CAGNEY Plc ('Cagney' or the 'Company')

Trading update

Cagney, an integrated group of marketing services firms, today publishes a trading update for the year ending 31 December 2008.  

In our interim statement made on 19 September 2008, we reported an encouraging operating profit of £234,000, compared with an operating loss in the first half of 2007.  

However, we also reported that the first half had benefited from two significant items of revenue that were unlikely to be repeated in the second half, and that parts of the Group were beginning to experience more difficult trading conditions as result of the slowdown in the global economy.  We therefore cautioned that the second half of the year could be less profitable than the first half.  

Our current internal forecasts now indicate a modest operating loss in the second half of the year, and there are a number of doubtful debts in one of our companies which, depending on the view taken of them when our results are finalised, could bring the operating result for the year down to break even or below.  

However, December is an important trading month, and revenue is still being generated that could help counter-balance the effects of any doubtful debt provisions.  

We remain cautiously optimistic about the future. The harsh economic circumstances will undoubtedly bring opportunities to win new business, and next year the Group will also benefit in full from the cost saving measures which the new management team has already put in place.  

ENDS

Enquiries:

Cagney Plc                                          Tel: 020 7637 4198

Patrick Oram, Chief Financial Officer

Smith & Williamson                                      Tel: 0117 376 2213

Nick Reeve

About Cagney Plc

Cagney Plc is an integrated marketing services group. It combines five businesses: Exedra (brand consultancy), Chick Smith Trott (advertising and design), Cubo (promotional marketing), The Media Foundry (public relations) and Tree (market research and data analysis). The Group floated on AIM in February 2006.  

www.cagneyplc.com