Final Results

ATA Group PLC
30 March 2001



                                ATA Group plc

      Preliminary results for the twelve months ended 31st December 2000


ATA Group plc ('ATA') is a human resource support services group, which
provides employment solutions and training services to client companies in
England, Scotland and Wales.

                                  HIGHLIGHTS

Profits before tax generated by the pre acquisition ATA group recovered
strongly in the year to £906,000 (1999: £722,000) an increase of 25.5%.


Our fourth acquisition was completed in early November, continuing our move
into training, in the specialist field of Railway training. The acquired
company figures, covering only two months, are not typical of the year as a
whole and contributed a loss of £59,000.


Group pre-tax profits at £847,000 have increased by 17% compared with 1999.


Fully diluted earnings per share have risen to 9.00 pence, an increase of 24%.


Net dividends for the year have been maintained at 5.8 pence, covered 1.4
times by earnings.


A second branch has been established at our Croydon location.





        Commenting on the results Bill Douie, Chairman, said:


'2000 has as expected continued the recovery evident in the second half of
1999 in our core recruitment companies and has been achieved with no overall
increase in consultant numbers. Headcount growth has now resumed and the
launch of our Internet recruitment service, ata b2b has taken place. During
the year our third acquisition has been made, giving the Group a significant
presence in the provision of training services to the railway industry.'

                                                                 30 March 2001


ENQUIRIES:

ATA Group plc
Bill Douie, Chairman                            Tel: [phone]
Clive Chapman, Chief Executive                  Tel: [phone]


College Hill                                    Tel: [phone]
Giles Cooper


                 Chairman's Statement - Year ending 31/12/00


I am pleased to present the ninth annual report and accounts of the company.


Highlights:-


2000 has, as expected, continued the recovery evident in the second half of
1999 in our core recruitment companies. During the year a major acquisition in
the field of Railway training was concluded, adding £795,000 to Group turnover
in the two month post acquisition period.


Profits before tax generated by the pre acquisition ATA Group recovered
strongly in the year to £906,000 (1999: £722,000) an increase of 25.5%.


Our fourth acquisition was completed in early November, continuing our move
into training, in the specialist field of Railway training. The acquired
company figures, covering only two months, are not typical of the year as a
whole and contributed a loss of £59,000.


Accordingly group pre-tax profits at £847,000 have increased by 17% compared
with 1999.


Fully diluted earnings per share have risen to 9.0 pence, an increase of 24%.


Dividends for the year have been maintained at 5.8 pence.


Cash balances brought forward from 1999, supplemented by retained earnings
during the year, have enabled some indebtedness acquired with the Railway
training company to be repaid.


Financial.


Our core recruitment and consultancy businesses have continued the recovery
seen in the second half of 1999. Turnover for the year has risen to £6,683,000
(1999: £6,018,000). Profits before tax rose by 24% to £959,000 (1999: £
772,000). The training and development companies already in the Group at the
beginning of the year, including Sloan Shrago Limited, are still in their
formative phase and have not yet achieved profitable trading.


Accordingly, pre-tax profits in that group have increased to £906,000 (1999: £
722,000) on turnover of £7,519,000 (1999: £6,641,000).


The acquisition of Catalis Group Limited was completed on 7th November 2000
and as a result post acquisition results cover a period of less than two
months. Post acquisition, the financial year end for the Catalis group has
been changed from 31st March to 31st December to coincide with those of the
ATA Group companies. On a statutory accounting basis the results from Catalis
were a loss of £59,000.


In order to accord with current accounting conventions we are required to show
the actual trading performance of the Catalis group companies for the period
immediately following acquisition. As the month of December is largely
inactive, that month inevitably incurs a loss which, in a full twelve month
accounting period should be offset by the results for the other eleven months.
Accordingly, though accurate, the published results for the two months of
November and December cannot be said to present a representative picture of
the annual trading experience.


Accordingly the pre tax profits of the combined Group were £847,000 and fully
diluted earnings per share, based on the weighted average number of shares in
issue throughout the year, have risen to 9.00 pence, (1999: 7.27 pence).


At the time of acquisition the Catalis Group had gross indebtedness of £
2,030,000. Of that figure £631,100 was repaid immediately following completion
from a combination of cashflow internally generated within Catalis and funds
from ATA Group Plc. Indebtedness remaining at 31st December 2000 amounted to £
1,351,000 in the Catalis companies and £151,000 in the ATA companies, offset
by cash balances across the Group of £1,185,000. Accordingly, Group net
indebtedness at 31st December 2000 was £317,000. (1999: cash of £866,000).


In view of the continuing increase in profitability and earnings per share but
mindful of the need to move as quickly as possible back to a position of net
cash, the directors are recommending a maintained final dividend of 3.8 pence
per share, making a total of 5.8 pence for the year (1999 5.8 pence).


Trading.


Recruitment. Trading conditions stabilised during the year and the
reorientation of our industrial exposure and advances in management skills at
all levels identified in my statement in last year's report have resulted in
significant revenue and profit progress being achieved whilst consultant
numbers have remained largely stable. Operating ratios have remained at the
levels experienced in 1998.


Consultancy. Our Advertising Selection business has continued to develop while
consultant numbers have remained at 20. Turnover has risen marginally to £
1,136,000 and profits have remained stable at £15,000. Continued skills
enhancement has taken place and the company enters 2001 with increased
strengths.


Training and Development. Whereas schools business at Fairbourne Adventure
Limited has continued to prosper we have yet to succeed in generating
sufficient demand for the corporate leadership and team building courses or
for corporate consultancy work at Sloan Shrago. A review of the product range
and marketing methods has taken place which, coupled with increased
opportunities resulting from the integration of the Catalis businesses, is
expected to result in significant progress from both companies during 2001.


Technology.


We now have some months experience of ata b2b.com, our internet recruitment
service and our experience of a build up of alternative candidate flow from
that site is encouraging. The site is in the process of continued development
to improve ease of use and is providing operating improvements to the present
companies and will provide opportunities for additional and more extensive
services to both candidates and clients. In particular, we expect to take full
advantage of this facility when providing a new range of recruitment services
to clients of Catalis Rail Training Limited.


Much of the premature hype surrounding the advent of on-line everything has
now evaporated and saner council prevails. Without question E-commerce offers
many potential advantages to service companies and their clients and ATA group
is committed to solid advances in that area. Nonetheless technology is not a
substitute for sound delivery and I should like to quote from my report last
year:-


'Whilst wholeheartedly embracing the advantages of technology ATA Group is
determined not to lose sight of its core objective - to supply the best
available candidate for posts identified by our clients.'


Catalis.


During the year protracted negotiations resulted in agreement being reached
for the acquisition of the Catalis group of companies. This important step
marks a significant advance towards the Group goal of providing an holistic
range of services to clients in the associated fields of recruitment and
training, linked together by consultancy in the key human resource areas of
organisational development and personnel assessment and development. Catalis
also neatly accords with Group policy of concentrating on niche growth
industries and is a powerful entry into the Railway industry.


Details of the acquisition of Catalis were fully set out in my letter to
shareholders dated 13th October 2000. Shareholders will recall that provision
was made for the possible payment of deferred consideration in the event that
pre tax profits achieved by the Catalis group companies were to exceed £
310,000 in the twelve months to 31st March 2001. The directors do not believe
that profits will exceed that figure and consequently do not anticipate that
any secondary consideration will become payable. The vendors of Catalis also
undertook, in the event that pre tax profits were less than £310,000 in the
twelve months to 31st March 2001 or, in the alternative, in the twelve months
to 31st July 2001 a sum would be repaid by the vendors to ATA Group Plc
dependant upon the shortfall up to a maximum of £416,000. It is too early to
say whether any repayment will be due but we shall keep shareholders informed.


As is usual in the period following an acquisition, a detailed assessment of
the Catalis group of companies has been made and a full review of the
opportunities presented to ATA Group Plc arising from Catalis' exposure to the
specialist niche market of the Railway Industry has been conducted.
Unsurprisingly a number of matters requiring attention has come to light and
action has been initiated to deal with any problems that have emerged. The
curates egg is alive and well but taken in the round the aggregate position in
the bulk of the Railway training company is much as expected. However the
programme of reorganisation and development which is already in progress is
likely to take some time to bear fruit and a full potential of the main
Catalis company will be realised over a two year period. Rail Training Audit
Services Limited although the smaller of the two trading companies acquired,
is already performing well and is well placed to take full advantage of the
strong trend in the Railway Industry towards increases in the quality of
training and competence, particularly in safety critical areas.

Outside the immediate businesses of training and trainer auditing, further
opportunities are already emerging. First, an entry into Railway recruitment
is planned for later this year; secondly, using our purpose built facilities a
major drive for external conference business is underway and thirdly, openings
for Sloan Shrago Limited are also being pursued.


Outlook.


Much has been made recently of the threat of global recession as the United
States cools following an unprecedented period of strong economic growth and
there are unhappy conditions in many Pacific Rim Economies. There is a greater
risk of a consequential economic slowdown in Europe and the UK than heretofore
and the Group strategy incorporates readiness to deal with any adverse
effects, should they occur.


The year has started strongly with activity, turnover and profits in our core
recruitment companies ahead of the same period in 2000 and at the time of
writing, there have been no discernible indications that the UK economy is
entering a period of weakness. The acknowledged skill shortages in
manufacturing industry and particularly Railways have shown no sign of easing.
Whereas no further location openings have been approved, expansion of
consultant numbers has been resumed and other geographical areas are being
considered in addition to an entry into Railway recruitment. As indicated
above, the contributions from Catalis Rail Training Limited and Rail Training
Audit Services Limited are likely to be relatively modest in 2001.


The present outlook for Fairbourne Adventure Limited and The Fairbourne Hotel
is clouded by the foot and mouth outbreak which has closed the Snowdonia
National Park and has consequently cancelled all training activities for the
duration of the problems. Steps have been taken to minimise the effects of
this unfortunate episode.


Staff.


During the year, qualities and skills of our second line management team have
improved at a gratifying rate and Operations Directors are now in place in all
pre acquisition ATA Group companies, reporting to the Chief Executive. This
has released Clive Chapman to take direct responsibility for the
reorganisation and integration of the Catalis Group Companies, which is now
proceeding apace and for the important task of developing our range of
services to the railway industry.


I should like to extend my thanks to all staff and management for their
commitment during an important year in the development of our Company and, in
addition, I would like to express my personal appreciation to our advisers for
the invaluable help and guidance given during the acquisition of Catalis Group
Limited.








W. J. C .Douie, Chairman.                               30 March 2001




                     CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                            2000                    1999
                                      £'000       £'000       £'000       £'000

Turnover
Continuing operations                 7,519                   6,641
Acquisitions                            795                       -
                                                  8,314                   6,641

Cost of sales                                   (4,799)                 (3,968)

Gross profit                                      3,515                   2,673
Administrative expenses                         (2,678)                 (1,986)

Operating profit
Continuing operations                   858                     687
Acquisitions                           (21)                       -
                                                    837                     687
Interest receivable and similar          65                      53
income
Interest payable and similar           (55)                    (18)
charges
                                                     10                      35

Profit on ordinary activities
before taxation                                     847                     722
Tax on profit on ordinary
activities                                        (241)                   (250)

Profit on ordinary activities
after taxation                                      606                     472
                                                    
Dividends                                         (437)                   (376)

Retained profit for the
financial year                                      169                      96

Earnings per share                                9.02p                   7.27p

Fully diluted earnings per
share                                             9.00p                   7.27p





                       CONSOLIDATED CASH FLOW STATEMENT



                                            2000                    1999
                                      £'000       £'000       £'000       £'000
Net cash inflow from operating
activities                                        1,296                     625
Return on investments and
servicing of finance
Interest received                        65                      53
Interest paid                         (189)                    (18)
Net cash inflow / (outflow)
from return on investments and
servicing of finance                              (124)                      35
                                                  
Taxation
UK corporation tax paid                           (165)                   (343)
Capital expenditure
Sale of tangible fixed assets            59                      28
Purchase of tangible fixed            (458)                   (191)
assets
Net cash outflow from capital
expenditure                                       (399)                   (163)
Acquisitions
Purchase of subsidiary              (1,514)                       -
undertaking
Net cash acquired with                  566                       -
subsidiary
                                                  (948)                       -
Equity dividends paid                             (376)                    (376)
                                                
Net cash outflow before use of
liquid resources and financing                    (716)                   (222)
Financing and Management of Liquid
resources
Decrease in short term deposits           -                     750
Net proceeds from issue of            1,315                       -
share capital
Decrease in loans                     (558)                    (58)

Capital element of finance             (17)                       -
lease rental payments

                                                    740                     692
                                                                            
Increase in cash                                     24                     470
                                                     
                                                     





                          CONSOLIDATED BALANCE SHEET


                                            2000                    1999
                                      £'000       £'000       £'000       £'000
Fixed assets
Intangible assets                     1,120                      72
Tangible assets                       2,478                     720
                                                  3,598                     792
Current assets
Stock                                    14                      18
Debtors : falling due after           1,036                       -
more than one year
falling due within one year           2,210                     888
Cash at bank and in hand              1,185                   1,107
                                      4,445                   2,013
Creditors
Amounts falling due within one      (4,190)                 (1,601)
year
Net current assets                                  255                     412
                                                    
                                                    
Total assets less current                         3,853                   1,204
liabilities
Creditors
Amounts falling due after more                  (1,033)                   (155)
than one year
Provisions for liabilities and                    (291)                     (4)
charges
Net assets                                        2,529                   1,045
                                                  
                                                                          
Capital and reserves
Called up share capital                              81                      65
Share premium account                             1,732                     433
Capital redemption reserve                           50                      50
Profit and loss account                             666                     497
Equity shareholders' funds                        2,529                   1,045
                                                  
                                                  



                                    NOTES

 1. Dividends

    Interim dividends paid on 22 September 2000 of 2.0p per share (1999:
    2.0p). Final dividend proposed of 3.8p per share (1999: 3.8p) payable on 9
    May 2001 to shareholders on the register on 17 April 2001

 2. Earnings per Share


    The calculation of earnings per share is based on a profit after taxation
    of £606,000 (1999:- £472,000) and a weighted average of 6,718,466 (1999:-
    6,482,400) shares in issue. Only share options issued in 2000 under the
    Approved Scheme are considered to be dilutive.

3.     Report & Accounts


    The above results do not represent the statutory accounts. The statutory
    accounts for 1999 have been filed with the Registrar of Companies,
    received an unqualified audit report and did not contain a statement under
    Section 237 (2) or (3) of the Companies Act 1985. The audited accounts for
    the year ended 31 December 2000 will be mailed to shareholders shortly and
    will be available from the Company's registered office:- 20 Portland
    Square, Bristol, BS2 8SJ.