Trading Statement

RNS Number:4137U
Host Europe PLC
20 January 2004


Host Europe PLC

20 January 2004





                             HOST EUROPE PLC

                            Pre-Close Trading Update



Host Europe plc, the internet hosting provider, today issues the
following pre-close trading update to provide an overview of its trading
for the year ending 31 December 2003.



At its AGM in August 2003 the Company stated that it was continuing to trade
strongly and was seeing significant new customer acquisition. The interim
results published in September showed turnover of #8.2m for the six months to 30
June 2003 and Chief Executive Abby Hardoon stated that the Company was confident
of continued growth through the remainder of 2003.



This expectation has been borne out and the Board expects Group turnover for the
year to 31 December 2003 to exceed that for 2002 by approximately 24%. Both the
UK and German businesses have shown good sales order growth across the product
range in the second half of 2003 and a healthy year end sales pipeline should
ensure good turnover levels in January 2004.



The Board has continued with its commitment to review and control costs in the
second half of 2003 and is therefore confident that the Group's EBITDA
performance for the year, before exceptionals, will be in line with, or better
than, expectations previously published by the Company's broker.



As stated in the interim results announcement the exceptional Board
reorganisation costs of #777,000 reported in the first half represent the full
cost for the year. The business has continued to show strong cash generation
throughout the second half of 2003.



The Board is optimistic about the outlook for 2004. We are seeing continuing
demand for hosting services in the UK and Germany and the company now has the
infrastructure and staff in place to exploit this market opportunity.



Enquiries:



Host Europe plc



Stephen Sadler, Chief Financial Officer Tel: [phone]





About Host Europe plc



Host Europe plc was founded in the UK in 1996.  Today it has operations in the
UK and Germany servicing in excess of 140,000 customer accounts, making it a
leading player in the provision of domain registration and internet hosting to
SMEs in the two largest European markets.



The group employs around 150 people across 3 sites in the UK and Germany.

The company is listed on the Alternative Investment Market (AIM) of the London
Stock Exchange (symbol: HER).



Host Europe announced on 25th September 2003 its financial results for the
half-year to 30 June 2003.  The Group reported operating profit before
exceptionals of #117,000 on turnover of #8.2m and cash as at 30 June 2003 of
#2.7m.




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