Trading Statement

Harrier Group PLC 2 November 2000 HARRIER GROUP PLC TRADING UPDATE The Directors announce that Harrier has recently been experiencing delays in customers ordering the Group's products and services, which will now result in lower revenue levels than were expected. Also, the change in the Group's business mix in favour of professional and managed services has not been as rapid as anticipated, which is resulting in lower gross margins than expected for the current financial year. Due to these lower sales levels, lower gross margins and the Group's operational gearing, Harrier's earnings before tax will be substantially below market expectations for the year ending 31 December 2000. Harrier has a strong prospect list, stretching into the year 2001 and the Directors are confident about Harrier's medium and long term future. They believe that demand for the Group's products and services will grow more rapidly next year as customers make the IT investments that have been delayed during the current year. The Director's are continuing to invest in the Group's professional and managed services operations in order to take advantage of this expected growth in demand.
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