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

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

WOW! 47p for 4,500 shares!

YES BUT LOOK DOWN AGAIN, WHATS IT GOING TOO TAKE FOR THIS COMPANY TOO STOP ME TAKEING VALLIUM EVERY TIME I TURN ME PC ON, AND SEE YET AGAIN DOWN DOWN DOWN..

SUE, YOU DONT MEAN 4.75 IN 2 YEARS TIME . SURELY 2 WEEKS..

Just been wondering how Ian Smith managed to persuade so many top people to throw in their lot with MXC. What a team!

Following the acquisitions, and subsequent Board addition, the Group will
include the former UK Managing Directors of Cisco Systems, Foundry Networks and
Extreme Networks amongst its members. It is believed that this depth of
industry experience and widespread product knowledge is a first in the sector
and differentiates the Group as the UK's premier integrator of leading edge
technologies.

From today's Investors Chronical:

Matrix continues to grow impressively
Matrix Communications is further bolstering its offerings by splashing out up to 4.9m on three new businesses. This is the latest in a long line of positive announcements from the integrated network solutions provider since it changed its name from Offshore Telecom in March. Buoyed by a number of impressive contract wins and a strong management team, which includes the former UK managing directors of Cisco Systems, Foundry Networks and Extreme Networks, Matrix has transformed itself.

The key has been to add both network services and critical mass via acquisitions. And the latest additions - Bedrock Networks, Norwood Adams Systems (NASL) and the remaining 50 per cent of Norwood Adam Technical Services (NATS) - further endorse this strategy.

The combined contribution to the group will be a further 8.6m annual turnover and 1m profit. Importantly, as well as strengthening the group's customer base, the additions should enable Matrix to capture greater market share through diversification of branding, territory and customer profile.

Matrix has also announced that it has won a series of contracts - worth over 1.5m over the next 18-24 months - to supply a range of products and services to Betfair.

The evolution of Matrix has been rapid. And underpinned by its aggressive acquisition strategy (totalling six in 18 months), the group looks set to continue increasing market share. It has clearly demonstrated its model by winning new contracts and further earnings-enhancing acquisitions can be expected.

Nice to see the price is moving ahead again.

We are blue. MMs driving us forward. Good lads!

Maximum online buy at 3.33p is currently 150K.

BUT WHY SUCH A BIG SPREAD, IVE NOTICED WHEN THERES ONLY .05 IN SPREAD A LOT MORE BUYS.. NOW THERES .20 WHATS ACCURRING

wantu777: I think the MMs must have read your thoughts. They've just pulled up the bid.

We could see the weekend press picking up on what's been happening with MXC . It's worth noting that Investor's Chronicle mentioned 'further earnings-enhancing acquisitions can be expected'. Interesting.

Grevis
Good news all round. What is the Investors Chronicle?

Ted1: It's reckoned to be one of the most informed financial weekly publications. They seem to have a lot of influence with small investors, especially those who like penny stocks.

Is it a weekly or monthly publication and how much is it? Cheers Grevis

From danielstewart.co.uk :

As anticipated, there has been some profit-taking over the past two months after a very strong share price performance during 2004 (See note 1 st June 2004). On the basis of our revised forecasts, the company is currently trading on a FY05 PER of 18.0, falling to 13.9 for FY06. By contrast the UK Software and Services sector is trading on a FY05 PER of 13.6x falling to 11.7x in FY06.
We believe that a premium is warranted given Matrixs margin strength (EBITDA
margins of 16% compared with other VARs with 5%), operations in high growth markets (high speed networking, security and VOIP), a blue chip customer base and considerable cross-selling opportunities. Our forecasts also do not include the impact of large contracts where Matrix has been shortlisted for consideration, most notably Vodafone Global. We maintain our long term buy recommendation and 4.75p price target, equivalent to a FY05 PER of 22.6x.