Interim Results

ATA Group PLC
1 September 2004


                                  ATA GROUP PLC


            INTERIM RESULTS FOR THE SIX MONTH PERIOD TO 30 JUNE 2004


Highlights


   •Turnover £8.5m (2002: £7.5m) an increase of 14 per cent.
   •Profit before tax £0.55m (2003 before exceptional credit : £0.45m) an
    increase of 22 per cent.
   •Earnings per share rose 24% to 4.60p (2003 excluding exceptional credit :
    3.71p)
   •Dividend per share 2.5p (2003: 2.1p)
   •Positive cash generation of £0.475m since 31 December 2003
   •Group net cash at £805,000 (31 December 2003: £225,000)


Bill Douie, Chairman commented:

'Economic conditions continue to improve, as does the trading environment,
although the buoyant markets of the late nineties have yet to return,
particularly in recruitment. Nonetheless, Group turnover in the six months to 30
June 2004 increased 14% to £8.5m (2003 £7.5m). Profit before tax and before
exceptional credit rose 22% to £0.55m (2002 £0.45m). Earnings per share before
exceptional credits rose 24% to 4.60p (2003 3.71p)

Since the period end we have completed the acquisition of a track welding
specialist company, GemWeld (UK) Limited - based in Prestwick, Scotland, thus
adding a further service to the ATA Group Railway portfolio.

Whilst this remains a time for prudence, your Directors have concluded that cash
generation within the businesses continues to remain at satisfactory levels and
therefore your Board has decided to declare an interim dividend of 2.5p.

Outlook

Further steady development of contract recruitment is anticipated enabling more
intensive use to be made of our nationwide network of branches, where a stronger
performance in permanent recruitment is expected to gather pace. Ganymede
Tracklayers is continuing steady development and expects to extend further its
client base both inside and outside Network Rail. After a short period of
adjustment and integration, GemWeld will also extend its business in a similar
manner. The second half is expected to produce a steady performance from both
Catalis and Rail Training Audit Services although, further ahead, continued
adjustment to changes at Network Rail and the need to secure a further
continuation of their contract with Rail Training Audit Services will present
challenges.'

Enquiries:

Bill Douie, Chairman
Clive Chapman, Chief Executive

ATA Group Plc
Head Office,
Telephone [phone]


CHAIRMAN'S STATEMENT

I am pleased to present the interim report of the Company for the six months to
30 June 2004.

Trading

General

Economic conditions continue to improve, as does the trading environment,
although the buoyant markets of the late nineties have yet to return,
particularly in recruitment. Nonetheless, Group turnover in the six months to 30
June 2004 increased 14% to £8.5m (2003 £7.5m). Profit before tax and before
exceptional credit rose 22% to £0.55m (2002 £0.45m). Earnings per share before
exceptional credits rose 24% to 4.60p (2003 3.71p).

Recruitment

Recruitment turnover in the period was £4.50m (2003 £3.09m), a rise of 46%.
Operating results improved to a profit of £0.16m (2003 loss (£0.11m)).

During the period performance improved steadily in permanent recruitment and
further progress was made in contract.

Ganymede Tracklayers, having completed its re-organisation, has secured its
first contract with Network Rail to supply labour in the Thames Valley
maintenance area which commenced April. Progress has been made in securing
similar business both with Renewals Companies serving Network Rail and with Tube
Lines, part of the London Underground network, which will mainly impact in the
second half of 2004. The combined effect of these achievements has been to
generate a profit of £30,000 in the first half of 2004 (2003 loss (£106,000)).

Training

Training turnover in the period was £4.02m (2003 £4.39m) a fall of 8%. Operating
profit was £0.43m (2003 £ 0.59m).

Trading patterns in the period have been affected by disruption caused by the
return of all infrastructure maintenance to Network Rail but the position is
stabilising and we now have greater clarity of outlook. Satisfactory progress
has also been made in impacting on the London Underground system, with the
securing of a ten year contract with Tube Lines for technical officer training.

Rail Training Audit Services continues to trade at budgeted levels and we are
working towards renewal of our contract with Network Rail in April of next year.

Dividends

Whilst this remains a time for prudence, your Directors have concluded that cash
generation within the businesses continues to remain at satisfactory levels and
therefore your Board has decided to declare an increased interim dividend of
2.5p (2003 2.1p), payable on 13 December 2004 to shareholders on the register on
19 November 2004.




CHAIRMAN'S STATEMENT continued

Acquisition

Since the period end we have completed the acquisition of a track welding
specialist company, GemWeld (UK) Limited - based in Prestwick, Scotland, thus
adding a further service to the ATA Group Railway portfolio. Although small -
the purchase consideration of £15,000 was satisfied in cash and there are
opportunities to extend the geographical area covered by GemWeld to all of the
UK and to extend to non national rail customers. There are also clear
opportunities to develop together with Ganymede Tracklayers Limited as present
geographical and client areas are complementary.

Outlook

Further steady development of contract recruitment is anticipated enabling more
intensive use to be made of our nationwide network of branches, where a stronger
performance in permanent recruitment is expected to gather pace. Ganymede
Tracklayers is continuing steady development and expects to extend further its
client base both inside and outside Network Rail. After a short period of
adjustment and integration, GemWeld will also extend its business in a similar
manner. The second half is expected to produce a steady performance from both
Catalis and Rail Training Audit Services although further ahead continued
adjustment to changes at Network Rail and the need to secure a further
continuation of their contract with Rail Training Audit Services will present
challenges.



W.J.C.Douie, Chairman.                                       1st September 2004.











CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                    6 Months        6 Months         12 Months
                               to 30 Jun 2004  to 30 Jun 2003    to 31 Dec 2003
                                 (unaudited)     (unaudited)         (audited)
                       Notes   £'000   £'000   £'000   £'000    £'000    £'000
Turnover
Continuing operations          8,519           7,377           14,789
Discontinued
operations                         -             106              117
                               ------  ------  ------  ------   ------   ------
                           2           8,519           7,483            14,906
                               ------  ------  ------  ------   ------   ------
Operating Profit
Continuing operations            586             534            1,276
Discontinued
operations                         -             (46)             (59)
                               ------  ------  ------  ------   ------   ------
                           2             586             488             1,217

Exceptional item           3       -              53               53
Net interest payable             (35)            (35)             (47)
                               ------  ------  ------  ------   ------   ------
                                         (35)             18                 6
Profit on ordinary
activities
before taxation                          551             506             1,223
Tax on profit on
ordinary
activities                 4            (176)           (152)             (393)
                               ------  ------  ------  ------   ------   ------
Profit on ordinary
activities
after taxation                           375             354               830

Dividends                  5            (204)           (170)             (488)
                               ------  ------  ------  ------   ------   ------

Retained profit for
the
financial period                         171             184               342
                               ------  ------  ------  ------   ------   ------

Earnings per share
(pence)                    6            4.60            4.36             10.21
                               ------  ------  ------  ------   ------   ------
Earnings per share (pence)
before exceptionals        6            4.60            3.71              9.75




CONSOLIDATED BALANCE SHEET

                                             As at         As at         As at
                                       30 Jun 2004   30 Jun 2003   31 Dec 2003
                                       (unaudited)   (unaudited)     (audited)
                                             £'000         £'000         £'000
FIXED ASSETS
Intangible assets                            1,083         1,123         1,116
Tangible assets                              1,771         2,174         1,843
                                          ----------    ----------     ---------
                                             2,854         3,297         2,959
                                          ----------    ----------     ---------

CURRENT ASSETS
Stock                                           12            12            12
Debtors falling due after more than
one year                                       817           834           826
Debtors falling due within one year          3,372         3,897         3,819
Cash at bank                                 1,314           531           839
                                          ----------    ----------     ---------
                                             5,515         5,274         5,496
                                          ----------    ----------     ---------
CREDITORS: Due within one year              (4,202)       (4,460)       (4,372)
                                          ----------    ----------     ---------
NET CURRENT ASSETS                           1,313           814         1,124
                                          ----------    ----------     ---------
TOTAL ASSETS LESS CURRENT LIABILITIES        4,167         4,111         4,083

CREDITORS: Due after more than one year       (161)         (405)         (257)

PROVISIONS FOR LIABILITIES AND CHARGES        (150)         (201)         (150)
                                          ----------    ----------     ---------
NET ASSETS                                   3,856         3,505         3,676
                                          ----------    ----------     ---------
CAPITAL AND RESERVES
Called up share capital                         82            81            81
Share premium account                        1,784         1,763         1,776
Capital redemption reserve                      50            50            50
Profit and loss account                      1,940         1,611         1,769
                                          ----------    ----------     ---------
SHAREHOLDERS' FUNDS                          3,856         3,505         3,676
                                          ----------    ----------     ---------



CONSOLIDATED CASH FLOW STATEMENT

                                      6 Months to   6 Months to   12 Months to
                                      30 Jun 2004   30 Jun 2003    31 Dec 2003
                                      (unaudited)   (unaudited)      (audited)
                              Notes         £'000         £'000          £'000

CASH INFLOW FROM                  7         1,186           801          2,109
OPERATING ACTIVITIES
Returns on investments and
servicing of finance                          (35)          (35)           (47)
Taxation                                     (326)         (200)          (518)
Payments to acquire tangible
fixed                                        (190)         (470)          (459)
assets
Receipts on disposal of
tangible fixed assets                           20           447            473


Purchase of subsidiary                          -             -             (6)
undertaking
Equity dividends paid                           -             -           (479)
                                          ---------     ---------      ---------
Net cash inflow before use of                 655           543          1,073
liquid resources and financing

Issue of ordinary share                         9             -             13
capital
Decrease in medium term loans                (136)         (129)          (262)
Capital element of finance
lease rental payments                         (53)          (14)          (116)
                                          ---------     ---------      ---------
INCREASE IN CASH BALANCES                     475           400            708
                                          ---------     ---------      ---------




ATA GROUP PLC
NOTES TO THE INTERIM STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2004

1. ACCOUNTING POLICIES

The accounting policies used in the preparation of the interim accounts are
consistent with those used in the preparation of the audited annual accounts for
the year ended 31 December 2003. The Group financial information consolidates
the accounts of ATA Group Plc and all its material subsidiary undertakings using
the acquisition method.

The comparative figures for the year ended 31 December 2003 do not constitute
statutory accounts within the meaning of S.240 of the Companies Act 1995, but
they have been derived from the audited financial statements for that year,
which have been filed with the Registrar of Companies. The report of the
auditors was unqualified and did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985.

2. SEGMENTAL ANALYSIS
                        6 Months to          6 Months to         12 Months to
                        30 Jun 2004          30 Jun 2003          31 Dec 2003
                        (Unaudited)          (Unaudited)            (Audited)
                              £'000                £'000                £'000
TURNOVER

Recruitment                   4,504                3,091                6,334
Training and
consultancy                   4,015                4,392                8,572
                      ---------------      ---------------      ---------------
                              8,519                7,483               14,906
                      ---------------      ---------------      ---------------

OPERATING PROFIT

Recruitment                     161                 (106)                 (61)
Training and
consultancy                     425                  594                1,278
                      ---------------      ---------------      ---------------
                                586                  488                1,217
                          =========            =========          ===========

Operating profit is stated after amortisation of goodwill of £33,000 in the
period (2003: £36,000).

Discontinued operations relate to Fairbourne Hotel Ltd and Fairbourne Adventure
Ltd.

3. EXCEPTIONAL ITEM

A profit of £53,000 arose on the disposal of the Fairbourne Hotel on 10 June
2003.

4. TAX ON PROFIT ON ORDINARY ACTIVITIES

The tax on profit on ordinary activities for the period to 30 June 2004 has been
provided at the estimated rate applicable to the group for the period.

5. DIVIDENDS

An interim dividend of 2.5p per ordinary share net will be paid on 13 December
2004 to shareholders on the register of members at 19 November 2004.

6. EARNINGS PER SHARE

The earnings per share have been calculated on the profit on ordinary activities
after taxation, both before and after exceptional items, and on the number of
shares in issue (8,148,096) during the period. The fully diluted earnings per
share is not materially different from the basic earnings per share and has not
been disclosed.

7. CASH FLOW

RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES

                                                                          2004
                                                                         £'000

Operating profit                                                           586
Amortisation                                                                33
Depreciation                                                               332
Profit on sale of fixed assets                                              (6)
Decrease in debtors                                                        456
Decrease in creditors                                                     (215)
                                                                 ---------------
                                                                 ---------------

Net cash inflow from operating activities                                 1,186
                                                                 ===============

ANALYSIS OF CHANGES IN NET FUNDS

                             At 1                          Other         At 30
                         Jan 2004      Cash Flows      Movements      Jun 2004
                            £'000           £'000          £'000         £'000

Net Cash:
Cash in hand and at bank      839             475                        1,314

Debt:
Debt due within 1 year       (275)            136           (161)         (300)
Debt due after 1 year        (219)              -            161           (58)
HP and finance leases        (120)             53            (84)         (151)
                           --------       ---------      ---------     ---------
Net Funds                     225             664            (84)          805
                           ========       =========      =========     =========

ATA GROUP PLC
Registered Office
Kingston House,
Oaklands Business Park,
Armstrong Way,
Yate,
South Gloucestershire BS37 5NA

Approved and authorised for release
for and on behalf of ATA Group Plc


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