AGM Statement

RNS Number:8515Q
Epic Group PLC
14 October 2003


FOR RELEASE                          7.00AM                      14 OCTOBER 2003



                            EPIC GROUP PLC ("Epic")
                     (The UK's leading e-learning company)

                        AGM statement and trading update


* Delayed order intake means full year result likely to be below market
  expectations
* Cash position remains strong
* Interim dividend to be increased by 100%


At the Annual General Meeting of the Company, to be held at 12.00 p.m. today, 14
October 2003, Michael Inwards, Chairman of Epic, will make the following
comments on current trading:


Following a set of very strong results for the last financial year with
increases in revenues, profits and cash generation, we are now experiencing a
period of consolidation and reflection in our market. During the latter part of
the last financial year we recruited additional sales staff and consequently
have increased sales pipeline activity. However, despite increasing our sales
activities we are experiencing some delays in actual orders being placed.


Performance for the half year to the end of November 2003 is likely to be only
slightly below budget. However, extended consultation on the government's
published e-learning policy has delayed the decision making of many government
departments and agencies over the summer period. As nearly 60 per cent of our
revenues are derived from the public sector, this delayed order intake is likely
to impact our performance in the second half of the current year. In the private
sector, financial services activity has also been weaker than expected. Unless
there is a sustained improvement in sales orders in the coming months, our full
year results will be below current market expectations.


Online learning has become an accepted practice. A consequence of this, and
therefore a factor in the growth of our market, is the extent to which it is
'blended' together with other training methods to deliver the most effective
learning solutions. In a market characterised by static training revenues,
online learning represents a shift in expenditure patterns to a more strategic
level, creating a potential delay in the procurement process. However, the
American Society for Development and Training (ASDT) reports that, despite the
pressure on training budgets caused by the poor economy, there is substantial
growth in e-learning within the overall training blend.


Because of our confidence in the medium to long-term prospects, and our strong
cash position, we have decided to increase the interim dividend by 100% to 0.8p
per share when we declare the interim financial results in February 2004.


As regards the potential acquisition of other companies, in the past few months
we have been in dialogue with several target companies, but our acquisition
activity has not yet resulted in a suitable transaction being identified. We
remain cautious and will only make an acquisition which we believe will be
earnings enhancing and offer long term benefits to our shareholders.

In summary, we feel that we are between the peaks of a double-dip market, having
steered ourselves successfully through the first phase of this market, we are
now in a period of reflection, just prior to the next phase of solid and
consistent spend. Increased activity in our consultancy business confirms this,
with strong activity in strategic and planning contracts, in both the private
and public sectors. We expect to return to growth next year.



For further information:

Epic Group Plc
Michael Inwards (Chairman)                                    01273 728686
Donald Clark (Chief Executive Officer)                        01273 728686
Stephen Oliver (Chief Financial Officer)                      01273 728686
Beattie Financial
Brian Coleman-Smith / James Chandler / Gemma Smith            020 7398 3300



BACKGROUND NOTE:

ABOUT EPIC

Epic Group plc is the leading e-learning company in the UK. For nearly 20 years
Epic has been a consistent leader and innovator, producing ground-breaking and
award winning work. Services range from consultancy through content production
and technology solutions (both bespoke and generic) to testing and localisation.


Epic's extensive client list includes:

Government     DWP, Inland Revenue, Customs & Excise, Environment Agency,
               Cabinet Office, LearnDirect (Ufi), I&DeA

Education      UKeUniversity, HEFCE, BECTA, SEEDA, Cambridge University, NLN

Health         NHSU, NPSA, PCTs, Department of Health BUPA

Financial      The Royal Bank of Scotland, Lloyds TSB, Barclays, PwC, AIB, AMEX,
Services       Deloittes, FSA

Telcos,        SAP, ntl, Cable&Wireless, Orange, BT, BBC
Media

Retail         B&Q, Whitbread, Diageo, British Airways, Virgin Atlantic,
               Kimberly Clark, Kraft


WORLDWIDE MARKET

IDC Begin Act II: Worldwide and U.S. Corporate eLearning Forecast, 2002-2006
(2003)

*  worldwide corporate e-learning market $6.6 billion for 2002; 35%
   compound growth rate for e-learning through 2006;

*  worldwide IT education & training market $23.7 billion by 2006



THE EUROPEAN MARKET

IDC

*  European Business Skills market to reach $13 billion by 2006
*  five-year compound annual growth rate (CAGR) of 14.9%
*  27% of business skills training provided via e-learning by 2005
*  most advanced markets; UK, the Netherlands and Scandinavia



WEBSITE

www.epic.co.uk



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

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