12th Sep 2007 07:01
Z Group PLC12 September 2007 Z GROUP plc (the "Company") Trading Update Trading for the first half of the financial year was better than budget, due toONSPEED continuing to perform well. Management expectations for trading for the full year to 28 February 2008include a substantial contribution from the Company's investment in OnShareLimited. At the present time the Board is not confident that those expectationswill be fulfilled as take-up of the product by consumers has been lower thananticipated. The Board is looking at alternative ways to generate revenue fromthe underlying OnShare technology. As a prudent measure, we expect to bewriting off our investment in this product in this financial year and ourresults for the year will be adversely affected by both of these issues. Our monthly average cash burn in the first half was around £115,000 and theCompany had a cash balance of £1.6 million at 31 August 2007. This compareswith a monthly average cash burn in the prior year of approximately £160,000.Action is being taken to reduce the Company's monthly cash burn rate further. For further information: Z GROUP plc Jack Bekhor / Jamie True Tel: +44 (0) 8700 111 173(Joint Chief Executive Officers) Duncan Neale Tel: +44 (0) 8700 111 173(Finance Director) Landsbanki Securities (UK) Limited (NOMAD) Tom Hulme Tel: +44 (0) 20 7426 9593(Corporate Finance) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
1Spatial Holdings