CMG Croma Grp

RNS Number:7248K
CMG PLC
17 May 2000


CMG reiterates prospects for good growth in 2000 at company AGM

Speaking at the Annual General Meeting of CMG plc, the
European Information and Communications Technology ("ICT")
Services Group, in London today, Chairman Cor Stutterheim
said:

   "After four months of trading, our view of customer
   demand and the opportunities for growth in 2000 remains
   positive, in line with my comments when reporting the
   1999 figures in February.  I said then that we expected
   good growth, ahead of the market, even if not as high
   as the exceptional levels of the previous two years.  I
   note that Sterling has continued to strengthen in
   relation to the Euro.  This implies that our figures
   for 2000, when reported in Sterling, will not provide a
   full reflection of the good operational growth rates in
   local currencies.
   
   "I also indicated that the millennium issues had
   affected order intake either side of the 1999 year end
   and therefore, like many of our peers, we have
   experienced a slightly slower start to the year than
   normal.  At the same time, though, we are enjoying very
   strong growth in our global telecoms products business
   with continued demand for high capacity Short Message
   Service Centres and extensive interest in our WAP
   (Wireless Access Protocol) Service Broker product.
   
   "Since the results announcement in February, we have
   made two further acquisitions.  EPL Group brought 90
   people and a strong customer portfolio to our French
   operations, while Software Resource Ltd (SRL) added
   specialist meter-reading expertise and software
   products to our utilities business in the UK.  We also
   announced our recommended offer to acquire Admiral plc,
   progress on which will be communicated separately
   following today's Extraordinary General Meeting of CMG
   shareholders and first closing date for the offer to
   Admiral shareholders.  The strategic rationale and
   commercial logic for joining forces with Admiral is
   very clear given their long track record of profitable
   growth, achievement of high margins, and compatible
   culture.  The addition of Admiral's people, skills and
   customer relationships will significantly strengthen
   CMG's position, particularly in the competitive UK
   market, France and Belgium.
   
   "Throughout the early months of the year, we have been
   recruiting in our key territories to meet the demand
   that we see from our customers going forward.  We
   expect this to continue and will leverage our
   reputation as one of the most respected employers in
   the business.  A key attraction for both talented
   graduates and experienced consultants is our long-
   standing track-record for continuous personal
   development, training and re-skilling - which is, of
   course, what our customers value as well.
   
   "The market for ICT services remains exciting and
   challenging with good long-term prospects as is
   reflected in our strategy to become an even stronger
   player both in Europe and globally.  2000 will provide
   an important step forward in achieving that goal."
   
   
For further information please contact:

Cor Stutterheim, Chairman, CMG plc
Tel: +31 (0)20 67 20 444

Chris Banks, Finance Director, CMG plc
Tel: +44 (0)20 7592 4000

Tony Richards, Group Communications Manager, CMG plc
Tel: +44 (0)20 7592 4000

Jan Massier, Group Communications (Amsterdam), CMG B.V.
Tel: +31 (0)20 67 20 444

Toby Mountford, Citigate Dewe Rogerson
Tel: +44 (0)20 7638 9571




END
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