Final Results

EmdexTrade PLC
20 December 2001

EMDEXTRADE PLC



CHAIRMAN'S REPORT

FOR THE PERIOD FROM 25 JULY 2000 TO 31 OCTOBER 2001



As non-executive Chairman, I have pleasure in reporting the company's results
for the first period of trading.

Since admission to AIM on 14 June 2001, business has been at a subdued level
in terms of volume of transactions. This is explained partly by the delays in
setting up the web-based trading platform and partly by the events of 11
September. The company's overall results are, however, in line with
expectations, bearing in mind the exceptional circumstances.



The essential part of our strategy is to develop a bespoke web-based trading
platform for clients around the world to buy and sell Trade Obligations and
for EmdexTrade to earn a margin on all such trades conducted through the
website. This has not yet been possible owing to the delay in the website
going live. The completion date is now set for March 2002 and although it is
disappointing that we have not yet had the benefit of this revenue stream, the
directors have insisted that the system set up will be robust, secure and will
carry out all the functions needed to secure the trust of those looking to use
the site.



Notwithstanding the above, the company has done business, albeit at a lower
level than was originally anticipated, but this has not been unexpected in the
context of a global slowdown. We expect the slowdown to continue into the
first quarter of 2002 but remain optimistic that with a successful website
operating, we will be able to attract business and for EmdexTrade to achieve
the profit aims for which the company was set up.



The results for the year show a loss of £69,353. The company's share price has
held up in spite of weak stock markets worldwide and we are grateful to
investors for their confidence in our strategy.



Ian Salter

Chairman

19 December 2001




EMDEXTRADE PLC



MANAGING DIRECTOR'S REPORT

FOR THE PERIOD FROM 25 JULY 2000 TO 31 OCTOBER 2001



Background

EmdexTrade Plc was incorporated on 25 July 2000. The primary focus during the
first half of this year was securing our admission to AIM. This we achieved on
14 June 2001, when the Ordinary Shares were admitted to dealings. The company
raised £400,000 via a placing at 10p per share. The share premium of £360,000
created by the placing has been used to finance the AIM admission costs of £
243,593.



The period since June has been busy, both in setting up the correct
operational structure with accountability to investors and in implementing a 
complex technical blueprint for the development of our trading platform.



Sadly, the unforeseen and tragic events of 11 September had a profound impact
on the markets in which we operate. Effectively, business shut down for the
last 6 weeks of our trading period. In the period to 31 October 2001 the
company made a loss before tax of £69,353 which was in line with our
expectations, taking into account the unforeseen events. It is a great source
of encouragement therefore that despite the difficult environment, we sourced
business and attained our targeted results even without our website.



Business

We believe online trading will be a major force in forcing growth of the
market for trade finance. Researchers predict that secondary market trading,
currently fragmented and highly illiquid, will grow in volume, fuelled by
growth in electronic trading, to over $130 billion traded in 2005 from a
current level of below $75 billion.



Trade finance refers to financial agreements for bank-guaranteed financing
that enable the importation of goods and commodities. Trading them is complex
because their dependence on a cumbersome set of documents with a wide
diversity of structures makes comparisons between instruments difficult.



Nevertheless, the drive to create more liquidity and transparency in this
somewhat arcane backwater should mirror dynamic changes already underway in
the fixed income sector. Online trading in hitherto illiquid and fragmented
fixed income securities including corporate bonds, municipal bonds and
mortgage-backed securities has been making strides during the last four years.
That mechanism for bond trading, including that of the more liquid Treasury
and agency securities, has spawned some 80 trading platforms, with the total
value of fixed-income securities traded electronically now running at
approximately $3 trillion annually, double that of the previous year.



It's more than likely that a similar but slower progression will happen with
trade finance assets and the growth of trading platforms for these instruments
is the initial catalyst that will stimulate the secondary market to accelerate
its growth. In the next four years it is likely that nearly 20% of the
secondary market in trade finance assets will have shifted to alternative
trading platforms, compared with an estimated 0.3% this year.



The great paradox of the Internet is that its very benefits - making
information widely available, reducing the difficulty of purchasing, marketing
and distribution and allowing buyers and sellers to find and transact business
with each other more easily - also makes it more difficult for companies to
capture those benefits as profits. At EmdexTrade we believe we have the
ability to capture those very benefits in a disadvantaged market place, whilst
at the same time operating from a low and flexible cost base, which supports
the ready transfer of profit.



Our proprietary web-based trading platform, which is expected to be fully
operational in March 2002, will provide an online market place where clients
will be able to buy and sell trade obligations including letters of credit,
promissory notes and bills of exchange.


EMDEXTRADE PLC

MANAGING DIRECTOR'S REPORT

FOR THE PERIOD FROM 25 JULY 2000 TO 31 OCTOBER 2001



Priorities

In September we hired a well-respected Washington DC based IT consulting firm
to draw up, with our input, a technical blueprint. This substantial lifecycle
document forms the essential architectural drawing for the trading platform
and allows us to move into a formal development phase including the technical
manual and the necessary coding for operation. We recently signed off this
phase and have engaged our advisors to continue with the technical
specifications document and to carry out full development and testing of the
site. We are delighted to be working with such an experienced firm in the USA
and their involvement allows us to look forward with confidence and excitement
to the completion of what we intend to be a unique specialist service.



We anticipate the site to be up and running during March 2002. During this
time we will continue to source business from our traditional routes, whilst
using the period to increase awareness of the site to our intended broker base
and to the larger institutional world. It will also give us time to train new
additions to our operations team and to promote our innovation to the
influential trade and financial press.



Stephen Corley





Managing Director

19 December 2001




EMDEXTRADE PLC



PROFIT AND LOSS ACCOUNT

FOR THE PERIOD FROM 25 JULY 2000 TO 31 OCTOBER 2001


                                                   Period ended 31 October 2001

Turnover                                                                312,865
Cost of sales                                                         (100,617)
Gross profit                                                            212,248
Administrative expenses                                               (302,539)
Operating loss                                                         (90,291)
Other interest receivable and similar income                             20,938
Loss on ordinary activities before taxation                            (69,353)
Tax on loss on ordinary activities                                        (825)
Loss on ordinary activities after taxation                             (70,178)
Earnings per share - basic and diluted                                  (0.49)p





The profit and loss account has been prepared on the basis that all operations
are continuing operations.



There are no recognised gains and losses other than those passing through the
profit and loss account.



The company commenced trading in June 2001.


EMDEXTRADE PLC



BALANCE SHEET

AS AT 31 OCTOBER 2001


                                                              2001
                                                          £                   £
Fixed assets
Tangible assets                                                           2,750

Current assets
Debtors                                              56,222
Cash at bank and in hand                          1,111,558
                                                  1,167,780
                                                   (83,876)

Creditors: amounts falling due within one year

Net current assets                                                    1,083,904

Total assets less current liabilities                                 1,086,654

Provisions for liabilities and charges                                    (825)
                                                                      1,085,829

Capital and reserves
Called up share capital                                               1,000,000
Share premium account                                                   156,007
Profit and loss account                                                (70,178)

Shareholders' funds                                                   1,085,829

Equity interests                                                        485,829
Non-equity interests                                                    600,000
                                                                      1,085,829



The financial statements were approved by the Board on 19 December 2001





P W Kennedy

Director


EMDEXTRADE PLC



CASH FLOW STATEMENT

FOR THE PERIOD FROM 25 JULY 2000 TO 31 OCTOBER 2001


                                                                Period ended 31
                                                                   October 2001
                                                                              £
Net cash outflow from operating activities                             (62,438)

Returns on investments and servicing of finance
Interest received                                  20,938

Net cash outflow from returns on investments                             20,938
and servicing of finance

Capital expenditure
Payments to acquire tangible fixed assets         (2,949)

Net cash outflow from capital expenditure                               (2,949)

Net cash outflow before management of liquid                           (44,449)
resources and financing

Management of liquid resources
Cash placed on deposit account                                        (964,891)

Financing
Issue of ordinary and deferred share capital    1,399,600
Cost of share issue                             (243,593)

Net cash inflow from financing                                        1,156,007

Increase in cash in the period                                          146,667