Interim Management Statement

2009-11-27 12:35:02 -

London, November , 27, 2009

DRS Data & Research Services plc



DRS Data & Research Services plc ("the Group") announces its Interim

Management Statement for the period from 1 January 2009 to date.





Revenues for the ten months to 31 October





                         10 month period ended 10 months ended Change

                               31 October 2009 31 October 2008

                                         £'000           £'000      %



Education revenue                       11,445          11,026   3.8

Non-education revenue                    1,436           3,669 (60.9)

Total revenue                           12,881           14695 (12.3)







It was announced in  the interim results released  on 26 August  2009

that the Group's performance in its education markets was strong  and

profitable but  that  the  Group was  underperforming  in  its  other

markets.  This pattern has continued into the second half of the year

and while contracts have been won in the non-education markets,  most

of the revenues resulting from  these contracts will not be  received

until the next  financial year.   As a consequence  of the  continued

underperformance in 2009 in the Group's other markets the results for

the year ending 31 December 2009 will be below market  expectations.

Stringent  control  of  costs  and  cash  continues  to  be  a  focus

throughout the Group. Despite the trading losses incurred in the year

to date, the Group's current cash  holdings are similar to the  start

of the year.





Education markets



The volume of examination scripts processed during the summer for the

Group's major UK customer, AQA, was  11% higher than in 2008 and  was

accompanied by  significant year-on-year  productivity  improvements.

Volumes for the AQA November examination series are also expected  to

be higher than in 2008.



In Africa, sales into the education market in the first 10 months are

ahead of  full-year 2008.  A project  to introduce  e-Marker® to  one

African awarding body has begun and  the potential for its wider  use

in Africa is substantial.



Meanwhile, e-Marker® pilots have commenced in the Caribbean and Asia.

We remain  confident  about  the  prospects  for  e-Marker®  and  are

continuing to invest in it accordingly.





Non-education markets



Notwithstanding the  difficult nature  of the  commercial and  census

markets, we  have been  successful in  winning the  contract for  the

Pakistan census. Expectations at the half-year were that much of  the

work for this contract,  were it to be  won, would be completed  this

year but  the current  customer requirements  mean that  most of  the

revenue will not now be recognised until 2010.



The US market for DocXP(TM)  continues to be very difficult,  however

Peladon Software  Inc  has made  strategic  progress by  signing  two

significant distributor agreements which will  give it access to  the

US healthcare market.





Outlook



The Directors still expect  that the business  will be profitable  in

the second half of 2009, not  least because the majority of the  full

year revenue  from e-Marker®  was recognised  in the  third  quarter.

However, due  to  the underperformance  and  customer delays  in  the

Group's non-education markets,  the results  for the  year ending  31

December 2009 will be below market expectations.





Enquiries to:







Sally Hopwood



Company Secretary



Tel: 01908 666088



enquiries@drs.co.uk



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