TIDMRED

RNS Number : 5028Q

Redstone PLC

20 October 2011

20 October 2011

Redstone plc

("Redstone" or "the Company")

Half Year Trading Update

Redstone plc (AIM:RED.L), a leading provider of network based end to end managed services, technology and infrastructure solutions today publishes a Trading Update in respect of its half year to 30 September 2011.

The Company confirms trading is in line with expectations and intends to announce its results for the half year ended 30 September 2011, on Monday 28 November 2011.

Fujin Systems Limited ("Fujin") Deferred Consideration

Redstone is pleased to announce that the Board believes Fujin is likely to exceed its profit before tax target of GBP560,000 for the year to 31 October 2011. Under the terms of the acquisition (announced on 8 November 2010) Redstone will pay the balance of the maximum consideration to the former shareholders of Fujin, if this target figure is achieved. The balance of the consideration that will become due is GBP2.5 million to be satisfied by the issue of GBP2.0 million of new ordinary shares in Redstone (at the closing price of 5 November 2010 0.89p), with an accompanying GBP0.5m in cash to be paid. It is important to note that no further consideration will be payable should Fujin exceed the target.

Tony Weaver, Chief Executive of Redstone, commented:

"The Fujin acquisition was one of the first major steps we took in the restructuring of the Redstone business, and as such we are delighted with Fujin's performance under Redstone's ownership. The acquisition of Fujin has provided a high level of cross selling opportunities in 2011 and is an important component of Redstone's improved trading."

"We look forward to further updating shareholders at our half year results on 28 November 2011."

ENQUIRIES:

 
 Redstone plc                      Tel. +44 (0)845 203 3903 
 Peter Hallett, Chief Financial 
  Officer 
 
 FinnCap                           Tel. +44 (0)20 7600 1658 
 Marc Young / Charlotte Stranner 
 
 Hansard (Financial PR)            Tel. +44 (0)20 7245 1100 
 Guy McDougall/ Nicholas Nelson

This information is provided by RNS

The company news service from the London Stock Exchange

END

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