ARGP.L Regulatory News (ARGP)

15 Mar 2006 11:53

Intellego Holdings PLC15 March 2006 15 MARCH 2006 INTELLEGO HOLDINGS PLC ("Intellego" or "the Company") Trading Update The Board of Intellego, the AIM listed e-learning and workforce competencymeasurement & solutions business, announces today that, despite of recent newcustomer wins longer contract negotiations resulting from bidding for larger andmore complex contracts, particularly by the new business automation trainingdivision it expects slower growth in the second half of the current financialyear ending 31 March 2006, than anticipated at the Interim stage. Historically, the Company has experienced a 35% versus a 65% sales ratio betweenits first and second half years. Although this pattern is unlikely to besustained in the current financial year, the Board anticipates that second halfsales are not only likely be ahead of the first half of the current financialyear, but also ahead of the like for like period of previous year. Commenting on today's announcement, Edward Arnett, CEO of Intellego Holdingsplc, said: "The Company's strong performance in the six months to 30 September 2005demonstrated its capability to maintain sales growth on a larger base ofrevenue. Intellego enjoyed that growth as a consequence of new partnerships,high-profile customer wins and repeat sales from existing customers." "As stated at the time our SAP and Business Automation Training division wasestablished in July 2006, following the acquisition of Modinex, the Board hadalready identified a large number of opportunities. Specifically in the secondhalf we have, in this division, secured new contracts with BT, WirralMetropolitan Borough Council and extended our relationship with Norwich Unionand Group 4 Cash Services. Due to extended negotiations however, and in oneinstance a major reorganisation at the prospective client, we now expect that anumber of the opportunities that we anticipated would close before the end March2006, will be delayed until the first half of our year commencing 1 April 2006." Mike Couzens, Chairman of Intellego Holdings plc, added: "Notwithstanding today's announcement, the Board believes that a shift to largerorder values, driven out of big-ticket e-Business application roll-outs, is apre-requisite for the Company to sustain its historic high growth rate in bothrevenue and gross profits and deliver on its strategy in the Business Automationsoftware market place." ---ENDS--- Enquiries : Intellego Holdings Plc Tel : 0870 428 1250Edward ArnettAndy Green www.intellego-holdings.com Beaumont Cornish Limited Tel: 0207 628 3396Roland Cornish Bishopsgate Communications Limited Tel: 0207 430 1600Dominic BarrettoScott Robertson This information is provided by RNS The company news service from the London Stock Exchange