CTP.L Regulatory News (CTP)

20 October 2011

Redstone plc

("Redstone" or "the Company")

Half Year Trading Update

Redstone plc (AIM:RED.L), a leading provider of network based end to end managed services, technology and infrastructure solutions today publishes a Trading Update in respect of its half year to 30 September 2011.

The Company confirms trading is in line with expectations and intends to announce its results for the half year ended 30 September 2011, on Monday 28 November 2011.

Fujin Systems Limited ("Fujin") Deferred Consideration

Redstone is pleased to announce that the Board believes Fujin is likely to exceed its profit before tax target of £560,000 for the year to 31 October 2011. Under the terms of the acquisition (announced on 8 November 2010) Redstone will pay the balance of the maximum consideration to the former shareholders of Fujin, if this target figure is achieved. The balance of the consideration that will become due is £2.5 million to be satisfied by the issue of £2.0 million of new ordinary shares in Redstone (at the closing price of 5 November 2010 0.89p), with an accompanying £0.5m in cash to be paid. It is important to note that no further consideration will be payable should Fujin exceed the target.

 Tony Weaver, Chief Executive of Redstone, commented:

"The Fujin acquisition was one of the first major steps we took in the restructuring of the Redstone business, and as such we are delighted with Fujin's performance under Redstone's ownership. The acquisition of Fujin has provided a high level of cross selling opportunities in 2011 and is an important component of Redstone's improved trading."

"We look forward to further updating shareholders at our half year results on 28 November 2011."

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