CODA Financials, Inc., the finance systems specialist, today announced initial details of the release of Neon, its new and enhanced product set. Project Neon, a development programme representing nearly 100 man-years of work and an investment of around $10m, is CODA’s biggest and most significant product release ever.

Neon includes:

* CODA’s web browser architected, web-services-enabled, international accounting system, CODA-Financials. This has additional new features to further improve its state of the art user environment technology, enhancing usability and security, as well as intercompany accounting, cost control and other functions.
* A brand new web browser architected procurement system developed from the ground up. It features unique collaboration technology and integration with Microsoft Office, and will work with any ERP or finance system.
* A new, high-volume invoice matching system that will work with any ERP or finance system.
* A new workflow system that controls processes across CODA’s transactional products and beyond.
* An asset management system with enhanced international capabilities.

Commenting on the release, Steve Pugh – CEO of CODA Financials, Inc. – said: “Neon gives clients: the most technologically and functionally advanced financial accounting system in the world today; a state-of-the-art spend management system that will bring control and efficiency to the procurement process; and a range of other transactional systems including world-class, high-volume invoice matching and asset systems. This further establishes CODA’s leadership in finance syste s for mid-market and enterprise-level organizations, and makes us a serious contender in the global procurement systems market.”

Neon will be launched in May and unveiled at events across the world through June. The first customer implementations will be live by the end of the year. An extensive Beta test programme is currently underway with the product set being tested by customers around the world.

Debbie Ashton, CODA’s head of product management, said: “We’ve developed a very impressive new product set. Neon has a user interface and application platform that offers state-of-the-art control and visibility, alongside the ease of use and flexibility to help organisations drive efficiency and improve effectiveness in their day-to-day operations.”

Among the clients beta-testing the Neon product set is Debenhams, one of the UK’s largest retailers. Michael Conway, finance manager at Debenhams, said: “The integration with Microsoft Office makes the procurement features immediately familiar for users and therefore easy to use. It finally realises the ideal of a totally managed enterprise-wide procurement system and provides a very flexible platform for integrated financial and procurement processes that seems to be well ahead of the competition. The new Purchase Invoice Matching features build on this and could form an important part of a ‘procure-to-pay’ business process.”

CODA’s solution set supports the standard finance processes across an organisation, including purchase-to-pay and invoice-to-cash supported by full collaboration facilities and workflow management

CODA Financials, Inc., the finance systems specialist, today announced initial details of the release of Neon, its new and enhanced product set. Project Neon, a development programme representing nearly 100 man-years of work and an investment of around $10m, is CODA’s biggest and most significant product release ever.

Neon includes:

* CODA’s web browser architected, web-services-enabled, international accounting system, CODA-Financials. This has additional new features to further improve its state of the art user environment technology, enhancing usability and security, as well as intercompany accounting, cost control and other functions.
* A brand new web browser architected procurement system developed from the ground up. It features unique collaboration technology and integration with Microsoft Office, and will work with any ERP or finance system.
* A new, high-volume invoice matching system that will work with any ERP or finance system.
* A new workflow system that controls processes across CODA’s transactional products and beyond.
* An asset management system with enhanced international capabilities.

Commenting on the release, Steve Pugh – CEO of CODA Financials, Inc. – said: “Neon gives clients: the most technologically and functionally advanced financial accounting system in the world today; a state-of-the-art spend management system that will bring control and efficiency to the procurement process; and a range of other transactional systems including world-class, high-volume invoice matching and asset systems. This further establishes CODA’s leadership in finance syste s for mid-market and enterprise-level organizations, and makes us a serious contender in the global procurement systems market.”

Neon will be launched in May and unveiled at events across the world through June. The first customer implementations will be live by the end of the year. An extensive Beta test programme is currently underway with the product set being tested by customers around the world.

Debbie Ashton, CODA’s head of product management, said: “We’ve developed a very impressive new product set. Neon has a user interface and application platform that offers state-of-the-art control and visibility, alongside the ease of use and flexibility to help organisations drive efficiency and improve effectiveness in their day-to-day operations.”

Among the clients beta-testing the Neon product set is Debenhams, one of the UK’s largest retailers. Michael Conway, finance manager at Debenhams, said: “The integration with Microsoft Office makes the procurement features immediately familiar for users and therefore easy to use. It finally realises the ideal of a totally managed enterprise-wide procurement system and provides a very flexible platform for integrated financial and procurement processes that seems to be well ahead of the competition. The new Purchase Invoice Matching features build on this and could form an important part of a ‘procure-to-pay’ business process.”

CODA’s solution set supports the standard finance processes across an organisation, including purchase-to-pay and invoice-to-cash supported by full collaboration facilities and workflow management

CODA Group, the parent company of New Hampshire based CODA Financials, Inc., the finance systems specialist, today announced its preliminary results for the year ended 31 December 2006. CODA is quoted on AIM (stock code: CODA), and has its headquarters in Chippenham, UK.

Financial Highlights for 2006:

* Revenue at record levels: 5.7% ahead at £53.5m (2005: £50.6m)
* Adjusted operating profit improved by 5.9% to £10.8m (2005: £10.2m)
* Profit before tax: £6.8m (2005: £7.1m) after charging £1.0m (2005: £0.1m) for non-recurring costs in respect of payments from the Employee Share Trust
* Basic adjusted earnings per share up 10.7% to 12.4p (2005: 11.2p)
* Basic earnings per share 6.6p (2005: 6.8p)
* Proposed final dividend increased 40% to 1.875p (2005 equivalent: 1.339p), making 2.625p in respect of this financial year (2005 equivalent: 1.875p) – also an increase of 40%
* Net cash inflow from operating activities £12.6m (2005: £12.4m)
* Gross value of deferred income: £19.5m (2005: £17.5m), an increase of 11.4%.

Graham Steinsberg, Chairman of CODA Group said: “CODA seeks to provide stakeholders with a quality, dependable offering for the future. To our clients we offer the highest pedigree in delivering leading, relevant, business systems; to our shareholders a solid track record combined with transparency and completeness of information.”

In September 2006 CODA successfully demerged from the CODASciSys Group and was admitted to the AIM market. For many companies, the flotation process can be a distracting one for management, and can lead to a focus on short-term share price movements at the expense of the smooth running of the business. However, CODA’s flotation has served to increase its focus on the operational success of the business. Since admission to the AIM market the CODA business has flourished.

The Board’s strategy remains to use cash reserves to improve overall shareholder returns. Its attention remains focused on the continued growth of the CODA Group and plans that this will be both organic and from carefully selected acquisitions.

During the first nine months of the year CODA strengthened its capabilities and market position across many of its territories. The fourth quarter was the best on record for the CODA Group’s revenues. During 2006, CODA secured a record number of licence sales with both new and existing clients. Success was spread widely across its territories. Major contracts were signed with a number of leading companies including: Caterpillar, Louvre Hotels Standard Life Investments, NFT, Manheim and Atos Origin for the Rail Settlement Plan.

Jeremy Roche, CEO of CODA Group, said: “The results for the year reflect the dedication, commitment and professionalism of all members of staff. I would like to take this opportunity to thank them on behalf of the Board for their invaluable contribution to these results.”

A key objective of 2006 was to ensure full integration into the CODA organisation of the acquisitions made during 2005 in France, Sweden, Hungary and Germany. The initial results from the integration are pleasing, and levels of service quality to clients in these territories match those in other territories. All of the acquisitions have delivered results in line with, or ahead of, CODA’s expectations at the time they were made.

CODA’s strategic partnership with Microsoft, first announced in 2005, has progressed well in the areas of both development and marketing. Following discussions with SAP during 2006, CODA launched a version of Control Manager called Fast Close by CODA, specifically for SAP users. It received a number of certifications from SAP and has raised considerable interest, particularly in Germany, creating opportunities for licence, maintenance and services revenue.

CODA continues to dedicate significant resources to product development, to ensure we remain at the forefront of the market and continue to provide value for money to our clients in return for the maintenance payments they make.

In conclusion, Mr Steinsberg said: “Throughout 2006, CODA has continued to enhance its market position. It has won new clients and looked to enhance relationships with its existing ones. It has created new partnerships and brought to market new and ever more meaningful offerings to address the opportunities and challenges facing today’s CFOs. Looking ahead, CODA remains committed to the path it has been following, building a successful company with a sustainable future. We remain positive about our outlook in 2007.”