smartFOCUS Group plc

Pre-Close Trading Update for the six months ended 30 June 2009

Trading ahead of Board's expectations for the first half

smartFOCUS Group plc (smartFOCUS, 'the Company' or the 'Group') (AIM : STF), a leading marketing software group, announces an update on trading for the half year ended 30 June 2009, as it enters the close period ahead of its interim results announcement. 

The Company expects to report results for the half year ended 30 June 2009 ahead of the Board's expectations with strong growth in revenue and profit compared to budget. Compared to the same period last year, revenues are expected to be up approximately 13% and profits significantly ahead. Cash flow in the first half remained strong, with cash balances as at 30 June 2009 of £1.5m, the same as at 31 December 2008.

smartFOCUS experienced continued strong demand for its solutions, especially for digital products delivered in the SaaS model, with revenues associated with digital marketing, now making up approximately one-third of the Group's revenues. Furthermore on-going investment from the Company's partners and clients remained strong and renewal rates continue to be high.

New customer wins in the first half included Sony, Betfair, Virgin Games, The Chartered Institute of Marketing and Dallas Morning News. In addition, the Company secured over 40 new customer and partner contracts in the first six months of the year.

Chris Underhill, Chief Executive Officer of smartFOCUS, commented:

'We are pleased with our performance in the half year. The business has fully migrated its business model to deliver highly recurring and more visible revenues, offering more of our software as a service model. This change has been well received and demand, especially in on-line, has delivered significant new contract wins alongside strong customer retention and renewal rates. As such, the Company has had a strong financial performance.

In summary, smartFOCUS' progress, together with good revenue visibility and a strong recurring revenue model, combined with an excellent team, on-going cost management and good cash generation, positions the Company well for continued success, both for the remainder of this year and beyond.' 

A further update on trading and prospects will be provided at the time of the Company's interim results which are expected to be announced in late September 2009.

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About smartFOCUS Group plc

smartFOCUS (LSE:STF) is a leading international marketing software company that empowers marketers with the intelligence to drive high performance multi-channel campaigns and more valuable customer relationships. Its Intelligent Marketing solutions integrate offline and online data, analysis, campaign and performance management to deliver better targeted, more timely and relevant communications that increase campaign conversion rates and improve customer insight.

smartFOCUS has over 700 customers and partners worldwide using its marketing software including AAA, ABN AMRO, ASOS, Center Parcs, EMI, Fig Leaves, Harrods, Hilton International, NSPCC, Société Générale and QVC.

smartFOCUS is headquartered in the UK, with operations in the US, continental Europe and Asia Pacific. www.smartfocus.com