Matrix Communications Group plc

('Matrix' or the 'Group')

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2004

Matrix Communications Group Plc ('Matrix' or 'The Group'), the UK's
communications integrator of choice for leading edge technologies, today
announces its unaudited results for the six months to 30 April 2004.

Highlights

* Turnover up 3,381,000 to 3,697,000

* Gross profit up 1,493,000 to 1,640,000

* Group Pre-tax profit up 822,000 to 550,000 (including minority interests)

* Net Assets up 3,146,000 to 4,473,000

* loss-making satellite communications business sold in January for 30,000

* acquired and successfully integrated three profitable IT companies during
the last 6 months in line with its core strategy

Ian Smith, CEO, commented:

'This has been a defining period for the company and we are delighted to be
reporting on the success we have achieved over the six months. As well
achieving significant organic growth from our existing businesses we have
delivered on our core objective to extend our offering and client base through
acquisition. Over the period we have succeeded in acquiring and integrating a
further three companies into the group, transforming Matrix into the UK's true
integrator of choice. As an enlarged Group we have recently won contracts with
Vodafone, B.A.R Honda and The London Internet Exchange and have engaged in a
number of talks for other exciting contracts. Looking forward, the challenge
for us now is to capture the consolidated cost efficiencies in the enlarged
Group and exploit the numerous cross-selling opportunities that are available
to us through our matured commercial relationships with our present client
base. In this period we have made great progress in turning the company around
and building a solid base of recurring revenues and high margin product mix
with leading blue chip companies. I look forward to reporting to you on our
future progress'


molatovkid - 01 Jun'04 - 07:34 - 173 of 173 edit



Embargoed Release: 07:00hrs Tuesday 1st June 2004

Matrix Communications Group Plc

(`Matrix')

Re Agreement

The Group has concluded heads of terms to acquire a profitable mid-tier
distribution business from the 1st August. This will enable Matrix to continue
to develop its market position and maintain its strong margin growth by
strengthening its key vendor relationships.

As emerging technology segments start to cross over and consolidate, it is very
important that the Group has access to Key Vendor relationships so that 'best
of breed' solutions can be offered to it's customers.

The current annual turnover of the business is 5.5m.

Further Information:

Ian Smith, CEO

There were two large late trades including the one you mentioned. I'm fairly certain the smaller of the two was a sell. However, the consenus on another BB is that the 2 million was a delayed buy and was part of the reason for the late surge in the price. More fun tomorrow!

wantu777 : There's another one this morning. 2 million late trate just reported. Looks like stake building. Bought around 6.5 million in the past 7 days.

grevis , looks good lets hope the price can hold and then go further,

Nice top up grevis

AGAIN IT HITS 3.80 THEN DOWN IT GOES WHEN IS IT GOING TOO GO UP UP UP

Ted1: Thanks! Just added a few more.

Fair play to ya. Some positive sentiment coming back here. Some good volumes 1.9m sell the other day, blocks of 250 thousand buys 6 in one day if I remember correctly and news of the aqusition on Monday? yea or nay? Good debate and TA from the other guys on the other bb.

max online buy with Barclays now only 50K. MMs short of stock or what?

MMs just forced to buy 500,000 at 3.6p.

And up she goes!

MMs have bought 1 million so far. Any more to come?

and down she goes

wantu777: MM games only. Done to coincide with 2 x 500,000 delayed buys. MMs want your stock. Hold tight. Due an RNS on 1 August.

As we are due an RNS on Monday, I thought some of you would be interested to see how the price moves after an announcement.

We are looking at prices before and after an RNS.

12/07/04 07:00 UKREG Multiple Contract Win 3.10p 3.65p
01/07/04 07:01 UKREG Acquisition(s) 3.75p 3.9p
28/06/04 07:01 UKREG Contract Win 3.02p 3.65p
23/06/04 08:01 AFXF London school contract 2.74p 3.16p
01/06/04 07:03 UKREG Interim Results 4.21p 4.43p
05/05/04 11:38 UKREG Additional Listing 3.96p 4.28p
26/04/04 07:02 UKREG Acquisition of Decorum Networks 4.35p 4.93p
19/04/04 07:02 UKREG Matrix Joins LINX 3.15p 3.92p
15/04/04 07:01 UKREG Award Win 2.89p 3.20p

By adjusting the distortions caused by late trades, it would seem we have 5.5 million buys and 3.5 million sells.

grevis hi, what concerns me is after all the wins and acquisitions you have pointed out above , why on earth is the share price not greater than 26th april 4.93p when matrix has added 4 more contract wins plus good interim results, all seems strange too me..

wantu777: Most IT stocks had a good run up to the spring and then fell back. Matrix has been doing everything right and has been growing very fast. Back then, people piled in and perhaps ran the stock too high too quickly. It's share price peaked around 5p and dropped back until it stabilised at around 3p. The stock is now in its recovery phase and has been rising on the back of impending news. The most immediate bit of news is expected on Monday morning concerning a further acquisition.

It's also thought that Matrix may be about to secure that long anticipated contract for 10 of Vodaphones overseas operations. I'm sure you know that MXC's Intrinsic subsidiary secured a contract with Vodaphone's UK operation some months ago and they're hoping to extend it in time to the rest of Voda's global empire. In March, MXC's CEO said it would take 3/4 months before an announcement could be made. The feeling is that if a deal is to be struck, then it will be soon.

Good news on Monday should see this stock move higher.

Back to 4.93p again? It will come, but we will have to be patient!

Have had a look at the Telecomms Sevices Chart, as an average all shares in this sector are trading sideways and until a breakout above 2450, the story is likely to remain the same. A fall below 2400 and the earlier downward trend may be back on. Seems unfair on MXC who look like a good company and are suffering from the 'blues' of the IT stocks. Will be interesting to see if they can buck the trend!

regards

PTH

This should help:

US stocks end higher 10:57 - 31 Jul
Stocks rose and blue chips made it four winning sessions in a row Friday as investors shrugged off an oil-price spike to a record high....

Thsi is the expected announcement.

From a previous RNS:

Agreement to Acquire an IT Distribution Business

The Group has concluded heads of terms to acquire a profitable mid-tier
distribution business from the 1st August. This will enable Matrix to continue
to develop its market position and maintain its strong margin growth by
strengthening its key vendor relationships.

As emerging technology segments start to cross over and consolidate, it is very
important that the Group has access to Key Vendor relationships so that "best
of breed" solutions can be offered to it's customers.

The current annual turnover of the business is ?5.5m.