UK - SBS Recovery Underway After Y2K Disruptions : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

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10:41:19, Fri 28 April 2000

Title: SBS Recovery Underway After Y2K Disruptions

SBS failed to weather the Y2K microclimate but the calm after the storm should provide suitable conditions for a rapid recovery.

John Davies, chairman at the IT contracting group, says: The groups overall performance in the six months ended 29 February was severely affected by the downturn in the IT sector caused by the so-called Y2K microclimate.

Most major clients delayed investment in IT projects until after the 1999 year-end, due to concerns that the date change could cause problems with legacy systems. In the event, these concerns proved to be largely unfounded, although the effect on the groups trading was considerable.

The group saw interim profits of #124,000 as compared with #1.3 million in the same period the previous year. Earnings per share were 0.9p from 10.3p. The interim dividend is 0.9p, down from the 1.5p paid last year.

Looking ahead, Davies says: 'it is pleasing to note that recovery in most areas of the business is increasingly evident. This together with the contribution of the group's recent acquisition leads us to expect a much improved performance in the second half of the year.'

Shares in SBS (SBG) were unchanged at 160p this morning, having fallen from a 12-month closing high of 305p on 28 February. They stood at 112.5p last July. )2000


-- (, April 28, 2000

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