Delay of Full Year Results and Trading Update

IDE Group Holdings PLC

("IDE", the "Group" or the "Company")

Delay of Full Year Results for the Year Ended 31 December 2019

IDE, the mid-market network, cloud and IT Managed Services provider, announces that it now expects to report its full year results for the year ended 31 December 2019 by 31st July 2020.

The current audit is taking longer than originally expected due to the restrictions of the current COVID-19 lockdown and does not relate to any issues with the audit.

Summary of Unaudited Results

· Revenue of £28.2 million (2018: £41.1 million).

· Gross profit margins increased to 22.8% (2018: 16.1%). Gross profit margins before the impact of IFRS 16 are 22.1%.

· Adjusted EBITDA** profit £1.1 million (2018: loss of £3.9 million). The adjusted EBITDA of £1.1 million has benefited by £0.9 million due to the adoption of IFRS 16 with costs now taken in depreciation and finance costs.

· Additional funding raised of £11.5 million in the form of six-year secured loan notes from existing shareholders.

· No external debt other than with key shareholders.

· Stable leadership and consistent senior management team in place.

· Partnership channel delivering revenues from public sector.

· Strong partnership and direct customer pipeline of opportunities.

** Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation, impairment charges, exceptional items, loss on disposal of fixed assets and share-based payments

Current trading and outlook

Trading in the current financial year remains broadly in line with management expectations, although the mix has changed due to the current COVID-19 crisis. We have won and implemented additional projects in the Managed division supporting mobile working across a number of our clients, offset by the expected pipeline of projects being deferred into the second half. The Board is confident in its strategy and continues to enhance operational efficiency in our core services and strengthen the senior management team in order to deliver an improved trajectory through 2020 and beyond.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

IDE Group Holdings PLC Tel: +44 (0)344 874 1000

Andy Parker, Non-Executive Chairman

finnCap Limited Tel: +44 (0)20 7220 0500

Nominated Adviser and Broker

Corporate finance: Jonny Franklin-Adams/ Hannah Boros

ECM: Tim Redfern/ Richard Chambers