giving us the capability to easily expand in the future as our business grows?

The web based MTX solution will integrate Express Gifts?direct despatch suppliers, including seasonal and short-term suppliers, and carriers. They will access the solution either through a standard web browser or via direct system-to-system integration. By bringing suppliers and carriers onto Kewill.Trade, Express Gifts will be able to automate and manage critical business processes and gain real-time visibility throughout the order to delivery lifecycle.

The speed and ease of set-up and the scalability of the solution will facilitate the expansion of Express Gift뭩 direct despatch supplier community from 5 to 45 suppliers this year with weekly orders over 20,000 in the peak season. The system can be easily expanded to include new suppliers and product ranges. In addition everyone in the trading community can be simultaneously updated about system changes and enhancements.

Through enabling greater visibility to Express Gifts of critical information about orders, despatches and other key events, customer services will be able to provide more accurate information to the end customers. The company expects this will increase sales and that, along with the significant reduction of fax, post and telephone communications, will enable a rapid return on investment.

Jacquie Boast, Kewill뭩 European COO said: 밯e are delighted to welcome Express Gifts as a new customer to Kewill. This is clear indication that the UK home shopping industry recognise the benefits which internet based electronic trading can deliver. We뭨e finding that the top business issues for UK retail are supplier discipline and supply chain visibility, whilst the vast majority of suppliers and carriers are still being communicated with via fax, telephone, and email. These issues are exactly those which Express Gifts are looking to resolve through Kewill.Trade.

Our web-based solution is especially compelling to the direct despatch sector because the solution enables disparate 3rd party suppliers and carriers to be easily integrated in a quick and cost effective manner, providing immediate visibility into the order to delivery process. Express Gifts joins our Kewill.Trade community of home shopping companies who are benefiting from our decision to invest in products and services that help manage the complex supply chains associated with catalogue and web retail?

With this latest win, Kewill.Trade is beginning to set a standard for the web-based solutions that home shopping companies increasingly need. Express Gifts is the second major UK home-shopping company to choose Kewill.Trade. In January 2003, Littlewoods announced it was implementing Kewill.Trade, to manage its direct despatch supply chain. Kewill expects other retailers to follow the lead of these companies over the next six months or more.

The Express Gifts implementation will be hosted and managed by Kewill뭩 Managed Services operations run out of its Manchester data centre. This added value service enables customers to avoid up-front internal resource and infrastructure costs as well as ongoing support and maintenance resource costs.

About Kewill.Trade

Kewill.Trade is a powerful supply chain execution and event management solution for integrating complex supply chains to enable business process automation and business process management through monitoring, notifying, controlling and measuring business performance of the order to delivery logistics network. Built using the MTX architecture (Moving Technology eXchange) Kewill.Trade addresses the unique business needs of Direct Despatch typically used in the Home Shopping industry. Kewill.Trade is available as both a hosted and licensed solution. The solution provides e-fulfilment, online collaboration and a real time exchange of business critical data and documents such as Orders, ASNs, Manifests, Invoices, Claims etc. Kewill.Trade delivers business benefits to organisations with diverse supplier and carrier communities for both Goods for Resale (GFR) and Goods Not For Resale (GNFR) for fast moving goods and stock through features such as Order Management, Advanced Shipping Notifications, Order Acknowledgements (Order/Shipping), Labelling, Packing Documents, Stock Availability, Barcode Scanning, Invoicing.

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Kewill Systems sees H2 revenues in line, to show growth on H1


LONDON (AFX) - Kewill Systems PLC said revenues in the second half are expected to be in line with management's expectations and will show growth on the first half in both its US and European businesses.

In a statement, the company said operating loss for the second half is also expected to be in line with its expectations, adding that it does not anticipate further exceptional costs.

'Our cash position has also strengthened further in the second half of the year,' the company said.

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