Hexagon Human Capital plc ('Hexagon', the 'Company' or the 'Group')

2 December 2009

Trading Update

The Company has recently undertaken a re-forecast of its financial performance and provides the following update.

Trading in recent months has stabilised across both the Group's operating divisions. However, the Board now anticipates that EBITA for the full year will be below market expectations. 

The re-forecast exercise has revealed previous cash flow forecasts to have been over optimistic. As scheduled payments to HMRC had been agreed based on these forecasts, the Group has not fulfilled its obligation under this arrangement. Discussions with HMRC about a revised payment plan are now ongoing, and the Company will make further announcement(s) as appropriate. 

The Company also announces that it will not be in a position to satisfy termination payments to Mr Jonathan Wright, former CEO, and Mr Carl Thompson, former CFO. The termination payments were agreed based on the previous financial forecasts. In negotiation with Mr Wright and Mr Thompson, the Company has proposed a re-scheduling of the payments set out in the termination agreements. The proposals made to date have not been accepted.  

The Company remains in active discussions with its bankers and following the re-forecast exercise now believes that it has a realistic basis on which to agree facilities appropriate for Hexagon's ongoing requirements.

Commenting on the update, Rob Walker, Executive Chairman said:

"It is pleasing to note that trading performance has stabilised, demonstrating the strength and value of the Hexagon businesses. The complete re-forecast exercise has revealed over-optimism in the past regarding the Group's cash position. As a result, whilst we are confident of our ability to trade out of the current situation, the Group is in default on previously agreed payments with HMRC. Discussions with HMRC are now ongoing."

Enquires to:

Hexagon Human Capital plc                                                                       Tel: 020 7337 1133

Rob Walker, Executive Chairman

Brewin Dolphin Investment Banking (NOMAD)                                       Tel: 0845 213 4730

Matt Davis/ Adam Rudd