NDH Network Data

    RNS Number : 5632Z
  Network Data Holdings PLC
  22 July 2008
   


    22 JULY 2008


    NETWORK DATA HOLDINGS PLC

    ("Network Data" or "the Group")

    Trading update

    Network Data today releases a trading update ahead of its results announcement for the six monthly period ending 30th June 2008, due to
be released on Friday 26th September 2008.

    The principal businesses of the Group are three wholly owned subsidiaries, Network Data Limited ("NDL"), Network Surveyors Limited
("NSL") and Hipstar Limited ("HIPSTAR").

    These businesses are reliant on the volume of transactions in the mortgage and property markets and have consequently found the first
six months of 2008 to be a challenging environment.

    The declining transaction levels have been well-chronicled in the national business press and our results for the six month period will
reflect these market conditions.

    The Group has been actively involved in reducing its cost base since last September and this program has been accelerated throughout
2008. However, results for the full year to December 31st are likely to be below market expectations.


    Grenville Folwell, Chairman, commented:

    "The Council of Mortgage Lenders website at www.cml.org.uk now shows figures for the volume of mortgage business introduced by brokers
(intermediaries), who clearly remains the dominant channel for mortgages in the UK.

    However, they are now operating in a market where the downturn in mortgage business relating to house purchase has been more severe than
expected, although the remortgage market has proved to be more robust.

    We believe these conditions will favour the merger of networks. Our core business NDL, the largest mortgage network in the UK, intends
to play its full part in this process. We are currently evaluating acquisition opportunities that can be merged with our existing operation
at very little additional cost.

    NSL, which acts as a panel manager for property valuations on behalf of lenders, successfully managed to maintain its volume of business
in Q1, although the Q2 figures have reflected the lower transaction levels in the property market.

    The operations of HIPSTAR have likewise been directly affected by the decline in property transactions in England & Wales since the
start of the year.

    Overall, while we expect 2008 to signal the bottom of our markets in terms of transaction levels, there are as yet no signs of recovery
and the only rational course of action for the management of the group has been to cut our costs accordingly.

    Staff numbers have been reduced by 50% since last September and a number of major IT projects which had previously been outsourced have
been brought in-house.

    The tough and turbulent times that the UK economy is now facing, and the impact on the mortgage and property markets in particular, will
undoubtedly provide opportunities for companies that take the right actions now, and in the future, to ensure both survival and
profitability. 

    The Group will take whatever actions are necessary to meet these objectives".


    Enquiries:

    Richard Griffiths
    Chief Executive, Network Data Holdings
    Tel: 01932 875 728

    John Riddell
    Noble & Company 
    Tel: 020 7763 2200


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