Final Results

Triad Group PLC 28 June 2000 Preliminary results for the year ended 31 March 2000 Chairman's statement Financial results Turnover for the year ended 31 March 2000 is £48.4 million (1999: £49.3million), and pre tax profit is £1.9 million (1999: £8.6million). Earnings per share are 5.11p (1999: 23.23p). Cash balances at the year end of £4.7m remain very strong. Dividend The board recommend that no final dividend be paid: no interim payment was made (1999: total dividend 6p). Review of current activities and prospects Market conditions continue to be uncertain. Across the business consultancy and systems integration markets we have seen numbers of large projects making delayed or fitful starts. The millennium effect has, as I foresaw at the interim results stage, taken much longer to fade than initially expected. The main boards of many large companies are understandably thinking very carefully about how they should handle the e-commerce revolution. They want to avoid being swept along too quickly by the sort of exaggerated trends which in some cases have been generated by ERP, Year 2000 and the dot.com phenomenon. Triad is heavily involved in an already substantial and growing number of pilot and proving exercises which are expected to lead shortly to major project work, much of it e-commerce related. The precise timing is still subject to some uncertainty, although my confidence in a relatively early take off is growing steadily. Triad's business is extremely well focused in the areas where long term value added services are provided to substantial and established companies. We have taken the opportunity of the quiet period over the last 12 months to make very heavy investments of time and money in consolidating and deepening our skillbase in a wide range of forward looking technologies and markets. Our work force is highly skilled in the provision of fully integrated e-commerce systems. Most of our work is mission critical to our clients in enabling them to keep abreast of rapidly changing demands in their own market places. I believe the time is approaching when this kind of work will reaffirm its attraction compared with the huge volumes of outsourced support business transacted over the last few years. The resourcing and contracting business has held up very well during a difficult period. Our web venture, onlineITcontractors.com, has developed strongly since its launch 6 months ago and now has over 450 registered clients and 7000 registered contractors. Employees We have continued to recruit and train staff consistently since my last report and are now intensifying our effort. Staff turnover continues to be very low. The recent low utilisation of employed professional staff, which is the reason for the decline in profits will reverse very quickly once the major projects are established. On behalf of the board I would like to thank all our employees for their energy and dedication throughout the year. John Rigg Chairman 28 June 2000 Profit and loss account for the year ended 31 March 2000 Unaudited Audited 2000 1999 £'000 £'000 Turnover 48,366 49,306 Cost of sales (40,806) (35,452) ______ ______ Gross profit 7,560 13,854 Administrative expenses (5,980) (5,589) ______ ______ Operating profit 1,580 8,265 Interest receivable 330 365 Interest payable (5) (1) ______ ______ Profit on ordinary activities before taxation 1,905 8,629 Taxation on profit on ordinary activities (604) (2,780) ______ ______ Profit for the financial year 1,301 5,849 Dividends (-) (1,519) ______ ______ Retained profit for the financial year 1,301 4,330 --------- --------- Earnings per ordinary share 5.11p 23.23p Diluted earnings per ordinary share 5.06p 22.74p --------- --------- Dividends per share 0.00p 6.00p --------- --------- The above figures relate entirely to continuing operations. The profit on ordinary activities before taxation and the retained profit, as stated above, are prepared on a historical cost basis, and therefore no reconciliation to historical cost profit is required. There are no recognised gains or losses except for the profit for the year as stated above, and therefore no separate statement of total recognised gains or losses has been prepared. Balance sheet at 31 March 2000 Unaudited Audited 2000 1999 £'000 £'000 Fixed assets Tangible assets 2,183 2,019 ______ ______ Current assets Work in progress - 1 Debtors 11,443 9,415 Cash at bank and in hand 4,725 8,365 ______ ______ 16,168 17,781 Creditors: amounts falling due within one year (5,559) (8,313) ______ _____ Net current assets 10,609 9,468 ______ ______ Net assets 12,792 11,487 --------- --------- Capital and reserves Called up share capital 255 255 Share premium account 533 529 Profit and loss account 12,004 10,703 ______ ______ Equity shareholders' funds 12,792 11,487 --------- --------- Cash flow statement for the year ended 31 March 2000 Unaudited Audited 2000 1999 £'000 £'000 Net cash inflow from operating activities 667 7,651 _____ _____ Returns on investments and servicing of finance Interest received 330 365 Interest paid (5) (1) ______ ______ 325 364 ______ ______ Taxation UK corporation tax paid (2,850) (2,211) ______ ______ Capital expenditure and financial investment Purchase of tangible fixed assets (1,218) (1,354) Sale of tangible fixed assets 131 164 ______ ______ (1,087) (1,190) ______ ______ Equity dividends paid (764) (1,762) ______ ______ Cash (outflow) /inflow before financing (3,709) 2,852 ______ ______ Financing Proceeds from issue of ordinary share capital 4 532 ______ ______ (Decrease)/ increase in net cash (3,705) 3,384 --------- --------- 1. The financial information set out above does not constitute the company's audited statutory accounts for the years ended 31 March 1999 or 2000. The financial information for 1999 is derived from the statutory accounts for 1999 which have been delivered to the registrar of companies. The auditors have reported on the 1999 accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2000 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the registrar of companies following the company's annual general meeting. 2. The financial information set out above has been prepared in accordance with Financial Reporting Standard Number 3. All items above relate to continuing operations. 3. Earnings per share The calculation of earnings per share on the net basis is based on the profit on ordinary activities after taxation, namely £1,301,000 (1999: £5,849,000) and on 25,468,183 (1999: 25,178,493) ordinary shares, being the weighted average number of ordinary shares in issue and ranking for dividend during the year. Fully diluted earnings per share are calculated in accordance with FRS 14, taking into account outstanding share options. 4. The annual report and accounts will be sent to shareholders in due course. Further copies will be available from the company's registered office at Weyside Park, Catteshall Lane, Godalming, Surrey, GU7 1XE. For further information, please contact: Jonathan Shillington City Profile Group 020-7726-8588

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