Final Results

Lo-Q PLC
28 March 2006

                                    LO-Q PLC

            Preliminary Results for the year ended 31 December 2005



Lo-Q plc ('Lo-Q' or the 'Company'), the virtual queuing design and operation
Company, announces its preliminary audited results for the year ended 31
December 2005.




Enquiries:

Jeff McManus (Chairman), Lo-Q plc                01491 577210

John Prior                                       0207 448 4400





CHAIRMAN'S STATEMENT



The Company has made positive progress during the fifteen months to 31 December
2005.



I would like to draw to your attention that the comparative periods in this
statement are for fifteen months against twelve months.  This fifteen month
period contains three quarters of relatively little income, when the parks are
predominantly closed, and two quarters when income is earned.



Bearing this in mind, the Company has performed impressively well in making an
operating profit of £100,000 for the twelve months to September 2005, whilst
reporting a small loss of £60,000, for the fifteen-month period to December
2005, which is smaller  than originally anticipated.  The comparison of income
between the full accounting periods shows that the Company has almost doubled
its earnings.



The contributory factors to this increased performance, as highlighted in my
interim statement for the 12 months to September 2005, are:



  • increased Q-bot rental prices and demand;



  • tighter management control; and



  • having Steve Drake, our Operations Director, in the U.S.A. for large
    periods of the operating season.



With the appointment of new management in senior positions in our customer's
organisation, Six Flags Corporation, we hope to be working more closely at
corporate level, with our aspiration being that this will bring further
increases in rental volumes, prices and demand in the season which is just
starting, and more parks coming on stream in the following years.



We recently attended a major industry trade show and although we saw signs of
renewed confidence in the theme park industry, there is currently a lot of talk
and activity relating to mergers and acquisitions within the sector, which tends
to make senior theme park management cautious about future plans.   However we
feel that once this settles, our prospects of growing our park base in the USA
will be enhanced.  Alongside this we have appointed, on a trial basis, a company
with established sales resources for marketing in Europe, which is focussing on
identifying potential installations for operation in the 2007 season.



Our Research and Development Team are current working on designing an upgraded
system, which utilises the significant advances in microelectronics and
associated software that have been made in the last couple of years, allowing us
to make substantial system cost reductions whilst also halving the installation
time. This enhanced architecture will also enable us to offer a system capable
of handling all the guests in a park in the not-too-distant future.



Again I would like to thank the Company's staff for their continued hard work
and helping the Company achieve these better results.





GROUP PROFIT AND LOSS ACCOUNT
FIFTEEN MONTHS TO 31 DECEMBER 2005


                                                                     15 months to           12 months to

                                                                      31 December           30 September

                                                                             2005                   2004

                                                                                £                      £
GROUP TURNOVER                                                          1,596,482                845,535
Cost of sales                                                             273,269                149,437
GROSS PROFIT                                                            1,323,213                696,098
Administrative expenses                                                 1,460,747              1,229,705
Other operating income                                                   (75,671)               (25,483)
OPERATING LOSS                                                           (61,863)              (508,124)
Profit/(loss) on disposal of fixed assets                                       -                159,849
                                                                         (61,863)              (348,275)
Interest receivable                                                         2,139                    351
Interest payable                                                            (440)                  (458)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                              (60,164)              (348,382)
Tax on loss on ordinary activities                                       (29,565)               (37,328)
LOSS FOR THE FINANCIAL PERIOD                                            (30,599)              (311,054)
Earnings per share (pence)                                                 (0.21)                 (2.17)




GROUP BALANCE SHEET
AT 31 DECEMBER 2005


                                                             31 December                   30 September

                                                                    2005                           2004
                                                        £              £              £               £
FIXED ASSETS
Tangible assets                                                   18,304                         51,157
CURRENT ASSETS
Stocks                                            208,124                       198,448
Debtors                                            76,315                       433,449
Cash at bank and in hand                          637,429                       259,297
                                                  921,868                       891,194




CREDITORS: Amounts falling due within
one year
                                                  131,568                       110,421

NET CURRENT ASSETS                                               790,300                        780,773
TOTAL ASSETS LESS CURRENT LIABILITIES                            808,604                        831,930

CAPITAL AND RESERVES
Called-up equity share capital                                   143,478                        143,478
Share premium account                                          4,971,617                      4,971,617
Other reserves                                                    12,473                         12,473
Profit and loss account                                      (4,318,964)                    (4,295,638)
SHAREHOLDERS'FUNDS                                               808,604                        831,930






GROUP CASH FLOW STATEMENT
FIFTEEN MONTHS TO 31 DECEMBER 2005


                                                                15 months to                 12 months to

                                                                 31 December                 30 September

                                                                        2005                         2004
                                                             £             £              £             £
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES                  331,868                    (357,138)
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                        2,139                          351
Interest paid                                            (440)                        (458)
NET CASH INFLOW/(OUTFLOW) FROM RETURNS ON                              1,699                        (107)
INVESTMENTS AND SERVICING OF FINANCE
TAXATION                                                              41,213                      124,730
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets              (5,692)                     (35,204)
Receipts from sale of fixed assets                       1,771                      223,648
NET CASH (OUTFLOW)/INFLOW FROM CAPITAL EXPENDITURE                   (3,921)                      188,444
INCREASE/( DECREASE) IN CASH                                         370,859                     (44,071)




RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW/
(OUTFLOW) FROM OPERATING ACTIVITIES
                                                              15 months to               12 months to
                                                               31 Dec 2005                30 Sep 2004
                                                                         £                          £
Operating loss                                                    (61,863)                  (508,124)
Depreciation                                                        38,545                     94,014
Profit on disposal of fixed assets                                 (1,771)                          -
(Increase)/decrease in stocks                                      (9,676)                     21,342
Decrease in debtors                                                345,486                     56,329
Increase/(decrease) in creditors                                    21,147                   (20,699)
Net cash inflow/(outflow) from operating activities                331,868                  (357,138)






ANALYSIS OF CHANGES IN NET FUNDS
                                                  At                                                 At

                                           1 October                          Exchange      31 December
                                                                              movement
                                                2004       Cash flows                              2005
                                        £               £                            £                £
Net cash:
Cash in hand and at bank                     259,297          370,859            7,273          637,429
Net funds                                    259,297          370,859            7,273          637,429






EARNINGS PER SHARE


                                                                   15 months to              12 months to
                                                                    31 Dec 2005               30 Sep 2004
                                                                              £                         £

               Earnings per ordinary share                               (0.21)                    (2.17)


Basic loss per ordinary share is calculated by dividing the loss attributable to ordinary shareholders of £30,599
(2004 - £311,054) by the weighted average number of shares in issue during the relevant financial period of
14,347,837 (2004 - 14,347,837).



The loss attributable to ordinary shareholders and the weighted average number of ordinary shares for the purpose
of calculating the diluted earnings per ordinary share are identical to those used for basic earnings per
ordinary share. This is because the exercise of share options would have the effect of reducing the loss per
ordinary share and is therefore not dilutive under the terms of FRS14.



DIVIDENDS



The Directors do not propose the payment of a dividend for the period.



The Preliminary Announcement was approved by the board of directors on 27 March
2006.  The full set of accounts will be sent to shareholders in due course and
will  be available from the offices of Corporate Synergy Plc, 30 Old Broad
Street,  London EC2N 1HT.


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