40% increase in adjusted profit before tax *
Strong performance in Europe and the US
Restructure of the Middle East

Axon Group plc, the Business Transformation consultancy, today announces its preliminary results for the year ended 31 December 2005.

Key Financial points for the year include

• Turnover up 52% to £91.8m (2004: £60.3m)
• Adjusted profit before tax up 40% to £9.8m (2004: £7.0m) *
• Profit before tax up 23% to £8.1m (2004: £6.6m)
• Diluted earnings per share up 25% to 10.5p (2004: 8.4p)
• Dividend per share increased to 3.5p (2004: 3.0p)

Key Business highlights

• Business Transformation work commenced at Birmingham City Council
• US headcount hits 200 people and is growing fast
• Revenue from our top 5 clients reduced to 54% (2004: 68%)
• Headcount grew by 65% to 905 (2004: 547)
• Restructuring the Middle East will not adversely impact operating profits in 2006

Mark Hunter, Chairman and Chief Executive, said:

“I am pleased to report a strong set of results for 2005. We continue to build the scale and credibility to win even larger SAP business transformation programmes in the US and Europe and our business has strong forward momentum.  The performance of our Middle East business has been challenging and we will be restructuring. However, this will not adversely impact operating profit in 2006, and it could enhance margins in 2007 and onwards.

In 2006, I look forward to driving forward Axon’s journey to become a truly global player in the SAP Business Transformation marketplace.  We will maintain our position as the leading SAP player in the UK market, grow our European delivery capability and exploit our high profile in the US SAP marketplace”

For further information please contact:

Mark Hunter                             Geoff Callow/Chris Hamilton
Chairman and Chief Executive      Bell Pottinger Corporate & Financial
Axon Group plc                          020 7861 3232 / 01784 480 800

*Excluding amortisation of intangible assets on acquisition and share based payments of £523k and £1,111k respectively (2004: £nil and £378k respectively) and related tax effect in relation to the adjusted profit after taxation as calculated in note 5.

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