AVS.L Regulatory News (AVS)

AVESCO GROUP plc

Trading and Court Case Updates

Avesco Group plc ("Avesco" or the "Group"), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces an update on trading and regarding the Group's economic interest in the outcome of existing litigation brought by Celador International Ltd against The Walt Disney Company and others ("Disney").

Trading Update

Trading for the quarter ended 31 March 2013 has shown an improvement on the previous quarter, although our markets remain difficult with competitive pricing pressures and limited visibility. The post-Olympic pick-up in demand in the UK has been much slower than anticipated, particularly at the large event end of the market. Our businesses in Germany have also suffered from difficult market conditions and the departure of some key staff, whilst the consequent management restructuring will necessitate some additional costs. Therefore, we now believe that it is likely that our results for the full year to 30 September 2013 will be below market expectations.

As an even year, 2014 sees a return to a run of major sporting events around the World, including the Winter Olympics in Russia, The Commonwealth Games in Scotland and the FIFA World Cup in Brazil. The additional potential revenue that can be derived from these events is expected to have a significant beneficial effect on our results for that year.

Court Case Update

The Group announced on 8 March 2013 that the Ninth Circuit Court of Appeals issued its order returning the case to the trial court, an act which had the legal effect of making the judgement collectible by Celador International Ltd ("Celador"). Payment to the Group was via a third party under the terms of a sale and purchase agreement dated 1 December 2006, by which Avesco sold its interest in Celador.

The Group is now pleased to announce the receipt yesterday of its share of the award, including interest and after third party taxes and costs. The Group now estimates the net value of the sum received, after tax and other costs, to be approximately 10% higher than the previously estimated $60m, principally due to the effects of post judgement interest and lower corporate tax rates both at the third party and for the Group.

The Group plans to release its Interim Results on 13 June 2013 when a further announcement will be made.

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