ATCG Results due monday expected to be good, returned to profit last interims, major new contracts won recently with Vanco, Siemens and extended contract with BT for a further 6 years. Share price has suffered lately due to Mark Woodbridge leaving (he was previously director of Torex Retail June 2000 to 2003). Expect a strong recovery on back of these contract wins and aquisition of Rocom

AT Communications Group Plc
06 December 2006

6 December 2006



AT Communications Group Plc

Trading update and major new contract win



AT Communications Group Plc (AIM: ATCG; 'ATC' or the 'Group'), one of the UK's
leading business to business communications groups, today announces a trading
update for the year to 31 December 2006 including expected profits and progress
on the integration of Rocom, as well as a major contract win with Siemens.

Trading continues to be generally strong, with the Group awarded a substantial
new contract with Siemens Enterprise Communications for online services using
Rocom proprietary e-trading platform, RocomX, as well as the provision of
managed services.

The Board expects to secure additional contracts during Q4 but the bulk of these
revenues will be recognised in 2007. The Group expects to report pre-tax and
pre-goodwill profits in the order of 4.5 million, having reported a loss in the
previous financial year. The Board also expects to pay a maiden dividend for
the year to 31 December 2006.

Since the Rocom acquisition in August 2006, the Group has largely completed the
reorganisation and integration programme and will fully operate as three key
business units with effect from January 2007.

The Rocom brand is now used for all distribution and channel customers with ATC
indirect (channel) customers now serviced by Rocom, as service teams of both
organisations are fully integrated. Cross-selling opportunities across the
direct sales teams are also already being exploited.

The Group is about to launch a newly branded Service division which comprises
engineering and technical service delivery to direct and channel customers as
well as third parties such as BT and Vanco.

Good example of cash being king - small highly geared businesses are imo to be avoided unless you have high appetite for risk.

As you say dd this seemed to be a company on a good growth track 12 months ago, very sad for everyone concerned, I fortunately sold out april 08.
2517

I've been reading the statements over the past 18 mnths. Although HSBC I think it was gave them 5 yrs loan/credit, it was probably on the back of them reducing their debt pile. When trade fell off a cliff Sept 08, they weren't making the cash to do this which forced them to sell a large subsidary. Sure their debt went down but now they were a really small company at risk to market forces. The CEO left on the back of this quickly followed by the chairman.

The first sign of trouble was the FD left the company in July 08 after only joining a yr or so earlier and also he bought loads of shares in Jan 08 which he presumably then got rid of. As they were renegotiating their bank loan, a large contract was delayed giving them a real liquidity problem for this yr and the final straw was the company who bought their subsidary put in a claim against the company of 3m+ for wrongful info when they sold it. With no cash flow, presumably the bank pulled the plug and administration was inevitable.

Just goes to show how dangerous small illiquid companies are. You can make a lot of money on them in good times but are best left alone when we've had the sort of downturn experienced recently.