Interim Results

Baydonhill PLC
28 November 2006



                  Baydonhill plc ('Baydonhill' or 'the Group')

           Interim results for the six months ended 30 September 2006


Key Points

  • The Group reported a loss for the period of £159,000 compared to a profit
    of £2,000 before tax in the comparable period in 2005.

  • Net cash of £1.0m (2005: £0.4m).


Contacts

Baydonhill plc                                                     020 7594 0515
Eric Peacock, Chairman
Richard Collier, Chief Executive

Corporate Synergy Plc                                              020 7448 4400
Oliver Cairns

Mark Houlding                                                      07773 782 520
Rostrum Communications


Chairman's Statement


Interims

For the 6 months ended 30 September 2006 the Group made a loss before tax of
£159,144 (2005: Profit £1,617) on a turnover of £128m (2005: £168m). As at 30
September 2006 the Group had gross cash balances of £5.6m of which £1m
represented cash resources available to the Group.


Review

The Group's turnover declined by approximately 24% when compared to the same
period in the last financial year.  Competition in the Foreign Currency Transfer
operations increased substantially.  The decline was particularly noticeable in
the period from April 2006 through to June 2006 but levels of business since
then have increased over the same period last year although not sufficiently to
compensate for the first quarter's downturn.

The sales and marketing effort is focused on the development of relationships
with multi-introducers within the property and financial services sectors both
in the United Kingdom and in our core European markets.  Whilst this will take
some time to benefit the business, the Group has met with some success in this
area albeit progress has been slower than anticipated.

We have developed an innovative and market leading website for all divisions.
This includes an online anti-money laundering verification process for customers
to open a foreign currency account and white label solutions for our partners
and web portals for them to be able to use our voice broking and settlements
package.

On 1st October 2006, the Group changed its name from The 4Less Group plc to
Baydonhill plc.  The name change moving away from the 4Less brand was strongly
supported by feedback from partners and customers.  Baydonhill reflects our
commitment to high level customer service and dealing with large transaction
values.  We have completed the first phase of the re-brand with all marketing
materials and websites in the new livery.

Although still not making a positive contribution to the Group, the
International Mortgages division's performance improved significantly over the
period.  This division's focus is on international mortgage broking in France
and Spain, with sales effort in Italy and Portugal and representative agents in
many other countries.

Having undertaken a detailed review of the insurance division, it was felt that
significant investment would need to be incurred in both technology and people
to build the division to profitability.  Given our key focus is in the provision
of physical delivery foreign exchange, your Board has decided that the Group's
clients would be better served by outsourcing the provision of insurance
products.  Discussions have been commenced in this regard and we anticipate that
our clients' insurance requirements will be provided by a specialist insurance
broker from the New Year. This may result in a modest exit cost.


Board

Geoff Mayhill and Sarah Collis were appointed to the Board on 1st April 2006 as
Non-Executive Directors, whilst David Haddon resigned on 31st August 2006 to
pursue personal interests.

Richard Collier has indicated his intention to step down from his position as
Chief Executive early in the New Year.  The Board is considering an internal
appointment as his replacement.


Outlook

We are confident that the fresh marketing and management initiatives will enable
the Group to maintain its highly professional service in the market place and
expand into new markets.  However the Board recognises the need to restructure
the Group to ensure that the infrastructure adequately supports the ongoing
activities.  This does take time and has cost implications going forward which
will restrain the profitability of the business.  The Directors also recognise
that to fulfil the new restructuring of the Group, additional working capital
will be required during 2007.  The Board are already in discussions with certain
parties to assist in this fundraising and we look forward to updating the market
as and when these matters materialise.


Eric Peacock
Chairman

28th November 2006




INDEPENDENT REVIEW REPORT TO BAYDONHILL PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and the related notes. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

This report is made solely to the company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
Rules of the London Stock Exchange which require that it must be prepared in a
form consistent with that which will be adopted in the next annual accounts
having regard to the accounting standards applicable to such annual accounts.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom.  A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2006.


PKF (UK) LLP
London, UK

Date     28 November 2006



CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                      Six months ended      Six months ended Twelve months ended
                                                   30th September 2006   30th September 2005     31st March 2006
                                                           (unaudited)           (unaudited)           (audited)

                      TURNOVER                             128,273,134           168,017,316         278,822,687

                      Cost of sales                      (127,095,306)         (166,645,459)       (276,513,820)

                      GROSS PROFIT                           1,177,828             1,371,857           2,308,867

                      Administrative expenses              (1,427,389)           (1,483,755)         (3,080,727)

                      OPERATING LOSS                         (249,561)             (111,898)           (771,860)

                      Interest receivable and
                      similar income                            90,417               113,845             183,872

                      Interest payable and
                      similar charges                                0                 (330)             (4,834)

                      PROFIT / (LOSS) BEFORE TAX             (159,144)                 1,617           (592,822)

                      TAXATION                                       0                     0                   0

                      (LOSS) / PROFIT FOR THE                (159,144)                 1,617           (592,822)
                      PERIOD

                      (Loss) / Earnings per                    (1.10p)                 0.02p             (7.42p)
                      share - basic

                      - diluted                                (1.10p)                 0.02p             (7.42p)



CONSOLIDATED BALANCE SHEET

                                                                   At 30th September          At 30th  At 31st March
                                                                                2006   September 2005           2006
                                                                         (unaudited)      (unaudited)      (audited)

                       FIXED ASSETS
                       Tangible                                              104,795          178,583        119,888

                                                                             104,795          178,583        119,888

                       CURRENT ASSETS
                       Debtors                                               435,784          627,938        311,631
                       Cash at Bank                                        5,621,706        5,139,656      5,087,488

                                                                           6,057,490        5,767,594      5,399,119

                       CREDITORS: Amounts falling due within
                       one year                                          (4,822,152)      (5,104,123)    (4,019,730)

                       NET CURRENT ASSETS                                  1,235,338          663,471      1,379,389

                       TOTAL ASSETS LESS CURRENT LIABILITIES               1,340,133          842,054      1,499,277

                       CREDITORS: amounts falling due after
                       one year                                                    0                0              0

                       NET ASSETS                                          1,340,133          842,054      1,499,277


                       CAPITAL AND RESERVES
                       Called up share capital                               144,987           79,762        144,987
                       Share premium account                               2,600,623        1,414,187      2,600,623
                       Profit and loss account                           (1,405,477)        (651,895)    (1,246,333)

                       EQUITY SHAREHOLDERS FUNDS                           1,340,133          842,054      1,499,277


                               
CONSOLIDATED CASH FLOW STATEMENT


                                                                 Six months ended Six months ended      Twelve months
                                                                   30th September   30th September              ended
                                                                             2006             2005    31st March 2006
                                                                      (unaudited)      (unaudited)          (audited)

                       Reconciliation of operating loss to net
                       cash (outflow) from operating
                       activities

                       Operating loss                                   (249,561)        (111,898)          (771,860)
                       Depreciation of tangible fixed assets               73,970           75,097            147,891
                       (Increase) / Decrease in debtors                 (124,153)         (30,545)            220,812
                       (Increase) / Decrease in creditors                 802,419        (494,006)        (1,578,398)

                       Net cash inflow/ (outflow) from
                       operating activities                               502,675        (561,352)        (1,981,555)

                       CASH FLOW STATEMENT
                       Net cash inflow/(outflow) from                     502,675        (561,352)        (1,981,555)
                       operating activities
                       Returns of investment & servicing of                90,417          113,515            179,038
                       finance
                       Taxation                                                 0                0             64,950
                       Capital expenditure                               (58,874)          (6,596)           (20,695)
                       Cash inflow/(outflow) before financing             534,218        (454,433)        (1,758,262)
                       Financing:
                       Proceeds of the placing                                  0                0          1,500,180
                       Less associated costs of the placing                     0                0          (248,519)

                       Increase/(Decrease) in cash for the
                       period                                             534,218        (454,433)          (506,601)

                       Reconciliation of net cash flow to
                       movement in net funds
                       Increase/(Decrease) in cash in the
                       period                                             534,218        (454,433)          (506,601)

                       Change in net funds                                534,218        (454,433)          (506,601)
                       Net funds at 1 April 2006                        5,087,488        5,594,089          5,594,089

                       Net funds at 30 September 2006                   5,621,706        5,139,656          5,087,488



1.         Nature of Information


The interim accounts for the six months ended 30th September 2006 and the
comparative figures for the six months ended 30th September 2005 are unaudited
but have been reviewed by the Company's auditors.  The comparative figures for
the twelve months ended 31st March 2006 are not the Company's statutory accounts
within the meaning of section 240 of the Companies Act 1985 but are abridged
from such accounts which have been reported on by the Company's auditors and
delivered to the Registrar of Companies.  The report of the auditors on such
accounts was unqualified and did not contain any statement under Sections 237(2)
or 237(3) of the Companies Act 1985.

The interim accounts and the comparative figures are prepared on the basis of
the accounting policies set out in the accounts of the Group for the twelve
months ended 31st March 2006.


2.                   Segmental Information

An analysis of turnover and profit before tax by class of business is given
below:


                                                               Six months ended      Six months    Twelve months ended
                                                                                          ended        31st March 2006
                                                                 30th September  30th September                      
                                                                           2006            2005              
                                                                    (unaudited)     (unaudited)              (audited)

                         Turnover

                         Provision of foreign currency              128,144,355     167,950,580            278,675,148
                         Arranging property finance                     115,752          50,672                111,567
                         Arranging of insurance                          13,027          16,064                 35,972

                         Total Turnover                             128,273,134     168,017,316            278,822,687

                         All turnover arose within the United Kingdom

                         Profit / (Loss) before tax

                         Provision of foreign currency                (133,165)          59,504              (428,392)
                         Arranging property finance                    (12,682)        (56,079)              (148,807)
                         Arranging of insurance                        (13,297)         (1,808)               (15,623)

                         Total Profit / (Loss) before tax             (159,144)           1,617              (592,822)


3.         Taxation

Based on the results of the period, the Group believe that no provision for
taxation is required.



4.         Dividends



            The Directors do not recommend the payment of a dividend.



5.         Copies of this interim announcement will be available from the
Company's registered office, 160 Brompton Road, London, SW3 1HW.



www.baydonhill.com




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