Interesting company with a good management team.



November 1st,

* Group sales up 500%

* Intrinsic outperformed second earn-out target by 25%

* Decorum outperformed first earn-out target by 50%

* 6 million bank facility agreed

* Dividend policy for 2005 agreed

Director Speak

Ian Smith, CEO, commented:

'I am very pleased with the performance of the company in H2FY2004 and fully
expect the Group to meet or exceed the current market expectations in FY2005.

Our clear strategy of product differentiation coupled with expertise and great
customer service is paying real dividends. As the only pure performance
communications company in the UK, the Group is unique and is well set for many
years of growth.'

Trading Statement

Trading Update

Matrix Communications Group Plc ('MXC'), the UK's communications company of
choice for leading edge technologies, is providing a trading update for Q4
based on unaudited financial accounts.

Group sales for Q4 were 5.0m (2003: 1.09m), an increase of 450% against the
same period last year. Q4 includes turnover from the recent acquisitions of
Bedrock Networks and Norwood Adam Systems and the remaining 50% of Norwood Adam
Technical Services.

The Group has now fully integrated all of its system integration businesses and
in 2005 all companies acquired prior to 1st August 2004 will operate under a
single brand. The new Company website,
www.mxcplc.com,
reflects these changes.

By way of confirmation of our 'pure performance' leadership, the Group now
works with Foundry Networks, Juniper Networks, Extreme Networks, Mitel Networks
and Peribit Networks amongst others. This single focus on best of breed
technologies makes the Group unique within the UK and it is now the only top 20
integrator in the UK that is not a Cisco partner.

The Group's focus on delivering expertise and great customer service is
demonstrated in the exceptional financial performance.

Performance of Acquisitions

The data business, Matrix Network Solutions, has continued to grow its business
in 2004 with 4.2m turnover (2003: 1.3m), 300% year on year growth and has
established itself as a key provider of non-Cisco IT infrastructure. Its
pipeline for 2005 is currently 50% greater than it was at this time for 2004.

The IT security business, previously known as Intrinsic, has had a strong 2004
H2 and has out performed its 2nd earn out target by 25%. The final earn out
payment of 100,000,000 shares (2,500,000 shares following the share
consolidation) will be issued to the directors of Intrinsic at the end of
November. It has seen the UK launch of the Vodafone content filtering service
and is one of the UK's most successful Juniper partners. It too has grown its
business more than 300% year on year.

The voice business, previously known as Decorum, has also had an excellent 2004
H2 and has completed its 1st earn out target. The earn out payment of
13,515,901 shares (337,897 shares following the consolidation) and 150,000
will be issued to the directors of Decorum at the end of November.

The service and support business, previously known as Norwood Adam Technical
Services, has continued to enhance our service offering and is now responsible
for managing a number of blue-chip IT networks 24 hours a day. It now manages
over 500 contracts with annual contract value in excess of 5m.

Overall, the Group has been delighted with the progress of all acquisitions and
the outstanding financial results listed above confirm the synergistic nature
and rapid integration within the Group.

2005 will continue to see the Group deliver strong organic growth coupled with
further strategic acquisitions. We hope to be able to report further on this
matter shortly.

Conclusion.

Well worth giving this one a research look over.

P/E is a bit topy with the future P/E being around 17, but with these earnings enhancing acquisitions, should be able to deliver top line growth going forward backed by an excelent management team*.

DYOR


cheers GF.

A new earnings enhancing acquisition and from day one.

Embargoed Release: 07:00hrs Monday 15 November 2004

Matrix Communications Group plc

(`Matrix' or the `Group')

Acquisition

Matrix Communications Group Plc is pleased to announce that it has acquired
Network Partners Ltd (`Network Partners') for a total consideration of 12m.
Network Partners reported audited profits of 1m PBT on revenues of 7.5m in
the year ended 30th September 2003 and has to date booked circa 10m of
recurring contract revenues for the Group's year ended 31 October 2005. Matrix
will pay an initial cash consideration of 5m and up to a further 7m in equity
over the next 24 months, subject to agreed earn-out targets being met, to be
issued at mid-market price as at close of business on the last day of the
related earn-out period. Earn-out performance will be evaluated at two stages
during the 24-month period, being at 12 and 24 months.

In addition to being profits-enhancing from the day of completion, this latest
acquisition is considered by the Board to be the Group's most strategic to
date.

Established in 1999, Network Partners are an independent provider of value
added telecommunications services. Network Partners manage significant
relationships with all of the UK's major operators including BT, Cable &
Wireless, Global Crossing, Thus and Energis. Following the completion of the
acquisition the Group will be the single largest BT premier partner and
moreover will be strategically placed for entry into the 'Managed Services'
sector of the IT industry.

As an independent provider of value added telecommunications services Network
Partners specialise in the provisioning and management of voice, data and
Internet services. This proposition of a `virtual telco' offers customers a
unique gateway to the telecommunications industry and is underpinned by a
philosophy of adding real value at every stage - from provisioning and
installation to billing and customer support.

Network Partners were named BT's ICT Partner of the year 2003 and Northern
winner of the Deloitte Fast 50 Company 2003.

Following the move into the 'Managed Services' sector, the Group will be adding
Wide Area Network implementation and servicing to its current offerings of
leading edge Local Area Network implementation, data switching, security
software, 24/7 technical support and VOiP. It is the Group's intention to
aggressively grow into the 'Managed Services' Sector through the implementation
of its highly successful and proven cross-selling model which it executes
through its extensive network of matured commercial relationships.

Ian Smith, CEO, commented:

'Over the past 18 months we have continued to expand our range of products and
services through acquisition. In doing so we have been able to offer a full
array of network services whilst maintaining the highest level of expertise and
consultation for all of our offerings that our customers have come to expect.
As recently announced, we have been extremely successful in organically growing
the profitability of our recently acquired businesses as well as the overall
growth rate of the Group achieved through acquisition. This has largely been
the result of our ability to enhance the value of our acquisitions through our
cross-selling model and this has led to this natural progression, driven by
customer demand, into the Managed Services Sector.

With Network Partners, we are now positioned to not only expand our offering to
both new and existing customers but to also capture an increased proportion of
customer spend through the provision of both network and related telecoms
services. I have been very impressed with the management of Network Partners
and look forward to reaping the rewards of their expertise as we grow into this
exciting sector.'

-Ends-

Further Information:

Ian Smith, CEO

Matrix Communications Group Plc: 0870 737 5000

cheers GF.

Another excelent day for this one, suprised nobody on the board is interested, whats that 22% in 5 days. Oh well.

cheers GF.

Morning GF, More than interested, been with MXC since the Offshore Telecom days and certainly intend to stick! Every reason to hold, this IMHO is just the beginning and I certainly look at it as along term hold. Good Luck.

Me to! Brought about 5 months ago and just into profit after the 40-1 split shall be holding for at least 12 months.

Ted1, Well done, pleased that your showing a profit. IMO think these will bounce again either with Contract News or if before, when figures are published. Good start this morning, hope people will remember that what appears to be relatively small volume was x40! Good Luck.

Nice to see you guys aboard. Its slihtly down today but shares never go up in straight lines.

cheers GF.

Tip update: Matrix jumps on big acquisition
Published: 09:17 Tue 16 Nov 2004

By Algernon Craig Hall, Secret Buying Correspondent
Email to a friend


Shares in Matrix Communications, which was tipped by Citywire last week, have jumped on news of what it describes as its most strategic acquisition to date.

Matrix (MXC) will pay up to 12 million for Network Partners. It will fork out 5 million in cash up front and the remaining 7 million as equity if certain earn out targets can be achieved over the next two years.


The acquisition moves the group into the managed service sector, which basically means clients will be able to outsource their telecoms functions to Matrix.


Matrixs chief executive Ian Smith said: 'I have been very impressed with the management of Network Partners and look forward to reaping the rewards of their expertise as we grow into this exciting sector.'


Matrix has been very successful at making use of cross selling opportunities resulting from acquisitions and it is hoped that Network will be no exception.


In the year to the end of September 2003 Network reported audited pre-tax profits of 1 million on turnover of 7.5 million and it has recurring contract revenue for the year ending in October 2005 of 10 million.


Citywire Verdict:
Give the success of Matrix's acquisitions to date it is not surprising that today's news has gone down well. Matrix has detected an appetite for the kind of services Network Partners can offer among its clients.


The shares are up 6.5p at 169p which marks a 17% rise on our 144p tip price last Tuesday. They have had a strong run recently but arguably have deserved re-rating.


A data storage business would still make a good fit with Matrix and management is on the look out for the right opportunity.

Cheers GF

David Johnson at Daniel Stewart sets a target price of 9p on the shares of Formjet (currently 4.25p) following a trading statement. Despite setbacks he expects the company to achieve revenue growth of more than 90% during 2004 and move into profitability from small loss in 2003,

Mr Johnson has also been looking at Matrix Communications, which has just announced 'its most significant acquisition to date that should enhance earnings for the current financial year and beyond'. He has upgraded his forecast for 2005 and 2006 and increased the price target to 215p from the current 162p
cheers GF.

Share price starting to move this afternoon could the BIG deal be just around the corner ?

Could be. Which one are we talking about?.

cheers GF.

Hoping for the continuation upwards from Friday.

cheers GF.

Moving up nicely. Dont forget broker target price of over 2 quid.

cheers GF.

Moving nicely.

cheers GF.

GF
Speculation of a MAJOR deal with Vodafone, has been for quite a while now. I believe they are down to the last 2.

Thanks Ted very interesting indeed. If that comes off the price should move some.

cheers GF.

Down 5p today so added.

cheers GF.

If deal goes through should be earnings enhancing from day one. Good news in my opinion.

Matrix Communications, Harrier in talks that may lead to offer for Harrier
AFX


LONDON (AFX) - Matrix Communications Group PLC and Harrier Group PLC said they are in preliminary discussions that may or may not lead to an offer for Harrier by Matrix.

Earlier this month, Harrier said talks with Articon-Integralis AG regarding a merger of the two companies had been terminated.

Talks between Harrier and Articon stalled earlier this year when a significant minority of Articon shareholders objected to the terms of the takeover.

bam

cheers GF.

Matrix Communications confirms may buy Equip Technology; Signs preliminary pact
AFX


LONDON (AFX) - Matrix Communications Group PLC confirmed it has signed a preliminary agreement that may or may not lead to the acquisition of Equip Technology Ltd.

Equip is a profitable distributor of network security products and is Juniper Network's Inc largest European partner.

Matrix said the successful completion of the Equip transaction and the possible acquisition of Harrier Group PLC would complete its current acquisition strategy.

newsdesk@afxnews.com

jc

cheers GF.

Here we go guys VODAFONE deal in the bag

Matrix Communications Group PLC
24 December 2004


24th December 2004

Matrix Communications Group plc

('The Group')

Contract Win

Matrix Communications is delighted to announce that yesterday it was awarded a
Global contract with a wireless operator. Further details will be made
available in 2005.


-ENDS-

Further Information:

Ian Smith, CEO
Matrix Communications Group Plc: 01342 871 888

Andrew Tan
Hansard Communications: 020 7245 1100




This information is provided by RNS
The company news service from the London Stock Exchange

Yipee its going up like the clappers. What a fantastic way to end the year.

cheers GF.