Final Results

Triad Group Plc 26 July 2005 Chairman's statement Results Turnover for the year ended 31 March 2005 increased by 26.5% to £46.2 million (2004: £36.5 million); pre tax profits are £0.15 million (2004: £0.76 million loss). Dividends The Board recommend that no final dividend be paid: no interim payment was made (2004: total dividend nil). Review of activities Market conditions in the resourcing side of the Company's business show substantial improvement over recent years and growth in this area during the year has been encouraging. In the systems and consultancy areas during the year the level of business from one major government customer has declined steadily and our current efforts are directed towards replacing that business. I am confident that we shall be able to do this successfully as current market conditions in the government area are strong, although I expect it to take some months before the results of our current efforts are reflected in the performance figures. In addition to the government sector, we have excellent opportunities in commercial and institutional clients. The reduction in cash during the period reflects the increase in working capital requirements created by the rapid growth from the resourcing business, together with slippage in credit collection performance. The auditors have indicated that they are likely to issue an unqualified opinion on the financial statements. Their report will however include a statement regarding accounting control issues in the sales ledger function of the resourcing business for a period of several months during the year and therefore that, in their opinion, proper accounting records as required by section 221 of the Companies Act 1985 have not been kept in all respects. Appropriate steps have been taken to address these issues during the year and it has not impacted on the ability of the Company to prepare its financial statements. There have been no material bad debts. Staff attrition in our systems and consultancy areas is now extremely low and we are hiring high quality staff where appropriate. We have a core of highly qualified and experienced staff, mainly composed of permanent employees who have been with the company for many years. This core should provide the platform for rapid growth in years to come. On 4 February 2005 the Group Chief Executive, Mira Makar, was suspended with immediate effect. I have taken the position of acting CEO as well as Executive Chairman. Mira continues to be suspended on full pay. The Board will continue to make efforts to resolve this situation as soon as possible. John Rigg Chairman 26 July 2005 Profit and loss account for the year ended 31 March 2005 Unaudited Audited 2005 2004 £'000 £'000 Turnover 46,200 36,534 Cost of sales (39,307) (31,803) ______ ______ Gross profit 6,893 4,731 Administrative expenses (6,755) (5,500) ______ ______ Operating profit/(loss) 138 (769) Net finance income 12 10 ______ ______ Profit/(loss) on ordinary activities 150 (759) Before taxation Taxation on profit/(loss) on ordinary activities (30) (29) Dividends - - ______ ______ Profit retained/(loss sustained) for the financial year 120 (788) --------- --------- Basic profit/(loss) per ordinary share 0.79p (5.20)p Diluted profit/(loss) per ordinary share 0.77p (5.20)p --------- --------- Dividends per share 0.00p 0.00p --------- --------- The above figures relate entirely to continuing operations. The profit/(loss) on ordinary activities before taxation and the retained profit/(sustained loss), as stated above, are prepared on a historical cost basis, and therefore no reconciliation to historical cost profit/(loss) is required. There are no recognised gains or losses except for the profit/(loss) 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 2005 Unaudited Audited 2005 2004 £'000 £'000 Fixed assets Tangible assets 908 730 ______ ______ Current assets Debtors 12,145 7,555 Cash at bank and in hand 104 3,244 ______ ______ 12,249 10,799 Creditors: amounts falling due (6,782) (5,017) Within one year ______ ______ Net current assets 5,467 5,782 ______ ______ Total assets less current liabilities 6,375 6,512 Provisions for liabilities and charges (2,006) (2,263) ______ ______ Net assets 4,369 4,249 --------- --------- Capital and reserves Called up share capital 151 151 Share premium account 562 562 Capital redemption reserve 104 104 Profit and loss account 3,552 3,432 ______ ______ Equity shareholders' funds 4,369 4,249 --------- --------- Cash flow statement for the year ended 31 March 2005 Unaudited Audited 2005 2004 £'000 £'000 Net cash outflow from operating activities (2,578) (1,188) _____ _____ Returns on investments and servicing of finance Interest received 50 91 Interest paid (16) - ______ ______ 34 91 Taxation UK corporation tax paid (13) - ______ ______ Capital expenditure and financial investment Purchase of tangible fixed assets (667) (510) Sale of tangible fixed assets 84 112 ______ ______ (583) (398) ______ ______ ______ ______ Decrease in net cash (3,140) (1,495) --------- --------- Reconciliation of operating profit/(loss) to net cash flow from operating activities Unaudited Audited 2005 2004 £'000 £'000 Operating profit/(loss) 138 (769) Depreciation of tangible fixed assets 422 409 Profit on sale of fixed assets (17) (15) Increase in debtors (4,620) (2,186) Increase in creditors 1,778 1,641 Decrease in provisions (279) (268) ______ ______ Net cash outflow from operating activities (2,578) (1,188) --------- --------- Notes 1. The financial information set out above has been prepared on the basis of the accounting policies set out in the statutory accounts for the year ended 31 March 2005 and are consistent with those applied in the previous year. The financial information set out above does not constitute the company's audited statutory accounts for the years ended 31 March 2004 or 2005. The financial information for 2004 is derived from the statutory accounts for 2004 which have been delivered to the registrar of companies. The auditors have reported on the 2004 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 2005 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. Profit/(loss) per ordinary share Profit/(loss) per share has been calculated on the profit/(loss) on ordinary activities after tax divided by the weighted average number of shares in issue during the period based on the following: 2005 2004 Profit/(loss) on ordinary activities after taxation £120,000 £(788,000) -------------- -------------- Average number of shares in issue 15,149,579 15,149,579 Effect of dilutive options * 504,600 - _________ _________ Average number of shares in issue plus dilutive options 15,654,179 15,149,579 -------------- -------------- Basic profit/(loss) per share 0.79p (5.20)p Diluted profit/(loss) per share 0.77p (5.20)p --------- --------- * The share options have no dilutive effect in the previous year. 4. Profit and loss account Unaudited £'000 At 1 April 2004 3,432 Retained profit for the year 120 _____ At 31 March 2005 3,552 ----- 5. 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. This information is provided by RNS The company news service from the London Stock Exchange

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