Norman Broadb Regulatory News (NBB)

30 Jan 2006 13:04

Constellation Corporation plc Trading Update Constellation Corporation plc ("Constellation") issues the following tradingupdate for the twelve months ended 31 December 2005. All references are tounaudited results.Fees were ahead of expectations in the second half of 2005 resulting in anoverall increase for the year by comparison with 2004. The Board was delightedwith the progress made and the improvement in performance for the year.The Board has continued its drive towards reducing the Group's debts andattracting new finance and this continues to remain a key focus. Our bankershave remained supportive throughout this difficult period. As regards most ofour long term creditors, which date back to 2002, proposals have been agreed inprincipal for discounted debt for equity swaps.Discussions which commenced last year concerning a capital injection by a thirdparty have been held in abeyance because a new party has recently expressedinterest in offering an alternative funding option, but remain capable of beingpursued. Your Board is considering both options in order to select the onewhich will provide your business with the greatest opportunity to move forward.Cash flows are invariably lumpy in our market. However, underpinning ourperformance are some solid client relationships. The Company has started theyear with an enhanced team of three additional consultants, all of whom have astrong assignment base. Having built what is now a well regarded FinancialServices practice the challenge for 2006 is to expand further our Consumer andRetail practices. We took great pride in yet again being associated with therecent developments announced at HBOS Plc which were applauded by newspapers,HBOS Plc and investors alike.Constellation expects to announce its preliminary results in early April 2006.A fuller statement will be made at that time.Contact Details:Constellation Corporation plcAndrew Garner020 7629 8555City Financial Associates LimitedRoss AndrewsTelephone: 020 7090 7800ENDCONSTELLATION CORPORATION PLC