Trading Statement

RNS Number:2182R
Vanco PLC
01 April 2008

Vanco plc
("Vanco" or "the Company")
Trading Update


Vanco, the global Virtual Network Operator, is pleased to provide a further
update on trading.

Following a review of the working capital requirement of the business, typically
carried out each year at this time, the Company has extended its existing
Revolving Credit Facility by �23m to �123m until 2012 on the same covenants.
This provides good working headroom to meet temporary fluctuations as required
and facilitates the early implementation of the cost reduction programme updated
below. The additional facility is at a margin and fees consistent with the 
market.

On 22 February, Vanco announced a cost reduction and efficiency programme that
improves the cash generation outlook for the business. Savings of �6 million in
the current financial year to 31 January 2009 were identified at that point
which, when fully implemented, should result in annualised savings of �8
million. Vanco is pleased to announce that additional savings of �2 million have
been identified, increasing annualised savings to �10 million. The programme is
expected to be completed largely by 31 July 2008 with most of the financial
benefit falling in the second half of the year. The cost reduction is largely
being achieved through general overhead control and head count reduction which
has been made possible by the significant investment in software and systems the
Company has made in the last few years, and by moving certain jobs to its low
cost centres in South Africa and Eastern Europe. To date, 105 jobs have been
moved from high cost countries, and that will be increased to 150 jobs by 31
July 2008. This cost reduction programme will not impact on the growth outlook
for the business, will enable us to maintain and improve service delivery to
customers and, for the first time, will result in the year-on-year operating
costs of the business being lower.

The company is pleased to confirm that current trading continues to be good and
the pipeline of opportunities is strong, with Vanco selected as preferred bidder
for over 20 per cent more new business opportunities as at 31 March 2008 than at
the same time last year (these are all subject to contract).


For further information please contact:

Vanco plc

Allen Timpany, Chief Executive Officer
T +44 (0) 208 636 8810

Peter Johnston, Group Finance Director
T +44 (0) 208 636 8812

Morten Singleton, Director of Corporate Communications
T + 44 (0) 208 636 6529

Katie Tzouliadis, Biddicks
T + 44 (0) 207 448 1000






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