20 September 2001
At the time of the interim results in July we stated that
the outcome for the year was dependent upon performance
in the last quarter, which has historically delivered
about one third of our revenues. We also highlighted to
shareholders that market conditions generally were very
difficult to predict.
Trading over the traditionally quiet summer months has
been weak in both our training and consultancy
operations. Future market conditions remain uncertain.
We now expect current year revenues from operations to be
below those achieved last year.
Since the downturn in our markets in April and May of
this year, management has responded by reducing the
Company's annualised cost base by over £3 million. The
primary benefit of this will be felt in the next
Given the operational gearing in our business, operating
profits before goodwill for the second half year are now
expected to be around 20% lower than those in the first
half year. Costs remain constantly under review to
ensure consistency with current and prospective levels of
Subject to there being no further marked downturn in
trading conditions, and given the cost savings already
made, we expect an improved trading performance for the
company next year. QA remains profitable, our balance
sheet strong and our business cash generative.
For further information please contact:
QA plc 020 7656 8484
Keith Burgess, Executive Chairman
Square Mile BSMG Worldwide 020 7601 1000
Nick Oborne/ Sally Lewis