Interim Results

Lo-Q PLC
26 May 2005


LO-Q PLC ('Lo-Q' or the 'Company')

Interim results for the period ended 31 March 2005


Chairman's Statement

I am pleased to report that this year's season has started positively with an
increase in Q-bot rental income due to increased product penetration and
increased rental fees.

The turnover for the six months to 31st March 2005 was £207,958, which was 5.4%
above last year.  During this period the parks were shut for the majority of the
time.  Operating loss for the period was £361,287 reduced from £541,428 in 2004
due to our previously reported cost reductions.

In order to increase the focus of the Company on in-park revenue, our new
director, Steve Drake, is now spending the majority of his time based at our
Atlanta offices, where he will be in closer touch with park operations.

During the period, the R&D department completed a new enhancement to our growing
repertoire of reservation and queuing methods. This addition, known as Q-pass,
allows guests to purchase immediate access to individual rides in the manner of
paper ticket systems but with the benefits of automated control.  We expect that
this will increase guest satisfaction whilst at the same time enhancing our
revenue and it is available to any park.

We also implemented a number of other improvements to make the system more
reliable and simpler to support.  Future enhancements planned include time-based
reservation capabilities and will lead towards providing guests with a
pre-planned day at a theme park with all rides booked in advance or on arrival.

With regard to sales we see a more positive attitude to technology investments
as parks recover optimism and we are working hard to turn potential new system
situations into orders.  Our product enhancements are focused on supporting this
activity.   We are hoping for a real increase in attendances during the coming
summer, as this has a double positive impact on our revenue performance.  More
park guests means longer queues, and therefore our proportion of park guests
rises.


Consolidated profit and loss account

                                                            Unaudited           Unaudited             Audited
                                                     Six months to 31    Six months to 31          Year to 30
                                                           March 2005          March 2004      September 2004
                                                                    £                   £                   £

Turnover
             Q-Bot income                                     207,958             197,239             845,535

Cost of Sales                                                  81,215              98,783             149,437
                                                           __________          __________          __________

Gross profit/(loss)                                           126,743              98,456             696,098

Administrative expenses                                       488,031             639,884           1,204,222
                                                           __________          __________          __________

Operating loss                                              (361,288)           (541,428)           (508,124)

Profit on Disposal of Fixed Assets                                                                    159,849

Interest receivable                                               367                 200                 351

Interest payable and similar charges                            (363)               (265)               (458)
                                                           __________          __________          __________

Loss on ordinary activities before taxation                 (361,284)           (541,493)           (348,382)

Taxation on loss on ordinary activities                       (5,463)                   0            (37,328)
                                                           __________          __________          __________

Loss on ordinary activities after taxation                  (355,821)           (541,493)           (311,054)
                                                           __________          __________          __________


Earnings (loss) per share                                      (0.02)              (0.04)              (0.02)
Basic (and diluted)                                        __________          __________          __________


All amounts relate to continuing activities




Consolidated balance sheet
                                                         Unaudited            Unaudited              Audited
                                                  Six months to 31     Six months to 31 Year to 30 September
                                                        March 2005           March 2004                 2004
                                                                 £                    £                    £

Fixed assets
Tangible assets                                             32,541              134,967               51,157
                                                        __________           __________           __________

Current Assets
Stocks                                                     392,423              476,555              198,448
Debtors falling due within one year                          5,665               15,698              255,180
     - Other debtors                                        17,670               18,188               12,165
     - corporation tax                                       8,227                3,008               41,762

Debtors falling after one year
     - Prepayments & accrued income                        124,535               88,044              124,342
Cash at bank and in hand                                    58,369               23,880              259,297
                                                        __________           __________           __________

                                                           606,889              625,373              891,194
Creditors: amounts falling due
within one year                                            155,353              173,713              110,421
                                                        __________           __________           __________

Net current assets/(liabilities)                           451,536              451,660              780,773
                                                        __________           __________           __________

Total assets less current liabilities                      484,077              586,627              831,930
                                                        __________           __________           __________


Capital and Reserves
Called up share capital                                    143,478              143,478              143,478
Share premium account                                    4,971,617            4,971,617            4,971,617
Capital reserve                                             12,473               12,473               12,473
Profit and loss account                                (4,643,491)          (4,540,941)          (4,295,638)
                                                        __________           __________           __________

Equity shareholders' funds                                 484,077              586,627              831,930
                                                        __________           __________           __________




Consolidated cash flow statement
                                                           Unaudited            Unaudited              Audited
                                                    Six months to 31     Six months to 31 Year to 30 September
                                                          March 2005           March 2004                 2004
                                                                   £                    £                    £

Net cash outflow from operating activities                 (246,228)            (357,384)            (357,138)
                                                          __________           __________           __________

Returns on investments and servicing of finance
Interest received                                                367                  200                  351
Interest paid                                                  (363)                (265)                (458)
                                                          __________           __________           __________

Net cash inflow/(outflow) from returns on                          4                 (65)                (107)
investments and servicing of finance
                                                          __________           __________           __________

Taxation
Corporation tax received                                      37,328              126,156              124,730
                                                          __________           __________           __________

Capital expenditure and financial investments                      0             (31,860)              188,444
                                                          __________           __________           __________

Cash outflow before use of liquid resources and            (208,896)            (263,153)             (44,071)
financing

Financing
Net cash inflow from shares issue                                  0                    0                    0
                                                          __________           __________           __________

Decrease in cash                                           (208,896)            (263,153)             (44,071)
                                                          __________           __________           __________




Notes forming part of the accounts
     
1    Basis of preparation

     The results for the period ended 31 March 2005 and the comparative figures 
     for the six months ended 31 March 2004 are unaudited. They have been 
     prepared on accounting bases and policies that are consistent with those 
     used in the preparation of the financial statements of the Group for the 
     year ended 30 September 2004.

     The financial information contained in this report does not constitute 
     statutory accounts within the meaning of Section 240 of the Companies Act 
     1985. The financial information for the period ended 30 September 2004 has 
     been extracted from the audited financial statements for that period, which 
     have been filed with the Registrar of Companies and which contain an 
     unqualified audit report.
     
2    Profit per share

     Basic profit per share for the six months ended 31 March 2005 has been
     calculated based on the weighted average number of shares in issue during 
     the period of 14,347,837 (31 March 2004 - 14,347,837) and the loss for the 
     period of £355,821 (31 March 2004 - £541,493).

     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.

3.   Dividend

     The company does not intend to pay a dividend at this time.

4.   Availability of Interim statement

     Copies of this statement will be available for a period of one month from 
     the Company's registered office, New Close, Greenlands, Henley-on-Thames, 
     Oxon, RG9 3AL


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