Quadrant Group Plc - Final Results

RNS No 3083d
QUADRANT GROUP PLC
10 September 1999
                              
                     Quadrant Group plc
                              
        Preliminary Announcement of Unaudited Results
               for the year ended 31 May 1999
                              
Chairman's Statement
I  wish  to provide the following brief overview of  results
for the year ending 31 May 1999.

Quadrant Group made a substantially reduced loss before  tax
for  the  year  of  #60,000  (1997/8:  loss  before  tax  of
#648,000).  The operating result was a profit for  the  year
from  continuing  operations of #177,000  (1997/8:  #382,000
loss), with a further exceptional profit of #63,000 from the
sale of fixed assets.

The improvements which I referred to in my interim statement
have  continued with particularly strong contributions  from
Quadrant Video Systems where operating profit has more  than
doubled  from  #194,000  last year and  from  Quick  Imaging
Centre  where operating profit increased by almost 50%  from
#61,000 last year.

Quadrant  Systems'  results continued to  improve  with  the
operating loss reducing to #38,000 from #163,000 last  year.
A  major milestone was passed with the certification by  the
UK  CAA of the company's Airbus A300B4 simulator having been
attained  in February.  The simulator has since successfully
entered  revenue service with each of the five major  target
customers.

These significant improvements and advances at the operating
level  have  been  hampered by the level of  debt  with  the
consequent  interest  cost dragging the  Group  back  to  an
overall loss.  The Board has been determined to address this
fundamental problem.

A  circular  will  be  posted to  shareholders  setting  out
details  of the proposals regarding Quadrant Systems  and  a
proposal  to  allow early redemption of #550,000 Convertible
Loan Stock held by a related party.

The  proposed  arrangements involving Quadrant Systems  mean
the  Group  will become debt free and will have considerably
enhanced prospects for its continuing operations. We  expect
at  last to deliver healthy and ongoing improvements in  the
Group's performance.

The  Board  announced on 8 June 1999 that  the  Company  had
received  an approach which may or may not lead to an  offer
being  made for the Company. Discussions are continuing  and
the  Board is evaluating the Company's different options.  A
further announcement will be made in due course.

PM Rae
Chairman

Consolidated Profit and Loss Account
For the year ended 31 May 1999

                                               Unaudited         
                                 Notes              1999      1998
                                                   #'000     #'000
Turnover                                                  
Continuing operations              1              17,427    18,431
Discontinued operations            1                   -     8,591
                                                  17,427    27,022
Cost of sales                                     11,434    19,817
Gross profit                                       5,993     7,205
Net operating expenses                             5,816     7,299
Operating profit/(loss)                                   
Continuing operations                                177      (382)
Discontinued operations                                -        17
Provision    for    losses    on                       -       271
discontinued activities utilised
                                                     177       (94)
Exceptional items                                         
 - continuing operations                                 
   profit  on disposal of fixed assets                63        -

 - discontinued operations                                        
   loss  on  disposal of subsidiaries                  -    (2,120)
   provision utilised                                  -     2,276
   goodwill previously written off to reserves         -      (193)
 
                                                      63       (37)
                                                          
Profit/(loss) before interest                        240      (131)
Net interest payable                               (300)      (517)
Loss before taxation                                (60)      (648)
Tax charge on ordinary activities   2                  -       (20)
Loss   on   ordinary  activities                    (60)      (668)
  after taxation
Minority interests                                     -      (21)
Loss  for the financial  year  -                    (60)     (689)
transferred to reserves
                                                          
Basic loss per ordinary share       3              (1.0)p   (11.1)p
Diluted loss per ordinary share     3              (1.0)p   (11.1)p



Consolidated Balance Sheet
31 May 1999

                                             Unaudited     
                                Notes             1999     1998
                                                 #'000    #'000 
Fixed assets                                            
Intangible assets                  4               48        -
Tangible assets                                  5,209    4,465
                                                 5,257    4,465
Current assets                                          
Stocks                                             981      995
Debtors                                          3,965    4,133
Cash at bank and in hand                            10      308
                                                 4,956    5,436
Creditors:amounts falling due with                               
one year (including convertible debt)            5,319    5,519
Net current liabilities                          (363)     (83)
                                                        
Total assets less current liabilities            4,894    4,382
                                                       
Creditors: amounts falling due after more                               
than  one year (including convertible debt)      2,036    1,260
Provisions for liabilities and charges             202      424
                                                        
Net assets                                       2,656    2,698
                                                        
Capital and reserves                                    
Called-up share capital                          1,254    1,243
Reserves                                         1,402    1,455
Equity shareholders' funds                       2,656    2,698



Consolidated Cash Flow Statement
For the year ended 31 May 1999

                                          Unaudited    
                                                                              
                                    Notes       1999      1998
                                               #'000     #'000
                                                       
Net  cash  inflow  from  operating               356     1,049
activities
                                                       
Returns    on   investments    and             (283)     (538)
servicing of finance
                                                       
Taxation - tax received               2           -        18
                                                       
Net capital expenditure and                  (1,430)     (670)
financial investment
                                                       
Acquisitions and disposals            5         509     1,575
                                                       
Cash inflow/(outflow) before financing         (848)    1,434
                                                       
Financing                                       229      (131)
                                                       
Increase/(decrease) in cash                    (619)    1,303
                                                       

Notes
1)Continuing  operations  comprise  the  businesses  of
  Quadrant Systems, Quadrant Video Systems, Synectic Systems
  and Quick Imaging Centre. Discontinued operations comprise
  Yewlands Engineering Co., which was sold on 6 August 1997,
  and Quadrant Precision Manufacturing which was sold on  29
  May 1998.

2)Tax charges and receipts arose in respect of United
  States' subsidiaries only.

3)The calculation of earnings per share is based on the
  loss after taxation for the year of #60,000 (1998: loss of
  #689,000) and on 6,254,888 shares (1998: 6,202,558), 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 1999 or the previous year.

4)In   accordance  with  FRS10  goodwill   arising   on
  consolidation  in  the  year  to  31  May  1999  has  been
  capitalised  and amortised over its useful economic  life.
  Goodwill  arising  prior to 31 May 1998  was  written  off
  against reserves.

5)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.

6)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 1998 have 
  been abridged from the statutory accounts for the year ended
  31 May 1998. 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 have been
  filed with the Registrar of Companies.


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