Media Square plc ("Media Square" or "the Group")

Trading Update

The Board wishes to announce that trading to date for the second half of the current year (the six months ending 28 February 2010) has been significantly stronger than in the first half, reflecting the initial cost savings from the restructuring undertaken in response to cuts in clients' marketing budgets.  However, while the Group expects to be profitable in the second half of the year before exceptionals, the Board now anticipates an overall trading loss for the 12 month period ending 28th February 2010 compared to its previous expectation of a small operating profit for the full year.

As announced in the Company's interim results, the Board continues to be in discussions on the sale of two non core, profitable, business units. Should these disposals complete, the Board anticipates that there will be a write-down of goodwill related to these disposals, which are planned in the near future.  These disposals will bring to an end the restructuring of Media Square plc which started in September 2007. 

Looking forward, the Board is confident that, following the full effect of the restructuring, the cost-base of the Group both at a headquarters and at an agency level will be much lower than in previous years, enabling the Group to build on the momentum of the second half of the current year.  At this stage there are no signs of any significant increase in clients' marketing budgets for the coming year but there are few indications of any clients cutting back further on their 2009 spending levels.

Enquiries to: