Interim Results - 6 Months to 30 November 1999

Quadrant Group PLC
14 February 2000

                       Quadrant Group plc
                                
      Interim Results for the half year to 30 November 1999


Half Year Statement

Quadrant  Group's overall result for the half year to 30 November
1999  was  a  profit  before tax of £793,000  (1998/9:  £21,000).
Before interest and exceptional items, the Group recorded a  loss
of £328,000 (1998/9: profit £191,000).  This result was dominated
by two factors:

- a  re-orientation  of  Quadrant's flight  simulation  business,
  Quadrant  Systems,  following the strategic alliance  agreement
  with FlightSafety Boeing Training International ('FSB'); and

- a  substantial  temporary  drop in  the  UK  town  centre  CCTV
  security   market,  caused  by  the  timing  of  new   national
  government funding.

The  Quadrant Systems/FSB agreement was announced to shareholders
and  explained  in  detail last September.  In summary,  Quadrant
sold  its  three full flight simulators to FSB (resulting  in  an
exceptional gain of £1.2 million), and entered into a contract to
maintain all simulators at FSB's Burgess Hill training centre for
a  minimum  of five years.  In addition, Quadrant Systems  became
FSB's  Preferred Supplier for simulator upgrades and  relocations
worldwide.

This move positions Quadrant Systems to benefit from accelerating
changes in the third party airline flight training market,  where
heavy investment commitments have recently been made by FSB,  now
the market leader, and others.  As a result, Quadrant Systems has
the  opportunity to focus its activities on simulation  equipment
and  software services, where it now has a solid position in what
is expected to be a continuing growth market.

This  reorganisation,  together  with  investment  in  additional
premises  and  staff,  led to an operating loss  of  £165,000  at
Quadrant Systems in the half year, before taking account  of  the
exceptional  profit on sale of the simulators.   Recent  contract
wins  should  enable  Quadrant Systems  to  produce  an  improved
operating result in the second half.

The  second major factor affecting the half year related  to  new
government funding in the town centre CCTV security market, where
two  of  Quadrant's subsidiaries have leading positions: Quadrant
Video Systems in installation and maintenance of overall systems,
and  Synectic  Systems  as a supplier of  proprietary  electronic
control equipment.  In March 1999 the Home Office announced  £170
million of funding over 3 years available to local government for
new  or  upgraded  town  centre CCTV  systems,  without  matching
funding  requirements.   Whilst this is excellent  news  for  the
industry,  the  announcement  had the  effect  of  delaying  many
planned projects until they could be brought within the ambit  of
the  new  funding.  The first tranche of £35 million funding  has
now  been  released against specific proposals, and projects  are
underway.

The  impact  of  this  was  that Quadrant's  CCTV  businesses  in
aggregate recorded a sales decline of 16% against the same period
last  year,  and  a  shortfall of over £300,000 against  budgeted
profits.

Based on current order books and bids in process, the second half
is expected to produce record results for these businesses.

Elsewhere,  the  Audio  Visual Presentation  and  Sales  business
completed its branch rationalisation programme and has  begun  to
achieve  a  positive contribution on a monthly basis, though  not
yet consistently.  More progress is still required.

Quick  Imaging Centre, Quadrant's design and printing subsidiary,
produced  another  excellent result, with sales  ahead  16%,  net
margins up from 9% to 10%, and operating profit up 26%.

The  Group balance sheet was materially strengthened by  the  FSB
transaction,  leaving  net borrowings  at  30  November  1999  of
£374,000, down from £3.9 million at the previous year end.

The  immediate  outlook for Quadrant's main  electronics  systems
businesses is encouraging, for the reasons noted above.  Overall,
Quadrant  Group's financial position and prospects  are  stronger
than  at  any  time in the recent past.  A much more satisfactory
operating result is anticipated in the second half.


For further information                          
contact:
                                                 
David Coghlan (Chief                       01527 850080
Executive)
                                                 
Nigel Poultney (Finance                    01527 850080
Director)
                                                 


                                                               
Consolidated Profit and Loss Account                           
                                                               
For the half year to 30                                        
November 1999
                                                               
                                      Unaudited   Unaudited    Audited        
                                      Half year   Half year       Year
                                             to          to         to
                                             30          30     31 May
                                       November    November
                                           1999        1998       1999
                               Notes      £'000       £'000      £'000
                                 
                                                                      
Turnover - continuing            1      8,226       8,988      17,427
operations
                                                               
Cost of sales                           5,301       5,885      11,434
                                                               
Gross profit                            2,925       3,103       5,993
                                                               
Net operating expenses                  3,253       2,912       5,816
                                                               
Operating profit/(loss) -                (328)       191          177
continuing operations
                                                               
Exceptional items - continuing   2      1,235         -            63
operations
                                                               
Profit before interest                   907         191          240
                                                               
Net interest payable                    (114)        (170)      (300)
                                                               
Profit/(loss) before taxation            793          21         (60)
                                                               
Tax charge on ordinary                    -           -           -
activities
                                                               
Profit/(loss) on ordinary                793          21         (60)
activities after taxation
                                                               
Minority interests                        -           -           -
                                                               
Profit/(loss) attributable to            793          21         (60)
shareholders
                                                               
Dividends                                 -           -           -
                                                               
Profit/(loss) for the period             793          21         (60)
                                                               
Basic earnings/(loss) per        3      12.6p         0.3p     (1.0)p
ordinary share
Diluted earnings/(loss) per      3      12.6p         0.3p     (1.0)p
ordinary share
                                                               
                                                               

Consolidated Balance Sheet                                   
30 November 1999                                                 
                                                 
                                                 
                               Unaudited       Unaudited       Audited
                             30 November     30 November        31 May
                                    1999            1998          1999 
                                   £'000           £'000         £'000
                                                 
Fixed assets                                                  
Intangible assets                     47              49            48 
Tangible assets                    2,176           4,820         5,209 
                            
                                   2,223           4,869         5,257 
Current assets                                                 
Stocks                             1,182           1,077           981 
Debtors                            4,090           3,859         3,965 
Cash at bank and in hand               7               5            10 
                          
                                   5,279           4,941         4,956 
                                                 
Creditors: amounts falling due 
within one year 
(including convertible debt)       3,840           5,508         5,319 
                                                 
Net current assets/(liabilities)   1,439            (567)         (363)
                                                 
Total assets less current 
liabilities                        3,662           4,302         4,894 
                                                 
Creditors: amounts falling due 
after more than one year 
(including convertible debt)          65           1,314         2,036 
                                                 
Provisions for liabilities 
and charges                          148             251           202 
                                                 
Net assets                         3,449           2,737         2,656 
                                                 
                                                 
Capital and reserves                                                 
                                                 
Called-up share capital            1,254           1,254         1,254 
                                                 
Share premium account              6,798           6,798         6,798 
                                                 
Other reserves                     4,387           4,387         4,387 
                                                 
Profit and loss account           (8,990)         (9,702)       (9,783)
                                                 
Equity shareholders' funds         3,449           2,737         2,656 
                                                 
                                                 
                                                 
                                                 
  Consolidated Cash Flow Statement                                          
For the half year to 30 November 1999                                         
       
                                                     Restated              
                                 Unaudited          Unaudited     Audited
                              Half year to       Half year to     Year to
                               30 November        30 November      31 May
                                      1999               1998        1998 
                          Notes      £'000              £'000       £'000
                                                 
Net cash inflow/(outflow) 
from operating activities             (271)               (76)        356 
                                                  
Returns on investments 
and servicing of finance              (150)              (157)       (283)
                                                 
Net capital expenditure 
and financial investment             3,869               (731)     (1,430)
                                                 
Acquisitions and disposals  4            -                509         509 
                                                 
Cash inflow/(outflow) 
before financing                     3,448               (455)       (848)
                                                 
Financing                           (2,250)              (104)        229 
                                                 
Increase/(decrease) in cash          1,198               (559)       (619)

Notes

1. Continuing operations comprise the businesses of Quadrant Systems, Quadrant
   Video Systems, Synectic Systems and Quick Imaging Centre.

2. Exceptional items in the half year ended 30 November 1999 arose from the   
   disposal of Quadrant's three full flight simulators and certain other      
   assets in September 1999. Exceptional items in the year ended 31 May 1999  
   also arose from profits on disposal of fixed assets.

3. The calculation of basic earnings/loss per ordinary share is based on      
   profits of £793,000 (half year to November 1998: profits of £21,000; year  
   to May 1999: losses of £60,000) and on 6,269,956 shares (half year to      
   November 1998: 6,239,901; year to May 1999: 6,254,888), being the weighted 
   average number of shares in issue during the period.
   
   There were no dilutive potential ordinary shares in the half year ended 30 
   November 1999 or in the year ended 31 May 1999.

4. Cash inflows from acquisitions and disposals in the year ended 31 May 1999 
   arose from the receipt of deferred consideration for Quadrant Precision    
   Manufacturing, Inc., which was sold in May 1998, and the cash consideration
   paid by Quadrant Group to acquire the entire issued 'A' Ordinary share     
   capital of Quadrant Video Systems plc. The presentation of the cash flows  
   for the half year ended 30 November 1998 has been amended so that these    
   items are treated on a basis which is consistent with that used for the    
   year ended 31 May 1999.

5. The half year figures have not been audited nor reviewed by the Group's    
   auditors and do not constitute statutory accounts. The comparative figures 
   for 31 May 1999 have been abridged from the statutory accounts for the year
   ended 31 May 1999. The Auditors' opinion on these accounts was unqualified 
   and the statutory accounts have been filed with the Registrar of Companies.

6. Copies of this Interim Report will be distributed to all shareholders and  
   will also be available to members of the public at the Company's Registered
   Office, North Court House, Morton Bagot, Studley, Warwickshire B80 7EL.