Trading Statement

 

TIDMTQC 
 
RNS Number : 0737O 
Third Quad Capital PLC 
23 June 2010 
 
                  Third Quad Capital Plc ("TQC" or the "Group") 
            Trading update for the interim period to June 30th 2010 
 
The Group has enjoyed improved fortunes during the first half of 2010.  The 
board of TQC (the "Board") believes its core business, Formjet Innovations, will 
achieve a trading profit for the six month period to 30 June 2010.  In addition, 
the overall financial position of the Group has improved as Plc costs have been 
reduced which, together with the early receipt of consideration announced on 1 
March 2010, has allowed repayment of the Group's overdraft facility. TQC 
currently has a positive net cash position. 
 
Ability Office 
This summer will be an important time for our core product Ability Office. The 
office software market is currently dominated by Microsoft, which, on 15 June, 
launched Microsoft Office 2010. This launch brings significant changes to both 
Microsoft's office software range and also the manner in which it is brought to 
market.  We believe that these changes will give Ability Office improved 
opportunities to increase its market share.  As a result we have developed a 
stand-alone product for DSG International Plc ("DSGi"), Ability Office Complete, 
which is our most comprehensive office software suite to date.  It comprises all 
our standard Ability office applications (Write, Spreadsheet, Presentation, 
Database, Photopaint and Photoalbum), with the addition of a combined e-mail 
client and calendar program. We are delighted that DSGi has also decided to 
market Ability Office Complete in a combined retail product together with Norton 
Internet Security from Symantec, the acknowledged brand leader in the IT 
security market.  The Board believes that the two essential programs that all 
PC, Notebook and Netbook users require on their systems are Internet security 
and an office applications suite. The combination of Ability Office Complete 
with Norton Internet Security in a single cost-effective package provides 
customers with an equally capable but more competitively priced choice when 
looking to fulfil these two core computing needs. 
 
Acquisitions 
The Group has investigated a number of acquisition opportunities in the first 
half of 2010. In weighing up these opportunities the Board has considered 
amongst other factors, dilution, execution risk and costs. To date, the Board 
has remained wary of entering into a large transaction because of the financial 
uncertainties that have prevailed throughout this period. 
In addition, as the core business has improved, the Board believes it is 
sensible to focus its attention on smaller, less dilutive transactions and to 
that end, we are currently investigating a number of attractive opportunities 
which we will announce, should any reach fruition. 
 
Balance sheet 
In the last month the Board has noted an improvement in the property market in 
the  Crawley/Gatwick area and it expects to update the position of the Group's 
property at the time of our interim results are announced. 
 
 
Directors' remuneration 
Because the Group is now performing better and the balance sheet has been 
strengthened, the Board has decided that Andrew Monk should be paid a salary. 
The Board is committed to keeping costs as low as possible, whilst ensuring that 
improvements are rewarded and growth is encouraged. 
For further information, please contact 
 
Third Quad Capital Plc 
Andrew Monk, CEO 
012 9384 8860 or 07973 224 283 
 
Shore Capital and Corporate Limited 
Andrew Raca or Edward Mansfield 
020 7408 4090 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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