Final Results

Triad Group Plc
12 June 2006


Triad Group Plc


Preliminary announcement of audited results
for the year ended 31 March 2006


Chairman's statement


Business Review

Financial Highlights

   • Turnover for the year ended 31 March 2006: £42.7m (2005: £46.2m)

   • Pre tax losses: £0.79m (2005: £0.14m profit). Pre tax losses are after
     charging exceptional legal and professional expenses of £391,000 (2005:
     £222,000), as detailed in note 3 of the financial statements

   • Gross profit as a percentage of turnover: 15.7% (2005: 14.9%)

   • Year end cash reserves: £1.77m (2005: £0.10m)



Business Performance

The resourcing business has continued to move away from bulk users at low
margins and to concentrate on niche markets with higher margin returns. Growth
has been seen in various key niche markets including 'chip & pin' rollout and
support contracts. We are choosing new niche markets on the basis of higher
margins and higher charge rates. We have been concentrating in particular on the
growth markets based on specialist skills such as Business Systems and modelling
tools.

We are also emphasising the importance of developing expertise among our
consultants and sales force as part of specialising in new and emerging
technologies in order to offer a higher level of added value.  We have now
completed a programme of retraining and refocusing existing staff to apply our
understanding of the IT market more closely to various market areas for example
Petrochemical Exploration, Power, Pharmaceutical and Mapping.

Internal resourcing systems are being realigned taking into consideration
automated matching and text based communication systems allowing the
identification and contact with potential candidates immediately.

We are also concentrating on developing our Systems and Consultancy work and I
expect growth in these areas to make a significant contribution to the results
in future.  Staff morale continues to be high and staff attrition low.  We
continue actively to recruit new staff.

Higher levels of responsibility have recently been awarded to senior and long
serving employees with a view to strengthening the management structure and I am
pleased to report that this change has been very successful.

We have excellent teams of managers, consultants and sales people developed over
many years and I look forward with enthusiasm to seeing the results of their
revitalised efforts in the coming year.

As I reported in my interim statement improvements in cash collection and
management had resulted in a significant increase in cash reserves. Debtor days
at the year end were 48 days (2005: 59 days). Our cash position is very
satisfactory and indeed we have not required an overdraft since January 2006.

Mira Makar

On 6 March 2006 Mira Makar, who ceased to be an employee and director of Triad
Group Plc with effect from 8 December 2005, brought a claim against the Company
in the Employment Tribunal which the directors are resisting vigorously. The
amount of the claim has not been stated by Mira Makar. If the claim comes to a
tribunal hearing, this is likely to be towards the end of the current calendar
year.  In the meantime, the directors will make efforts to obtain a resolution
of the situation before the substantial expense of time and money implied by a
hearing is incurred.

Change of Auditors

On 5 April 2006 PricewaterhouseCoopers LLP gave notice to Triad Group Plc in
accordance with section 392 of the Companies Act 1985 that they were resigning
as auditors and confirmed, in accordance with section 394 of the Companies Act
1985, that there were no circumstances connected with their ceasing to hold
office which they considered should be brought to the attention of the members
or creditors of Triad Group Plc. BDO Stoy Hayward LLP have been appointed to
fill the casual vacancy and a resolution for their re-appointment will be put to
the next annual general meeting.



John Rigg

Chairman

9 June 2006

Consolidated income statement
for the year ended 31 March 2006

                            Note                   2006                   2005
                                                  £'000                  £'000
Revenue                                          42,725                 46,200
Cost of sales                                   (36,007)               (39,294)
                                          --------------         --------------
Gross profit                                      6,718                  6,906
Administrative expenses        3                 (7,358)                (6,780)
                                          --------------         --------------
Operating (loss)/profit                            (640)                   126
Finance income                                       43                     50
Finance expense                                   ( 49)                    (16)
Other finance losses                             ( 145)                    (22)
                                          --------------         --------------
(Loss)/profit before tax                           (791)                   138
Tax expense                    6                    (16)                   (25)
                                          --------------         --------------
(Loss)/profit for the year                         (807)                   113
                                          --------------         --------------

Basic earnings per share       4                  (5.33)p                 0.75p
                                              ---------              ---------

Diluted earnings per share     4                  (5.33)p                 0.72p
                                              ---------              ---------

There is no recognised income or expense except for the (loss)/profit for the
periods stated above therefore no separate statement of recognised income and
expense has been prepared.



Consolidated balance sheet

as at 31 March 2006

                                    Note               2006               2005
                                                      £'000              £'000
Non-current assets
Intangible assets                                        65                 88
Property, plant and equipment                           778                820
Deferred tax                                            206                213
                                                 ----------         ----------
                                                      1,049              1,121
                                                 ----------         ----------
Current assets
Trade and other receivables                           8,336             12,002
Cash and cash equivalents                             1,767                104
                                                 ----------         ----------
                                                     10,103             12,106
                                                 ----------         ----------
Total assets                                         11,152             13,227
                                                 ----------         ----------
Current liabilities
Trade and other payables                             (5,631)            (6,863)
Financial liabilities                                   (18)                 -
Short term provisions                                  (229)              (205)
                                                 ----------         ----------
                                                     (5,878)            (7,068)
                                                 ----------         ----------
Non-current liabilities
Financial liabilities                                   (18)                 -
Long term provisions                                 (1,701)            (1,801)
                                                 ----------         ----------
                                                     (1,719)            (1,801)
                                                 ----------         ----------
Total liabilities                                    (7,597)            (8,869)
                                                 ----------         ----------
Net assets                                            3,555              4,358
                                                 ==========         ==========
Shareholders' equity

Share capital                                           151                151
Share premium account                                   562                562
Capital redemption reserve                              104                104
Retained earnings                                     2,738              3,541
                                                 ----------         ----------
Total shareholders' equity             8              3,555              4,358
                                                 ==========         ==========


Consolidated cash flow statement

for the year ended 31 March 2006



                                        Note             2006             2005
                                                        £'000            £'000
Cash flows from operating activities

Cash generated from operations             7            2,003           (2,578)
Interest paid                                             (49)             (16)
Interest received                                          43               50
Tax paid                                                   (9)             (13)
                                                --------------   --------------
Net cash from operating activities                      1,988           (2,557)
                                                --------------   --------------
Cash flows from investing activities

Purchase of intangible assets                             (27)             (54)
Purchase of property, plant and                          (503)            (613)
equipment
Proceeds from sale of property plant
and equipment                                             169               84
                                                --------------   --------------
Net cash from investing activities                     ( 361)             (583)
                                                --------------   --------------
Cash flows from financing activities
Assets acquired under finance leases                       60                -
Finance lease principal payments                          (24)               -
                                                --------------   --------------
Net cash from financing activities                         36                -
                                                --------------   --------------

Net increase/(decrease) in cash and
cash equivalents                                        1,663           (3,140)

Cash and cash equivalents at beginning
of the period                                             104            3,244
                                                --------------   --------------
Cash and cash equivalents at end of the
period                                                  1,767              104
                                                ==============   ==============

NOTES TO THE PRELIMINARY RESULTS

1.       Basis of preparation

These financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the
International Accounting Standards Board (IASB) with those parts of the
Companies Act 1985 applicable to companies preparing their accounts under IFRS.
This is the first time the group has prepared its financial statements in
accordance with IFRS, having previously prepared its financial statements in
accordance with UK accounting standards.

The disclosures required by IFRS 1 concerning the transition from UK GAAP to
IFRS were published with the group's interim results in December 2005.

2.       Preliminary announcement

The board approved the preliminary announcement on 9 June 2006.
The financial information set out in the announcement does not constitute the
group's statutory accounts for the years ended 31 March 2006 or 31 March 2005
within the meaning of Section 240 of the Companies Act 1985, and has been
extracted from the statutory accounts, on which an unqualified audit report has
been issued by BDO Stoy Hayward LLP. These statutory accounts are yet to be
delivered to the Registrar of Companies.

The previous auditors, PricewaterhouseCoopers LLP, issued an unqualified opinion
on the group's statutory information under UK GAAP for the year ended 31 March
2005, which have been filed with the Registrar of Companies.

3.       Administrative expenses

Administrative expenses include a charge of £391,000 (2005: £222,000) for
exceptional administrative expenses in respect of legal and professional fees
which the group has been obliged to incur as a result of the situation regarding
Mira Makar.

                                                         2006             2005
                                                        £'000            £'000

Administrative expenses                                 6,967            6,558
Exceptional administrative expenses                       391              222
                                                       ______           ______
Total administrative expenses                           7,358            6,780
                                                       ======           ======

4.       Earnings per ordinary share

Earnings per share has been calculated on the (loss)/profit on ordinary
activities after tax divided by the weighted average number of shares in issue
during the period based on the following:

                                                        2006              2005

(Loss)/profit on ordinary activities after
taxation                                           £(807,000)         £113,000
                                               --------------    --------------

Average number of shares in issue                 15,149,579        15,149,579
                                                                             
Effect of dilutive options *                               -           504,600
                                                   _________         _________
Average number of shares in issue plus
dilutive options                                  15,149,579        15,654,179
                                               --------------    --------------

Basic earnings per share                               (5.33)p            0.75p
                                                   ---------         ---------

Diluted earnings per share                             (5.33)p            0.72p
                                                   ---------         ---------

* The share options have no dilutive effect in the current year.

5.       Dividends

No dividends have been paid or proposed for year ended 31 March 2006 (2005:
nil).

6.       Tax expense

The tax charge for the year is £16,000 (2005: £25,000) on loss before taxation
of £791,000 (2005: £138,000 profit).The tax expense for the year differs from
the standard rate of corporation tax in the UK (30%). The differences are
explained below.

                                                             2006         2005
                                                            £'000        £'000

(Loss)/profit on ordinary activities before tax              (791)         138
(Loss)/profit on ordinary activities multiplied by
standard rate of corporation tax in the UK of 30%
(2005: 30%)                                                  (237)          41

Effects of:

Expenses not deductible for tax purposes                       22           51
Adjustments in respect of previous periods                      9            -
Movement in unrecognised deferred tax asset in respect
of operating losses                                           222          (67)
                                                           ______       ______
Total current tax charge for the year                          16           25
                                                        ---------    ---------

7. Reconciliation of net (loss)/profit to cash flows from operations

                                                              2006             2005
                                                             £'000            £'000

Net (loss)/profit                                             (807)             113

Adjustments for:
Tax                                                             16               25
Depreciation of property, plant and equipment                  396              370
Profit on disposal of property, plant and equipment            (20)             (17)
Amortisation of intangible assets                               50               52
Interest income                                                (43)             (50)
Interest expense                                                49               16
Share-based payments expense                                     4                -

Changes in working capital
Decrease/(increase) in trade and other receivables           3,666           (4,602)

(Decrease)/increase in trade and other payables             (1,232)           1,772

Decrease in provisions                                         (76)            (257)
                                                     --------------   --------------

Cash flows from operations                                   2,003           (2,578)
                                                     ==============   ==============


8. Statement of changes in equity

                                                         2006             2005
                                                        £'000            £'000

Shareholders' funds at 1 April                          4,358            4,245

(Loss)/profit for the financial year                     (807)             113
Share-based payments                                        4                -
                                                        _____            _____
Shareholders' funds at 31 March                         3,555            4,358
                                                        =====            =====



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