Final Results

Triad Group PLC
27 July 2004


                                TRIAD GROUP PLC

                Preliminary Results for year ended 31 March 2004

                              Chairman's statement


Results

Turnover for the year ended 31 March 2004 increased by 31.3% to £36.5 million
(2003: £27.8 million); pre tax losses are £0.76 million (2003: £4.98 million
loss).

The operating loss in H2 before interest, tax and write back on property
provisions is £0.04 million (2003: £1.23 million loss). The equivalent figure
for H1 is a loss of £0.95 million (2003: £2.62 million loss)

Dividends

The board recommend that no final dividend be paid: no interim payment was made
(2003: total dividend nil).

Review of activities

As announced previously, and in response to the challenging IT services market,
the consultancy and systems business has reviewed its services. The business has
recognised changes in market requirements by repositioning the business higher
up the value chain, not only in implementing IT systems where there is a
requirement, but in supplying leadership to clients and both product and
solution independent advice.

There is increasing evidence of a resurgence of interest from public sector
organisations in smaller UK suppliers with the ability to straddle business and
IT delivery. Triad's track record of reliability and assurance of outcome in
conjunction with the achievement of results at low cost has put it in a strong
position to win new business. The ability to lead system architecture for
complex business change programs, to provide independent QA and project
governance and to provide independent assessment of effort estimation, method
and approach has had a strong take-up. In all cases teams assembled to undertake
client assignments incorporate team members with business specific knowledge,
experience and product know-how.

During the financial year the resourcing business has taken advantage of
improved conditions in its market, particularly in the public sector, and has
invested in the recruitment of sales staff. The increase in contractor numbers
has continued since the year end.

The company's ability to fit well culturally with its client base and work in
mixed teams has created long term goodwill with its client base. Flexibility in
supporting its clients to work within budget constraints and changing economic
conditions has given resilience to its business relationships. In an increasing
number of cases the company has made an important contribution to the sales
effort of its clients enabling them to strengthen their own propositions in
winning new business. Additionally the company has a track record of working
with clients in the creation of IT automation to expedite and support business
change. Demonstrable, quantifiable benefits have resulted. An example of this is
the release of the time of professional staff resulting from higher efficiency,
accountability and provision of management information including reporting on
key performance indicators. The time released as a result has facilitated the
ability of clients to develop the intellectual capital and breadth of services
of their own organisation.

The company continues to be broadly based across market sectors including the
public sector, telecommunications and outsourcing. The company is not encumbered
by the impact of global mergers, or product or sector dependencies - factors
which affect many of our competitors.

Cash at the balance sheet date 31 March 2004 was £3.2 million.

Macro-economic and political uncertainty continues.

Employees

On behalf of the board, I have pleasure in thanking our staff and executive
directors for their substantial and continuing efforts.


John Rigg
Chairman
26 July 2004


Profit and loss account
for the year ended 31 March 2004
                                                     Unaudited         Audited
                                                          2004            2003
                                                         £'000           £'000

Turnover                                                36,534          27,756
Cost of sales                                          (31,803)        (25,758)
                                                      --------        --------
Gross profit                                             4,731           1,998
Administrative expenses                                 (5,500)         (7,202)
                                                      --------        --------

Operating loss                                            (769)         (5,204)

Net finance income                                          10             224
                                                       
                                                      --------        --------
Loss on ordinary activities                               (759)         (4,980)
before taxation
Taxation on loss on ordinary activities                    (29)              8

Dividends                                                    -               -
                                                      --------        --------
Loss sustained for the financial year                     (788)         (4,972)
                                                     ---------       ---------
Basic loss per ordinary share                            (5.20)p        (27.20)p
Diluted loss per ordinary share                          (5.20)p        (27.20)p
                                                     ---------       ---------

Dividends per share                                       0.00p           0.00p
                                                     ---------       ---------

The above figures relate entirely to continuing operations. The loss on ordinary
activities before taxation and the retained loss, as stated above, are prepared
on a historical cost basis, and therefore no reconciliation to historical cost
loss is required.

There are no recognised gains or losses except for the loss for the year as
stated above, and therefore no separate statement of total recognised gains or
losses has been prepared.


Balance sheet
at 31 March 2004

                                                     Unaudited         Audited
                                                          2004            2003
                                                         £'000           £'000
Fixed assets
Tangible assets                                            730             726
                                                        ______          ______
Current assets
Debtors                                                  7,555           5,385
Cash at bank and in hand                                 3,244           4,739
                                                        ______          ______
                                                        10,799          10,124
Creditors: amounts falling due                          (5,017)         (3,363)
Within one year
                                                        ______          ______
Net current assets                                       5,782           6,761
                                                        ______          ______
Total assets less current liabilities                    6,512           7,487
Provisions for liabilities and charges                  (2,263)         (2,450)
                                                        ______          ______
Net assets                                               4,249           5,037
                                                        ------          ------


Capital and reserves
Called up share capital                                    151             151
Share premium account                                      562             562
Capital redemption reserve                                 104             104
Profit and loss account                                  3,432           4,220
                                                        ______          ______
Equity shareholders' funds                               4,249           5,037
                                                        ------          ------



Cash flow statement
for the year ended 31 March 2004

                                                       Unaudited       Audited
                                                            2004          2003
                                                           £'000         £'000

Net cash outflow from operating activities                (1,188)       (2,071)
                                                           _____         _____
Returns on investments and servicing of finance
Interest received                                             91           224
                                                          ______        ______
Taxation

UK corporation tax received                                    -           410
                                                          ______        ______
Capital expenditure and financial investment
Purchase of tangible fixed assets                           (510)         (370)
Sale of tangible fixed assets                                112           164
                                                          ______        ______
                                                            (398)         (206)
                                                          ______        ______
                                                          ______        ______
Cash outflow before financing                             (1,495)       (1,643)
                                                          ______        ______
Financing
Cost of purchasing own shares                                  -        (4,918)
                                                          ______        ______
Decrease in net cash                                      (1,495)       (6,561)
                                                          ------        ------

Reconciliation of operating loss to net cash flow from operating activities

                                                     Unaudited        Audited
                                                          2004           2003
                                                         £'000          £'000

Operating loss                                            (769)        (5,204)
Depreciation of tangible fixed assets                      409            617
Profit on sale of fixed assets                             (15)           (22)
(Increase)/decrease in debtors                          (2,186)         1,665
Increase/(decrease) in creditors                         1,641           (527)
(Decrease)/increase in provisions                         (268)         1,400
                                                        ______         ______
Net cash outflow from operating activities              (1,188)        (2,071)
                                                        ------         ------
                                                        ------         ------

Notes

1.      The financial information set out above has been prepared on the basis
of the accounting policies set out in the statutory accounts for the year ended
31 March 2004 and are consistent with those applied in the previous year.

The financial information set out above does not constitute the company's
audited statutory accounts for the years ended 31 March 2003 or 2004. The
financial information for 2003 is derived from the statutory accounts for 2003
which have been delivered to the registrar of companies. The auditors have
reported on the 2003 accounts; their report was unqualified and did not contain
a statement under section 237(2) or (3) of the Companies Act 1985. The statutory
accounts for 2004 will be finalised on the basis of the financial information
presented by the directors in this preliminary announcement and will be
delivered to the registrar of companies following the company's annual general
meeting.

2. The financial information set out above has been prepared in accordance with
Financial Reporting Standard Number 3. All items above relate to continuing
operations.

3. Loss per ordinary share

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

                                                       2004               2003

Loss on ordinary activities after taxation        £(788,000)       £(4,972,000)
                                              --------------     -------------
                                              --------------     -------------

Average number of shares in issue                15,149,579         18,277,572
Effect of dilutive options *                              -                  -
                                                  _________          _________
Average number of shares in issue plus
dilutive options                                 15,149,579         18,277,572
                                              -------------      -------------
                                              -------------      -------------

Basic loss per share                                  (5.20)p           (27.20)p
Diluted loss per share                                (5.20)p           (27.20)p
                                                  ---------          ---------
                                                  -----------        -----------

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


4. Profit and loss account

                                                                     Unaudited
                                                                         £'000

At 1 April 2003                                                          4,220

Sustained loss for the year                                               (788)
                                                                         _____
At 31 March 2004                                                         3,432
                                                                         -----
                                                                         -----

5. The annual report and accounts will be sent to shareholders in due course.
Further copies will be available from the company's registered office at Weyside
Park, Catteshall Lane, Godalming, Surrey, GU7 1XE.




                      This information is provided by RNS
            The company news service from the London Stock Exchange