Synstar PLC
27 September 2001
Synstar Trading Update
The Board of Synstar plc, the pan-European business availability services
provider, announces that it expects pre-tax profit and cash flow for the full
year to 30 September 2001 to be towards the top end of published analyst
expectations.
Whilst market conditions have remained competitive, our revised business
strategy has allowed the business to better identify and realise cross selling
opportunities within our core customer base. The Board believes there remain
further cross-selling opportunities to realise. In the second half of the
year, we completed the restructuring programme on time and within budget. The
financial outcome is as predicted in our interim results in June.
In continental Europe, we are making progress towards our target to restore
our French operation to breakeven running rate by the end of our next
financial year. As we previously anticipated, our Switzerland operation
remains more challenging, but we are on plan to similarly recover this
business, which we anticipate will take two years to achieve. Our Networking
division and our operation in Holland in particular are showing strong
improvement.
The tragic events in New York and Washington have undeniably put increased
focus on the importance of business continuity, and we are working hard to
support our customers where they have requirements. However, we expect
business continuity to remain a very competitive business across most of
Europe and there will inevitably be further pressure on pricing. We can report
that some important regions, such as the UK, are still performing relatively
positively and that our plans to increase the return on assets in this part of
the business remain on track.
Investors can track the progress we are making with each element of our
corporate strategy on a new section on our Investor web site. This can be
viewed at www.synstar.com/investor/newsupdates.
In line with previous announcements, Richard Ferre will step down from his
position as director from 30 September 2001.
With immediate effect, Old Mutual Securities has been appointed as Synstar's
corporate broker.
Synstar will announce its preliminary results for the year ending 30 September
2001 on Thursday 29 November 2001.
For further information:
Synstar plc
Christine Jones, Communications Manager (01344) 662 744
GCI Financial
Roger Leboff / Nick Lambert (07811) 358 764
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