For Release

07.00

26 February 2010

BAQUS GROUP PLC

("Baqus" or "the Group")

Trading Update

Baqus Group plc, one of the leading building consultancy and quantity surveying groups, announces the following trading update in advance of its interim results for the six months to 31 December 2009. 

As previously indicated in the Group's final results which were announced in October 2009, trading in the construction industry has continued at a subdued level. Projects in both the public and private sectors have been subject to delay and in some cases cancellation largely due to Government cut-backs and a lack of bank lending for many construction schemes.  Added to this, increased competition and reduced overall levels of activity have led to a general reduction in margins.  

As a result of these tough trading conditions, the Group's results for the year ending 30 June 2010 are now expected to be below current market expectation.  This is in part due to deferred or cancelled projects in the public sector and private sector schemes held up by the reluctance of funders to commit. The delayed projects are still expected to come to fruition, albeit not in the Group's current financial year.  In addition, exceptional costs associated with a reduction in the Group's cost base will impact the results.

A combination of the Group's positive cash position, £0.5 million in operational savings made in the last 12 months and focus on retaining the core of its skilled workforce mean the Group is well positioned to weather the current trading environment and benefit from any improvement in the sector.

In addition, Baqus continues to secure appointments on long-term framework contracts, Private Finance Initiatives (PFI) and is also working on a number of hotel projects with leading operators and specialist developers.

At this stage, the Group does not intend to recommend a dividend payment.

Baqus will announce its interim results for the six months ended 31 December 2009 on 24 March 2010.

Commenting on the trading update, Clive Sayer, Chief Executive of Baqus Group, said: "It is thanks to the Board's experience of previous downturns that we have acted quickly to manage our cost base, which we have successfully reduced by £500,000 per annum whilst remaining appropriately staffed given the current economic climate."

"The Group is now positioned in such a way that it can react effectively to any improvement in the wider construction industry when it occurs.  I remain confident in Baqus' future prospects."

Contact:

Baqus Group plc

Clive Sayer (Chief Executive)                                                07967 132 221

Patrick Lineen (Finance Director)                                           07818 034 452

Seymour Pierce (Nominated Adviser and Broker)

Mark Percy / David Foreman                                                  020 7107 8000

Cubitt Consulting (Financial Public Relations Advisers)

Chris Lane / James Verstringhe                                              020 7367 5100

Background Note:

Baqus was admitted to trading on AIM on the 14 December 2007, having raised £1.75 million through a placing of 17,500,000 Ordinary Shares.

Baqus is a national building consultancy and quantity surveying group offering construction cost consultancy, project management and building surveying services to clients in the UK. The Group works across a number of business sectors including: health, education, leisure, hospitality, affordable housing, residential, commercial and conservation. Clients include local authorities, central government, NHS, residential Housing Associations, commercial companies and developers.

The Quantity Surveying Market in the UK, estimated to be worth in excess of £1 billion, is highly fragmented and dominated by a small number of major players, which the Baqus Group Directors believe make it ripe for consolidation. Since the Group's admission to AIM, they have been pursuing a strategy of acquiring small to medium sized Quantity Surveying practices across the country, the most recent of which is Nigel Rose Group. Previous activity includes the acquisition of Sworn King and Partners in 2008. Once acquired, the practices are incorporated into the wider Group with a particular emphasis on exploiting opportunities for operational synergies with existing business units.