BSG Bus.Sys.Grp

RNS Number:1362V
Business Systems Group Hldgs PLC
26 April 2002

                         BSG Holdings Plc ("the Group")


                               Trading Statement

In the Group's trading statement of 18 September 2001, the Board set the Group
some clear targets; namely for both Business Systems Group Limited and
Webgenerics Limited to reach a cash break-even run rate position by the
financial year end, 31 March.


The Group is pleased to announce reduced trading losses in the second half of
the year. A material improvement in trading performance has been achieved with
both companies breaking even at the EBITDA level in the month of March. The
improved trading levels ensured that the Group's cash balance of in excess of 
£8 million at the financial year end remained higher than expected.


The overall improvement in trading has been achieved through a combination of
cost cutting and a number of significant new contract wins with combined revenue
of £6.2 million - half of which will be recognised in the 2002/03 financial
year.


However, in recognition of the importance of the Group becoming cash generative,
it has become clear that because utilisation and visibility of earnings in the
Consulting division remain weak, further action must be taken if the Group is to
continue to improve its trading performance. Consequently, the Board has taken
the decision to make a further 15 redundancies in this division, leaving a total
staff of 40 within the Consulting division to deliver existing and prospect for
future contracts.


In terms of Webgenerics' product sales, despite slower than anticipated sales of
dotEncrypt, the Board is pleased to note the successful use of dotEncrypt
technology by on-line publishers and the implementation of a commercial pilot of
the dotEncrypt e-mail product. Whilst this is positive news, current revenues
from the dotEncrypt products are still not significant.


The second half of the year has seen new contract wins for over £1m in the
managed hosting business which means that Webgenerics is no longer a cash burden
to the Group.


The Group expects to announce its full year results for the year ended 31 March
2002 on 17 June 2002.


Enquiries


BSG Holdings Plc
Nick Gerard, Group Chief Executive          Tel: 020 7880 8888
James Wheaton, Finance Director


Buchanan Communications
Tim Thompson                                 Tel: 020 7466 5000
Catherine Miles



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