Trading Statement

RNS Number:5051G
BNS Telecom Group plc
29 October 2007


29 October 2007

BNS Telecom Group plc


Trading Statement and closure of Network Services Division


BNS Telecom Group plc (AIM: BTP, "BNS", "the Group"), one of the leading
providers of telecoms services to the UK SME and corporate market, has today
published a statement on trading and the outcome of the recently completed
strategic review in its Network Services Division.  The Group planned to publish
its preliminary audited results for the year to 31 July 2007 tomorrow (30
October 2007), but following recent developments with regard to the Network
Services Division outlined below, these figures will now be published in mid
November.


The Group's core Business Reseller Division, including 3g Comms ("3g") acquired
during the second half of the financial year ended 31 July 2007, performed well
and showed good organic growth in sales and operating profit. However the
Network Services Division, which was the subject of a detailed and extensive
strategic review initiated on 14 June 2007, was closed down during the last few
days, the Board having explored all options for this division.


Management accounts show that the Business Reseller Division increased sales
from #20.37 million in 2006 to approximately #26 million in 2007, including a
revenue contribution of #3.45 million from 3g in the four months under BNS
ownership. Operating profits for this enlarged division, before non cash items
of goodwill charges and share based payment costs, increased to around #1.60
million from #0.68 million in 2006.



Management accounts for the discontinued Network Services Division show revenues
of #8.7 million (2006: #5.43 million) and an operating loss of around #6 million
(2006: profit #0.06 million). This loss comprised trading losses in the order of
#1.5 million, balance sheet write offs (including bad debt provisions) of
approximately #3.5 million and non cash costs relating to goodwill and fixed
asset impairment of some #1.7 million.



After crediting the cash profit of #1.02 million from the sale and lease back of
the Group's offices and charging net interest of #0.30 million (2006: #0.07
million), Group statutory pre tax loss, after goodwill charges, is expected to
be around #3.7 million (2006: profit #0.61 million).



Net Group borrowings at 31 July 2007 amounted to #2.79 million (2006: #0.73
million).



Strenuous efforts were made to dispose of the Network Services Division over
recent months and whilst there was interest from a number of potential
acquirers, the Board concluded that the best option was the rapid closure of the
division.

Outlook and current trading

The core Business Reseller Division has started the new financial year well and
is particularly benefiting from the strong order book for the Group's IP
telephony products, IP Centrex and BNS Smart Box.



Enquiries:


BNS Telecom Group plc                                         01661 839 554
Garry Moat, Chief Executive
Andrew Goldwater, Finance Director

KBC Peel Hunt                                                020 7418 8900
David Anderson

College Hill                                                 020 7457 2020
Adrian Duffield




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTIIFERIVLAFID