TSE Touchstone Grp

RNS Number:0580O
Touchstone Group PLC
15 February 2008



                              Touchstone Group plc


                                 Trading Update


Touchstone Group plc, the AIM-quoted provider of business software solutions and
consultancy services today announces an update on current trading.


Trading profits in the second half are expected to be stronger than the first
half and the Board anticipates that turnover for the year to 31 March 2008 is
likely to be slightly ahead of last year. However, increased delivery costs,
lengthening procurement cycles and further R&D costs will have a bearing on
adjusted year-end pre-tax profits which are likely to be slightly below previous
management expectations and behind last year.


As previously announced, the Group has increased its R&D investment during the
year thereby enhancing the Group's dominant position in a number of niche
markets. Consequently, the Group is pleased to confirm that these investments
have resulted in the Group being selected as a preferred supplier for a number
of new prestigious projects. Order books are strong and sales pipelines continue
to improve. Further, Microsoft has also confirmed that the Group continues in
the No.1 Microsoft Dynamics partner position in the UK for the 6-months to
December 2007.


The Directors are confident that the results of future periods will deliver
growth in turnover and profitability as it benefits from the current order book
and investment in R&D which will enhance the Group's dominant position in its
niche markets. Set against this background the Board is commencing a strategic
review to consider how best to enhance value to shareholders.

Enquiries to:


Keith Birch, Chief Executive Officer

Touchstone Group plc 020 7121 4700


Matt Davis

Brewin Dolphin (NOMAD) 0845 270 8603




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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