CTP.L Regulatory News (CTP)

9 Feb 2006 07:00

Redstone PLC09 February 2006 9 February 2006 Redstone Plc ("the Company" or "Redstone") Trading Update In the Trading Update that was given by the Company on 7 September 2005, theCompany announced four core actions that needed to be completed in the shortterm, which were: (1) the integration of Xpert and Redstone; (2) the implementation of all available synergies; (3) the re-organisation of the business so as to deliver immediate profitability and cash generation; and (4) the creation of a group structure that allows effective management control of the current business and its planned expansion. The Board is pleased to report that the four core actions have now beensubstantially completed. During the third quarter, all four business unitsperformed to expectation and the Company has achieved an EBITDA profit. TheCompany continues to trade in line with the Directors' expectations, and theBoard remains confident in the outcome for the full year. Contract Wins Each of Redstone's operating units, namely, Redstone Converged Solutions,Redstone Managed Solutions, Redstone Telecom and Redstone Technology have beenawarded key multi-year contracts by, amongst others, Ascot Racecourse, NorthernRock, Ramada Jarvis Hotels and certain departments of the Irish Government, withan initial aggregate value in excess of £5.0 million. Outlook The Board is very encouraged by the implementation of the core actions, thecurrent trading of the group and the key contract wins. It is currentlyconsidering its growth strategy and reviewing its budgets for the forthcomingfinancial year. The Board remains committed to delivering shareholder valuethrough both acquisitive and organic growth in a consolidating market. ENQUIRIES: Redstone plc Tel. +44 (0) 845 200 2200Martin Balaam, Chief ExecutiveTim Perks, Chief Financial Officer ICIS Limited Tel. +44 (0) 20 7651 8688Tom Moriarty or +44 (0) 7769 937626 This information is provided by RNS The company news service from the London Stock Exchange