Final Results

RNS Number:8062R
Quadrant Group PLC
29 September 2000


                  Quadrant Group plc
     Preliminary Announcement of Unaudited Results
            For the year ended 31 May 2000


Chairman's Statement

In  the  year  to 31 May 2000 Quadrant  Group  made  an
overall  profit  before tax of #254,000.   This  figure
comprises:

  1.    a net exceptional gain of #785,000 derived from
        realised gains and provision for asset impairment and
        losses on disposals
  
  2.    an  operating loss on continuing operations  of
        #159,000
  
  3.    an operating loss on discontinued operations of
        #226,000, and
 
  4.    interest expense of #146,000.

The  comparative figures for 1999 were an overall  loss
of   #60,000  and  an  operating  profit  on  currently
continuing businesses of #458,000.

This    year's   operating   performance   is   clearly
unsatisfactory.   I  would however  like  to  put  that
performance  into perspective with regard to  the  very
important   corporate  developments  that   have   been
concluded since May 1999.

Firstly,  Quadrant's three full flight simulators  were
sold  at  a considerable profit as part of a continuing
relationship  with FlightSafety Boeing.  Secondly,  our
50%  owned special purpose joint venture company, Quest
Flight  Training, won selection by the UK  Ministry  of
Defence  for  exclusive provision of  simulator  flight
training for the RAF's fleet of E-3 AWACS aircraft  for
a  minimum  of  25  years, in a  contract  expected  to
generate  sales of #60 million over its life.  Thirdly,
agreement was reached for the sale of the Audio  Visual
and  Presentations business of Quadrant  Video  Systems
("QVS"),  enabling QVS to focus on the growing  success
of its CCTV security activities.

These disposals enabled the Group to largely repay  its
debts,  shed  a consistently loss making  business  and
concentrate on the profitable ongoing activities.   The
operating  loss on these activities, which I have  just
reported,  requires further explanation.   At  Quadrant
Systems  the  operating result was seriously  adversely
affected by the 4 month delay in signing the E-3  AWACS
contract.   During the period of that delay  our  costs
were   significantly  increased  by  the  presence   of
additional  personnel  and other resources  which  were
necessary  to finalise what is a very complex contract.
The current  order book for Quadrant Systems' equipment
business  is  now   #4.9 million which  should  support
turnover  growth  of  at least  50%  this  year.   This
business has taken much time, effort and expenditure to
reach  its  current position and we fully  expect  very
positive results from now on - it has been a long wait.

QVS'  CCTV  activities rebounded sharply in the  second
half  as  indicated  in our half year  statement.   The
backlog  of town centre projects began to flow after  a
frustrating  delay in government funding in  the  first
half.  The second half produced a record result in both
turnover  and  profit.  Now that the Audio  Visual  and
Presentations   business  has  gone  we   expect   good
financial  returns  as  the  management  are  able   to
concentrate  fully  on  the  retained  profitable  CCTV
activities.

Axiom  Design and Print (formerly Quick Imaging Centre)
produced  another good result with an operating  profit
of  #137,000  on  turnover of #2.1  million.   Although
Axiom  is  a  small part of the Group when measured  by
turnover,  its  management is to  be  congratulated  on
their consistently excellent results.

We  do  believe that finally this year we will  deliver
sustainable operating and bottom line profits.


Peter Rae
Chairman
29 September 2000


Consolidated Profit and Loss Account
For the year ended 31 May 2000

                                      Unaudited         
                                Notes      2000     1999
                                          #'000    #'000
Turnover                                               
Continuing operations              1     13,192   11,280
Discontinued operations            1      6,096    6,147
                                         19,288   17,427
Cost of sales                            12,493   11,434
Gross profit                              6,795    5,993
Net operating expenses                    7,180    5,816
Operating profit/(loss)                                 
Continuing operations                      (159)     458
Discontinued operations                    (226)    (281)
                                           (385)     177
Exceptional items                                       
 - continuing operations                                
     Profit on disposal of fixed          1,235       63
assets
 - discontinued operations                              
     Provisions and asset                  (450)       -
impairment on disposal of
business
                                            785       63
Profit before interest                      400      240
Net interest payable                       (146)    (300)
Profit/(loss) before taxation               254      (60)
Tax charge on ordinary activities             -        -
Profit/(loss) on ordinary                   254      (60)
activities after taxation
Minority interests                            -        -
Profit/(loss) for the year -                254      (60)
transferred to reserves
                                                        
Basic earnings/(loss) per          2        4.1p    (1.0)p
ordinary share
Diluted earnings/(loss) per        2        4.1p    (1.0)p
ordinary share



Consolidated Balance Sheet
31 May 2000
                                  Unaudited            
                                       2000       1999
                                      #'000      #'000
Fixed assets                                   
Intangible assets                        46         48
Tangible assets                       2,044      5,209
                                                     
                                      2,090      5,257
Current assets                                        
Stocks                                  936        981
Debtors                               4,837      3,965
Cash at bank and in hand                109         10
                                      5,882      4,956
                                                      
Creditors: amounts falling due        4,650      5,319
within one year (including
convertible debt)
                                                     
Net current                           1,232       (363)
assets/(liabilities)
                                                      
Total assets less current             3,322      4,894
liabilities
                                                      
Creditors: amounts falling due           92      2,036
after more than one year
(including convertible debt)
Provisions for liabilities and          120        202
charges
                                                      
Net assets                            3,110      2,656
                                                      
Capital and reserves                                  
Called up share capital               1,288      1,254
Share premium account                 6,934      6,798
Other reserves                        4,387      4,387
Profit and loss account              (9,499)    (9,783)
Equity shareholders' funds            3,110      2,656


Consolidated Cash Flow Statement
For the year ended 31 May 2000

                                      Unaudited          
                                Notes      2000      1999
                                          #'000     #'000
                                               
Net cash inflow/(outflow) from              (51)      356
operating activities
                                                   
Returns on investments and                 (183)     (283)
servicing of finance
                                                   
Net capital expenditure and               3,567    (1,430)
financial investment
                                                   
Acquisitions and disposals        3           -       509
                                                   
Cash inflow/(outflow) before              3,333      (848)
financing
                                                   
Financing                                (2,217)      229
                                                   
Increase/(decrease) in cash               1,116      (619)

Notes

1 Continuing operations comprise the businesses  of
  Quadrant  Systems, Synectic Systems, Axiom  Design  &
  Print  (formerly Quick Imaging Centre) and  the  CCTV
  business  of  Quadrant  Video Systems,.  Discontinued
  operations  comprises  the audio-visual  business  of
  Quadrant  Video  Systems,  which  was  sold  to   its
  management  following  shareholder  approval  of  the
  disposal  at  an extraordinary general meeting  on  1
  September 2000.

2 The calculation of earnings per share is based on
  the profit after taxation for the year of #254,000
  (1999: loss of #60,000) and on 6,271,349 shares (1999:
  6,254,888), being the weighted average number of shares  
  in issue and ranking for dividend during the year.
  There  were no dilutive potential ordinary shares  in
  either  the  year ended 31 May 2000 or  the  previous
  year.

3 Cash  inflows from acquisitions and disposals  in
  the year ended 31 May 1999 arose from the receipt  of
  deferred   consideration   for   Quadrant   Precision
  Manufacturing,  Inc, less the cost of  acquiring  "A"
  ordinary shares in Quadrant Video Systems plc.

4 The preliminary results for the year have not been
  audited by the Group's auditors and do not constitute
  statutory accounts. The comparative figures for 1999
  have been abridged from the statutory accounts for the
  year ended 31 May 1999. The Auditors' opinion on these
  accounts was unqualified and did not contain any
  statements under section 237(2) or (3) of the Act. The
  statutory accounts for the year ended 31 May 1999 have
  been filed with the Registrar of Companies.