EXO.L Regulatory News (EXO)

24 November 2016

Exova Group plc

Trading Update

On track to deliver 2016 earnings

Exova Group plc ("Exova"), a leading international provider of technically demanding testing, certification and advisory services, today releases a Trading Update for the period since 1 July 2016 to date. Where stated, the financial results are for the period from 1 January to 31 October 2016 compared with the corresponding period in 2015.

Group performance for the ten months to 31 October 2016

· Total revenue up 10.8% at actual rates; +3.7% at constant currency

o (0.2)% organic growth at constant currency (+5.7% excluding Oil, Gas & Industrials)

o 7.4% growth from acquisitions, 3.9% net of disposals

o Foreign exchange tailwind of 7.1% arising from our global footprint

· Despite a lower second half organic growth rate, continued good performance in Aerospace, Infrastructure & Environment, and Fire, Building Products & Certification (FBP&C)

· M&A pipeline continues to be strong and recent acquisitions performing well

Divisional performance in the period from 1 January 2016 to date

In Industries, we delivered strong organic growth performance in Aerospace. In addition, we have also seen continued progress with other industrial clients where we are now delivering positive growth. Oil & Gas remains challenging and we have no current visibility of any market improvement.

In Products, we saw continued strong organic growth in Fire, Building Products & Certification, however as expected, this was offset by lower levels of activity in Transportation as a result of reduced engine-testing as projects have completed.

In Infrastructure, Health & Environment, strong organic growth has continued across Infrastructure & Environment, principally driven by demand in the Middle East (albeit to more moderated levels than experienced in the first half). This has been complemented by solid organic growth within the Health Sciences sector.

Outlook

The Board expects full year earnings to be in line with previous guidance, despite more challenging conditions since the half-year. We now expect full year constant currency organic sales to be broadly flat.

For 2017, we continue to anticipate modest organic revenue growth supplemented by acquisitions, albeit with a less favourable business mix due to continuing pressures in Oil & Gas and the expected reduction in volumes in engine-testing.

Ian El-Mokadem, Chief Executive Officer, commented:

"The Group has made satisfactory progress in the first ten months of 2016. We continue to generate good organic growth outside of our Oil, Gas & Industrials sector, and our acquisitions programme continues to deliver. While we have taken some additional cost actions to mitigate the impact of the continued softness in Oil & Gas, we remain mindful of retaining our technical capabilities so that we are well positioned to benefit from a market recovery."

Contacts:

Peter Ogden / Andy Jones

Powerscourt Group

Tel. Direct +44 (0)20 7549 0997 / +44 (0)7793 858 211

exova@powerscourt-group.com

Phil Marshall, Chief Financial Officer

Exova Group plc

Tel. Direct +44 (0)7881 907 548

Investor.relations@exova.com

Exova

Exova is one of the world's leading laboratory-based testing groups, trusted by organisations to test and advise on the safety, quality and performance of their products and operations. Headquartered in Edinburgh, UK, Exova operates 138 laboratories and offices in 33 countries and employs more than 4,300 people throughout Europe, the Americas, the Middle East, Asia/Asia Pacific and Africa.

Exova's capabilities help to extend asset life, bring predictability to applications, and shorten the time to market for customers' products, processes and materials. With over 90 years' experience, Exova specialises in testing across a number of key sectors ranging from Aerospace to Fire & Building Products; Oil & Gas and Industrials; Infrastructure & Environment; Automotive; and Health Sciences.

This Trading Update release contains forward-looking statements that involve substantial risks and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements by a variety of factors. These forward-looking statements speak only as at the date of this press release. In addition, all projections, valuations and statistical analyses provided in this document may be based on unaudited pro-forma financial information, subjective assessments and assumptions. They may use alternative methodologies that produce different results and should not be relied upon as an accurate prediction of future performance.