12 October 2011

Trading Update

ILX Group plc (AiM: ILX), the AIM quoted provider of e-learning software and business training, is pleased to provide an update on trading for the year to date.

The Group has continued to see growth in revenues in the first 6 months of the year. Software sales in particular have grown and now form substantially more than half of group sales, which has further contributed to an increase in gross margins.

The growth has been led by international sales, particularly in Australia and New Zealand where sales for the first six months have exceeded AUS$2.1m, compared to $870,000 for the same period last year. Overall, international revenues over the same period last year have doubled.

In the UK, whilst market conditions remain challenging, we have won a number of major e-learning and consultancy contracts and remain optimistic about the prospects for the full year.

Finally, the group is also pleased to announce that it has secured a deal with HSBC to refinance its current facilities from Barclays. The term has been extended to three years on more competitive terms that will reduce the interest cost to the Group.

Overall the Group expects to see revenues and profits for the first half ahead of the same period last year, and the Board remains confident in meeting full year market expectations.

Ken Scott, Chief Executive, ILX Group plc commented:

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