CART Carter&Cart

RNS Number:3676Z
Carter & Carter Group PLC
29 June 2007


Immediate Release                                                 29 June 2007


                           Carter & Carter Group plc
                       ('Carter & Carter' or 'the Group')

                                 TRADING UPDATE

Carter & Carter, the leading provider of learning solutions and outsource
support services, provides the following update on trading for the year ending
31 July 2007.

The Board of Carter & Carter ('the Board') has previously advised that the
results for the year ending 31 July 2007 would be biased towards the second half
of the financial year, due in large part to the pattern and phasing of the
delivery of learner qualifications, particularly apprenticeships and adult NVQ
programmes delivered through Train to Gain. However, the delivery of Train To
Gain programmes has failed to meet our expectations in the second half and the
Board currently anticipates that the Group's adjusted profit before tax* for the
year ending 31 July 2007 will be in the order of #15.5m.

Carter & Carter's adult NVQ programmes are primarily funded through contracts
with Further Education colleges and Train To Gain which the Government launched
last summer with a funding allocation of #230m in the first year. As announced
at the time of our interim results on 16th April 2007, our Train To Gain
provision got off to a slow start during the first half of the financial year.
During the second half of the year Train To Gain has continued at disappointing
levels. As a new Government initiative, employers have taken longer to engage in
Train To Gain than originally anticipated. In addition, Carter & Carter has been
continually refining its processes for managing these programmes.

Our automotive apprenticeship activity is trading satisfactorily although we are
experiencing some margin pressure. As expected, the completion of learner
achievements have also become increasingly biased towards the summer months.

Elsewhere, other areas of the business are trading in line with the Board's
expectations.

Outlook

The Board anticipates that Train To Gain and similar programmes will trade
satisfactorily in the new financial year.

In addition, the Board believes that in the year to July 2008, profitability
from automotive apprenticeships will be adversely impacted by recent changes to
Government funding levels, as well as lower than anticipated growth in
profitability from branded manufacturer programmes.

Overall, the Board currently believes that growth in adjusted profit before tax
for the year to 31 July 2008 will be 15 - 20% compared to the current financial
year.

The Group is currently involved in a range of significant tendering activities,
in particular in respect of Jobcentre Plus Pathways to Work and regional LSC
Work Based Learning programmes. The outcome of this tendering is expected in
July. The Board remains confident that Carter & Carter will secure a number of
new contracts as a result. An announcement in relation to the tender outcomes
will be made in due course.

As previously announced, the search for Carter & Carter's new CEO is underway
and remains a priority. A further announcement will be made as soon as is
practicable.

Rodney Westhead, Chairman and Interim Chief Executive commented:

"Although we are disappointed with the slower than anticipated take-up of Train
To Gain and the impact this will have on the Group's profitability, we continue
to focus on the numerous opportunities available to the Group in the UK skills
environment. Carter & Carter is a sound and profitable business and is very well
placed to take advantage of these opportunities which will generate long term
shareholder value."

* Adjusted profit before tax is stated before amortisation of intangible assets
and exceptional costs

There will be a conference call for analysts at 4.30pm today. Please contact Jo
Mitcham or Ben Romney at Buchanan Communications on 020 7466 5000 for dial in
details.

ENDS

Contacts

Carter & Carter Group
Rodney Westhead Chairman 0115 945 7250
John Green Finance Director

Buchanan
Mark Edwards 020 7466 5000






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

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