Telent Reports Fiscal H1

Reports stable revenues of £149M compared with £147M in the year ago period

November 23, 2007

2 Min Read

LONDON -- telent plc (LSE: TLNT) today announced results for the six months ended 30 September 2007.

Recommended Cash Offer by Pension Corporation

It was announced on 25 September 2007 that the Board of telent and Co-Investment No. 5 L.P. Incorporated ("CILP") a limited partnership whose general partner is advised by Pension Corporation LLP ("Pension Corporation") had reached agreement on the terms of a recommended cash offer by CILP to acquire the whole of the issued and to be issued share capital of telent at a price of 600 pence per share. The offer document was posted to telent shareholders on 2 October 2007. On 15 November 2007, CILP declared the offer unconditional in all respects.

As at 3.45 pm on 15 November 2007, CILP had received valid acceptances in respect of a total of 40,586,442 telent shares, representing approximately 91.90 per cent. of telent's issued share capital to which the Offer relates. CILP has become entitled to acquire compulsorily the remaining telent shares pursuant to the Companies Act 2006 and it intends to exercise that right shortly.


We recorded broadly stable revenues (30 September 2007: £149 million; 30 September 2006: £147 million) and adjusted operating profit from Trading Activities (30 September 2007: £11 million; 30 September 2006: £11 million) during the first half of the year, despite challenging conditions in some of our main market sectors. In Germany, we experienced a slowdown in spending by our major Utility customers, while in the UK, our Telco Services business was impacted by lower than expected levels of next generation network build activity.

Our UK Enterprise Services business has had a good start to the financial year with major order wins (including Firelink maintenance, FiReControl, South West Trains and Northern Line contract extension - see Contract Wins below) and strong revenue growth particularly in our Emergency Services and Rail sectors. Further significant contract opportunities are in the pipeline.

We continue to make good progress in liability management, with the further reduction of some 39 legal entities achieved in the first half of the year and one-off legacy income contributing to Group profit in the period. As previously disclosed, we completed the disposal of our German facility, retained post completion of the Ericsson transaction in 2006, for cash proceeds and profit on disposal of £15 million respectively.

Group cash, excluding UK Pension Escrow was £253 million (31 March 2007: £235 million), including £25 million of restricted cash balances (31 March 2007: £34 million). At 30 September 2007 the UK Pension Escrow amounted to £514 million (31 March 2007: £514 million), comprising primarily Sterling corporate bond investments of £506 million and cash deposits of £8 million.

telent plc (London: TLNT)

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