Final Results

Clarity Commerce Solutions PLC
06 July 2005


Clarity Commerce Solutions plc

Fourth successive year of profitable growth across the Group



Clarity Commerce Solutions plc, a leading supplier of management software
solutions for the entertainment, ticketing, hospitality and leisure sectors,
announces its preliminary results for the year ended 31 March 2005.

•    Turnover increased by 22% to £16.3m (2004:£13.3m)

•    Pre-tax profit before goodwill at £763k (2004:£744k)

•    Research and Development investment increased by £600k to c.£1.6m
     (2004: c.£1m)

•    Adjusted earnings per share 4.03p (2004: 4.10p)

•    Recurring revenue increased by 21% to £6.8m (2004: £5.6m)

•    Appointment of John O'Connell as Chairman - former CEO and Chairman of
     Staffware PLC

•    Five year contract signed with BT Expedite to the value of £2 million
     for the provision of helpdesk services (see separate announcement)

•    Heads of terms signed with Sodexho, one of the world's largest
     providers of catering and business support services (see separate 
     announcement)




John O'Connell, Clarity Commerce Solutions, Chairman, said:


'We have made significant progress during the last 12 months, our fourth
successive year of profit and overall growth. Revenues from existing customers
represent 92% of the Group's total revenue, which is a strong endorsement of the
product quality and service excellence that we offer.'



Graham York, Clarity Commerce Solutions, Chief Executive, said:


'During the year there has been a series of strategic developments including the
Baron acquisition and the replacement of the Ticketing system. We are
particularly excited by the Sodexho opportunity, which will accelerate our entry
into new market sectors. The increase in recurring revenues also provides the
Group with increased forward visibility. Furthermore, acquisitions completed
over the last few years continue to be integrated, and are yielding significant
benefits across the Group, as demonstrated by the contract announced today with
BT Expedite.'




Enquiries:


Clarity Commerce Solutions
    Graham York, Chief Executive Officer                          01932 778000

College Hill
    Adrian Duffield/Clare Warren                                  020 7457 2020



Results

Clarity Commerce Solutions reports continued improvement in financial
performance. Sales increased by 22% to £16.3m (2004: £13.3m) for the year ended
31 March 2005.

Revenues from existing customers represented 92% of the Group's total revenue.
Recurring revenue was £6.8m representing 42% of the total (2004: £5.6m; 42%).
The Group expects these recurring revenues to increase over time and provide
enhanced visibility for future revenues.

Gross profit has accelerated by 23% to £10.16m (2004: £8.27m). Profit before tax
and goodwill impairment was £763k (2004: £744k), including a total research and
development cost of £1.6m (2004: £1m).

Adjusted basic earnings per ordinary share were 4.03p (2004: 4.1p).

No dividend is recommended for this year, as the Board has reaffirmed its
dividend policy that capital should be allocated to developing products and
driving future growth.


Acquisitions and integration

In October 2004, Clarity acquired Baron LRMS, a company focused on solutions for
leisure resorts. Its software, installed in hotels and resorts includes
specialist functionality for club membership management golf courses and health
spas, adding further depth to our leisure offering. Baron was the Group's sixth
acquisition since listing on AIM in July 2000.

This last year has culminated in the continuing integration of the acquisitions
made to date and the increasing realisation of value as Clarity benefits from
significant cross-selling benefits and the ability to more rapidly access new
market sectors.

During the last year, Clarity has focused on the integration and enhancement of
its software product portfolio. Clarity now provides a fully integrated solution
for all of the business requirements of its hospitality, ticketing and leisure
sector customers. This approach has already delivered sales, such as the
installation for Bracknell Forest Borough Council, which incorporates Clarity
leisure software and smartcard systems alongside the Group's hospitality and
retail software.


Geographic Markets

The Group is continuing to expand its international sales network. Sales are
increasing in the USA and Europe, as well as in the Middle East and other
markets through its growing network of reseller partners. Furthermore, the
Group's offices in each country are being equipped and developed as sales
outlets for the wider Clarity portfolio, to ensure that international sales
opportunities are maximised. The geographical split of revenues in 2005 was as
follows:

•   75% to the UK (2004: 69%);
•   13% to the rest of Europe (2004: 23%);
•   11% to the USA (2004: 6%); and
•   1% elsewhere (2004: 2%)


UK business continues to dominate the Group's revenue, comprising 75% of this
(2004: 69%). Notable UK successes include the YO! Sushi restaurant contract, an
installation of Clarity Central to support the software in over 400 Greene King
pubs, a six-month Foreign Office support services contract, further penetration
of several local authority customers, and private sector contracts such as
London's Reebok Sports Club.


The acquisition of Baron extends the Group's global reach, with clients such as
Jumeirah International in the Middle East. Clarity's international sales have
increased both through its local offices and the establishment of reseller
partners in local markets, and the Group has customers in over 20 countries. In
North America, there has been a concerted effort to penetrate the market for
ticketing and entertainment management software, together with progress in the
attractions and theme parks sector. Clarity's European office has also been
focused on growth in the existing cinema marketplace, announcing a new
maintenance and support contract in April 2005 with cinema operator EuroPalaces,
worth €2.4m over 3 years.



Operational Review

The main focus of the Group is to become a major supplier to the leisure
industry worldwide. Clarity's solutions span the entertainment, leisure and
retail sectors, where the Group is building its reputation for expertise in
software, business intelligence solutions and IT support services.

Clarity has continued to integrate its existing software portfolio, based around
Clarity Central, and is adopting Microsoft's .NET software development platform
as the basis for all new offerings. This integration is a palpable source of
competitive advantage.

This year has demonstrated clear evidence of the benefits of cross trading
across the Group's divisions and market sectors, including:

•   Completion of an integrated hospitality and ticketing solution,
    already attracting significant interest from cinema chains

•   Delivery of innovative solutions to local authorities in Bracknell and
    Bolton, which combine state-of-the-art smartcard technology with point of 
    sale (POS) and leisure management systems

•   Increasing recognition of the value of our Business Intelligence division's 
    solutions, demonstrated by orders from Serco Leisure and other leisure 
    management customers

•   Integration of hospitality services with our dedicated Services
    division.


Market Sectors

Clarity's sales increasingly combine elements of software systems, business
intelligence and IT support services in broad ranging customer solutions.


Software

Clarity's markets can broadly be defined as the hospitality, ticketing and
leisure sectors.

The Group provides hospitality clients, including major UK bar and restaurant
groups, with transactional systems covering everything from electronic point of
sale (EPOS) and staff and cash management at site level, to head office control
systems. Clients include many leading industry names such as Greene King, Hall &
Woodhouse Brewery, Strada and YO! Sushi.

In terms of ticketing clients, Clarity has a very strong presence in the UK and
Europe, with four of the top five cinema operators using Clarity software.
Ticketing solutions encompass venue management, operation of box offices and
driving sales via the internet and other third party channels. Clients include
Odeon, Cine UK, UCI and EuroPalaces (Pathe and Gaumont).

Recent sales to theme parks including Paramount Parks in the U.S.A. underline
the potential for sales to non-cinema attractions such as stadiums and
performance venues. Cinemagic, a U.S. operator of stadium style theatres, became
the first cinema customer for Clarity's .NET ticketing software (together with
Clarity POS software) in May 2005.

Leisure software clients include a diverse range of operators seeking
membership, bookings and facilities management systems, again with a strong
focus on head office control via a central platform. Clarity continues to be a
leading provider to the public sector, with Birmingham City Council and Serco
Leisure running Clarity software in 60 and 50 sites respectively. The Group's
innovative smartcard and internet bookings solutions put Clarity in a strong
position to capitalise on the growth potential of this sector.

Clarity's leisure market presence has been extended with the acquisition of
Baron LRMS in October 2004. Baron is an established software supplier to hotels
and leisure resorts, with strong membership management features and dedicated
applications for golf courses and health spas. This has brought a prestigious
private sector client list on-board, with the addition of names such as
Gleneagles, St Andrews, the Reebok Sports Club (London) and Jumeirah
International, the Middle East's leading hotel company. Clarity is driving
software sales through an active reseller partner programme, and is achieving
notable sales success in Spain following the development of a Spanish language
solution.


Business Intelligence

Clarity's Business Intelligence offering follows the March 2003 acquisition of
Romulus Enterprises. Sales continue to increase, with independent revenue
streams developing, and standardised business intelligence solutions for
accounting, ERP (Enterprise Resource Planning) and HR (Human Resource) systems.
Customers operate in the Group's core hospitality, ticketing and leisure
markets, and increasingly in the wider retail, manufacturing, production and
transport sectors.

The integration of business intelligence solutions to Clarity's core product has
attracted huge interest and growing sales from existing Clarity clients in all
sectors, with several new contracts, including that with Serco Leisure. This
integrated offering is proving a major sales feature in all markets.

Clarity Business Intelligence division clients include Robert Wiseman Dairies
plc and Raytheon Systems, and the Group is now accredited to sell and implement
the Cognos Enterprise Planning suite. The number and type of training courses
run in partnership with Cognos have also been extended, with strong client
attendances driving additional revenues.


Services

Clarity acquired the Cyntergy Services division in 2003, offering helpdesk and
training services to support clients across the retail and hospitality markets,
as well as providing support to Clarity's existing software clients. It operates
on a 24-hour, 7 days a week basis and provides IT support in five languages. New
sales during the period include a one year rolling contract to provide first
level helpdesk services to Warnaco for their 25 European Calvin Klein and Speedo
retail outlets, a contract supporting 600 network connections for TFM's clients
including Travelodge, Officers Club, Co-op, Uniqlo and H&M, and supporting 70
major Jarvis Hotels on behalf of ATM, as well as multiple contracts with Wincor
Nixdorf.

A six month Foreign Office contract involved implementation and training
services to support Visa payment processing software, with on-site training
delivered in 140 Visa offices, worldwide. Further training contracts included
supporting a hotel software rollout for Travelodge, providing training resources
to other major hotel groups including De Vere and Hilton, and introducing new
customer booking software to staff from approximately 500 Specsavers stores.

Today Clarity announces that BT Expedite, the retail software division of BT,
has awarded Cyntergy Services, Clarity's services division, a five year contract
to the value of £2 million for the provision of helpdesk services to one of its
major high street retail clients.


Research & Development

Clarity remains committed to innovative product development, which is underlined
by the Group's £1.6m investment over the year in software development and
quality assurance work. During the period, a dedicated Research and Development
department was established which has made substantial progress in integrating
the company's portfolio of solutions around Clarity Central, based on
Microsoft's .NET platform. The .NET platform offers major advantages to Clarity
and its customers, and is contributing to a healthy prospect list for Clarity
software products.

Clarity's first .NET solutions are now installed with clients including YO!
Sushi restaurants in the UK and Paramount Parks in the USA. A few months ago
Clarity announced its intention to deliver a .NET-based ticketing solution, and
now Cinemagic has become the Group's first Ticketing division client to go live
with this software.


Board changes

John O'Connell, founder CEO and Chairman of Staffware plc was appointed
Non-Executive Chairman on 7 April 2005 following the retirement from the Board
of Bob Morton, who had been a key figure in steering the company through its
early phases of development. The Board, on behalf of its shareholders, is
extremely grateful for his invaluable contribution in the Group's formative
years.



Dave Shearmon, one of the founding directors of Clarity, has indicated his
intention to step down from his Board role effective as of the AGM on 25 August
2005. Dave Shearmon has expressed his willingness to continue with the Group in
a strategic and advisory role, for which Clarity are appreciative.


Strategy

Clarity has achieved continued growth in the past year, but more significantly
the Group has made huge strides forward in integrating and developing its
products to capitalise on its strengths and the opportunities a converging
market presents. Clarity's acquisitions have been embedded in the business and
are performing increasingly well. New sales are being generated on the basis of
Clarity's capability to provide broad ranging solutions encompassing software,
business intelligence and IT services elements.

Clarity has invested significant effort and resources to migrate its software to
the Microsoft .NET platform, and this process continues apace. The move to .NET
will stand the Group in excellent stead in the long term, offering clear
advantages to clients as the Group delivers next generation solutions that take
their business to new levels. Together with this investment, Clarity has a
well-established and dedicated team of people who are relishing the prospect of
developing, selling and delivering such innovative business solutions.

Clarity is committed to delivering organic growth using the Group's existing
software portfolio, based around its flagship software solution, Clarity
Central. Future offerings will be based on the Microsoft .NET development
platform, helping the Group to integrate solutions from additional acquisitions
and enabling the Group to enter new market sectors and drive future growth. The
Group will continue to extend its global footprint via direct and indirect sales
channels.

Clarity continues to pursue its goal of establishing the Group as a leading IT
supplier to the global leisure industry, and looks forward to future growth in
2006.


Current Trading & Outlook

Clarity now offers world class software, business intelligence solutions and IT
support services to the hospitality, entertainment, leisure and retail sectors.

The Group is strongly positioned to capitalise on the converging market for
entertainment software. Prospects in terms of new business opportunities are
high, due in part to the fact that the Group has blue-chip customers in Europe,
the Middle East and the USA, who provide reference points for new customers and
in so doing, help drive further organic growth in these markets.

The Board will also seek to continue generating growth through acquisition,
building on its experience of successful integration of acquisitions over the
last four years.

Clarity is confident that the progress reported here will be sustained, based
upon the Group's current reading of its markets, competitive position and
business environment generally.


Clarity Commerce Solutions plc.

Consolidated Profit and Loss Account FOr the Year Ended 31 March 2005

                                                                                   Year ended                Year ended
                                                                                31 March 2005             31 March 2004
                                                                                       £' 000                    £' 000
Turnover

- continuing operations                                                                15,851                    13,325
- acquisitions                                                                            459                         -
                                                                                       16,310                    13,325
Cost of sales                                                                         (6,155)                   (5,052)
Gross Profit                                                                           10,155                     8,273

Operating costs                                                                       (9,486)                   (7,680)
Operating profit                                                                          669                       593

Operating profit/(loss) split between:
- continuing operations                                                                   648                       593
- acquisitions                                                                             21                         -
                                                                                          669                       593
Operating profit from continuing operations before impairment of                          898                      826
goodwill

Continuing operations - impairment of goodwill                                          (250)                     (233)

Operating profit from acquired operations                                                  21                         -

Operating profit after impairment of goodwill                                             669                      593


Interest receivable                                                                       596                       322
Interest payable                                                                        (752)                     (404)
                                                                                        (156)                      (82)
Profit on ordinary activities before taxation                                             513                       511

Taxation on profit on ordinary activities                                               (120)                     (131)
Retained profit for the year                                                              393                       380


Profit on ordinary activities before impairment of goodwill and                           763                       744
taxation
Impairment of goodwill                                                                  (250)                     (233)
Profit on ordinary activities before taxation                                             513                       511

Profit per ordinary share

- basic                                                                                 2.46p                     2.54p
- diluted                                                                               2.36p                     2.49p
- adjusted basic                                                                        4.03p                     4.10p
Dividends per share                                                                         -                         -




Clarity Commerce Solutions plc.



Consolidated Balance Sheet as at 31 March 2005


                                                                                        As at                     As at
                                                                                31 March 2005             31 March 2004
                                                                                        £'000                     £'000
Fixed assets

Intangible assets                                                         11,163                    10,322
Tangible assets                                                              530                       518
                                                                                       11,693                    10,840
Current Assets

Stocks                                                                       628                       501
Debtors                                                                    4,767                     4,023
Cash at bank and in hand                                                   1,334                     2,122
                                                                           6,729                     6,646

Creditors: amounts falling due within one year                           (6,745)                   (5,973)

Net current (liabilities) / assets                                                       (16)                       673

Total assets less current liabilities                                                  11,677                    11,513

Creditors: amounts falling due after more than one year                               (2,332)                   (2,492)
                                                                                        9,345                     9,021

Capital and reserves
Called up share capital                                                                 4,084                     3,985
Share premium account                                                                   5,832                     5,833
Shares to be issued                                                                         -                       125
Profit and loss account                                                                 (571)                     (922)
Equity shareholders' funds                                                              9,345                     9,021




Clarity Commerce Solutions plc.


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2005

                                                                                   Year ended                Year ended
                                                                                31 March 2005             31 March 2004

                                                                                       £' 000                    £' 000
Net cash inflow from operating activities                                                 490                     2,290
Returns on investments and servicing of finance
Interest received                                                                         596                       322
Interest paid                                                                           (683)                     (396)
Interest element of hire purchase and finance leases                                      (5)                       (8)
Net cash outflow from returns on investments and servicing of                            (92)                      (82)
finance

Taxation                                                                                    0                     (161)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                       (105)                     (151)
Sale of tangible fixed assets                                                              12                        41
Net cash (outflow) from capital expenditure and financial                                (93)                     (110)
investment

Acquisitions
Purchase of subsidiary undertakings                                                     (112)                   (2,989)
Cash at bank acquired with subsidiaries                                                  (24)                       767
Net cash outflow from acquisitions                                                      (136)                   (2,222)
Net cash inflow / (outflow) before management of liquid resources                         169                     (285)
and financing

Management of liquid resources
Movement in blocked cash collateral account                                               248                     (118)

Financing
Issue of share capital (net of costs)                                                                               750
New secured loan                                                                                                  1,540
Repayment of loan notes                                                                 (622)                     (110)
Capital element of finance leases                                                        (32)                      (32)
Bank loan repayments                                                                    (303)                     (194)
Net cash (outflow) / inflow from financing                                              (957)                     1,954
(Decrease) / increase in cash                                                           (540)                     1,551






Notes to the Financial Statements:


1.   UK Corporation Tax has been provided on the results for the year at 30%
     and overseas tax at applicable rates.

2.   The Directors do not recommend the payment of a dividend.

3.   Earnings per ordinary share:


     Basic profit per share for the year ended 31 March 2005 is calculated by
     dividing the profit for the year of £393,000 (2004: £380,000) by 15,956,500
     (2004: 14,957,917) being the weighted average number of shares in issue 
     during the year.

     The weighted average number of ordinary shares in issue has been adjusted 
     to assume conversion of those shares to be issued as well as all dilutive 
     potential ordinary shares. Diluted earnings per share is calculated by 
     dividing the profit for the year of £393,000 (2004: £380,000) by the 
     weighted diluted average number of shares being 16,666,937 (2004: 
     15,246,514).

     The adjusted basic earnings per share for the year ended 31 March 2005 is
     calculated by dividing the profit for the year before impairment of 
     goodwill of £643,000 (2004: £613,000) by 15,956,500 (2004: 14,957,917) 
     being the weighted average number of shares in issue during the year.


4.   The Annual General Meeting will be held on 25th August 2005.


5.   The Annual Report and Accounts will be posted to shareholders shortly.
     Further copies will be available on request from the Company's Registered
     Office: Clarity Commerce Solutions plc, No.1 Netherhampton Business Centre,
     Netherhampton, Salisbury, Wiltshire. SP2 8PU.

6.   The financial information set out above does not comprise the Company's
     full statutory accounts within the meaning of Section 240 of the Companies 
     Act 1985.


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