RNS Number:6325U
Lorien PLC
26 January 2004

26 January 2004



                                     Lorien
                                 Trading update



Lorien plc, the IT Resourcing and Specialist Services group, today released a
trading update ahead of its preliminary results for the year ended 30 November
2003, which will be issued on 3 March 2004.



Trading update



Resolution IT Services



The Group's interim results, announced in July 2003, referred to ongoing
investment of #0.3m in a series of initiatives aimed at increasing the value of
our services to customers. This investment primarily comprised start-up costs in
respect of Resolution IT Services, the Group's IT project management business.



Although Resolution incurred further losses in the second half of 2003, the
level was significantly reduced to #0.1m with a positive contribution being
achieved for the first time in November. The improved trading performance has
continued into the new financial year and, with several new contract wins, the
Board anticipates Resolution will make a positive contribution in the first half
of 2004.



Preliminary results



The Board anticipates that the Group's profit before tax (pre-exceptional
charge) for the year ended 30 November 2003 will be not less than #0.8m (6
months to 31 May 2003: #0.2m;  6 months to November 2003: #0.6m).



Exceptional charge



In February 2002, the Group disposed of its Consulting operations for #4.5m. At
the time, it was considered that the transaction would be earnings neutral
following the removal of #1.0 million of Central costs, the most significant of
which related to property, staff and finance charges.



Although the Group has been successful in delivering the savings in respect of
staff and finance charges, the commercial property market in the South-east
remains very difficult and we have yet to dispose of the Consulting property in
Chertsey, which remains vacant.



As a consequence, the Board no longer considers the provision which was made at
the time of the disposal to be sufficient to cover potential future liabilities
in respect of rent, rates and service charges. The preliminary results will,
therefore, include an exceptional charge of  #1.25m.



The Board believes that this charge represents the maximum potential future
liability and hopes that an earlier disposal can be achieved. If an early
disposal is achieved the surplus provision would be released at that time.



Outlook



The Board has been encouraged by the performance of its Resourcing business over
the second half of 2003, with activity levels increasing by over 15% compared to
the first half of the year.  This improvement has continued into the current
financial year with trading volumes a further 3% ahead of the year-end position.
With trading in our Services division remaining broadly constant over the second
half of the year, and the positive contribution now being made by Resolution,
the Board anticipates the positive momentum will continue into 2004.



For further information, please contact:



Lorien plc
Christopher Hinton, Group Finance Director                0161 888 2503

Citigate Dewe Rogerson                                    020 7638 9571
Patrick Toyne Sewell






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