Trading Statement

25 May 2007 08:20

SMC Group Plc25 May 2007 SMC Group Plc (the "Group") Trading Update SMC Group Plc provides the following interim trading update ahead of a boardmeeting to be held on Wednesday 30 May 2007. Following his appointment three months ago, Executive Chairman Sir Rodney Walkerhas received initial findings from a review into the recent financialunderperformance of the Group carried out at his request. This review hasanalysed operational processes across the Group including revenue forecasting,pipeline of new business, efficiency of resourcing, integration and the costbase of the Group. The Board believe that initial findings together with theresults of trading for the financial year to date may lead to a significantlyreduced profit expectation for the six months to June 2007. This review has yet to be fully studied by the Board and this announcement isbeing made in order to provide a preliminary update to the market. The reviewwill be analysed over the next few days and will be discussed at nextWednesday's board meeting after which action is anticipated on the cost base andoperational structure of the Group. The Executive Chairman is determined that such changes will enable the Group toimprove its financial performance to a level where month-by-month results are inline with the Board's recent expectations. The findings of the review and the actions taken by the Board in this regardwill be announced to the market as soon as possible. -ends- For further information: Bell Pottinger Corporate & Financial Tel: +44 (0)20 7861 3232David Rydell/Chris Hamilton Numis Securities Tel: +44 (0)20 7260 1000James Serjeant This information is provided by RNS The company news service from the London Stock Exchange