Trading Statement

Quadnetics Group plc

                  ("Quadnetics", "the Group" or "the Company")

Post-Close Trading Update


Quadnetics Group plc, a leader in advanced surveillance technology and security
networks, provides an update on trading following the end of the 12-month period
to 31 May 2010.

As previously announced, the Company has changed its year end from 31 May to 30
November, and the current financial year therefore encompasses the 18-month
period ending 30 November 2010.

The Board is pleased to report that trading in the second six months of this
extended financial year has been, as anticipated, much stronger than in the
first six months. Underlying profits* for the 12 months to 31 May 2010 are
expected to be in line with market expectations.

Exceptional reorganisation costs of approximately £900,000 have been incurred in
the same period, being predominantly the final elements of the Group
restructuring described in last year's annual report. No material further
reorganisation costs are anticipated in the remainder of this financial year.

Consolidated net cash balances as at 31 May 2010 were approximately £4.8
million.

During the second six months of the financial year there were substantial
improvements in the performance of the Synectics Networks division in the Middle
East, as the benefits of the restructuring of Synectics' activities in that
region began to come through, and in the US, where business in the casino
security market has picked up markedly after many planned projects were delayed
during the recession. Synectics Mobile Systems also delivered much better
performance, due mainly to increased sales to its rail and defence customers.

The momentum of increased sales was particularly strong towards the end of the
period across all divisions. Notable contract wins in the six months included:

-         £1.7 million full security system for the new Pembroke gas-fired power
station in Milford Haven;
-         Combined technology supply (Synectics Network Systems) and systems
integration (Integration & Managed Services Division) for three city centre
security systems;
-         Major upgrade to the East Coast Mainline security system;
-         3-year contract with Stagecoach for on-bus security systems, with an
anticipated value of £3.7 million;
-         $1.5 million analogue-to-digital upgrade of Stratosphere Casino in Las
Vegas (plus letter of intent for an additional casino from the same group);
-         Follow-on orders for on-board CCTV on the Docklands Light Railway; and
-         7 major orders from the oil & gas industry for explosion rated CCTV,
many incorporating Synectics command and control software.

Overall, the Board is pleased with the progress the Company is now making
following the major restructuring completed by the new senior management team
over the past year. Apart from the lower fixed cost base, an important objective
of the restructuring was to increase dramatically the focus on cross-selling the
Group's technology, systems integration and service capabilities across its
three major specialist customer sectors: high security infrastructure
protection, mobile surveillance and oil & gas. The tangible benefits of these
efforts are now evident, and we are confident they will provide the catalyst for
a trend of increasing margins and quality of earnings over the coming years.

Quadnetics will issue a second interim report, covering results for the 12
months to 31 May, on or around 28 July 2010.


* that is, profit before tax, exceptional reorganisation costs and share-based
payments


For further information, please contact:
Quadnetics Group plc                                    Tel: [phone]

John Shepherd, Chief Executive

Email: [e-mail]
<mailto:[e-mail]>


Brewin Dolphin Corporate Advisory & Broking            Tel: [phone]

Neil Baldwin




 Buchanan Communications Limited   Tel: [phone]

 Tim Anderson / Isabel Podda




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