Final Results - to 28 November 1999, Summary

Diagonal PLC
22 February 2000


SUMMARY

DIAGONAL PLC
PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS

DIAGONAL PLC, the IT consulting group announces record profits for the full
year ended 28 November 1999. 

Highlights for the year, before goodwill, include:

*  Group turnover           up  3%  to £72.4 million (£70.2 million)
*  SAP Consulting turnover  up 27%  to £30.6 million (£24.0 million)
*  Profit before tax        up 14%  to £8.4 million  (£7.4 million)
*  Retained profit          up 22%  to £4.9 million  (£4.0 million)
*  Earnings per share       up 25%  to 7.9 pence            (6.3 pence)
*  Dividends per share      up 25%  to 1.5 pence     (1.2 pence)
*  Shareholders funds       up 42%  to £19.7 million (£13.9 million)

Commenting on the results, MARK SAMUELS, Chairman said:

'In what can only be described as a uniquely difficult trading period for IT
Service companies, I am particularly pleased to report our seventh successive
year of increased profits. 

Turnover attributable to our consulting activities rose from 44 per cent. to
56 per cent. of Group revenue, pushing up profit margins by a full percentage
point to 11.4 per cent.  This margin will continue to improve as we accelerate
the process of change. 

The Directors are recommending a final dividend of 1.0p per share making a
total of 1.5p for the full year, in line with the growth in earnings'. 


Mark Samuels
Chairman


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FR SEASWESSSEIE