AGM Statement

RNS Number:6253R
Morse PLC
04 November 2003

Embargoed for 7.00am, Tuesday 4 November 2003



                                   Morse plc
                 AGM statement and Q1 sales performance update


Morse plc ("Morse"), the technology integrator, will hold its AGM at 10.00am
today at which Richard Lapthorne, Chairman, will provide the following update on
the Group's sales performance during the first quarter and current trading:


'We are continuing to develop the business in line with our strategy as a
technology integrator and to trade in line with management's expectations in a
market environment which has not improved over the summer months.


Since we reported our full year results at the end of August, we have seen a
pick-up in enquiries, particularly from the finance sector.  However, these
enquiries are at an early stage and although customer sentiment has improved, it
is too early to confirm a sustained improvement in underlying trading.


The UK business continues to make good progress in the public sector and now has
a number of sizeable opportunities.  During the first quarter, Mchex, a
subsidiary of Morse which specialises in mobile software solutions, signed an
agreement with LINK Interchange Network Ltd, the transaction management services
Company that operates the UK's LINK cash machine network, to develop Mobile ATM.


In continental Europe trading continues to be positive in Spain and Ireland and
has stabilized in Germany.  However, trading has further weakened in France over
the summer due primarily to reduced spend from a major long-term customer.


Group sales for the quarter to 30 Sept 2003 were #73 million (2002: #93
million), reflecting the trading for the Group over the quieter summer months.
This compares with sales of #80 million and #85 million for the March and June
quarters respectively.


Services revenues in Q1 were #27 million (2002: #25 million).  This compares
with #25 million and #29 million for the March and June quarters.
Infrastructure sales for Q1 were #46 million (2002: #68 million). This compares
with #55 million and #56 million for the March and June quarters.


The Group's cash position remains strong with a net cash balance of
approximately #71 million at 30 Sept 2003 (#75 million at 30 June 2003).'



                                     Ends




Duncan McIntyre, Chief Executive                     Giles Sanderson
Gavin James, Finance Director                        Caroline Ledosquet
Morse plc                                            Financial Dynamics


Tel: [phone]                                   Tel: [phone]





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