Harrier Group PLC
2 November 2000
HARRIER GROUP PLC
TRADING UPDATE
The Directors announce that Harrier has recently been experiencing delays in
customers ordering the Group's products and services, which will now result in
lower revenue levels than were expected. Also, the change in the Group's
business mix in favour of professional and managed services has not been as
rapid as anticipated, which is resulting in lower gross margins than expected
for the current financial year.
Due to these lower sales levels, lower gross margins and the Group's
operational gearing, Harrier's earnings before tax will be substantially below
market expectations for the year ending 31 December 2000.
Harrier has a strong prospect list, stretching into the year 2001 and the
Directors are confident about Harrier's medium and long term future. They
believe that demand for the Group's products and services will grow more
rapidly next year as customers make the IT investments that have been delayed
during the current year. The Director's are continuing to invest in the
Group's professional and managed services operations in order to take
advantage of this expected growth in demand.
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