RNS Number:1502L
Gladstone PLC
15 May 2003



GLADSTONE PLC ("the Group")


TRADING UPDATE


In March 2003, in the interim results for the six months ended 28 February 2003,
we reported Gladstone's success in attaining profitability at Group level for
the first time; and our aspirations that the second half of the year would see
further improvements in the company's turnaround.


We are pleased to report that the last 10 weeks have confirmed this upbeat
assessment with profitability and cash generation ahead of plan. Our order book
is at its highest ever level since the current Board took over and the strength
of our sole trading division within its niche UK market is apparent. We are
committed to continually improve our product and service to enhance our market's
leading position and have hosted a number of well attended user forums over the
last 18 months. We have received from these a positive response to our
initiatives that have enhanced our service provision as well as identifying
further ways in which we can improve our service and product offering.


A number of customers, including Edinburgh Leisure's 29 sites, have
contractually committed to upgrade to our market leading MRM.plus2 software with
its unique capability to improve membership retention.


We have also completed system testing of our browser based MRM.webplus and
MRM.connect application which we believe will further differentiate us from our
competitors. Delivery of service over the web is a mandatory requirement for our
local authority clients who will require this capability to comply with the EGIF
(Electronic Government Interoperability Framework) over the next three years.
This capability should also facilitate low cost deployment of our software into
new territories.


Whilst enjoying strong recurring high margin revenues from maintenance and
rental contracts secured from the majority of the UK market it is natural for
the Group to investigate international expansion and discussions have started
with some interested parties.


Later in the year we expect to release our prelimary results for the year ending
31 August 2003 in which we expect to report profitability ahead of expectations.


Ends


For further enquiries please contact Alex Clarkson of Brewin Dolphin Securities
Ltd on 0161 214 5547






                      This information is provided by RNS
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