BDI.L Regulatory News (BDI)

FOR IMMEDIATE RELEASE 6 September 2010

Bond International Software plc

(the "Company")

Trading Update

The Company expects to announce its results for the six months to 30 June 2010 on or before 24 September, and expects to report turnover of not less than £15.1m and a loss before tax of £0.68m. This equates to adjusted EPS of 1.34p (2009: 3.22p). Net debt at 30 June 2010 was £4.6m.

Over the last few weeks it has become clear that the expected recovery in the market for staffing software is not happening as fast as was expected and as a consequence, in the year to date, the company has sold less software than expected. As a result group revenues for the first six months of the year are down 11% on 2009. The company has taken a number of measures to mitigate the effect of the shortfall in revenues including the reduction of overheads and the board remains very optimistic about the prospects for signing new business between now and the end of the year. However if business were to continue at the same level for the rest of the year the group would fall short of expectations.

The Board remains confident about the prospects for the business. Recurring revenues have remained stable and are set to significantly rise in 2011 as we roll out major client implementations. In addition cash flows are also improving in the second half of this year.

 Our non staffing divisions have been unaffected by difficulties in the market.

 Indicators for the staffing industry in the UK and in the US, our two principal markets, are looking stronger and our prospect lists are beginning to look much healthier. The Board believes it is only a matter of time before sufficient confidence returns to the market allowing staffing companies to invest in new technology, and with a range of brand new and innovative products the Group is well placed to take advantage of the opportunities a growing market will afford. 

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