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FI Group PLC (XAN)

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Wednesday 28 June, 2000

FI Group PLC

Preliminary Results

FI Group PLC
28 June 2000


Hilary Cropper, Executive Chairman
Jo Connell, Group Managing Director
Geoff Dunn, Group Finance Director            Today: 020 7831 3113
F.I.GROUP PLC                             Thereafter: 01442 233339

Giles Sanderson
Jon Earl
Financial Dynamics                                   020 7831 3113

                                 F.I.GROUP PLC
                       PRELIMINARY RESULTS ANNOUNCEMENT
                       FOR THE YEAR ENDED 30 APRIL 2000
                                       
F.I.GROUP PLC ('FI' or 'the Group') is a leading supplier of business
technology services for major organisations worldwide. The Group's global
operations cover UK, USA,  Continental Europe, India and Asia Pacific.

FI's portfolio includes First Banking Systems (a joint venture with Bank of
Scotland), IIS Infotech, its Indian organisation which provides an offshore
delivery capability, and change management and IT consultancy firms OSI and
Druid. These are supported by FI's further capabilities in skills transfer and
resourcing.

                                 KEY FEATURES
                                       
+  Turnover £307.7m (1999: £228.4m), up 35%, including FI's share of its joint
   venture
+  Profit before taxation £27.0m (1999: £17.0m), up 59%, pre the amortisation
   of goodwill charge of £9.6m
+  Pre tax profit margin, pre goodwill amortisation, up to 8.8% (1999: 7.5%)
+  Diluted earnings per share pre goodwill amortisation 7.78p (1999: 5.80p),
   up 34%
+  Proposed dividend of 2.70p for the year (interim of 0.9p and proposed final
   of 1.80p), up 42%

+  Two new partnerships with Alba Life and Marks & Spencer
+  A new £21m partnership was signed with Centrica just after year-end
+  Record £443m of orders signed last year, resulting in forward order bank of
   £419m
+  Outsourcing Business (comprising Applications Management, First Banking
   Systems and IIS Infotech) achieves 23% underlying growth rate excluding Y2K
   work
+  The 49% shareholding in First Banking Systems contributed £29.4m of
   turnover and an operating profit of £5.4m in its first full year of trading
+  Two strategic acquisitions (OSI in June 1999 and Druid in March 2000) to
   create a leading international business technology services group with       
 global reach
+  OSI's revenue £51.6m, 17% of Group turnover (in first ten months) -
   significant orders won in the Utilities and Finance Sectors
+  All acquired companies, in various combinations, have been instrumental in
   winning new contracts for the Group; with GlaxoWellcome and ICI during the
   financial year and Centrica and Barclaycard since the year end
+  Consultancy represented 25% of Group turnover and e-business/ERM/ERP
   represented 12%
+  15% of Group turnover derived from outside the UK following strategic
   acquisitions

Commenting on the results, Hilary Cropper CBE, Executive Chairman, said:

'In my first end of year report as Executive Chairman, I am pleased to
announce a strong set of results which continue our 50%+ compound growth in
pre-tax profits (before amortisation of goodwill) for the seventh year in
succession.  In this period FI's largest ever order of £197m was received from
First Banking Systems, the joint venture with Bank of Scotland we, have
completed two major strategic acquisitions and with a record £443m of orders
signed last year, had a record year-end order bank of £419m, up 57%.

'The start of the year is showing positive forward momentum on trading
although the market is not fully recovered, especially in the enterprise
management / ERP arena.  Obviously, the priority is to restore Druid to
acceptable profitability by the second half year and to ensure that the
synergy potential between Group companies is realised.  The pipeline for large
outsourcing contracts has significantly increased over the last few months and
we are most encouraged by the current performance of both OSI and our e-
solutions practice.  The Board believes that the fundamentals of the Group's
business proposition are strong and that increases in shareholder value will
continue to be delivered in the years ahead.'

Jo Connell, Group Managing Director, said:

'We have produced a strong set of results despite an unusual and tough year.
We have transformed our capability, particularly in the area of strategic
consultancy and e-business/ERM/ERP.  We are already capitalising on the value
that the new businesses bring to the Group, confirming the strategic
rationale.  This has been demonstrated by exciting new wins at GlaxoWellcome
and ICI, and since year end, at Centrica and Barclaycard.  I am confident we
will continue to meet the expectations of our shareholders in the years
ahead.'


Review of 1999/2000

Introduction
The  year  1999/2000  was one in which F.I.GROUP  made  huge  strides  forward
strategically with the acquisition of two first-rate consultancies.   FI  also
weathered, exceptionally well, the unusual and difficult market conditions  in
the  period leading up to and after the millennium date change.  This was  due
to  the  underlying  strength of the business which  is  based  on  long  term
partnerships  and  ventures  with blue chip organisations.  There  was  strong
growth in profit before tax (before the charge for amortisation of goodwill of
£9.6m)   to  £27.0m  (up  59%)  and  the  pre-tax  profit  margin  was   8.8%.
Nevertheless, almost all parts of the Group were affected by the Y2K  slowdown
which  was  more  severe than had been anticipated.  Trading  conditions  were
particularly  tough during quarter three which straddled the date  change  and
which was impacted by the unusually long New Year break.

However, there was a marked pick up in demand from customers during the fourth
quarter,  which  has continued into the start of the new financial  year,  and
there were many achievements.  Two partnerships were signed with Alba Life and
Marks  and  Spencer during the year.  In addition, a new £21m partnership  was
signed  with Centrica just after year-end thereby achieving the target  of  20
partnerships by the year 2000.  A record £443m of orders were signed last year
resulting in a record forward order bank of £419m.  FI's largest ever order of
£197m  was  received from First Banking Systems (FBS), the joint venture  with
Bank of Scotland

Operating Results
The  turnover  and  operating profit figures include FI's 49%  share  of  FBS.
Group  turnover  grew by 35% to £307.7m of which 25% relates to  the  OSI  and
Druid  acquisitions. The organic increase in turnover of  10%  came  primarily
from the services and finance industry sectors with particularly strong growth
achieved through FBS.

Orders signed in the year amounted to £443m.  The order bank, which represents
future  work contracted for by customers, has grown by 57% to £419m, of  which
37%  relates  to  the  five year contract commitment with  Bank  of  Scotland;
approximately  53% of the remaining balance is deliverable in years  2  to  5.
The  book to bill ratio, which measures the relationship between orders signed
and turnover, stood at 1.4 times.

Total  operating  profit amounted to £28.6m before goodwill  amortisation,  an
increase  of  76% compared with 1998/99 and the operating margin increased  by
2.2  percentage points to 9.3%; the 49% shareholding of FBS contributed £29.4m
of  turnover  and an operating profit of £5.4m.  Excluding the  joint  venture
results,  operating  profit  of  £23.2m  before  goodwill  amortisation  still
represented  a  60%  increase over the prior year with  an  associated  margin
increase of 1.5 percentage points to 8.3%.

Net  interest payable totalled £1.6m compared to a net interest receivable  of
£0.8m  in the previous year.  The increased interest charge mainly relates  to
the loan taken out to fund the OSI acquisition.

There  was strong growth in profit before tax (before amortisation of goodwill
charge of £9.6m) to £27.02m, up 59%.  This profit number benefited from £0.88m
release  of  provisions that had been previously provided for rent on  surplus
properties, all of which are now let.  Additionally,  a provision  was made of
£2.49m  to  cover against problems arising from the year-end  date  change  on
customers' systems.  In the event, the quality of the work undertaken  was  so
outstanding  that  no  issues  arose and the provisions  have  been  released.
However,  £1.47m  is  being  provided to  cover  any  potential  exposure  for
Employers' National Insurance on Unapproved Share Options granted since  April
1999.   In  the  light  of the recent announcement by HM  Treasury  concerning
proposed  amendments  to the legislation, it is possible that  this  liability
will be mitigated in the course of the current financial year.

The  tax  charge  for  the  year of £7.67m was 28% of profit  before  goodwill
amortisation compared with 31% in 1998/99.  This reflects the reduction in the
UK  corporation tax rate and the favourable tax regime in India  for  software
export businesses.

Earnings per share, dividends and shareholders returns
Earnings  per  share before goodwill amortisation increased by 39%  to  8.12p,
diluted  earnings per share by 34% to 7.78p.  The dividend per share  for  the
year of 2.70p (interim 0.90p and proposed final of 1.80p) has improved by  42%
on the previous year in accordance with current policy of increasing dividends
in  line  with underlying growth in earnings per share.  Dividends are covered
3.0 times by earnings before goodwill amortisation on a per share basis (1999:
3.1 times).

Cash flow
Given  the  importance  of cash flow in creating shareholder  value,  emphasis
continues  to be placed on cash generation throughout the Group.  Cash  inflow
from  operating  activities  and dividends from  the  joint  venture  totalled
£19.1m,  but  overall cash balances reduced by £8.4m to £14.4m  at  year  end.
This  was due to net expenditure on acquisitions £10.1m, taxation payments  of
£7.0m,  equity dividends of £5.0m, net capital expenditure of £4.2m, and  loan
and interest payments £3.2m, offset by share issue proceeds of £2.0m.

Debt
At  the  year-end, borrowings comprised bank loans and loan capital of  £43.4m
(of  which  £39.9m was for the OSI acquisition) and finance leases  of  £1.3m.
The Group has guaranteed a bank loan to the QUEST, which amounted to £10.0m at
the  year-end.  At this date, the QUEST owned 17,093,585 shares with a  market
value of £88.9m.

Shareholders' funds and acquisitions
Shareholders'  funds as at 30 April 2000 amounted to £806.0m  (1999:  £20.9m).
The  principal  movement for the year was the goodwill arising on  acquisition
amounting to £822.2m.  On 21 June 1999, the Company acquired 100% shareholding
in  OSI  Group Holdings Ltd at a cost of £107m.  The offer was based on 3.0539
FI shares for each OSI share.  However, OSI shareholders were able to elect to
receive  all  or  part of their consideration in cash or FI loan  notes.   The
issue of new shares financed this acquisition, with the balance coming from  a
new  £40m  bank  facility  and a placing of 4.25m  shares  with  institutional
investors  and  2.81m  shares  with  the FI  1995  Qualifying  Employee  Share
Ownership  Trust  (QUEST).   On 10 March 2000, the  Company  acquired  a  100%
shareholding  in  the  Druid Group plc in an all-paper transaction  valued  at
£725m.  As a result 88.7m new shares were issued to Druid shareholders.

Workforce
The  average number of workforce members in the year, expressed on a full time
equivalent  basis,  grew by 10% to 4,606 of which 78% were employees  and  22%
were freelance sub-contractors.

As a result of a lower than targeted performance, resulting from the difficult
market  conditions, there will be no pay out this year from the  All  Employee
Profit  Sharing Scheme.  However, to reward and incentivise employees  and  in
view  of the circumstances, which were mainly beyond the Group's control,  the
Board  is authorising a one-off share option grant to all UK employees,  equal
to  10% of base salary at 1 May 2000.  It is planned to extend this benefit to
the Group's international employees as far as practical within the context  of
local restrictions and regulations.

The   Outsourcing  Business  (comprising  Applications  Management,  FBS,  IIS
Infotech)
The  Outsourcing Business reported 9% growth during the year.   However,  this
masks  the  successful replacement of Y2K work which represented  13%  in  the
previous  year.   Eliminating  the  Y2K work,  the  underlying  growth  was  a
creditable  23%.   The  £140m  of orders taken by  the  Outsourcing  Business,
excluding those for FBS during the year, provides an excellent base for growth
in the next financial year and beyond.

The  FBS  joint  venture  with  Bank  of Scotland  has  had  an  outstandingly
successful year.  In its first full year of operation, FI's 49% share  of  its
turnover  has  doubled to £29.4m and the share of its profit  before  tax  has
improved  threefold to £5.6m.  Productivity improvements of 21% were 6%  above
target  and two major contract extensions were secured, leading to a total  of
£340m committed business for FBS over the next five years.

The economic benefits of using the offshore services of IIS Infotech (IIS)  as
part  of the Group's outsourcing offering have been well recognised this  year
with  seventeen  out  of the top 20 customers using IIS  services.   A  strong
future  pipeline of work valued at over £20m is guaranteed for IIS  from  FBS.
IIS  reported 10% growth during the year.  Eliminating the Y2K work  from  the
previous year, the underlying growth was 52%.

F.I.RECRUITMENT
Along  with  other  agencies, F.I.RECRUITMENT felt  the  impact  of  Y2K  with
external turnover down 8% on the previous year.  Since January 2000 there  has
been  substantial month-on-month improvement.  The quarter four run  rate  was
20% higher than the run rate for the first half year, inspiring confidence  in
the forthcoming year.  This business is also experiencing increased demand for
e-business skills.

Education and Skills Transfer Practice
The  strengths of FI Academy and Duhig Berry, the training arm  of  OSI,  have
been  combined  to  create  the  Group's new  Education  and  Skills  Transfer
practice.   Training  services  have grown by  15%  and  remain  3%  of  Group
turnover.  Half of the training revenues are derived from MAXIM, the  business
process  implementation service, which concluded a successful  year  with  the
winning  of  a  substantial  order  from Yorkshire  Water  for  an  integrated
classroom and e-learning training programme.

OSI
OSI  joined  the Group in June 1999, thus enhancing FI's strategic consulting,
change and programme management capabilities.  In its first ten months,  OSI's
revenue  has  been  £51.6m,  equal to 17% of Group  turnover.   OSI  has  also
considerably  enhanced  the Group's international  presence  in  the  USA  and
Europe, with significant orders won in the Utilities and Finance Sectors.  The
full year profit contribution for OSI was £2.4m and the margin was, therefore,
4.7%.   This  was significantly lower than anticipated because of  the  marked
effect  on  consultancies  of  the Millennium date  change.   However,  it  is
encouraging that OSI's volumes have grown rapidly in recent months,  with  the
quarter  four  run rate some 15% up on the first half year.  The Group  remain
optimistic about OSI's outlook for the coming year.

Druid
Druid  joined  the  Group  on  10  March 2000 and  complements  FI's  existing
services,  bringing  skills  in  ERP package  implementation,  (e.g.  SAP  and
Oracle),  customer  relationship management (Siebel), and  e-business  skills.
Druid  also extend the industry sector coverage, with particular strengths  in
aerospace  and  defence,  manufacturing and consumer package  goods,  and  the
Group's international penetration.  The enterprise-wide systems implementation
market has been slower to return to normal than other markets, resulting in  a
loss  before  tax  of  £1.8m  on  revenue of £5.5m  since  completion  of  the
acquisition.   However, some recent major contract wins (such  as  ICI  Quest,
Taylor  Woodrow and West Bromwich Building Society and contract extensions  at
Bank  of Ireland, Yorkshire Electricity and Guinness) are encouraging and  the
order  pipeline has improved considerably since the beginning of the  calendar
year.

E-business
The  exciting  news  to  report for this year is the important  growth  in  e-
business / ERM and ERP work for the Group's customers.  This year this type of
work represented 12% of Group revenue, up from the 5% last year.

The  customer  offerings  in the e-business arena have  been  strengthened  by
strategic  consultancy  from both OSI and Druid and  a  dedicated  e-solutions
practice  and  range of specialist services have been established  within  the
Outsourcing practice.

Many  current  customers are already benefiting from these services  including
the  Co-operative Bank (Smile), DfEE and Raytheon.  The Group is also  working
with  start  up  companies who realise from the outset that they  need  robust
processes  and  solutions in place to support the excellence of  the  original
business proposition.  The market has been very fragmented until recently  but
organisations  are  fast  awakening to the potential  performance  improvement
offered by the e-enabled extended enterprise.

International Coverage
The  acquisitions  made during the course of 2000 have  enhanced  the  Group's
international reach and capability and, as a result, 15% of Group revenue  was
delivered  outside the UK in 2000.  Joint benefits are already being  obtained
across  FI's  US businesses: Druid America, FI Group Inc, IIS Inc and  Synergy
International  (where FI holds a 20% stake).  Major customers  include:  Texas
Utilities,  Kansas  City  Power and Light, Pfizer,  Raytheon,  and  Pratt  and
Whitney.   In  Europe, the Group has consultants based in Belgium and  Holland
servicing customers such as: ABN-AMRO, Deutsche Bank, Fortis Bank and  Siemens
Business  Systems.   Singapore and Malaysia are developing  well  and  FI  has
recently  been chosen for a major SAP implementation for a large Asia  Pacific
airline.  The significant presence in India through IIS is being enhanced by a
new delivery centre that is being developed in Chennai.

Services Mix
Applications  management  remains  the  cornerstone  of  FI's  venturing   and
partnership  relationships, accounting for just over  half  of  the  business.
However,  the shape of the business is changing with the new acquisitions  and
greater  focus on e-business solutions.  Consultancy represented 25%  of  2000
Group turnover, and e-business/ERM/ERP represented 12%.

The Board
The  combination  of Hilary Cropper as Executive Chairman and  Jo  Connell  as
Group  Managing Director is settling in well with Jo Connell concentrating  on
the  operational  management  and financial performance  of  all  the  Group's
divisions and functional areas, whilst Hilary Cropper remains responsible  for
the  cultural  and strategic development of the Group, concentrating  on  both
large deals and international expansion.

During  the  year  the Board was pleased to welcome Andrew Buxton,  previously
Chairman  of  Barclays  PLC, as Deputy Chairman and  Geoffrey  Dunn  as  Group
Finance  Director.  In March, as a consequence of the Druid  acquisition,  the
Board  further  welcomed John Pocock and Allan Wood, previously Druid's  Chief
Executive and Chief Operating Officer, as Executive Directors and David Tebbs,
previously  Druid's Chairman, as a Non-Executive Director.   John  Pocock  has
taken  up  the  role of Group Sales and Marketing Director and Allan  Wood  is
responsible   for   Management   of   the  Consultancy   Division,   initially
concentrating  on  the  integration and financial  performance  of  the  Druid
Company.

Saurabh Srivastava, Chairman of IIS Infotech, also joined the Board in  March.
Tricia  Gardom, Group Communications Director, has taken up the  new  role  of
investor relations whilst retaining responsibility for internal communications
and   the  Group's  community  involvement.   Brian  Gunn,  formerly  Director
International  Operations, has left the Company to take up other opportunities
within the industry and the Board wishes him well in his new career.

Re-branding
The  Group  has  changed radically in the last two and a half years  with  the
acquisitions of IIS, OSI and Druid and the formation of the FBS joint venture,
now  having operations in seven countries and employing well over 1,000 people
outside the UK.

To  implement the forward strategy and fully exploit the potential  which  the
enlarged  organisation  has to offer, it is clear that  the  separate  company
names  and  attributes  must be subsumed into one  global  brand.   Naturally,
capabilities and cultures vary locally but will be unified under one name, one
image, one vision and one set of corporate values.

So far the top 120 managers from around the Group have given strong support to
the concept of one brand and would prefer a complete name change for the whole
Group.  The Group will spend the next few months evolving the new brand values
and  taking  input  from all employees, plus from customers, shareholders  and
other  stakeholders.  Naturally, if a complete name change is finally proposed
then  there  will  be  an Extraordinary General Meeting  to  seek  shareholder
approval for such a move.

Outlook
The start of the year is showing positive forward momentum on trading although
the  market is not fully recovered, especially in the enterprise management  /
ERP  arena.   Obviously,  the  priority is  to  restore  Druid  to  acceptable
profitability by the second half year and to ensure that the synergy potential
between  Group  companies  is realised.  The pipeline  for  large  outsourcing
contracts has significantly increased over the last few months and we are most
encouraged  by  the  current  performance of  both  OSI  and  our  e-solutions
practice.   The  Board believes that the fundamentals of the Group's  business
proposition  are strong and that increases in shareholder value will  continue
to be delivered in the years ahead.

                                                                              

Consolidated profit and loss account
for the year ended 30 April 2000
                                                                              

                                Before                                        

                              Goodwill     Goodwill          2000        1999
                           Amortisation Amortisation         Total            
                      
                                 £'000        £'000         £'000        £'000
                                                                              

Turnover:                                                                     

Group and share of joint        307,696                   307,696      228,353
venture's turnover                     
Less: share of joint            29,441                     29,441       14,543
venture's turnover
                                                                              

Group Turnover                 278,255                    278,255      213,810
Ongoing Group                  221,151                    221,151             
Acquisitions                    57,104                     57,104             

Operating costs                255,031        9,624       264,655      199,356
                                                                              

Group operating profit          23,224      (9,624)        13,600       14,454
Ongoing Group                   22,654            -        22,654            
Acquisitions                       570      (9,624)       (9,054)             

Share of operating profit        5,390                      5,390        1,789
in joint venture

Total operating profit :                                                      
 
Group and share of joint venture 28,614      (9,624)        18,990      16,243
                                                                              

Net interest (payable)         (1,599)                    (1,599)          782
receivable

Profit on ordinary             27,015      (9,624)        17,391        17,025
activities before taxation
                                                                              

Taxation                         7,668                      7,668        5,278
Profit attributable to          19,347      (9,624)         9,723       11,747
shareholders
Dividends                                                    8,134       3,915
Retained profit for the                                    
year                                                         1,589       7,832
                                                                              

Earnings per share                                                            

 - basic                         8.12p                      4.08p        5.86p
 - diluted                       7.78p                      3.91p        5.80p
                                                                              

Dividend per share                                          2.70p        1.90p
                                                                              

Consolidated balance sheet                                              
as at 30 April 2000                                              
                                                                           
                                                     2000               1999
                                                    £'000              £'000
                                                                            
Fixed assets                                                                
Intangible assets                                 822,213                 -
Tangible assets                                    22,956              15,545
Investments                                                                 
Investments in joint venture                                              
Share of gross assets                              12,671              1,524
Share of gross liabilities                        (11,798)            (1,015)
                                                      873                509
Other investments                                   2,762                -
                                                    3,635                509
                                                  848,804             16,054
Current assets                                                              
Debtors                                            69,920             34,513
Cash at bank and in hand                           14,410             22,764
                                                   84,330             57,277
Creditors due within one year                     94,578             48,736
Net current (liabilities)assets                   (10,248)              8,541
                        
Total assets less current liabilities              838,556             24,595
                 
Creditors due after more than one year             30,213                167
                      
Provisions for liabilities and charges              2,339              3,532

Net assets                                        806,004             20,896
                                                                            
Capital and reserves                                              
Called up share capital                            15,974             10,171
Shares to be issued                                   489                -
Share premium account                             792,014             14,795
Profit and loss account                           (2,473)            (4,070)
Total equity shareholders' funds                  806,004             20,896
                                                                              
                      
Consolidated cash flow statement
for the year ended 30 April 2000
                                                                              
                                      2000        2000        1999        1999
                                     £'000       £'000       £'000       £'000
                                                                              
Cash inflow from                                15,544                  20,544
operating activities
                                                                              
Dividends from joint                             3,540                     762
venture
                                                                              
Returns on investments and servicing of finance
Interest received                      880                   1,140            
Interest paid                      (1,747)                   (413)            
Interest paid on                       (9)                       -            
finance leases
                                                 (876)                     727
                                                                              
Taxation                                                                      
UK corporation tax                 (6,762)               (4,555)            
paid
Overseas tax paid                    (199)                                    
                                               (6,961)                 (4,555)

Capital expenditure and financial investment

Cash purchase of                   (4,515)                 (9,203)            
tangible fixed
assets
Sale of tangible                       359                   1,016            
fixed assets
                                               (4,156)                 (8,187)

Net cash inflow                                  7,091                   9,291
before financing
Acquisitions                                                                  
Cash purchase of subsidiary       (56,543)                 (1,846)            
undertakings

Net overdrafts                    (1,479)                                  - 
acquired with subsidiary
undertakings
                                              (58,022)                 (1,846)

Equity dividends paid                          (4,966)                 (3,020)
paid
Cash (outflow)inflow before
management of liquid resources                (55,897)                   4,425
                                                                              
Management of liquid resources
Decrease (increase)in cash deposits
maturing within one year                        19,044                 (7,295)
                                                                              
Financing                                                                     
Issue of ordinary                   22,011                     810            
share capital
Issue costs of new                 (4,107)                    (79)            
share capital
Repayment of loans                 (5,956)                 (1,330)            
New finance leases                      91                       -            
New loans                           35,504                       -            
                                                47,543                   (599)

Increase (decrease) in cash at                  10,690                 (3,469)
bank and in hand


NOTES

1.   The results for the year ended 30 April 2000 and 1999 are extracted from
     the audited accounts of F.I.GROUP PLC on which the auditors have issued
     an unqualified opinion which did not contain a statement under Section
     237 (2) or (3) of the Companies Act 1985.  The preliminary announcement
     was approved by the Board on 27 June 2000 and has been prepared on basis
     consistent with the 1999 Annual Accounts.

2.   The audited accounts for the year ended 30 April 1999 have been delivered
     to the Registrar of Companies.  The Annual Report and Accounts for the
     year ended 30 April 2000 will be posted to shareholders in early August
     and will be delivered to the Registrar of Companies following the Annual
     General Meeting which will be held at 12.00 noon on Friday 8 September
     2000 at the Conference Suite in the Financial Times Building, Number One,
     Southwark Bridge, London SE1 9HL. Copies may be obtained from the Group's
     registered office: Campus 300, Maylands Avenue, Hemel Hempstead,
     Hertfordshire HP2 7TQ.

3.   The calculation of earnings per share is based on attributable profit
     before goodwill amortisation of £19,347,000 and after goodwill
     amortisation of £9,723,000 (1999: £11,747,000) divided by 238,181,310
     shares (1999: 200,388,711 shares).

     The diluted earnings per share is based on 248,832,225 (1999:
     202,546,305) ordinary shares allowing for the full exercise of
     outstanding options.

4.   The total dividend of 2.7p (net) per share (1999: 1.9p) comprises an
     interim dividend of 0.9p (net) per share which was paid on 6 April 2000
     and a final dividend of 1.8p (net) which will be paid on 2 October 2000,
     when approved, to shareholders on the register at 14 July 2000.  The ex-
     dividend date will be 10 July 2000.