Period-end trading update

RNS Number:1206X
Chelford Group PLC
19 January 2006



FOR IMMEDIATE RELEASE                                            19 January 2006


                               Chelford Group plc

                       POSITIVE PERIOD-END TRADING UPDATE

Chelford Group plc ("Chelford" or the "Group"), the specialist IT solutions
group, today provides an update on its performance for the year to 31 December
2005.

Chelford has continued to build on the strong progress of the past two years,
augmented by the acquisition of Agility Systems Limited ("Agility Systems") in
September and Shian Limited ("Shian") in October. All parts of the Group have
made significant progress throughout 2005 and the trading performance of
Chelford for the year ended 31 December 2005 is expected to be in line with
market expectations and significantly ahead of the prior year. Chelford remains
debt free with year-end net cash of approximately #0.9m (2004: #2.1m) after
investing #3.2m in acquisitions during the second half year of the year.

Both the SSI and SAP divisions achieved solid organic growth. There was good
progress in building Managed Services within SSI and the SAP division won its
first major Managed Services contract. New contracts in SSI strengthened its
position in the food sector and included Dairy Farmers of Great Britain,
Naturally Best and Glisten. The SAP division improved its position in Wholesale
and Distribution adding Neopost, Supercook and Findus to its customer base.

The integration of Agility Systems and Shian is proceeding well. Agility Systems
has taken Chelford into RFID solutions, a market sector which is expected to
show strong growth. Agility's contribution was ahead of original expectations.
Shian has increased Chelford's resources in SAP solutions and brought to the
group Microsoft Gold Partner certification in Microsoft Technologies and
Business Systems, another area expected to show strong growth. Its performance
in 2005 has been in line with management's expectations.

Chelford's Chief Executive, Trevor Lewis said: "We have laid a firm foundation
for 2006 with order intake up by 76% compared to the same time last year. The
two acquisitions made in 2005 have strengthened our SAP operation, added
Microsoft and RFID solutions to our portfolio and created opportunities for
cross-selling. We look forward to 2006 with confidence."

Preliminary results announcement

In accordance with its usual timetable, Chelford expects to announce its
preliminary results for 2005 in early April 2006.

About Chelford

Chelford Group plc, the specialist IT solutions provider is headquartered in
Basingstoke, Hampshire and its shares are quoted on AIM ( stock code: CHR).
Chelford provides specialist systems solutions for its target markets based upon
its own IPR, SAP, Microsoft and RFID technologies.



For further information, please contact:

Trevor Lewis, Chief Executive                                     01256-685400

Steve Liebmann or Susan Scott at Bankside                        020-7367-8888




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

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