Interim Results - 6 Months to 31 October 1999

Anite Group PLC
11 January 2000



                     ANITE GROUP PLC ('ANITE')
                                 
    Interim results for the six months ended 31st October 1999

Anite Group plc, the systems integration and IT services business,
announces  continued improvement in its performance, and  is  well
positioned for strong growth in the future:

HIGHLIGHTS

*  Profit before tax* up 33% to £6.0m (1998/9: £4.5m)
*  Earnings per share* up 23% to 1.6p (1998/9: 1.3p)
*  Turnover  of continuing operations up 32% to £81.7m   (1998/9:
   £61.8m)
*  Strategic  focus  to  be  a 100% IT consultancy  and  services
   company
*  German  business provides a unique opportunity to exploit  the
   largest IT market in Europe
*  Strengthening presence in e-commerce and Telecoms software
*  Property rationalisation progress

*Before goodwill and profits on disposals

Commenting on the results Alec Daly, Chairman said:

'Our 1999 half year was another successful trading period. We have
made  a  number  of complementary acquisitions and  completed  the
Networks  disposal.  Our focussed strategy, together  with  strong
management  throughout the Group, continues  to  deliver  improved
trading results.

We  will now seek to build on our early successes in supplying the
fast growing demand for e-commerce services.

Following a good start to the second half, I am confident that the
Group  will continue to grow and will benefit from the significant
opportunities in the IT sector.'

For further information please contact:

Anite Group plc (www.anite.com)  On 11th January 0171 253 2252

John Hawkins, Chief Executive         thereafter 0118 945 0121
Simon Hunt, Finance Director

Ludgate Communications                           0171 253 2252

Reg Hoare/Edward Macquisten


                       CHAIRMAN'S STATEMENT

      Interim results for the six months to 31st October 1999

Introduction

I am pleased to report Group profits before goodwill and disposals
of £6.0m, 33% up on 1998 profits of £4.5m. Earnings per share were
up  23%  at 1.6p (1998: 1.3p). Turnover from continuing operations
increased 32% to £81.7m (1998: £61.8m). All of our businesses grew
strongly, except IT Personnel, which was affected by the  industry
slow  down prior to the Millennium. Cash balances stood at £9m  at
the half year.

We  continue  to  focus  on our core businesses  in  high  end  IT
consultancy  and  services,  and  our  growing  global  e-commerce
business.

IT Consultancy & Services

Profits  of our consultancy businesses more than doubled to  £3.7m
(1998: £1.5m). Turnover was up 92% to £36.6m (1998: £19.0m).

GMO performed in line with expectations, and made good progress in
developing its e-commerce business. GMO acquired the remaining 70%
of GMO Austria, an IT consultancy business for £700,000 cash, plus
an  earn out of up to £600,000 based on future profits. BIV, whose
half  year  figures are included for the first time following  its
acquisition   in   December  1998,  produced  a   strong   profits
contribution.  The acquisition of Jurgen Spahr for £800,000,  plus
an   earn   out  of  up  to  £400,000  based  on  future  profits,
strengthened BIV's activities in the German Defence sector. Q  and
R's  profits grew strongly as a result of continued demand for its
Oracle development and application management services.

Anite  Public  Sector (including Imasys) produced a strong  profit
contribution, due to high sales of its workflow solutions to Local
authority customers. Imasys Work Management, which was acquired in
August  1999,  made a profit contribution, and its  solutions  are
increasingly providing customers with e-commerce capability.

In   December   1999,  Imasys  acquired  Orbis,   which   develops
application software for Revenue departments of Local authorities.
The  purchase  price was £640,000 cash plus £450,000 satisfied  by
the  issue  of shares in the company, plus an earn out  of  up  to
£150,000.  Imasys  will  supply  Orbis's  products  to  its  Local
authority customer base, comprising 80 customers.

In  December  Imasys  also acquired part of the  local  government
solutions business of Bull Information Systems Limited (comprising
the OHMS Business, the OFMS Business and the ORBiS Business) for a
purchase price of £2.2m in cash.

Solutions - Telecoms and Travel

Profits of these businesses grew 21% to £1.7m (1998: £1.4m)  on  a
19% increase in sales to £22.3m (1998: £18.7m).

Anite Telecoms' profits grew following the launch this year of its
GPRS  solutions. We see increasing opportunities for this enabling
technology  that  provides  internet  applications  across  mobile
networks.  These solutions, which are achieving a worldwide market
share of more than 75%, are distributed to customers in the mobile
phone manufacturing and operator sectors.

Solutions   addressing  next  generation   'EDGE'   mobile   phone
technology  are  being developed for shipment in  2000/01.   These
will  widen  the capacity of current GSM networks  for  video  and
multimedia  applications.   The  majority  of  Anite  Group's   UK
research  and development of c.£3m per annum has been invested  to
take advantage of the opportunities in this area.

Following  the appointment of a new management team, Anite  Travel
returned to profits growth during the half year. The impact of  e-
commerce on its tour operator customers is providing strong demand
for its specialist consultancy services.

In  December 1999, Anite Travel acquired Opentur SRL,  the  market
leader  in  the supply of e-commerce and other solutions  to  tour
operators  in Italy. The purchase price was £2.2m, plus earn  outs
based on future profits up to £1.1m. This acquisition extends  the
activities  of Anite Travel to Continental Europe and expands  our
portfolio  of  e-commerce products and services.  The announcement
today  of  the strategic partnership with Intelligent  Environment
Group  will enable us to extend our offer of e-commerce  solutions
to the travel industry.

Anite IT Personnel

Profits were maintained at £0.5m (1998: £0.5m) on sales of  £22.8m
(1998:  £24.1m)  through tight cost control.  Following  a  strong
first  quarter,  the demand for this division's contractor  supply
services  was  affected  by weaker market conditions  as  customer
projects were delayed by the Millennium.

Disposals

We  completed our exit from Networks activities with the  disposal
in  May of our Australia / New Zealand based businesses for £10.7m
cash  on  completion.  We disposed of our loss  making  Publishing
business for £2m in August, of which £1.7m was payable in cash  on
completion and £300,000 in installments over 3 years.

Year 2000

We  have  not  been  notified  of  any  significant  instances  of
disruption to customers' businesses arising since January 1st 2000
from  systems  supplied  by us. There has been  no  disruption  to
internal systems.

Property rationalisation progress

We  completed  the termination of the lease of the Colne  building
for  a  reverse premium of £3.5m in December 1999. This marks  the
completion of the two and a half year programme to rationalise the
surplus  property portfolio that remained following the divestment
of the Group's manufacturing businesses. The current portfolio now
stands  at  260,000 square feet having been reduced  from  409,000
square  feet  at the end of April 1999. The remaining property  is
95% let (April 1999: 65%).

Cash

Our  half  year cash balances of £9m are slightly higher than  the
level  at  the year end. As we forecast in our 1998/9 report,  the
proceeds  from  the  disposal of our  Australia  and  New  Zealand
subsidiaries  have been offset by property and earn  out  payments
totalling £17m for 1999/2000.  Of this, £6.1m had been paid by the
half  year and in the second half, property and earn out  payments
will  be £10.9m.  Working capital outflows in the first half  were
£5.4m  including customer prepayments at 30th April 1999  absorbed
by current year deliveries of £3.0m.

Dividend

The  Group's policy is not to pay an interim dividend. Assuming  a
satisfactory  outcome for the financial year, a progressive  final
dividend will be paid.

Outlook

Our  1999 half year was another successful trading period. We have
made  a  number  of complementary acquisitions and  completed  the
Networks  disposal.  Our focussed strategy, together  with  strong
management  throughout the Group, continues  to  deliver  improved
trading results.

Our  core IT Consultancy & Services business, which we have  built
through acquisition since 1998, continues to perform strongly. Our
German business, comprising 30% of group sales, provides us with a
unique opportunity to exploit the largest IT market in Europe.

Following  vigorous  management  action,  the  residual  solutions
businesses  remaining from the restructuring of Anite Systems  are
now well established and are trading strongly. We will continue to
develop  our  Pan European business focussed within  the  vertical
markets  of  Finance, Telecoms, Travel, Public Sector, and  within
the  German  manufacturing and Defence sectors. Our  research  and
development investment of c.£3m per annum is being made to exploit
the  significant opportunities we see in internet-based  and  GPRS
technologies.

We  will now seek to build on our early successes in supplying the
fast growing demand for e-commerce services.

Following a good start to the second half, I am confident that the
Group  will continue to grow and will benefit from the significant
opportunities in the IT sector.

Alec Daly
Chairman


Group Profit and Loss Account
for the six months to 31st October 1999

                                  Unaudited   Unaudited    Audited
                                  6 months     6 months  12 months
                                         to          to         to
                              31st October 31st October 30th April
                                       1999        1998       1999

                           Notes      £'000       £'000      £'000
___________________________________________________________________

Turnover

Existing operations                  79,841      61,792    143,569
Acquisitions                   2      1,903          --         --
___________________________________________________________________

Continuing operations                81,744      61,792    143,569
Discontinued                          2,186      19,309     37,260
___________________________________________________________________

                                     83,930      81,101    180,829
___________________________________________________________________

Operating profit

Existing operations                   5,837       3,371      8,748
Acquisitions                   2        162          --         --
Amortisation of goodwill             (3,219)      (512)     (3,229)
___________________________________________________________________

Total continuing operations           2,780       2,859      5,519
Discontinued operations               (205)         115        102
___________________________________________________________________

Operating profit                      2,575       2,974      5,621
Share of associates'
  operating profit                       --          --         70
Profit on sale/closure
  of discontinued operations          1,821          --         --
___________________________________________________________________

Profit on ordinary activities
  before interest                     4,396       2,974      5,691
Interest receivable less
  interest payable                      294       1,012      1,097
___________________________________________________________________

Profit on ordinary activities
  before tax                          4,690       3,986      6,788
Tax on profits on ordinary
  activities                   3     (1,948)     (1,315)    (2,900)
___________________________________________________________________

Profit on ordinary
  activities after tax                2,742       2,671      3,888
Minority interest                       (94)        (70)       (82)
___________________________________________________________________

Profit for the period                 2,648       2,601      3,806
Dividend proposed                        --          --       (737)
___________________________________________________________________

Retained profit for the
  period                              2,648       2,601      3,069
===================================================================

Earnings per share - Basic     4        1.1p        1.1p      1.6p
Earnings per share - Diluted            1.0p        1.0p      1.5p
Earnings per share - before
  goodwill and profits on
    disposals                           1.6p        1.3p      2.9p
===================================================================


Consolidated Statement of Total Recognised Gains and Losses
for the six months to 31st October 1999


                                 Unaudited    Unaudited    Audited
                                 6 months      6 months  12 months
                                        to           to         to
                             31st October  31st October 30th April
                                      1999         1998       1999

                                     £'000        £'000      £'000
___________________________________________________________________

Profit for the financial
  period                             2,648        2,601      3,806
(Loss)/gain on foreign
  currency translation         2      (173)       2,208      2,079
___________________________________________________________________

Total recognised gains for
  the period                         2,475        4,809      5,885
===================================================================


Group Balance Sheet as at 31st October 1999

                                 Unaudited    Unaudited    Audited
                             31st October  31st October 30th April
                                      1999         1998       1999

                                     £'000        £'000      £'000
___________________________________________________________________

Fixed Assets

Tangible                            11,919       15,984     16,446
Intangible                          61,246       20,547     56,598
___________________________________________________________________

                                    73,165       36,531     73,044

Current assets

Stock and WIP                        4,039        2,965      2,610
Debtors                             40,224       36,744     43,080
Short term deposits                  3,000       23,890      3,000
Cash at bank and in hand             5,983        2,282      5,380
___________________________________________________________________

                                    53,246       65,881     54,070
___________________________________________________________________

Current liabilities

Bank borrowings                         --          649         --
Hire purchase                          185          141        156
Amounts falling due within
  one year                          54,467       53,895     66,225
___________________________________________________________________

                                    54,652       54,685     66,381
___________________________________________________________________

Net current (liabilities)/assets   ( 1,406)      11,196    (12,311)
___________________________________________________________________

Creditors due after one year

Hire purchase                          120          165        572
Other creditors                        481        3,750        928
Provisions for liabilities
  and charges                       39,366       23,691     34,380
___________________________________________________________________

                                    39,967       27,606     35,880
___________________________________________________________________

Net assets employed                 31,792       20,121     24,853
===================================================================

Called-up share capital             24,685       25,735     24,632
Reserves                             6,923       (5,739)       125
Minority interest                      184          125         96
___________________________________________________________________

Shareholders' funds                 31,792       20,121     24,853
===================================================================


Group Cashflow Statement for the six months to 31st October 1999


                                 Unaudited    Unaudited    Audited
                                 6 months      6 months  12 months
                                        to           to         to
                             31st October  31st October 30th April
                                      1999         1998       1999

                                     £'000        £'000      £'000
___________________________________________________________________

Net cash (outflow)/inflow from
  operating activities              (4,385)      (3,219)     1,328
Returns on investments and
  servicing of finance                 416        1,021      1,362
Taxation                               198           --       (644)
Capital expenditure and
  financial investments             (1,202)      (2,480)    (4,545)
Disposals and acquisitions           7,094      (16,972)   (36,033)
Equity dividends paid                 (737)          --       (598)
___________________________________________________________________

Cash inflow/(outflow) before
  management of liquid resources
    and financing                    1,384     (21,659)   (39,130)
Management of liquid resources          --       22,010     42,900
Financing                             (781)         931        615
___________________________________________________________________

Increase in cash in the period         603        1,282      4,385
===================================================================


Cashflow

Reconciliation of Operating Profit/(Loss) to
Net Cash (Outflow)/Inflow from Operating Activities

                                 Unaudited    Unaudited    Audited
                                 6 months      6 months  12 months
                                        to           to         to
                             31st October  31st October 30th April
                                      1999         1998       1999

                                     £'000        £'000      £'000
___________________________________________________________________

Operating profit

Trading                              2,575        2,974      5,621
___________________________________________________________________

Depreciation                         1,149          803      3,471
Amortisation of goodwill             3,219          512      3,229
(Increase)/decrease in
  stock                             (2,110)          27     (1,305)
(Increase)/decrease in
  debtors                           (1,323)       4,747        298
(Decrease)/increase in
  creditors                         (7,772)     (12,340)    (9,057)
Profit on disposal of fixed
  assets                                --           --        (10)
Exchange movement                     (123)          58       (919)
___________________________________________________________________

Net cash (outflow)/inflow from
  operating activities              (4,385)      (3,219)     1,328
===================================================================


Notes to the Interim Accounts

1.  The financial information contained in this document does  not
constitute statutory accounts within the meaning of section 240 of
the  Companies Act 1985.  Statutory accounts for the year to  30th
April  1999 have been filed with the registrar of companies.   The
Auditors  have  reported  on  those  accounts;  their  report   is
unqualified and did not contain a statement under section 237  (2)
or (3) of the Companies Act 1985.

2. Acquisitions
                                               Turnover     Profit
                                                  £'000      £'000
___________________________________________________________________

Imasys Work Management Ltd                          368         52
Marlow Software Services: business and assets:       29          4
GMO Austria                                       1,168        100
Jurgen Spahr Consulting GmbH                        338          6
___________________________________________________________________

                                                  1,903        162
===================================================================


3. Taxation
                                                             £'000
___________________________________________________________________

On the profit on ordinary activities for the period

UK corporation tax                                             975
Overseas taxation                                              973
___________________________________________________________________

                                                             1,948
===================================================================

4. The earnings per share has been calculated on the net profit of
  £2,648,000  and  the  average  number  of  shares  in  issue  of
  246,139,782 and the weighted average number of shares  (adjusted
  for dilution) of 250,489,393.

5.  The  interim statement will be posted to all shareholders  and
  copies  will  be  available  to  the  public  at  the  company's
  registered office, 100 Longwater Avenue, GreenPark, Reading  RG2
  6GP.