Financial and Operational Results

Operational Highlights

• Revenue £70.7 million (2008: £79.2 million)
• Underlying profit* before tax £1.8 million (2008: £3.7 million), after charging £1.6 million of costs related to new products (2008: £0.1 million)
• Profit before tax £0.5 million (2008: £4.4 million)
• Underlying EPS^† 8.2p (2008: 18.9p) 
•  Basic EPS 1.7p (2008: 21.6p)
• Recurring revenue £16.3 million (2008: £14.1 million)
• Proposed final dividend 4.5p per share making 7.0p for the full year (2008: 7.0p)
• Significant initial sales of new Synectics products
• Net cash at 31 May 2009 £8.1 million (2008: £7.9 million)
• Group restructuring well under way

^{* Underlying profit represents profit before tax, exceptional reorganisation costs, goodwill reduction and share-based payments charge/(credit).}

^{† Underlying earnings per Ordinary share is based on profit after tax but before exceptional reorganisation costs, goodwill reduction and share-based payments charge/(credit).}

‘I am pleased to report that, after a weak first half, Quadnetics produced a significantly stronger underlying operating performance in the second half of 2008/9.’

David Coghlan
Chairman

Financial Results

^{*2005 and 2006 measures of underlying profit and underlying earnings per share are based on previously reported UK GAAP results whereas 2007, 2008 and 2009 are presented under adopted IFRS. There is no material difference between the underlying UK GAAP and IFRS calculations. Underlying profit represents profit before tax, exceptional reorganisation costs, goodwill amortisation or goodwill reduction and share-based payments charge/ (credit). Underlying earnings per Ordinary share is based on profit after tax but before exceptional reorganisation costs, goodwill amortisation or goodwill reduction and share-based payments charge/(credit).}