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

AS SOON AS THIS EVER GETS TOO 4P AGAIN IM OUT ..JUST LOOK AT IT NOW, HOW CAN A COMPANY BE WORTH LESS. THAN 3 MONTHS AGO AFTER ALL THE GOOD NEWS ,NO I DONT CARE WHAT U SAY, I SMELL A RAT..

wantu777: I just wonder if it's the summer malaise coupled with the fear that terrorists have targeted financial institutions in the USA.

mmmm maybe it just seems no mater what this company does , the share price goes up then down again...

it`s alright blaming this that and anything else that seems to make an excuse,but the simple fact is that this co.,having multiplied several times when it was offshore telecom,has reached just about as far as it is going.if good results,aquisitions of profitable companies,multiple contracts worth a few quid,and good management does`nt push it up then nothing will.remember the market cap is quite high for a small co.
IMO the best thing to do is take what profit you have and put it something else,like speculative oil companies!!.
dexter

Great minds think alike, that's exactly what I did Dexter. Went for DES in the end. Shall come back to MXC in 12 months I think.

TOO LOW NOW SELL AT 3.25P YESTERDAY COULD OF GOT 3.9P I BOUGHT 2ND LOT OVER 2 MONTHS AGO AT 4P. GGGRRRRR

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its died lets face it

Morning wantu777. No it's just waking up again. Some nice buys have started to appear. I think the trouble with the other day was that when MXC hit 4p it was the signal to sell and as it fell then confidence ebbed away. That coincided with the scare about terrorists targeting US financial institutions which did not help market sentiment at all. Confidence now seems to be returning and with luck MXC should gradually return to the price it held before that excellent RNS.

do u think interest rates going up today will also slow it.normally does for a day, then picks up again. grevis by the amount of shares this company has put out it would value the company at around , 42.million pounds at mo do u think thats realistic.

wantu777: MXC has now assembled an amazing team and with all the acquisitions and contract wins everything seems to be coming together nicely. As to their current market cap, I don't think it is unrealistic. I think because of all that's been going on it's perhaps time to trawl through all the announcements and work out some figures for turnover, etc. At a rough guess I would say that MXC are probably worth around 1 years turnover. Back in the spring the CEO stated that turnover was set for 20-25 million, then add in the 8.5 million from the latest 3 acquisitions, plus all the other deals that have been done in between and we must be there.

wantu777: I've posted on another BB to see if anyone has had the inclination to work out some figures,

Now that the BOE has increased rates by less than expected, it should bring some cheer to the markets.


BoE raises interest rates by quarter point
an ADVFN competitor
A further quarter point rise in UK interst rates, announced by the BoE Monetary Policy committee at high noon is expected to have largely been written into FTSE projections and should do little to dampen the burgeoning recovery in blue chip stocks.

There had been talk of a more aggressive half point move following an exceptionally strong survey into the manufacturing sector earlier this week. Today's disappointing official manufacturing output data would probably have tempered any such move, analysts said. Today's rise is the 5th quarter point increase since last November as the BoE seeks to rein in inflationary pressures stemming from rampant consumer spending at a time when the economy is operating at, or near, capacity.

Though it sometimes takes a year or two for an increase in borrowing costs to feed through into behaviour, analysts said there is some evidence that the MPC's "gradualist" approach to raising interest rates is reaping dividends, particularly in the housing market.

Back in the Blue - nearly as exiting as supporting Chelsea

I prefer Chelsea buns myself!

Off topic: Have a look at RAF. Just announced a cracking turn around. Market cap is less than 50% of turnover and looks as though they are returning to profit. Shares are up 60% but don't let that put you off. They remind me of MXC 6 months ago.

MXC have settled down nicely today. Well pleased!

grevis - your RAF looks "Bang on" "Wizzo" "Old Boy" just missed out at 1.0p not prepared to pay 1.25p. Will take another look to-morrow. Agree on MXC

For you guys : out yesterday.

Smaller companies spotlight
Pat Lay's
small caps, This Is Money
5 August 2004

Some to watch out for

Matrix

Following the announcement of three acquisitions and a contract with Betfair worth more than 1.5m over the next two year, data network group Matrix Communications is a 'long term buy' at 3.8p a share, says David Johnson at Daniel Stewart. He sets a target price of 4.75p.

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.com%2Fnews.asp&in_page_id=1804