RNS Number:4423C
Vanco PLC
20 August 2007





                                   Vanco plc

                            ("Vanco" or the "Group")

             Trading update for the six months ended 31 July 2007.

Trading in the first six months has continued to be strong, with the total order
intake between 1 February 2007 and 31 July 2007 from new and existing customers
now amounting to some #120m compared to #49.5m in the equivalent period in the
previous financial year. Of this, it is estimated that around #21m of revenue is
recognisable in the year ending 31 January 2008, and around #16m will be
received in cash before 31 January 2008. This estimated recognisable revenue
represents 42 per cent of the new business revenue required in order to achieve
the consensus revenue expectation for the full year. This is ahead of the
position at the same period last year. This excludes the full effect of any
additions or changes to customers' networks and, in addition, the effect of
moves, adds and changes (MACs) with existing customers, which continue to be in
line with the historic average.


Accordingly, we remain confident that the revenue and operating profit for the
year ending 31 January 2008 will be in line with consensus market expectations,
being revenue of approximately #227m (2007: #183.2m) and operating profit of
approximately #27m (2007: #19.5m).


Free cash flow* for the six months ended 31 July 2007 will be lower than for the
equivalent period last year, with an outflow of approximately #20m (31 July
2006:  outflow of #15.1m).  This is approximately #10m below our expectations
and is largely due to delays to the signing of three new contracts with existing
customers which were expected to be completed prior to 31 July 2007. In common
with most new contracts, these contracts contain substantial initial fees. One
of these contracts has since been signed and we anticipate signing the other
contracts in due course. Net debt as at 31 July 2007 is expected to be
approximately #37m (31 July 2006: #24.4m).


It is in the nature of our business that forecasts are sensitive to the timing
of contract completions and any resulting impact on the timing of deployment of
sales and operational staff, which is borne out by the recent experience around
31 July 2007.


Further details of the Group's performance, including the cash outlook for the
year, will be provided with the interim results which will be announced in late
September/ early October.  These results will be presented by Allen Timpany and
Peter Johnston, the new Finance Director, who joins the Group on 1 September
2007.


*       Free Cash Flow is defined as cash generated from operating activities
less net interest less tax paid less capital expenditure less finance lease
payments.



For more information please contact:
Vanco plc

Simon Hargreaves, Managing Director, Vanco Solutions & Group Finance Director
T. +44 (0) 208 6361700

Michael Piddock, Marketing Manager
T. +44 (0) 208 6361721
michael.piddock@vanco.co.uk

Katie Tzouliadis, Biddicks
T. +44 (0) 207 4481000










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