FMJ Formjet (See LSE:TQC)

RNS Number:7825P
Formjet PLC
05 August 2005


For immediate release: 5 August 2005

                                  Formjet plc
                  ("Formjet" or "the Company" or "the Group")

                                Trading Statement
                                        

Turnover for the first six months of current financial year, whilst up 25% on
the previous year, is below expectations and it is expected that the result for
the first half will be a pre tax loss. This is largely due to sales forecasts
not being met in the second quarter and a product launch and exhibition costs
incurred late into the period.

Significant revenue growth for the second half is still expected and it is
anticipated that full year sales will still show growth of 75% over the prior
year to circa #4.5 million.

The significant shortfall on retail trade in Panda Software, particularly in
June and July indicate that Panda will materially undershoot its sales budget
for the year and this could result in the Company trading at no better than
break even in the second period.

Other divisions are making steady progress in particular Software Dialog and
Ability. Ability Software has now signed up 13 International Country Partners
with the majority launching the product range in next few months it has also
impressive distribution partners in the UK.

A number of credible performances will unfortunately be overshadowed by the
headline figures however it is very encouraging that gross margins have been
maintained throughout the Group and continue to be robust at 64% and sales,
whilst falling short of budget, have increased significantly over last year. The
addition of our recent acquisition South Coast Distribution will accelerate that
sales growth albeit at lower margins.

A detailed and extensive review of the Company's operations has been undertaken
and will result in a change in operating structures and resource allocation,
with five focused divisions distributing all of the group's products and
services. Those divisions are Corporate, Retail, Online, OEM and International
sales. All the divisions will be located in the Group's new offices in Crawley,
online sales remaining in Cambridge together with Technical Services, Finance
and Administration.

It is against the background of sales growth and high margin that the board
continues to believe that the business model is sound and offers considerable
opportunity; and the recent acquisitions enhances that view. It is the
management's intention to focus on establishing the brands currently in its
portfolio, although it will consider additional acquisitions which are
sufficiently attractive and profit enhancing.

Enquiries:

Lyndon Chapman                             Peter Wardle
Chairman & Chief Executive, Formjet Plc    Finance Director, Formjet Plc
Tel: 01223 531175 or 07770 551262          Tel: 01223 531175

Paul Shackleton                            Simon Hudson/Clemmie Carr
Daniel Stewart & Co.                       Tavistock Communications
Tel: 020 7374 6789                         Tel: 020 7920 3150 or 07966 477256

Notes to editors

Formjet Plc is a UK-based company with a highly distinctive business model. It
acquires territorial rights to 'alternative' software products, and markets,
sells, distributes and supports these products in place of the vendor in
worldwide markets. The strategy has at its heart the proposition that we can
acquire product lines in territories of not less than a country without the
expense of either product development or the creation of IPR. The Formjet Group
currently has four product lines: Panda Software and Filestream are UK licences
and Ability and Software Dialog are worldwide.

Formjet reaches a customer base of more than 250,000 direct customers and in
excess of 3,000 corporate clients. This market penetration has been achieved
through careful research into relevant territories and then applying the most
suitable routes to market, whether through distribution and/or reseller
partners, or via direct sales.


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

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