Interim Results

Clarity Commerce Solutions PLC
30 November 2004

Clarity Commerce Solutions plc

Interims profits up 58%

Clarity Commerce Solutions plc, a leading supplier of software management
solutions for the entertainment, ticketing, hospitality and leisure sectors,
announces its Interim Results for the six months to 30 September 2004.

Financial Highlights

•   Turnover increased by 70% to £8,236,000 (2003 H1: £4,853,000)

•   Operating profit before goodwill up 40% to £318,000 (2003 H1: £227,000)

•   Pre-tax profit up 58% to £306,000 (2003 H1: £194,000)

•   Underlying* earnings per share increased by 26% to 1.44p (2003 H1: 1.14p)

*Underlying earnings per share before goodwill.

Operational Highlights


•   Recent acquisition of Baron LRMS - expands the suite of software services 
    and extends Clarity's geographic reach

•   New clients signed include Burberry and Yo! Sushi

•   Integration progressing well with cross selling opportunities exploited

•   Strong forward order book

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

'We continue to strengthen our position as market leader in the provision of
software solutions to the leisure sector, increasing the cross selling
opportunities across the client base and adding new customers. The acquisition
of Baron extends the Group's presence internationally.

'The forward order books remains strong and we have yet to fully exploit the
potential offered by our newly developed software. This, combined with the new
software introduced through acquisition, provides us with confidence for our
future growth prospects.'
                                                                30 November 2004

Enquiries:

Clarity Commerce Solutions
    Graham York, Chief Executive Officer                      01722 746200

College Hill
    Adrian Duffield/Clare Warren                              020 7457 2020


                         Clarity Commerce Solutions plc

              Interims result for six months to 30 September 2004


Financial Review

We are pleased to report that the Group has increased profits before interest
and taxation for the half year ended 30 September 2004 by 40% to £318,000 (2003:
£227,000).

As a result of the Group's acquisitive and organic growth, revenues have
increased by 70% in the half year to £8,236,000 (2003: £4,853,000).

Earnings per share have increased by 26% to 1.44p (2003: 1.14p).

Net assets have increased to £9,250,000 (2003: £8,663,000).

In line with the Group's strategy of product integration and new product
release, the Group continues to focus heavily on Research and Development, with
an increase in expenditure this half year of 86% to £650,000 (2003: £350,000).

Operating Review

The Group has continued with the task of building and extending our integrated
product solution, spanning entertainment, ticketing, hospitality and leisure.
Integration has also continued within the business operations that we have
acquired, and this is an ongoing task.

Clarity has also (since the first half year) completed the acquisition of Baron
LRMS Ltd. Baron provides specialist booking and facility management software for
membership clubs, golf clubs and spas, and includes St Andrews, Gleneagles and
the RAC Club amongst its customers. Baron was acquired in October 2004 for a
maximum consideration of £600,000.

Leisure

Our Leisure division provides a membership, bookings and centre management
software suite that is focused on the public sector.

A number of new orders were secured, and existing customers have continued to
order and install Internet bookings at a steady pace, complying with government
directives.

Progress was made in respect of cross selling Group products, with leisure,
hospitality and smartcard functionality being successfully installed in
Bracknell Borough Council. The Group's MIS software for Leisure has also been
demonstrated to a number of customers.

Design and development of the next generation leisure software solution has
commenced, which will be fully integrated with the Group's existing product
range.

Business Intelligence Software

Romulus, based in Edinburgh, provide specialist data mining and business
intelligence software based on the Cognos platform. In the six months to
September, Romulus has continued the growth demonstrated over the past two
years, with turnover increasing.

Romulus is now a fully accredited Cognos Enterprise Planning Partner, and the
Romulus offering has been extended to include the full Corporate Performance
platform.

Demand from existing customers has continued to grow with new orders placed by
Raytheon, Hardys & Hanson and Greene King.

The development of a business intelligence tool for other divisions has
continued in all areas, with interest being expressed, and orders being placed
from customers in Hospitality, Ticketing and Leisure.

Entertainment and Ticketing

This division of Clarity provides a leading ticketing solution, with emphasis on
the cinema market. The Group is developing a second generation product based
around the Microsoft .NET platform, which will create a wider target market for
the product.  It is expected that the first installation of this new software
will be in the second half of our year.

Installations of the existing solution continued in the UK, USA and Europe. In
the UK, an extension of our interface services has brought new on-line web
booking services to Apollo Cinemas and IVR (voice recognition) to CineUK.

In France and Germany work has continued installing the current ticketing
solution into new sites, providing support and maintenance for existing
customers, and carrying out trials of our EPOS product in cinemas.

In the USA Clarity installed ticketing software with two small cinema chains,
and began to trial our hospitality software in new market sectors. Major
initiatives were continued with our loyalty and stored value software.

In both Europe and the USA a number of presentations of the new software were
made, both to existing and new customers.

The order book remains strong for the second half of our year.

Hospitality

Our hospitality division provides software for operators in the catering, bar
and restaurant sector, based around Clarity Central head office software.

Although development resource in this period has focused on the integration of
the new ticketing solution into our existing Clarity Central and EPOS solutions,
this has coincided with the release of a new generation of our software for
hospitality, with greatly improved features.

Considerable work was carried out on the specification and testing of this
software in preparation for the recently announced Yo! Sushi contract. This has
included new features such as a completely wireless install of our EPOS solution
and a special sales tracking for Yo! Sushi's unique business requirements.

Further installs of our Central software were made into multi site pub and
restaurant operators. Hall & Woodhouse continued the rollout of Clarity EPOS,
back office and Staff Management solutions into their managed estate, all based
on the platform of Clarity Central head office software.

The second half of the year will see continued installations with current
customers within the terms of existing contracts.

Services

Cyntergy Services was acquired by the Clarity Group to provide a high quality
support vehicle for Clarity's clients, and customer feedback has verified the
soundness of that decision. Clarity now operates an industry recognised helpdesk
and training service.

This is operated as a stand alone service division with the majority of its
revenues coming from retail and hospitality clients outside of the Clarity
Group.

In the past six months, we have delivered training contracts for a variety of
retail and hospitality customers including both software vendors and systems
integrators.

Notable contracts include the world - wide implementation and training of EPOS
for the Foreign & Commonwealth Office in numerous British Embassies throughout
the world. In addition Travelodge have commenced a technology refresh of their
estate of lodges and we continue to provide training to all areas of the
Whitbread Group. The Helpdesk has recently added a new client, Burberry.

Development

In this six months the group has developed an approved CHIP and PIN solution for
the UK, continued development of our .NET ticketing software and commenced
development of a new sports and leisure product suite.  In the second half of
the year, we expect to see the new ticketing product installed in our customer
base.

Employees

The Group currently employs 149 in the UK, and 50 overseas.  The Board would
like to thank the Group's staff and management for their hard work and
dedication to the Group's continued progress.

Prospects

The order book remains strong for the second half of the year, providing the
Board with confidence for the full year result.

The Board believe that we have yet to fully exploit the potential offered by our
newly developed software. This, combined with the new software introduced
through acquisition, provides us with confidence for our future growth
prospects.

End

Consolidated Profit and Loss Account
For the period ended 30 September 2004
                                                                    Period                Period                Period
                                                           1 April 2004 to       1 April 2003 to       1 April 2003 to
                                                              30 September          30 September              31 March
                                                                      2004                  2003                  2004
                                                                 Unaudited             Unaudited               Audited
                                                                     £'000                 £'000                 £'000
Turnover
continuing operations                                                8,236                 4,853                13,325
                                                                     8,236                 4,853                13,325
Cost of sales                                                       -3,556                -1,860                -5,052
Gross Profit                                                         4,680                 2,993                 8,273
Operating costs                                                     -4,362                -2,766                -7,680
Operating profit                                                       318                   227                   593

Operating profit split between:
continuing operations                                                  318                   227                   593
                                                                       318                   227                   593
Operating profit is analysed
between:
Operating profit before impairment of
goodwill                                                               318                   227                   826
Impairment of goodwill                                                   -                     -                  -233
Operating profit after impairment of
goodwill                                                               318                   227                   593

Interest receivable                                                    312                   110                   322
Interest payable                                                      -324                  -143                  -404
Profit on ordinary activities before
taxation                                                               306                   194                   511
Taxation on profit on ordinary activities                              -77                   -30                  -131
Retained profit for the year                                           229                   164                   380

Profit per ordinary share
basic                                                                1.44p                 1.14p                 2.54p
fully diluted                                                        1.41p                 1.12p                 2.49p
adjusted basic                                                       1.44p                 1.14p                 4.10p



Consolidated Balance Sheet
As at 30 September 2004


                                                                      At                     At                     At
                                                            30 September           30 September               31 March
                                                                    2004                   2003                   2004
                                                               Unaudited              Unaudited                Audited
                                                                   £'000                  £'000                  £'000
Fixed assets
Intangible assets                                                 10,300                 10,683                 10,322
Tangible assets                                                      501                    508                    518
                                                                  10,801                 11,191                 10,840
Current assets
Stocks                                                               463                    654                    501
Debtors                                                            4,229                  4,564                  4,023
Cash at bank and in hand                                           1,360                  1,349                  2,122
                                                                   6,052                  6,567                  6,646
Creditors: amounts falling due
within one year                                                   -5,227                 -6,153                 -5,973
Net current assets                                                   825                    414                    673
Total assets less current
liabilities                                                       11,626                 11,605                 11,513
Creditors: amounts falling due after
more than one year                                                -2,376                 -2,942                 -2,492
Net assets                                                         9,250                  8,663                  9,021

Capital and reserves
Called up share capital                                            3,985                  3,856                  3,985
Share premium account                                              5,833                  5,662                  5,833
Shares to be issued                                                  125                    125                    125
Profit and loss account                                             -693                   -980                   -922
Equity shareholders' funds                                         9,250                  8,663                  9,021



Consolidated Cashflow Statement
For the period ended 30 September 2004


                                                                  Period                 Period                 Period
                                                         1 April 2004 to        1 April 2003 to        1 April 2003 to
                                                            30 September           30 September               31 March
                                                                    2004                   2003                   2004
                                                               Unaudited              Unaudited                Audited
                                                                   £'000                  £'000                  £'000
Net cash (outflow) / inflow from operating
activities                                                          -192                    773                  2,290
Returns on investments and servicing of
finance
Interest received                                                    312                    110                    322
Interest paid                                                       -324                   -143                   -404
Net cash outflow from returns on investments                 
and servicing of finance                                             -12                    -33                    -82
Taxation                                                               -                     54                   -161
Capital expenditure and financial investment
Purchase of tangible fixed assets                                    -45                    -50                   -151
Sale of tangible fixed assets                                          -                     15                     41
Net cash (outflow) from capital expenditure
and financial investment                                             -45                    -35                   -110
Acquisitions and disposals
Purchase of subsidiary undertakings                                    -                 -3,010                 -2,989
Cash at bank acquired with subsidiary                                  -                    969                    767
Net cash outflow from acquisitions                                     -                 -2,041                 -2,222
Net cash outflow before financing                                   -249                 -1,282                   -285
Management of liquid resources
Movement in blocked cash collateral account                          282                    -70                   -118
Financing
Issue of share capital                                                 -                    750                    750
New secured loan                                                       -                  1,540                  1,540
Repayment of loan notes                                             -352                    -60                   -110
Capital element of finance leases                                     -9                    -10                    -32
Bank loan repayments                                                -152                    -42                   -194
Net cash (outflow) / inflow from financing                          -513                  2,178                  1,954
(Decrease) / increase in cash                                       -480                    826                  1,551

Notes

1          Nature of the financial information

The Company prepares statutory accounts annually to 31 March. These are the
interim accounts covering the six months ended 30 September 2004.

The results for the period from 1 April 2003 to 30 September 2003 and year to 31
March 2004 are extracted from the previous year's interim and final accounts
respectively.

The results for the six months ended 30 September 2004 and the period from 1
April 2003 to 30 September 2003 are unaudited, and have been prepared in
accordance with the accounting policies set out in the Company's annual report.

The financial information set out above does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The results for the
year ended 31 March 2004 are an abridged version of the full statutory accounts
that have an unqualified audit report and have been delivered to the Registrar
of Companies.

2          Taxation

The taxation charge for the six months ended 30 September 2004 and 2003 is based
on the anticipated tax position for the full year.

3          Earnings per share

Basic earnings per share for the period ended 30 September 2004 is calculated by
dividing the profit for the period of £229,000 (period ended 30 September 2003
profit of £164,000, year ended 31 March 2004 profit of £380,000) by 15,944,642
(period ended 30 September 2003 14,361,828, year ended 31 March 2004 14,957,917)
being the weighted average number of shares in issue during the period.

The adjusted basic earnings per share for the period ended 30 September 2004 is
calculated by dividing the profit for the period before impairment of goodwill
of £229,000 (period ended 30 September 2003 profit of £164,000, year ended 31
March 2004 profit of £613,000) by 15,944,642 (period ended 30 September 2003
14,361,828, year ended 31 March 2004 14,957,917) being the weighted average
number of shares during the period.

The diluted earnings per share has been calculated by dividing the profit for
the period to 30 September 2004 of £229,000 (period ended 30 September 2003
£164,000, year ended 31 March 2004 £380,000) by the weighted diluted average
number of shares being 16,233,239 (period ended 30 September 2003 14,632,200,
year ended 31 March 2004 15,246,514).

4          Dividend

The Company does not propose the payment of a dividend.

The Interim Report will be posted to Shareholders shortly. Copies will be
available free of charge from the Company's registered office: Clarity Commerce
Solutions plc, 1 Netherhampton Business Centre, Salisbury, Wiltshire SP2 8PU.

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