Trading Statement
March 04 2009 - 11:52AM
UK Regulatory
TIDMTSE
RNS Number : 3357O
Touchstone Group PLC
04 March 2009
Touchstone Group plc
("Touchstone" or the "Group")
Trading Update
Touchstone Group plc, the AIM-quoted provider of business software solutions and
consultancy services today announces an update on current trading.
The Board has continued with the cost reduction programme announced at the time
of the Group's interim results in December 2008 and as a result overheads in
certain underperforming divisions are now more appropriately balanced.
Furthermore, general headcount levels are now approximately 15% lower than at
the beginning of the financial year.
The Board has also decided to re-structure certain operations within its largest
subsidiary. In doing so the Directors believe that the appropriate management
and experience can be aligned to specific product groups and clients. This
should help reduce future central costs and create a more agile operation that
is focused on providing a more efficient service to all clients.
Whilst the Board is pleased to note that certain of its divisions are performing
well in a challenging environment, the costs of the restructure, coupled with
the general downturn suggests that the Group's adjusted year-end results may now
fall below market expectations.
Despite difficult market conditions, Touchstone has been successful in signing
contracts with new clients valued at over GBP1m in recent weeks. Further, the
Group has also been selected as preferred supplier for over GBP2m of new project
work. Accordingly, the Board is confident that the Group's product portfolio and
niche market orientation continues to provide real competitive edge in
challenging conditions.
Going forward, the Board is confident that a more streamlined and responsive
operation should benefit future trading and provide an excellent platform for
growth should economic conditions improve.
Enquiries to:
Keith Birch, Chief Executive Officer
Touchstone Group plc 020 7121 4700
Matt Davis
Alison Barrow
Brewin Dolphin (NOMAD)0845 270 8600
This information is provided by RNS
The company news service from the London Stock Exchange
END
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