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 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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