ITO Intechnology

RNS Number:2414B
InTechnology PLC
10 April 2006


10 April 2006


                                InTechnology plc

              Trading Update on Financial Year Ended 31 March 2006


InTechnology plc announces its trading update for the year ended 31 March 2006.
The Company's UK business achieved a significant improvement in its second half
profitability but EBITAE for the Group as a whole will be marginally below
current expectations, owing to a weak performance in its Continental European
business.


During the second half of the year, considerable management effort was
concentrated on the restructuring of the UK distribution business and the sale
of the Continental European ("CE") business.  Furthermore, as a result of the
sale process, the intended cost reduction plans in the CE business were
postponed and so the division carried higher costs than anticipated throughout
the period.


However, the consideration from the sale, together with repayment of the
inter-company account, is estimated to return cash of approximately #19m to
InTechnology.  This will greatly improve the Group's net debt, which at 30th
September 2005, was #25m.


In the UK, both divisions have significantly improved profitability as a result
of the successful reorganisation programme.


The continuing UK Distribution business is now in position to continue earning
profits and generating a positive cash flow.  It will always require attention
in a changing market, where consolidation is already underway.


Management focus will be directed towards growing the Managed Data Services
business where the EBITAE profit continues to strengthen.  The outlook for
increased revenues and profits from Managed Data Services remains very good.


Peter Wilkinson, CEO, commented: "InTechnology exits the year in good shape,
having disposed of its loss-making European business and significantly improved
its debt position at the same time.  Following the restructuring of our UK
business, our focus is now on continued profitable growth within our
distribution and managed services divisions."


InTechnology plans to announce its preliminary results for the year ended 31st
March 2006 in June.


For further information:


InTechnology plc                                 01423 850 000
Peter Wilkinson


Financial Dynamics                               020 7831 3113
James Melville-Ross / Hannah Sloane






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