Trading Update

RNS Number : 1574A

Adventis Group PLC

27 January 2011

 



Adventis Group Plc ("ATG.L")

("Adventis" or the "Group")

Trading Update

The second half of 2010 saw some uplift in three of our divisions but a further down turn in trading for Adventis Health.

Our healthcare business has experienced a very considerable downturn and the hoped for year end improvement failed to happen leading to an operating loss of circa £0.26m for the full year.  A number of anticipated contracts were either deferred or failed to materialize. Unfortunately the scale of this downturn has only recently become apparent as part of the year end process.  The Board intends to instruct KPMG to conduct an investigation into these matters and general controls.  We will make a further announcement in due course.

In addition to the expected loss for the healthcare division the Board now anticipates that the full year results may contain a significant goodwill impairment charge.  Furthermore as a consequence the Group has commenced discussions with its bankers regarding its facilities.

The technology and telecoms division, which was expanded by the addition of bChannels in February 2010, has enjoyed a very strong full year, primarily due to the expanded services offering and the continued sharing of clients, and will exceed management forecast.

Our media planning and buying businesses saw some recovery and met their full year target.  Activity in the property sector still remains at a low level but the end year result is an improvement on expectations.

Despite the stronger than hoped for result from the three divisions the loss created in the Health division will impact on the Group result.  The Board currently expects the consolidated profit before tax, excluding exceptional items and goodwill impairment, for the full year to be approximately £0.45m.

Enquiries:

Adventis Group Plc
Charles Phillpot, CEO	Tel: [phone]
Peter Linnell, Finance Director	Tel: [phone]
Arbuthnot Securities
Tom Griffiths	Tel: [phone]

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