ZGP Z Grp

RNS Number:6982D
Z Group PLC
12 September 2007

Z GROUP plc (the "Company")



Trading Update



Trading for the first half of the financial year was better than budget, due to
ONSPEED continuing to perform well.


Management expectations for trading for the full year to 28 February 2008
include a substantial contribution from the Company's investment in OnShare
Limited.  At the present time the Board is not confident that those expectations
will be fulfilled as take-up of the product by consumers has been lower than
anticipated.  The Board is looking at alternative ways to generate revenue from
the underlying OnShare technology.  As a prudent measure, we expect to be
writing off our investment in this product in this financial year and our
results for the year will be adversely affected by both of these issues.

Our monthly average cash burn in the first half was around #115,000 and the
Company had a cash balance of #1.6 million at 31 August 2007.  This compares
with a monthly average cash burn in the prior year of approximately #160,000.
Action is being taken to reduce the Company's monthly cash burn rate further.


For further information:

Z GROUP plc

Jack Bekhor / Jamie True             Tel: +44 (0) 8700 111 173
(Joint Chief Executive Officers)

Duncan Neale                         Tel: +44 (0) 8700 111 173
(Finance Director)

Landsbanki Securities (UK) Limited (NOMAD)

Tom Hulme                            Tel: +44 (0) 20 7426 9593
(Corporate Finance)






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