SHL Interim Results for the six months to 30 June 2005

SHL Group plc announces its interim results for the six months to 30 June 2005. These results are prepared under International Financial Reporting Standards (IFRS) and the 2004 comparatives have been restated accordingly.

Financial

Operating profit up 23% to 3.2m (2004: 2.6m).

Profit before tax up 13% to 3.4m (2004: 3.0m).

Return on Sales up to 10.0% (2004: 8.7% excluding one off exchange gain).

Turnover up 5% to 33.9m (2004: 32.2m).

Earnings per share on a continuing basis up 18% to 4.0p (2004:3.4p).

Interim dividend increased 10% to 1.1p (2004: 1.0p).

Product Growth drives performance

Change in mix towards Product increases margin.

Product revenue up 13% to 21.3m (2004: 18.8m) and operating profit up 29% to 6.7m (2004: 5.2m).

Product revenue and profit growth in all regions.

Assessment Services revenue and operating profit falls reflect exceptional project in 2004.

Assessment Services revenue: 11.4m (2004: 12.2m), operating profit 0.8m (2004: 1.7m).

Former subsidiaries, now distributors, improve profit performance.

John Bateson, Group Chief Executive of SHL, said:

The established pattern of improvement has continued in the first half of 2005. The strategy of increasing the operational flexibility of the Assessment Services business and growing product sales continue to push margins towards our target of 14%. The Board remains confident in the growth prospects for the Product business where the strategy of growing online revenue is clearly succeeding. Overall, the Board believes that its current targets will be achieved even at the current levels of Assessment Services revenue.