The Board currently anticipates reporting profit before tax, intangible amortisation and exceptional items slightly ahead of management expectations, with operating margins ahead of the Board's defined objective.

The Group's Banking, Asset & Wealth Management and Billing Divisions have all delivered organic growth compared to the second half of 2006. The Board has consolidated the Group's Energy and Consultancy & Application Management businesses into a single operating division and has continued to reduce its exposure to general IT consulting. As a result, the proportion of revenue derived from Microgen software is anticipated to continue to increase throughout 2007.

Microgen Aptitude has continued to gain momentum with successes in the financial services and commercial sectors. The prospect bank for the second half is particularly strong in the Banking Division, where the benefits of Microgen Aptitude's event driven architecture, high transaction processing performance and flexible solutions are driving a strong recovery.

Overall, the Board considers the first half of the year to have delivered a strong performance, with organic growth now being experienced in three of the Group's four operating divisions, together with continued strong operating margins and good operating cash flow.