Interim Results

Comino Group PLC
21 November 2000

Embargoed for release at 7:00am on Tuesday 21 November 2000

                               COMINO GROUP plc
                         INTERIM RESULTS ANNOUNCEMENT

Comino Group plc, the provider of software solutions for the local government,
housing association and occupational pensions sectors, announces Interim
Results for the six months ended 30 September 2000.

Highlights of the interim results:
                                           2000        1999         Change
*     Profit before tax

      - on continuing operations          £1.65m      £1.20m       + 38%
      - discontinued operations           -           £0.36m
      - new acquisitions                  (£0.03m)    -
      - total profit before tax           £1.62m      £1.56m       + 4%
*     Earnings per share                  8.3p        8.0p         + 4%

*     Dividend                            1.90p       1.55p        + 23%

*     Cash balances                       £6.82m      £6.81m

*     Profit growth in core business of 38%
*     Overall improvement in gross margin
*     Acquisition of Saffron in July extends products and Managed Services
      capability
*     Contracts worth £4.4m won by Saffron since its acquisition
*     New product opportunity and formation of new subsdiary

Figures are before amortisation of goodwill

Commenting on the interim period and prospects Chairman David Quysner said:

'The profit growth in the core business was a very satisfactory 38% and has
already overtaken the contribution from discontinued operations.  It is a good
result in a difficult half year for the sector coupled with an expanded
products and services portfolio.

'New Social Housing sales started the year more slowly than anticipated, but
Workflow sales to Housing customers are now gaining momentum. Sales of Revenue
and Benefit systems continued at the same rate. Occupational Pensions has
benefited from its UPM contract win with Ford and prospect levels are
increasing....The Comino group can deliver proven software solutions and is
now able to provide the managed services associated with these. This allows
customers to 'smartsource' key software and services but with the benefit of a
higher level of integration to their core business.'

For further information please contact:

Garth Selvey, Chief Executive, Comino Group      tel: [phone] on the day

Paul Clifford, Finance Director, Comino Group    thereafter: 01628 525433
Peter Binns/Jane Mallinson, Binns & Co           tel: [phone]


Chairman's statement

A good result in a difficult half year for the sector coupled with an expanded
products and services portfolio

Comino is pleased to report a profit before tax for the half year to 30
September 2000 of £1.62m before amortisation of goodwill. The profit growth in
the core business was a very satisfactory 38% and has already overtaken the
contribution from discontinued operations.  The changes to the group over the
last few months have consolidated its position and improved its potential.

Turnover at £9.45m (£11.04m) fell by £2.6m because of discontinued operations.
Overheads were tightly controlled and the group's overall gross margin
improved. An interim dividend of 1.9 pence per share will be paid on 28
January 2001.

In July 2000, Comino acquired 82% of Saffron Computer Services (formerly Rebus
LG) for an initial consideration of £1.83m and a maximum additional payment of
£0.9m in cash. Saffron's business was adversely affected by the sale of the
business itself and made a small loss in line with expectations. Since
acquisition, it has won significant new contracts with Medway, Sevenoaks and
Salford Local Authorities totalling £4.4m to run over an average six year
period. Saffron was bought for its customer base in Housing, its expertise in
Local Authority Revenues & Benefits systems and its ability to win and operate
managed services contracts.

Comino Montal, in which the Group invested £1m in April 2000, is at an early
stage of its development.  It returned an expected break-even performance and
continues to develop on plan. Its ability to host software and manage networks
is considered integral to the group's plans.

New Social Housing sales started the year more slowly than anticipated but
Workflow sales to Housing customers are now gaining momentum. Sales of Revenue
& Benefit systems continued at the same rate. Occupational Pensions has
benefited from its UPM contract win with Ford and prospect levels are
increasing.

The Comino group can deliver proven software solutions and is now able to
provide the managed services associated with these. This allows customers to
'smartsource' key software and services but with the benefit of a higher level
of integration to their core business.

The group has identified another product opportunity in a growth sector which
is new to Comino but one where its application expertise and existing product
strategy can be applied. A new subsidiary with a new Managing Director and
staff will invest a limited amount to develop the concept and produce exact
specifications. Following a formal review, more detail will be released to
shareholders after establishing some competitive advantage but prior to
investing in the full development.

Since the group does not capitalise research and development, this initial
investment will result in a charge to the Profit & Loss account which will not
exceed £200k this year and £700k next year. If the project receives full
development approval from the Board, the annual charge will be of a similar
magnitude aiming to produce a high growth profit stream within two years. In
this particular sector, the group believes that internal greenfield
development will produce a superior product as well as spin-off which will
benefit Comino as a whole.

I am pleased to welcome Mark Boleat as a non-executive director. Mark, who
joined us in late July, was Director General of the Association of British
Insurers between 1993 and 1999 and a Board member of the Housing Corporation
between 1988 and 1993.

Finally, I would like to thank all employees for their valued contribution to
the group and extend our thanks to all our customers for their continued
support.

David Quysner
Chairman


Consolidated Profit and Loss Account


                                          6 months to      6 months to  Year to
                                                   30     30 September 31 March
                                            September             1999
                                                                           2000
                                                 2000
                                                £'000            £'000    £'000

Turnover

Continuing operations                           8,453            8,413   17,125
Acquisitions                                      994                0        0
                                                9,447            8,413   17,125
Discontinued operations                             0            2,623    3,327
                                                9,447           11,036   20,452

Gross profit                                    7,327            7,386   14,216

Administrative expenses                       (6,058)          (5,978) (11,110)

Operating profit/(loss)
Continuing operations                           1,294            1,048    2,558
Acquisitions                                     (25)                0        0
Discontinued operations                             0              360      548
                                                1,269            1,408    3,106

Profit/(loss) from associates                     (8)                0        0
Profit on sale of discontinued operation            0                0    2,549
Net interest receivable                           238              154      365
Profit on ordinary activities before            1,499            1,562    6,020
taxation

Profit on ordinary activities before

  taxation analysed between
Profit on ordinary activities before

  taxation, amortisation of goodwill and

  sale of discontinued operation                1,623            1,562    3,471
Amortisation of goodwill                        (124)                0        0
Profit on sale of discontinued operation                                  2,549
                                                1,499            1,562    6,020


Tax on profit on ordinary activities            (486)            (473)  (1,834)

Profit on ordinary activities after             1,013            1,089    4,186
taxation

Minority interest - equity                          5                0        0

Profit for the financial period                 1,018            1,089    4,186

Dividend proposed                               (260)            (212)    (635)

Retained profit for the period                    758              877    3,551


Earnings per share                               7.4p             8.0p    17.9p


Diluted earnings per share                       7.2p             7.8p    17.4p


Earnings per share excluding goodwill

  amortisation                                   8.3p             8.0p    17.9p

Dividend per share                              1.90p            1.55p    3.10p




The dividend of 1.90 pence per share will be paid on 28 January 2001.  The
dividend record date is 1 December 2000.


Consolidated Balance Sheet


                                       30 September  30 September 1999 31 March

                                               2000                        2000
                                              £'000              £'000    £'000

Fixed assets

Tangible assets                               1,180                829      665

Intangible assets - goodwill                  1,740                  0        0

Investments                                   1,011                  0        0

                                              3,931                829      665



Current assets

Stocks                                          159                911      329

Debtors & prepayments                         6,438              4,298    4,754

Cash at bank and in hand                      6,823              6,809   12,434

                                             13,420             12,018   17,517

Creditors falling due within one year       (5,114)            (4,109)  (5,507)

Net current assets                            8,306              7,909   12,010

Total assets less current liabilities        12,237              8,738   12,675

Creditors falling due after more than

  one year                                    (513)              (515)     (16)
Deferred income                             (3,390)            (4,065)  (5,281)

                                              8,334              4,158    7,378

Capital and reserves

Share capital                                   685                682      683

Share premium account                         4,375              4,335    4,375

Profit and loss account                       3,078              (859)    2,320



Equity shareholders' funds                    8,138              4,158    7,378

Minority interest                               196                  0        0

                                              8,334              4,158    7,378


Consolidated Cash Flow Statement


                                         6 months to       6 months to  Year to
                                        30 September 30 September 1999 31 March

                                                2000                       2000
                                               £'000             £'000    £'000

Net cash inflow from operating               (1,703)              (72)    3,044
activities


Net returns on investments and
servicing

  of finance
Interest received                                238               154      365
                                                 238               154      365
Tax paid                                       (574)                 0    (647)


Capital expenditure

Purchase of tangible fixed assets              (163)             (356)    (512)
Sale of tangible fixed assets                      0                 0       15
Net cash outflow from capital

  expenditure                                  (163)             (356)    (497)

Acquisitions and disposals

Sale/(purchase) of subsidiary                (1,947)                 0    3,277
Investment in associate                      (1,019)                 0        0
                                             (2,966)                 0    3,277

Equity dividends paid                          (424)             (339)    (550)


Financing

Issue of shares                                    2                 6       46
Repayment of borrowings                         (21)              (33)     (53)
Net cash inflow/(outflow) from                  (19)              (27)      (7)
financing


Increase/(decrease in cash)                  (5,611)             (640)    4,985


Net cash inflow from operating
activities

Operating profit                               1,269             1,408    3,106
Depreciation                                     186               175      304
Amortisation of goodwill                         124                 0        0
Decrease/(increase) in stocks                    170              (52)      240
(Increase)/decrease in debtors                 (410)             2,246      256
(Decrease)/increase in creditors               (458)           (1,369)    (309)
(Decrease)/increase in deferred income       (2,584)           (2,480)    (553)
Net cash (outflow)/inflow from

  operating activities                       (1,703)              (72)    3,044


Notes to the Interim Accounts


1.  The charge for taxation is based on the expected rate for the financial
    year.


2.  The calculation of earnings per share for the six months ended 30 September
    2000 is based on the profit for the financial period of £1,018,000 (1999 -
    £1.089,000) and on 13,670,802 (1999 - 13,571,975) ordinary shares being the
    average number of shares in issue during the period. The earnings per share
    for the year ended 31 March 2000 exclude the profit after tax of £1.75m on
    the disposal a subsidiary.


3.  Except as noted in 4 below, the interim statement has been prepared on the
    same accounting basis as those set out in the financial statements for the
    year ended 31 March 2000 and was approved by the board on 20 November 2000.
    The foregoing financial information does not represent accounts within S240
    of the Companies Act 1985 and has not been reported on by the auditors or
    delivered to the Registrar of Companies.


4.  Following the adoption of FRS 10 (Goodwill and intangible fixed assets),
    goodwill arising on acquisitions has been capitalised and will be
    depreciated over its estimated useful economic life. Goodwill previously
    eliminated against reserves has not been reinstated.


5.  The above results for the year ended 31 March 2000 have been abridged from
    the full Group accounts for that year, which received an unqualified
    auditors' report and which have been delivered to the Registrar of
    Companies.


Independent Review Report to Comino Group plc

Introduction

We have been instructed by the company to review the interim financial
information set out on pages 4 to 6 and 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.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applies in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance in Bulletin 1999/4 'Review
of Interim Financial Information' issued by the Auditing Practices Board. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial
data and, based thereon, assessing whether accounting policies and
presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of control and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than audit. Accordingly, we do not express
an 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 interim financial information as presented for the six
months ended 30 September 2000.

Grant Thornton
Registered Auditors
Chartered Accountants

London
20 November 2000