Year End Trading Statement

RNS Number:3884H
BNS Telecom Group plc
08 August 2006



8 August 2006



BNS TELECOM GROUP PLC



Trading Statement



BNS Telecom Group plc (AIM: BTP), one of the UK's leading providers of telecoms
services to the UK SME and corporate market, is today issuing a trading update
for the year to 31 July 2006.



The Group's overall trading performance in the second half of the year was
encouraging and the Board expects the results for the financial year to 31 July
2006 will be in line with expectations.



BNS has substantially increased both hardware and mobile sales in the second
half of the financial year as a result of restructuring of the Group's direct
sales team.  There was also an overall improvement in direct sales of fixed and
mobile lines and call traffic contracts.  Customer churn remained low and in
line with Board's expectations.



Whilst the Board anticipates growth in revenues will continue in the financial
year to 31 July 2007, some of the new joint marketing relationships have not
contributed as quickly as expected. To ensure continued profitability, the Board
has restricted the number of sales executives to a lower level than envisaged at
the flotation in November 2005. The Board continues to monitor the development
of new marketing relationships and will increase the sales force when
appropriate.



In June 2006 the Group renewed a two year business reseller agreement with
Vodafone.  This, together with improvements in the mobile sales management team,
will assist the Group in improving mobile services penetration of the existing
customer base.



The four businesses acquired in this financial year for approximately #1.2
million have now been fully integrated into a new division. These businesses
encompass voice and data switches with a VoIP gateway and VoIP switching
platform, white label and prepaid mobile services, billing software and VoIP
hosting services.  The new division, headed by Mark Stewart who was appointed to
the PLC Board on 7 August 2006, has developed one of the UK's largest VoIP
networks providing wholesale international voice and data carrier services for
both fixed and mobile customers. The division is already profitable and is
expected to make a positive contribution to the Group's results in the financial
year to 31 July 2007.



The Board expects the Group to make steady progress in the current financial
year, particularly as the newly acquired businesses provide significant cross
selling opportunities to existing customers as well as new prospects.



The Group expects to report its preliminary results for the year to 31 July 2006
in October 2006.



Enquiries:


BNS Telecom Group plc

Garry Moat, Managing Director                               Tel: 01661 839 554

David Horrocks, Finance Director

College Hill

Adrian Duffield/Corinna Dorward                             Tel: 020 7457 2020






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