56% increase in revenues
81% increase in adjusted profit before tax*
Steve Cardell appointed as CEO

Axon Group plc, the Business Transformation consultancy, today announces its preliminary results for the year ended 31 December 2006.

Key Financial points for the year include

• Continuing turnover (excluding discontinued Middle East activities)** up 56% to £137.5 (2005: £87.9m)
• Adjusted profit before tax up 81% to £21.8m (2005: £12.0m)*
• Profit before tax*** up 71% to £17.7m (2005: £10.4m)
• Operating cashflow 133% of operating profits
• Diluted earnings per share up 72% to 20.3p (2005: 11.8p)****
• Dividend per share increased to 4.0p (2005: 3.5p)

Key Business highlights

• The US generated revenues of £32m (23% of continuing) up from £1m in 2004
• Ranked number 1 in a global customer satisfaction survey
• Revenue from our top 5 clients reduced to 52% (2005: 57%)
• Continuing headcount grew by 36% to 1,144 (2005: 839)
• Good start to the year with new wins at Davis Langdon and TXU

Mark Hunter, Executive Chairman , said:

"In 2003, we set out a vision to become a global player in the delivery of Business Transformation services for large organisations that use SAP as their strategic platform. In 2006, we delivered on that vision. Our operations in Europe, America and Asia-Pacific drove revenue growth of 56% to £137.5m and adjusted profit before tax* growth of 81% to £21.8m. Our global status was confirmed when we were ranked number one for customer satisfaction in a recent independent survey of the customers of the top 35 SAP services companies in the world.

During 2006 we continued to strengthen the plc board and in June we appointed Royston Hoggarth as an independent non-executive Director. In November 2006, we also welcomed Iain McIntosh to the Board as CFO, and I am pleased to report that he has already made a valuable contribution to the business. In 2003, we appointed Steve Cardell as COO, and since then he has been instrumental in creating the strong momentum in the business through, for example, the development of our Business Transformation proposition, the creation of our offshore business, and our expansion in the US. It is now time to split the CEO and Chairman role, and therefore, with immediate effect, Steve Cardell has been appointed as CEO. I will continue to work with Steve to lead the business in my role as Executive Chairman.

As ever, the performance of our people continues to be outstanding, they should be proud of themselves and I would like to thank them. Whilst we have just had a great year, we still only have a 1% share of the global SAP Services market and we therefore have many opportunities for further expansion. We also have a strong order book, a good pipeline and excellent operational controls and I look forward to reporting continued progress during the course of 2007.

For further information please contact:

Mark Hunter / Iain McIntosh                                                           Geoff Callow/Chris Hamilton
Axon Group plc                                                                 Bell Pottinger Corporate & Financial
01784 480 800                                                                                                020 7861 3232

* From continuing operations, excluding amortisation of intangible assets on acquisition and share-based payments of £2.0m, and £2.1m respectively (2005: £0.5m and £1.1m respectively); and after a restatement of the 2005 finance charge of £0.3m in relation to the unwinding of discount on provisions as described in note 10.
** From continuing operations.
*** From continuing operations after a restatement of the 2005 finance charge of £0.3m in relation to the unwinding of discount on provisions as described in note 10.
**** From continuing operations; and after a restatement of the 2005 tax charge of £0.8m in relation to the accounting treatment of tax on share-based payments as described in note 10; a restatement of the 2005 weighted average number of ordinary shares of 474,588 in relation to shares held by the Employee Benefit Trust as described in note 10; and a restatement of the 2005 finance charge of £0.3m in relation to the unwinding of discount on provisions as described in note 10.

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