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Trading Statement 21 Jun 2006

System C Healthcare Plc
21 June 2006

TRADING UPDATE

System C Healthcare plc, a leading independent provider of IT implementation solutions for the healthcare sector in England, today issues a trading update for the year ended 31 May 2006. System C's preliminary results will be announced on 13 September 2006.

System C announces that the PBET (profit before exceptionals and tax) for the year ended 31st May 2006 is anticipated to be in line with current market expectations.  The company retains a strong balance sheet and its net cash is anticipated to be in line with expectations of circa £8m.

Well publicised delays and uncertainties within the National Programme for IT have clearly impacted the 2005/6 results. Whilst this challenging background persists, System C is  developing its client base both within and outside the Programme.

A recent contract win has expanded our Local Service Provider (LSP) client base and the company is now providing significant levels of professional services in 4 out of 5 clusters. In addition, we continue to develop opportunities for both products and services directly with NHS Trusts and with the private healthcare sector.  System C has now worked with over 100 NHS Trusts both directly and in partnership with other suppliers.

The company has also made good progress on the cost reduction exercise outlined in our interim results and has reduced its cost base by more than £1.5m (annualised). 

In summary, the management team believes that the company has taken significant steps to diversify its customer base and reduce its costs, and that the company's reputation with customers remains good. Whilst the pace of change and structure of the National Programme for IT is an ongoing influence on our results, we are continuing to adapt to changes in our market place.

Enquiries:

System C Healthcare plc
Jim Horsburgh, Chairman
Ian Denley, Chief Executive
01622 691616

Maitland
Emma Burdett
Brian Hudspith
020 7379 5151

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Did You Know?

Did you know?

System C is a benefactor of the healthcare interfacing standards body HL7 (Health Level 7).