BTP Bns Telecom

RNS Number:3284Y
BNS Telecom Group plc
14 June 2007



14 June 2007

BNS Telecom Group plc


Trading Update

BNS Telecom Group plc (AIM: BTP; "BNS" or the "Group"), one of the leading
providers of white labelled telecoms services to the UK SME and corporate
market, today makes the following trading statement ahead of its financial year
ending 31 July 2007.

Trading in the core BNS Telecom Business Reseller Division and 3g Comms business
(acquired in March 2007) continues to be in line with the Board's expectations.
The directors are encouraged by the market penetration of the hosted IP
telephony and WiDial products.

Since the management changes at the Network Services Division in late May, a
root and branch review of the business has been carried out by Group Chief
Executive and major shareholder Garry Moat. The preliminary findings of this
review have revealed a significant underperformance during the third quarter and
an over ambitious expectation for the final quarter of the financial year.  In
addition, the Board believes it is now prudent to increase bad debt provisions
within the division to cover certain older and disputed debts previously held to
be collectable.

The overall affect of these items is that the Board now expects the Group's
operating profit in the current financial year to be reduced by around #1.3
million. Having initiated a full review of the Network Services Division, the
Board is considering all options for this business.  Goodwill of up to #2.1
million will also be subject to an impairment review.

The Group recently completed the sale and leaseback of the Group's Head Office
generating an exceptional profit of #1.1 million in the process. At 31 May 2007
the Group had net debt of #3.4 million, down from #4.5 million at 31 January
2007.




Enquiries:

BNS Telecom Group plc
Garry Moat, Chief Executive                                     01661 839 554
David Horrocks, Finance Director

KBC Peel Hunt                                                   020 7418 8900
Jonathan Marren/David Anderson

College Hill
Adrian Duffield/Corinna Dorward                                 020 7457 2020




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

TSTUOUWRBRRNAAR

Grafico Azioni Bns Telecom (LSE:BTP)
Storico
Da Nov 2024 a Dic 2024

Grafico Azioni Bns Telecom (LSE:BTP)
Storico
Da Dic 2023 a Dic 2024