RNS Number:4964R
SMC Group Plc
03 April 2008


3 April 2008
                                 SMC Group Plc

                              Preliminary Results
                      For the year ended 31 December 2007


SMC Group Plc (SMC.L), the architects and design business, announces its
Preliminary Results for the year ended 31 December 2007.


Highlights
     
*    Turnover increased by 42% to �44.2m (2006: �31.2m)

*    EBITDA* increased by 16% to �5.2m(2006: �4.5m)

*    H2 EBITDA* increased by 333% to �4.0m (H1 �1.2m )

*    Operating (Loss)/Profit (�3.0m) (2006: �3.1m)

*    Profit before tax & amortisation* �2.1m (2006: �2.7m)

*    (Loss)/Profit for the year (�4.2m) (2006: �1.0m)

*    Basic earnings per share (8.7p) (2006: 2.4p)

*    Open Offer completed raising �15.1m in January 2008 reducing debt by �13.3m

*    Deferred Consideration liabilities reduced by �4.9m in the year

*    New Managing Director Appointed, Senior Management Strengthened

*    Clear strategy to deliver organic growth and synergies from
     integration of businesses- business restructured to deliver common goal

*    Outlook encouraging with a record 70% revenue visibility at the
     beginning of the financial year

*before exceptional items


Executive Chairman Sir Rodney Walker said

"We are pleased to have successfully resolved the issues we experienced in 2007.
We now have a restructured business platform from which we can move forward and
grow profitably. We have a clear strategy of driving organic growth and
delivering profitability from our enviable market position, which, under the
stewardship of our new MD Chris Littlemore, will deliver greater efficiencies
and enhancement of our architectural output and service delivery to our clients.

SMC has had a strong start to the new financial year. In January 2008, the
visibility of confirmed revenue for the year was 70% of our target which is
higher than the comparable figure of 65% at the start of 2007.  Indeed, one of
our biggest challenges this year will be to secure and retain the best people.

We are confident that through the continued support of our clients and talented
and loyal staff, we can look to the future with optimism as one the largest
architectural businesses in the UK."


For further information please contact:

 SMC Group Plc                                          Tel: +44 (0)20 7495 5335
 Chris Littlemore / Rob Boardman

 Numis Securities Limited                               Tel: +44 (0)20 7260 1000
 Stuart Skinner / Brent Nabbs / James Serjeant

 Financial Dynamics                                     T: +44 (0)20 7831 3113
 Jonathon Brill / Billy Clegg / Caroline Stewart


Chairman's Statement

Sir Rodney Walker

I am pleased to be able to write this report to you in the context of some
positive results for SMC and at the start of what is an exciting period for the
business following the successful resolution of the issues the Group faced in
early 2007.

We completed the implementation of an in depth review and restructuring of the
business in June and July. We were only able to take the necessary action to
deal with the historic revenue recognition issues and loss making business units
following the departure of the former CEO at the end of May. Our bank HBOS
supported us through the process of restructuring, whilst we examined our
strategic options. I remain grateful for their support through a year of
challenge and change.

We spent considerable time working with the vendors of businesses acquired
during the period of rapid growth of the Group in 2006, to reduce, restructure
and cap future deferred consideration payments strengthening our balance sheet.
I am pleased to report that these tasks have been achieved. This has ensured
that we can proceed into 2008 and beyond on a sound financial basis. I am
grateful to Ironshield for having the confidence in the business to underwrite
the Open Offer, and our advisers and members of our management team,
particularly Robert Boardman, for working so hard to deliver a successful
fundraising. We can now move forward on a sound footing with a secure platform
for growth.

As a result of the successful refinancing process of late 2007 when we secured
�15.1m via the Open Offer, an opportunity to deliver a major change in the ethos
of the business now exists. The previous corporate structure of a collection of
individual businesses working toward their own earn outs, encouraged a somewhat
protectionist attitude amongst some of our business units. We are now able to
work together and this approach should allow us to benefit from the cross
fertilisation of skills and resources.

I am pleased to welcome Chris Littlemore as our new Group Managing Director.
Chris is an experienced Architect and was previously MD of our largest
acquisition to date. Throughout the difficulties we had to deal with in 2007,
Chris impressed me as we worked to resolve many of the issues faced. He showed
strategic vision and a pragmatic ability to deliver bottom line performance. The
board were unanimous in inviting him to take on this new role. Through the
efforts of Chris and a strengthened senior management team including the
appointment of three regional chairmen, we will deliver our vision of an
integrated business. We are bringing together the considerable talent of our
staff and loyal client-base across the country and beyond, to maintain and
improve a position at the forefront of our industry.

We have been recorded, by the Architects Journal Top 100 practices in 2007, as
lying 2nd in the league of architectural businesses in the UK. This measure is
by numbers of registered architects employed within the business. We are aiming
to consolidate this position not only by reference to our size and capacity, but
also by reference to our product offering, our service quality and by our
financial performance.

The vision statement of 'Creative Brilliance with Commercial Reality', put
forward by Chris is one that I wholly support. Through his experience, I am
confident that the tensions between the creative and economic disciplines in an
architectural business can be held in balance to the benefit of clients, staff
and shareholders.

Having taken on the role of Executive Chairman in February 2007, I instigated
some measures in terms of cost cutting, staff changes and closure of loss making
entities that have helped provide the positive results we achieved in the second
half of last year against the difficulties we faced in early 2007. The changes
implemented, gave rise to a 333% increase in our pre exceptional EBITDA
performance between the first and second halves of the year. With a cohesive
strategy for the further integration and rationalisation of the Group now under
way, our target is to deliver even greater efficiencies and enhancement of our
architectural output and service delivery to our clients.

The geographical and sector spread of our clients and offices gives me the
confidence that the Group can grow organically via our existing business units
at home and abroad where our overseas offices are enjoying buoyant trading. In
time we will consider appropriate acquisitions again, looking specifically to
India and further development of SE Asia and parts of Europe as well as the UK
where we believe opportunities still exist to strengthen the Group both
geographically and in specific architectural sectors. Any future acquisitions
will however need to be undertaken on a more controlled and inclusive basis than
in our recent history with the aim to integrate any new businesses into the
structure of the Group more rapidly than in the past.

The privately funded market place has seen some uncertainty in the last few
months and we are mindful of the ongoing macro economic situation. Despite this
climate, we have robust, committed and sustainable work flow from a wide cross
section of client bodies in the residential, commercial, industrial, retail,
leisure and hotel sectors. Overlaid with this, we have seen an increasingly
substantial amount of publicly funded construction design work projects in
education, including nurseries, schools, further education colleges,
universities and research establishments, government facilities, public leisure
buildings, defence and government office buildings.


Outlook

One of our biggest challenges remains our ability to attract and retain the best
people to allow us to provide further organic growth from our existing bases. In
January 2008, the visibility of confirmed revenue for the coming year was 70% of
our target which is higher than the comparable figure of 65% at the start of
2007, although we acknowledge some uncertainty in the property sector in the
near to mid term. Through the continued support of our clients and talented and
loyal staff, we have together ensured that we can look to the future with
commensurate optimism as one of the largest architectural businesses in the UK.


Sir Rodney Walker
Chairman
SMC Group Plc
2nd April 2008


Managing Director's Report

Chris Littlemore


Introduction

I am excited to have been appointed the Managing Director of SMC Group Plc on
1st February 2008 at a point where I believe significant opportunities for
increased growth and profitability are available to the business. I was
previously Managing Director of SMC Charter Architects, the Group's largest
operating entity.

In March 2007 I was invited by the Chairman to join a small review panel of
senior directors to assess the difficulties faced by the Group. Following this
review the Board took action implementing our recommendations in full. Once the
former CEO had left in May 2007 changes were made quickly to stabilise the
business and improve profitability.

Resolution of the Group's debt position, both to the bank and arising through
contingent deferred considerations due to vendors of acquired businesses,
remained key to the long term future of the business. The directors highlighted
this issue in September 2007 in the interim financial statements. Having
explored various strategic options, the Group's balance sheet was strengthened
by the completion of a fully underwritten open offer of �15.1m. At the same time
successful negotiations reduced the Group's liabilities to vendors by some
�2.5m.

This provided an important base from which to move forward profitably. This
stability and strengthened financial position has presented us with the
opportunity to reshape the Group with a regional structure and an enhanced
senior management team of experienced Architects.

The strategy for growth is clear and remains to work towards a greater degree of
cohesion between the operating units of the Group. This cohesion will provide a
more unified, consistent and efficient approach to the delivery of our services.
There have already been significant savings through the efficiencies instigated
during the second half of 2007 and I have identified in excess of �0.5m of
operational savings to be delivered in the medium term in 2008 and in 2009 with
no anticipated adverse effect on revenue or service to our clients.

The performance of our staff has been consistent and conscientious and the Board
is grateful for their ongoing contribution. It is also right that I should
express on behalf of the Board our collective thanks to the Chairman who led the
Group through the challenges of 2007 to stabilise the Company. I would also like
to thank Ironshield for their confidence in the Group, to our bankers HBOS for
their continued support and to my colleagues on the Board for their confidence
in me and continued hard work and support.


Financial Performance

EBITDA* for the first half of 2007 was �1.2m from a turnover of �21.1m.
Following the changes and management adjustments recorded above, the second half
turnover of �23.1m was 9% ahead of the first half, with EBITDA* significantly
increased by 333% to �4m. Exceptional costs due to write-offs of Work in
Progress, Debtors and Restructuring Charges over the year were �5.5m

*before exceptional costs


Refinancing

The Open Offer in January 2008 allowed SMC to reduce its liabilities by �15.1m
after costs via the �13.3m net proceeds of the fundraising and the �2.5m
reduction in contingent consideration liabilities. The Open Offer has allowed
SMC's net debt to be reduced to a more appropriate and manageable level. The
refinancing has also allowed SMC to attract better terms from its bankers which
will reduce finance costs going forward, reducing term debt by �3.0m.
Importantly all further deferred consideration is capped and any payments are
dependent on future share price improvement - which again means that the vendors
employed by the Group are incentivised to work together to achieve success.

The Open Offer which was underwritten by Ironshield, was also supported by every
one of the directors of SMC Group Plc who purchased shares. Following the
transaction, Ironshield now holds approximately 73% of the issued share capital
of the Group.  Ironshield's strategy is to support management in the running of
a profitable business. David Nazar, Managing Director of Ironshield, has
confirmed whilst there is no intention of intervening in the day-to-day running
of the Group, that following an invitation from the Chairman, a non-executive
Director from Ironshield will be appointed to the SMC Board in due course.


Restructuring

The Group has been re-structured in order to deliver a more cohesive
relationship between operating units and management. A new Operational board has
been created to oversee the day to day management of the business. This has
already resulted in greater efficiency, sharing of skills and collaboration.
Four new regions have been created: 'Southern England', 'Northern England', '
Scotland' and 'International'. Apart from my own appointment, the senior
management team has also been strengthened by the creation of this Executive
Management Board with significant architectural insight and experience:

*    Sir Rodney Walker remains as Executive Chairman in the short term, and
     will in due course return to a non-executive role.

*    Robert Boardman BA (Hons) ACA moves from Finance Director to Corporate
     Development Director, reflecting the wider role he has played during
     restructuring and the business in 2007.

*    Robert Hall BA(Hons) BArch RIBA is appointed to the Executive
     Management Board of the Group as Scottish Regional Chairman

*    Philip Lees BA(Hons) DipArch RIBA is appointed to the Executive
     Management Board of the Group as Northern Regional Chairman

*    Jonathan Morgan BA(Hons) BArch RIBA is appointed to the Executive
     Management Board of the Group as Southern Regional Chairman
     
*    FD:- The Group is currently in the process of recruiting a Financial
     Director with relevant industry and city experience to complete the 
     executive management team.


Market Position and Opportunity

SMC is one of the UK's largest Architects businesses employing more than 600
talented people both in the UK and in our offices in South East Asia who are
capable of delivering creative and commercially effective architectural
solutions to a wide variety of clients.

The Group's acquisition programme has produced an architectural Group with:

*    Scale and geographical diversity across the UK plus offices in South
     East Asia.

*    A strengthened pipeline and order book of long-term public sector work, 
     including education, health, civic and leisure buildings, transport and
     defence.

*    Wide range of privately funded work across all main development sectors, 
     including commercial, residential, retail, industrial, distribution, mixed 
     use, hotels and leisure, master-planning, health and private education.

*    A mobility of skill base that facilitates improved delivery to clients.

*    Exposure to emerging overseas markets in South-East Asia and India.

To demonstrate the continuing variety and scale of new instructions recently
received, the following projects are an example of just a few commissions won
since the start of 2008 which total an estimated �300m construction value with a
fee in the region of �7.4m:
     
-    Defence Projects - Gosport and Plymouth
-    Hotel and Mixed Use Residential Scheme - Glasgow
-    Student Housing - Exeter
-    Major Manufacturing Facility - S Coast
-    2 Further Education College Projects
-    Veterinary Laboratory Hospital
-    2 Public Swimming Pools - East Midlands
-    Airline Training Facility - Sussex
-    5 Hotel Projects across UK for International Chain
-    NHS Board Framework Glasgow - 4 projects
-    Inverclyde Schools PFI
-    Central Manchester Urban Regeneration Concept Masterplan
-    Supermarket - Cheshire

We have also won significant awards for our work in 2007 - examples of these
awards are:
     
-    MIPIM Future Projects Awards, 'Big Urban Projects' Category: Riverside One
     (Middlehaven Masterplan), Middlesbrough, UK
-    Cityscape Architectural Review Awards, (Tourism, Travel & Transport-
     Built): Clarke Quay, Singapore
-    RIBA Commercial Building Prize for the London Region: Palestra, London, UK
-    Dumfries Dental Centre won the NHS Scotland Environment Estates and
     Facilities Design Award 2007

Our aim is to continue to build on the changes made and to make our business a
leading firm of professionals capable of delivering architectural solutions that
add value for our clients, whatever the brief or issues they encounter.


Strategy

My priority since becoming Group MD on 1 February 2008, has been to construct
and lead a management team, which can deliver creative solutions to our clients
and prioritise quality design and tight financial control/commercial acumen
within the demands of a major architectural practice.

I want to establish a new corporate vision of 'creative brilliance with
commercial reality' supported by a set of values implemented across every
business location.

The strategy is clear and simple in terms of driving organic growth and
delivering profitability from our enviable market position as well as keeping an
eye on possible longer term opportunities to grow more quickly by acquisition.


Control Systems and Financial Measurement

We have continued the much tighter level of commercial and financial control
including:
     
*    The introduction of project by project KPI analysis across the Group
     on common formulae.

*    The introduction of a new unified accounting system.

*    The introduction of a new credit control system.

*    The appointment of Regional Financial Controllers to monitor financial
     performance with greater visibility to each team of operation.

*    A rationalisation of staff terms and conditions and incentivisation
     schemes.

*    Cross-Group brand management and co-ordination.

*    The centralisation of HR management.



The following KPI's and commentary help to illustrate our progress:

KPI'S and commentary                                                                           2007       2006

WIP days                                                                                         55        139
WIP controls in place and working to reduce/control revenue recognition
Debtor days                                                                                     131        158
Decreased with improved credit control procedures
Staff costs as % of turnover                                                                    56%        54%
Increase due to wage pressures in sector - staff numbers decreased from 655 to 621 as
31 December 2007
Confirmed turnover                                                                              70%        65%
Record level of secured turnover as at January 2008
EBITDA* margin                                                                                  12%        10%
Increased following cost savings and improved turnover following review- H2 07
improvement diluted by H1

* EBITDA pre exceptional costs


Quality

To ensure the delivery of higher quality design product and service, immediate
steps include:-
     
*    Regular peer to peer design review processes in each office location.

*    Rebranding exercise coupled with a vision and a set of core values
     that permeate throughout the business

*    Introduction of unified Quality Management Systems across the
     organisation.

*    Introduction of Environmental Management Systems across the
     organisation.

*    The appointment of a Brand Manager to enhance and monitor our image
     internally as well as externally.

*    The implementation of the Investors in People Programme


Future Opportunities

The Group moved through a difficult phase in 2007 into 2008 refreshed and on a
firm financial platform. In the future, we intend to deliver on the following
opportunities:
     
*    Exploit the Group's scale/critical mass by successfully completing the
     restructuring and integration programme.

*    Develop and expand the strong base of repeat clients and commissions. The 
     Group's order book is excellent and demonstrates our ability to grow
     organically.

*    Maintain and develop the robust multiple sectors in which the Group
     operates to benefit from diversification of earnings and respond to the 
     cyclical nature of certain industries.

*    Ensure the correct balance between public and privately funded work is
     maintained.

*    Develop additional highly technical service skills responding to the
     green/sustainable design agenda, which has been driving new legislation in 
     much of Europe.

*    Seek growth opportunities including potential expansion of South-East Asia 
     / India and parts of Europe by taking advantage of expanding economies.


Outlook

Our pre-committed workflow for 2008 is robust and includes a high level of
publicly funded work in the education and research sectors, as well as other
government construction projects. Our privately funded work in the retail,
commercial, residential and industrial sectors provides a balanced revenue
structure.

The business has been trading well - as we expected -following the changes made
in H1 2007 .This is evident in our H2 2007 profits before exceptional costs and
ongoing profitability.

We believe that further cost savings of at least �0.5m in 2008 are achievable
over and above the �2m achieved to date, with a further potential annualised
saving of �1m for 2009. The longer-term increase in design quality and service
delivery will assist in revenue enhancement and recruitment opportunities for
key skills.

Future prospects for the Group are encouraging. SMC continues to attract
substantial projects across a wide range of public and privately funded market
sectors. This demonstrates the Group's ability to generate and retain
high-profile work and deliver it with consistent quality and profitability.

As at January 2008 70% of the Group's revenues for 2008 were already confirmed.
The quality of SMC's work has been publicly recognised with design awards being
won by many of the Group's businesses. This reflects well on the ability of the
operating companies to maintain the confidence of their client-base and their
colleagues.


Chris Littlemore
Managing Director
2nd April 2008


SMC Group Plc
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2007
                                                                                     Pre
                                                                             Exceptional Exceptional     
                                                                                   Costs       Costs     Total 
                                                                                    2007        2007      2007      2006
                                              Notes                                 �000        �000      �000      �000
Revenue                                                                           44,169           -    44,169    31,205
Cost of sales                                                                   (23,063)           -  (23,063)  (16,285)

Gross Profit                                                                      21,106           -    21,106    14,920
                                                                                
Administrative expenses
             -Other                                                             (15,949)     (5,475)  (21,424)  (10,461)

EBITDA *                                           1                               5,157     (5,475)     (318)     4,459
                                                                                            
            -Depreciation                                                          (817)           -     (817)     (420)
            -Amortisation                                                        (1,837)           -   (1,837)   (1,006)
                                                                                                   
Total Operating Expenses                                                        (18,603)     (5,475)  (24,078)   (11,887
Share of results of joint                                                           (30)           -      (30)        90
venture - post tax

Operating Profit / (Loss)                                                          2,473     (5,475)   (3,002)     3,123

Finance revenues                                                                     372           -       372        48
Finance costs                                                                    (2,556)           -   (2,556)   (1,451)

Profit / (Loss) before taxation                                                      289     (5,475)   (5,186)     1,720

Taxation                                                                           1,026           -     1,026     (774)
                                                                                   
(Loss) / Profit for the year attributable 
to equity holders of the parent                                                    1,315     (5,475)   (4,160)       946

Earnings per share (in pence)
Basic                                              3                                                    (8.66)      2.37
Diluted                                                                                                 (8.66)      2.26

The Directors will not propose a dividend to the annual general meeting based on
the financial statements for the year ended 31 December 2007.

*Earnings before interest, depreciation and amortisation.


SMC Group Plc
CONSOLIDATED BALANCE SHEET
As at 31 December 2007

                                                                2007          2006
                                                Notes           �000          �000

Non-Current Assets
Goodwill                                                      20,967        22,563
Other intangible assets                                       15,925        17,762
Property, plant and equipment                                  1,836         1,956
Investment in joint venture                                       35           133
Financial assets                                               1,606         1,429

Total Non-Current Assets                                      40,370        43,843

Current Assets
Trade and other receivables                          4        24,393        26,783
Cash and short term deposits                                     244         1,276

Total Current Assets                                          24,637        28,059

Total Assets                                                  65,007        71,902

Current Liabilities
Trade and other payables                                      11,695        10,309
Current tax liabilities                                          967         1,396
Interest bearing loans and borrowings                6         5,763        17,165
Provisions                                           5         6,956         2,991

Total Current Liabilities                                     25,381        31,861

Net Current Liabilities                                        (744)       (3,802)

Non-Current Liabilities

Trade and other payables                                         125           132
Interest bearing loans and borrowings                6        14,529         1,544
Provisions                                           5           425         9,318
Deferred tax liabilities                                       4,396         5,421

Total Non-Current Liabilities                                 19,475        16,415

Total Liabilities                                             44,856        48,276

NET ASSETS                                                    20,151        23,626

Equity Attributable to Shareholders of the
Parent
Share Capital                                                    248           230
Share premium                                                 13,634        13,536
Merger reserve                                                 8,106         7,368
Treasury Shares                                                (158)         (150)
Retained Earnings                                            (1,679)         2,642

Total Equity                                                  20,151        23,626


The financial statements were approved by the board and authorised for issue on
2 April 2008 and signed on its behalf by

ROBERT BOARDMAN

CHRIS LITTLEMORE



SMC Group Plc
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2007

                                                                   Notes              2007                 2006
                                                                                      �000                 �000

Operating Activities
Cash generated / (absorbed) by operations)                                           2,681                (349)
Tax paid                                                                             (428)              (1,013)

Net Cash Flow from Operating Activities                                              2,253              (1,362)

Investing Activities
Interest received                                                                      372                   40
Proceeds on disposal of property, plant and equipment                                    -                  370
Purchases of property, plant and equipment                                           (742)                (492)
Payments for subsidiaries                                                          (2,415)             (13,092)

Increase in other financial assets                                                       -              (1,429)

Net Cash Flow Used in Investing Activities                                         (2,785)             (14,603)

Financing Activities
Interest paid                                                                      (2,056)                (928)
Dividends paid to equity holders of the parent                                       (161)                (394)
New bank loans                                                                       7,936               15,125
Repayment of bank loans                                                              (804)              (8,856)
Proceeds from issue of new shares                                                       89                7,489
Redemption of loan notes                                                           (2,323)                    -
Repayment of capital element of finance lease obligations                            (179)                (101)

Net Cash Flow From Financing Activities                                              2,502               12,335
Increase/(Decrease) in Cash and Cash Equivalents                                     1,970              (3,630)

Cash and cash equivalents at beginning of the period                               (5,191)              (1,561)

Cash and Cash Equivalents at the End of the Period                                 (3,221)              (5,191)



1.      EXCEPTIONAL COSTS
                                                                                                        2007
                                                                                                        �000

Provisions against amounts recoverable on long term contracts                                          2,510
Provisions against trade debtors                                                                       1,521
Redundancy and reorganisation costs                                                                    1,149
Aborted transaction costs                                                                                295

                                                                                                       5,475

There were no exceptional costs in 2006.



2.      DIVIDENDS

No dividend was declared for the year ended 31 December 2007. In the prior year,
an interim dividend of 0.35 pence per share was paid in January 2007 totalling
�161,234. No final dividend was paid.



3.      EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share is based on the
following data:
                                                                                      2007              2006
                                                                                      �000              �000

(Loss) / Profit for the year attributable to equity holders of the                 (4,260)               946
parent
                                                                                     2007              2006
Number of shares                                                                     '000              '000

Weighted average number of ordinary shares for the purpose of basic                48,011            39,940
earnings per share
- Employee share options                                                              532             1,847
- Contingent share consideration                                                        -                 -

Weighted average number of ordinary shares for the purpose of diluted              48,543            41,787
earnings per share

On 18th January 2008 the Company completed a fundraising of �15.1 million,
before expenses by way of an open offer of up to 188,377,187 New Ordinary Shares
at a price of 8.0 pence per New Ordinary Share.



4.      TRADE AND OTHER RECEIVABLES

                                            2007       2006
                                            �000       �000

Trade receivables                         15,928     13,470
Amounts recoverable on contracts           6,622     11,894
Other debtors                                261        364
Prepayments                                1,582      1,055

                                          24,393     26,783



5.      PROVISIONS

                                                                                      2007                2006
                                                                                      �000                �000

Contingent cash consideration                                                        7,381               7,595
Contingent share consideration                                                           -               4,714

                                                                                     7,381              12,309
Less: due within one year                                                          (6,956)             (2,991)

                                                                                       425               9,318



6.      FINANCIAL LIABILITIES

                                                                                      2007                 2006
Current                                                                               �000                 �000

Bank overdrafts                                                                      3,465                6,467
Bank loans                                                                           1,875                7,868
Obligations under finance leases                                                       188                  272
Loan notes                                                                             235                2,323
Interest rate swap                                                                       4                    -

                                                                                     5,767               16,930


                                                                                       2007                2006
Non current                                                                            �000                �000

Bank overdrafts                                                                           -                   -
Bank loans                                                                           14,475               1,350
Obligations under finance leases                                                         54                 194
Loan notes                                                                                -                 235
Interest rate swap                                                                      132                   -

                                                                                     14,661               1,779


7. POST BALANCE SHEET EVENTS

The following post balance sheet events have occurred since the year end.

On 18th January 2008 the Company completed a fundraising of �15.1 million,
before expenses by way of an open offer of up to 188,377,187 New Ordinary Shares
at a price of 8.0 pence per New Ordinary Share. The proceeds of the Open Offer
of approximately �13.3 million (net of expenses) were used to satisfy the
deferred consideration payments of, in aggregate, approximately �6.2 million in
2008 pursuant to variation agreements with vendors. The remainder of the
proceeds are being used to repay approximately �3.0 million of the Group's term
loan facilities and repay approximately �3.0 million of the Group's working
capital facility.


8.  Publication of non-statutory accounts

The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2007 or 2006, but is derived
from those accounts.  Statutory accounts for 2006 have been delivered to the
Registrar of Companies and those for 2007 will be delivered following the
company's annual general meeting.  The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) Companies Act 1985.




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