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InterQuest Group plc

('InterQuest' or 'the Group')

Trading Update

IT staffing specialist, InterQuest Group plc today issues a trading update for the year ending 31st December 2008. 

• Another year of considerable growth with revenue anticipated to exceed £104m (approximately 20% higher than 2007: £86.7m) and gross profit anticipated to exceed £15.2m (approximately 18% higher than 2007: £12.9m)

• All acquisitions successfully integrated

• Record number of contractors in our public sector clients

• More than 75% of gross profit currently derived from repeatable, sustainable contract placements

• Strong cash management with operating cashflow likely to exceed EBITA for the year

• Balance sheet substantially stronger due to profitability and management of working capital. Net debt reduced to less than £6m from £9.3m at the start of 2008

• EBITA anticipated to be approximately £5.3m and adjusted PBT approximately £4.75m 

Operational update and outlook

Contractor numbers in the year ranged from 1,020 to 1,090 with the Group ending the year with 1,050 contractors. This has remained steady into January giving the Board reasonable visibility for 2009. 

Our public sector business has shown strong growth in 2008 and closed the year with all time highs in revenue, gross profit and contractor numbers. 

However, permanent placement levels have fallen significantly during the last quarter of the year leading to lower visibility for 2009.

The economic climate suggests that 2009 is likely to be the most difficult year that the Group has faced. However, our strengthened balance sheet, experienced management team and niche-focused business model, based upon specialist IT recruitment often in mission critical areas, combined with the majority of our gross profit being derived from contract revenue rather than permanent placement fees, positions us well to meet the challenges ahead. 

InterQuest will announce its preliminary results for 2008 on Thursday 5th March 2009.

Enquiries:- 

InterQuest Group plc

020 7025 0100 

Gary Ashworth, Executive Chairman

Michael Joyce, Finance Director

Cenkos Securities plc 

020 7397 8900

Julian Morse, Ivonne Cantu, Camilla Hume

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