Pre-close Trading Update

Spice PLC
15 October 2007



15 October 2007
 

                                   Spice plc                                    
                                                                              
                            Pre-close trading update                            
 
The Board of Spice plc ("Spice" or "the Group"), the provider of outsourced 
infrastructure support services to the Commercial, Public and Utility Sectors, 
is pleased to announce that trading continues to be in line with the Directors' 
expectations, ahead of the announcement of its interim results for the period 
ended 28 October 2007.
 
We are enjoying good levels of organic growth in particular within our 
Electricity and Energy businesses where market conditions remain favourable.
 
Within Utility Services, following the establishment of our joint management 
offices with EDF Energy at Sevenoaks and Colchester, our Electricity business 
has seen a strong flow of work volumes across each of our service islands, but 
in particular Freedom Power Lines. We have secured significant new windfarm 
project work at Connisholme and Bicker Fen and are currently undertaking the 
renewal of Birmingham University's private network. In September, Electricity 
was awarded its first overseas contract by AT&T with an anticipated turnover 
value per annum of £5 million. We began providing records and data management 
services on 1 October and expect that this win will create a platform from which
we can develop our other services to Utilities in the US market. 
 
Our Telecoms business continues to perform in line with expectations with strong 
demand for our multi-site Xfin technology. We have begun work on the Western 
Power Distribution contract which is progressing in line with plans. We 
have put in place new airport networks at London and Cardiff and continue to 
benefit from the build up of activity surrounding Heathrow Terminal 5. Within 
Water, we are now working under our newly renewed contracts with United 
Utilities and Yorkshire Water and are working alongside client staff from 
Yorkshire Water at Yorkshire Water's Head Office. We expect economic and 
environmental pressures to continue to drive this market and have recently 
signed framework agreements with Thames Water to provide water efficiency and 
regulation services.
 
Within Commercial Services, we have seen strong demand for our energy 
procurement services (including invoice processing and validation). 
An increasing number of customers are seeking solutions that extend beyond 
the UK into Mainland Europe and we are developing our capabilities in this area. 
We have successfully renewed contracts with existing customers and also won new 
customers including Virgin Media and Intercontinental Hotels. Environmental 
concerns remain high on the agenda of our customers and we expect to see 
increased demand for consultancy services in this area. Our Facilities business 
continues to trade in line with expectations.
 
Within Public Services, we have made three acquisitions during the period. 
These acquired businesses expand our geographic coverage of the UK market and 
we now maintain around 120,000 domestic and commercial properties. We expect 
to acquire further established regional businesses and brands in order to build 
a national presence in the UK market. The pipeline for contract bid 
opportunities has been strong. During the year to date, we have secured new term 
contracts with customers including Wirral Housing Partnership and Bowlees Park 
Housing Association. Public Services now has access to nearly 340 CORGI 
registered gas engineers and the acquisition of MET in September will provide 
the business with a ready supply of best in class engineers.
 
The acquisition of Revenue Assurance Services plc was concluded on 12 October 
2007 and a separate statement has been made following the completion of this 
acquisition.
 
Overall, we consider that our businesses are well positioned within their 
respective growth markets. The Board remains focused on cross selling and 
confident of further growth over the rest of the financial year, and beyond, 
and continue to look to the future with confidence.
 
Spice's results for the period ended 28 October 2007 are expected to be 
announced on Thursday 13 December and the Group will hold a briefing for 
analysts at 9.30am on that morning at the offices of KBC Peel Hunt. 
Further details of this briefing will be announced nearer the time.
 
                                      Ends

Enquiries:

 
Spice plc                                           Tel: [phone]  
           
Simon Rigby          Chief Executive Officer                                       
Oliver Lightowlers   Group Finance Director                                        
Carl Chambers        Corporate Development Director                                

 
Financial Dynamics                                  Tel: [phone]        
Billy Clegg                                                                        
Caroline Stewart                                                                   
 
KBC Peel Hunt                                       Tel: [phone]  
Julian Blunt                                                                       

 
NOTES TO EDITORS

Spice plc

Spice is a support services business operating in the Commercial Services,
Public Services and Utility Services sectors. The Group's operations were
founded in 1996 and have their origins in the electricity industry, though the
range of activities has since been expanded into the water sector, niche
telecommunications services, the public sector, energy management and commercial
facilities management. Spice's businesses have a common theme of delivering and
co-ordinating infrastructure services to customers, and the technological
element within the product mix has been built up significantly over the course
of the last three years.



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