TQC Third Quad Cap

TIDMTQC

RNS Number : 8222Y

Third Quad Capital PLC

04 January 2011

Third Quad Capital Plc ("TQC")

Trading update for the six month period ending 31 December 2010

Following the change in accounting reference date to 31 March (announced on 5 October 2010) Third Quad Capital announces a trading update for the second six-month period ended 31 December 2010.

Overall the group is in a much improved position than it was six months ago and prior to the two acquisitions it made in August. Recent poor weather has not been helpful for trading but that does not diminish the long term value of this business.

VSA Capital Limited ("VSA"), our financial services business, has performed better than expected. Despite the situation VSA was in when it was acquired, we have succeeded in recruiting some excellent people and we are seeing good quality deal flow, which is very encouraging for the long term growth of this business. Our intention is to continue to invest in VSA as, with the proven track record of the management team, we believe we can build a very valuable business. Whilst investment in people and growth does risk constraining short term profitability we remain convinced that it will provide substantial longer term value.

Our Software Division comprises the original Formjet/Ability businesses now combined with Softline UK Ltd (SLUK) which we acquired in August. These businesses have now joined forces in a single location and the workforce has been restructured to further reduce costs for these operations. The major snowfalls in December, with airports and roads closed, has not been helpful as this month remains important to the overall performance of these businesses. Certain key computer games that were due for release prior to Christmas have also been delayed and so the results for the Software Division will reflect this. Ability, although it has had some breakthroughs with areas such as the trial currently taking place with the Scottish NHS, struggles against the monopoly position of Microsoft.

A tenant has been found for the group's previous headquarters in Crawley and commenced rent payments on 25 December 2010.

We have a strong balance sheet relative to our size and believe we can continue to make further significant progress in 2011. The focus of this development will be in the financial services division and we will give further details on this when we report our second interim results for the six month period ending 31 December 2010 but it is in this area that we see the greatest potential for both profitability and value creation.

For further information, please contact

Third Quad Capital plc

Andrew Monk, CEO 0207 096 9580

Shore Capital and Corporate Limited Andrew Raca or Toby Gibbs 020 7408 4090

Rivington Street Corporate Finance Jon Levinson 020 7562 3357

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTDKNDBKBKBADK

Third Quad Capital (LSE:TQC)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Third Quad Capital (LSE:TQC)
Historical Stock Chart
Von Mai 2023 bis Mai 2024