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.

grevis2 - I could be wrong but I think the results for the year ended 31.10.2005 are due to be announced shortly.

I wouldn't touch this company with a barge pole.

I expect another profit warning with the results.

The IT markets they operate in are very very tough and margins under severe pressure.

The margins are actually very good with this company.........As the focus is not actually on legacy or comoditised products and services.......The margin on emerging technologies are as stated very good.

Margins are under severe pressure believe me.
I work in the IT sector and know this.

Marvellous photo Andy.

That's me Brian Carey scoring.

Against who ?

Brian,

Rhyl 2004.

Link

Brian,

Cherries v Spirites this afternoon, Hayter's last match for us I fancy!

cu later

Good luck Andy.

I was at that Rhyl game right behind the goal Carey scored at but I don't remember it.

Old age.

No , your just thick.

Langdon still at it on all the MXC threads.
must be hard work slagging off MXC. whatever did they do to you?

Silverback

Langdon has called MXC 100% correct since last Spring.

He called them a strong sell and indeed shorted them at 220p.

They are now 125p and will go lower.

Matrix are simply being priced out of new contracts.

When he called them a sell at 220p everyone said "oh but the institutions bought at 200p so thats the floor".

Load a bollox that.

IS reputation in the IT industry is in tatters mark my words.

I know a lot of people in the IT industry and MXC are a laughing stock.

MXC are now trying to flog every division they own as the business has gone EX GROWTH.

MXC...RIP.

Fair value 50p or lower.

Matrix holders have been taken hook,line and sinker to the cleaners.

IS was offloading stock at 200p+.

Whatever happened to those awful buy recommendations from the house broker who was living in cloud cuckoo land ???????????????

Heading to 50p , chart is bloody awful.

HAIL THE MASTER DIL.

lol

your an effing genius how do you do it ?

The kids pick em for me.

Oi pejic .... 50p

Can I help you squire ?