CMO Cmo Group Plc

RNS Number:4805Q
Comino Group PLC
25 January 2002

COMINO GROUP PLC

TRADING STATEMENT

In its September 2001 trading statement, Comino Group reported that performance
in the first half of its financial year had been significantly below
expectations.  The Interims Report confirmed this and the Group announced a loss
for the six months to 30 September 2001 of £1.1 million (before charging
goodwill amortisation of £148,000 and £165,000 of costs associated with the new
venture, Comino Techflow).

The disappointing outcome was principally attributable to three factors: delays
in the award of local authority contracts; increased development costs for
Occupational Pensions and a related deferral of revenue; and an increase in
overheads to support growth which had yet to materialise.

Whilst the Local Government order situation is improving, the prospect list
continues to be affected by slow decision making.  As a consequence, although
the Group expects to be profitable in the second half of the year, it may not
now be possible to recoup the full extent of first half losses.  However, the
outlook for the Group remains very positive.

Social Housing continues to operate profitably and enjoys a high level of
repeatable income from the customer base.  The client base is moving steadily
from legacy software to new generation Comino products.

We have a significant opportunity in Local Government and continue to invest in
this area to provide fully functional e-government compliant products in line
with central government policy.  In addition, the upgraded product for our
existing Local Government customers has now been completed and will provide a
better balance between new customer sales and sales to the existing customer
base during the coming year.

Significant progress has been made in tackling the development issues
surrounding the Occupational Pensions product and the underlying problems have
largely been corrected.  The problems have seriously impacted this years
performance but the order book is now building and we expect this division to
return to profitability next year.

The current financial year is a disappointment.  However, the Company is
strongly positioned in each of its markets and is reinforcing this by the
continuing development of sophisticated, cost effective and flexible solutions.
With patience and with the continuing efforts and commitment of management and
employees, we expect to see the Group's considerable strengths translated into
commensurate profitability in near term.



END



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