Trading Statement
13 Giugno 2003 - 1:00PM
UK Regulatory
RNS Number:2993M
M.M.T. Computing PLC
13 June 2003
M.M.T. Computing plc ("MMT")
Update on trading
MMT, the IT services group, provides an update on current trading.
At the time of the interim results announced on 8 May 2003, it was noted that in
the short to medium term, there did not appear to be any major recovery within
the IT services sector. Unfortunately, difficult market conditions continue to
prevail and as a result the Board anticipates that Group results for the year
ending 30 August 2003 will be significantly lower than current market
expectations.
The technology staffing market has seen continuing acute pressure on volumes and
margins. These continuing poor trading conditions have, in particular, affected
the Systems Solutions Division resulting in many clients not renewing contracts
on expiry. As a consequence, the utilisation rates within this division are
significantly lower. This has had a negative effect on the results of this
division. The company has always maintained that its priority in these market
conditions remains the control of the cost base and the Board is therefore
implementing a further head count reduction programme.
Trading in the other divisions remains in line with management expectations at
the time of the interim results.
Commenting on the announcement, Tom Hall, Non-Executive Chairman, said:
"Whilst the performance of the System Solutions Division is disappointing, we
are taking immediate action to mitigate this by further reducing the cost base.
The balance sheet remains strong with cash balances in excess of #6 million and
significant property assets and the Board is optimistic about the prospects of
the business, particularly when more normal business conditions resume."
Enquiries:
Dee McFarlane
M.M.T. Computing plc 020 7843 6211
Nicola Davidson
Merlin Financial 020 7606 1244
This information is provided by RNS
The company news service from the London Stock Exchange
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