(INFS.L) Infoserve Group PLC Buy/Sell

RNS Number : 2468B Infoserve Group PLC 23 October 2009

Infoserve Group plc

Trading Statement

Infoserve Group plc ("Infoserve", the "Company" or the "Group") announces the following trading update in respect of the six months ended 30 September 2009:

The unaudited results for the six months ended 30 September 2009 are in line with the trading statement made at the AGM on 17 September 2009 and continue to reflect the Group's improving performance. Top line sales* increased to £3,061k in the six months ended 30 September 2009 from £2,590k, an increase of 18%, whilst gross profit* increased to £1,107k from £792k (+40%). Continued tight control of administrative costs contributed to a small EBITDA* profit compared to a loss of £377k in the comparable period last year.

(* Excludes IAS 18 revenue recognition adjustment of (£113k) 2009 and +£51k 2008.The IAS 18 accounting adjustment spreads sales evenly over the life of the directory listing as opposed to top line sales which refers to cash received in any such period).

Trading in October has continued at similar levels to September.

On an underlying basis, the Group is now performing at or around breakeven EBITDA, with small cash inflows from trading. However as noted in the year end accounts and the Final Results statement to the market, the Group remains undercapitalised, leaving it able to operate at current trading levels but unlikely to be able to continue to grow at its present rate without additional funding. The Group has recently attempted to raise funds to grow the business and cover working capital commitments, and has approached a number of existing shareholders and new sources of finance. However it has been unable to raise any funds from these meetings and consequently the Group is continuing its discussions with its major shareholder, David Hood. These discussions are focusing on Mr Hood providing the group with the necessary finance in order that the group may continue to trade at the current levels of growth. The group will keep shareholders informed of any developments in these discussions in due course.

The Group plans to announce its Interim Results during early December 2009.

For further information, please contact:

Infoserve Group plc www.infoservegroup.com

Steve Barnes, Chief Executive steve.barnes@infoserve.com
Tel: 0113 238 6200

Jonathan Simpson, Finance Director jonathan.simpson@infoserve.com
Tel: 0113 238 6200

Nominated Adviser WH Ireland Limited Robin Gwyn
Tel: 0161 832 2174

This information is provided by RNS The company news service from the London Stock Exchange

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