IIR Ind.Intl.Inv.

RNS Number:7187I
Independent Intl Inv Research PLC
29 November 2007

Press release

07h00, 29th November 2007



Independent International Investment Research Plc ("the Group")


Trading update and change in directorate


The Group currently expects second half results to be broadly in line with
results from the first half. However although still profitable before non-cash
charges relating to FRS20 stock option accounting, results for the full year
ending 28 February 2008  will likely fall below current market expectations.


This full-year outlook is driven by a number of negative factors:



  *   The Group continues to suffer from the weakening US dollar which
      impacts directly on sterling-denominated revenues

  *   Significant merger and acquisition activity, as well as equity
      de-listings in the US in response to Sarbanes-Oxley, has extinguished 
      research coverage which was previously purchased by Group clients.  This 
      phenomenon has now almost disappeared but has had a significant revenue 
      impact over the course of the full year.

  *   Amongst our new product pipeline, the most significant development is
      expected to transform the profile of the Group but launch is behind 
      schedule. In the light of this, all associated revenues have (for the 
      purpose of forecasting) been eliminated from current year revenues.   The 
      Group has however made substantial investment during the current year and 
      has as a result incurred additional costs in expanding its infrastructure 
      to be prepared for (primarily) this new product line.

  *   An additional unbudgeted cost impact arises from legal expenses relating 
      to the Group's dispute with Google. Regrettably upon completion of
      legal drafting of a settlement agreement with Google, the company broke 
      off negotiations without explanation.

  *   Revenues in relation to one client are lower than expected as a result
      of lower-than-expected take-up of the Group's research coverage.  Whilst 
      this may be resolved in December, the impact of a resolution on current 
      year revenues will not be substantial.



Against these negatives for the current year, the outlook for the Group for the
year ending 28 February 2009 reflects the following:



  *   Whilst Global M&A activity has negatively impacted revenues in the
      current year, global IPO activity is expected to positively impact 
      revenues through our GEO MonitorTM product during the next financial year

  *   Investment in our most significant product development this year is
      expected to positively impact revenues next year

  *   Continued expansion of our Global Research coverage universe and the
      addition of short-term actionable trading strategies to this product, to
      be launched in December/January, are expected to contribute to revenue 
      growth next year

  *   Two additional product launches, in December or January, are expected
      to positively impact revenues next year

  *   Deteriorating operating conditions for global investment banks and
      brokers are likely to assist the Group, as our prospective client base 
      actively seeks high quality but lower cost solutions to their research 
      needs

  *   A number of additional sales channels for Group products which are
      expected to come "on stream" early in the New Year.



Given the range of product opportunities available to the Group in the coming
year, the Board has carefully reviewed the entire product line and associated
overhead costs and has decided, for the time being, to withdraw from sales of
equity investment research into People's Republic of China, until that market
has expanded and matured.  The Group's new product lines are expected to be
reflected in an updated release of our website in December/January.



In an unrelated context, The Board announces that Malcolm Donaldson has stepped
down as a non-executive director of the company with effect from 30 November
2007 due to his other business commitments.



Malcolm has served on the Board since 1999 and made an invaluable contribution
to the development of the Group over the years.  His relationship with the Group
will continue as he works with us to identify international sales channels for
Group products.



Commenting on the resignation, Shane Smith CEO stated "The Board would like to
express its thanks to Malcolm for his advice and support over a number of years
and I am pleased that Malcolm has agreed to maintain his links with the Company,
albeit on a more ad-hoc basis, by helping to market our recently launched GEO
Monitor service."





-ENDS-



For further information please contact:

Shane Smith, Chairman and CEO,        Shane.smith@iirgroup.com  +44 7785 276 703
Independent International Investment
Research PLC




Nandita Sahgal                                                  +44 207 190 7000
Nominated Adviser
Insinger de Beaufort




Notes to editors:

Independent International Investment Research PLC ("Independent II Research")
(LSE:IIR) is the UK's leading source for impartial research and strategy for
global equities and foreign exchange.


The company was admitted to the Alternative Investment Market (AIM) of the
London Stock Exchange in 2000, and operates through two subsidiaries: Pronet
Analytics.com Limited (Regulated and Authorised by the Financial Services
Authority in the UK, and registered as an Investment Advisor with the Securities
Exchange Commission in the USA) which has been ranked consistently in the global
top-five independent currency research firms; and Independent Research Pvt
Limited, its research centre in Mumbai, India.  The Group has become the leading
specialist in the United States for the provision of research on non-US
companies (primarily those with American Depositary Receipt programs).


The company is headquartered in London, with research and development facilities
operating in China and India.  Key distribution partners are BNY Jaywalk, Inc.,
Reuters PLC, Institutional Research Services, Inc., and Bloomberg LP (PRON)
as well as a number of specialist distribution partners in China who are focused
specifically on introducing FX research services to the rapidly developing
currency markets in that country.







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