Infoserve Group PLC
04 October 2007
Infoserve Group plc (the 'Group')
Trading statement
During the six-month period to 30 September 2007, the Group has found that it
has been difficult to grow its telephone sales force personnel in line with the
Board's original expectations.
The core team has continued to perform well and ahead of expectations and the
Group's sales revenues are more than 40% up on the same period last year.
However, the scale and speed of revenue growth has been lower than market
expectations, due to the difficulties in increasing the telephone sales force
headcount as quickly as planned, and will continue to grow at a slower rate than
had originally been anticipated.
In order to ensure that future profitability can be achieved at this lower rate
of sales, the Board will be undertaking an immediate strategic cost review in
order to bring overheads more in line with revenues. The Board expects to
complete this review and the necessary resultant cost reductions quickly in
order to maintain current cash balances and move towards monthly operating
profitability during the next financial year.
The Board believes that this restructuring will give it an efficient, profitable
platform from which it can continue to grow in the future. The online local
search market is still developing and the Board feels confident that future
market opportunities will continue to offer the Group substantial growth
potential, and enable the Group to maintain its position as one of the leading
players in this industry sector.
It is anticipated that the Group will be announcing its interim results in the
second week of December.
For further information please contact:
Infoserve Group plc
Steve Barnes Tel: 0870 556 1001
WH Ireland Limited
Nominated Adviser and Broker
Laurie Beevers Tel: 0161 832 2174
Richard Lindley Tel: 0113 394 6600
This information is provided by RNS
The company news service from the London Stock Exchange
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