Interim Results

First Derivatives PLC
16 October 2003

                             FIRST DERIVATIVES plc

                     UNAUDITED INTERIM FINANCIAL STATEMENTS
                    FOR THE SIX MONTHS ENDED 31 AUGUST 2003

                              CHAIRMAN'S STATEMENT

The Company announces an increased interim pre-tax profit of £251,000 for the
six months ended 31st August 2003 on revenues of  £1,207,000.  In the six months
ended 31st August 2002 the Company had a pre-tax profit  of £125,000 on revenues
of £689,000.

Earnings per share for the six months was 1.5p against 0.8p for the
corresponding period of the previous year.  The Board has not recommended an
interim dividend but intends to review the appropriateness of a dividend when
the outcome for the full year is known.

Growth in turnover has been achieved in the Company's core areas of activity,
which are systems support, software development and consultancy. During the
period under review new long term contracts were signed with two of the worlds
largest investment banks.  The growth in profits for the first six months of the
financial year has been achieved despite a first time charge of £90,000 for the
amortisation of the IPR rights arising on the E-hub acquisition in February this
year.  All areas of the business have performed satisfactorily during the period
and the Company continues to explore joint venture opportunities.

On 10th October it was announced that Cardiff Broadband Centre had launched a
pilot scheme aiming to provide a broadband focus for SMEs in Cardiff through BT
e-business Manager (http://www.btebusinessmanager.com/) our joint venture with
BT Group plc.    A number of other similar opportunities are being explored but
the Company believes it will be some time before the Directors are able to
assess fully the earnings potential of this area of activity.

Our interim figures have been published nearly two months earlier than in 2002
and it is too early to give any indication of the outcome for the second half of
the year.  However, management accounts for the first month of the second half
show figures in line with budget.


Profit and Loss Account (unaudited)
For the period ended 31 August 2003
                                                      6 months ended          6 months ended      12 months ended 28
                                                                                                       February 2003
                                                      31 August 2003          31 August 2002
                                                               £'000                   £'000                   £'000

Turnover                                                       1,207                     689                   1,649

Cost of sales                                                  (790)                   (630)                 (1,186)

Gross profit/(loss)                                              417                      59                     463

Administrative expenses                                        (242)                    (69)                   (284)

Other income                                                      86                     135                     236

Operating profit - continuing operations                         261                     125                     415

Interest receivable                                                3                       4                       9

Interest payable and other similar charges                      (13)                     (4)                    (18)

Profit on ordinary activities before taxation                    251                     125                     406

Tax on profit on ordinary activities                            (65)                    (31)                   (113)

Profit on ordinary activities after taxation                     186                      94                     293

Retained profit brought forward                                  600                     307                     307

                                                                 786                     401                     600

Dividends paid                                                     -                       -                       -

Transfer from reserves                                             -                       -                       -

Retained profit carried forward                                  786                     401                     600

                                                               Pence                   Pence                   Pence

Earnings per Share
Basic                                                            1.5                     0.8                     2.4



Balance Sheet (unaudited)
As at 31 August 2003
                                                        31 August 2003        31 August 2002           28 February
                                                                                                              2003
                                                                 £'000                 £'000                 £'000
Fixed Assets
Intangible assets                                                  810                     0                   900
Tangible assets                                                    798                    28                   313
                                                                 1,608                    28                 1,213
Current Assets
Debtors                                                            812                 1,095                   741
Cash at bank and in hand                                           393                   412                   555
                                                                 1,205                 1,507                 1,296
Creditors
Amounts falling due within one year                              (697)                 (348)                 (913)

Net current assets                                                 508                 1,159                   383

Total assets less current liabilities                            2,116                 1,187                 1,596

Creditors
Amounts falling due after more than one year                     (549)                     -                 (215)

Provision for liabilities and charges                              (5)                  (10)                   (5)

Net assets                                                       1,562                 1,177                 1,376

Share capital and reserves
Called up share capital                                             61                    61                    61
Share premium                                                      715                   715                   715
Profit and loss account                                            786                   401                   600

Equity Shareholders' funds                                       1,562                 1,177                 1,376



Cash Flow Statement (unaudited)
For the period ended 31 August 2003
                                                     6 months ended 31     6 months ended 31    12 months ended 28
                                                           August 2003           August 2002         February 2003
                                                                 £'000                 £'000                 £'000

Cash inflow from operating activities                              130                    83                   694

Return on investment and servicing of finance                     (10)                     -                   (9)
Taxation                                                         (184)                 (178)                 (170)
Capital expenditure                                               (82)                     -                 (412)
Equity dividend                                                      -                     -                     -

Cash inflow/(outflow) before financing                           (146)                  (95)                   103

Financing                                                         (16)                   774                   720

Increase/(decrease) in cash in the period                        (162)                   679                   823



Reconciliation of net cash flow to movement in net debt (unaudited)
For the period ended 31 August 2003
                                                    6 months ended 31     6 months ended 31      12 months ended 28
                                                          August 2002           August 2001           February 2003
                                                                £'000                 £'000                   £'000

Increase/(decrease) in cash in the period                       (162)                   679                     823
Decrease in debt                                                   15                     -                       8

Change in net debt resulting from cash flows                    (147)                   679                     831
Long term loan                                                  (375)                                         (237)

Movement in net funds/(debt) in the period                      (522)                   679                     594
Net debt at start of the period                                  323                   (271)                   (271)
                                                           
Net debt at end of the period                                   (199)                   408                     323



Notes to the Interim Results

1.         Basis of Preparation

            The results for the six months ended 31st August 2003 are unaudited
and have not been reviewed by the auditors. They have been prepared on
accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the company for the period ended 28th
February 2003.



The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 248 of the Companies (Northern Ireland)
Order 1986 (as amended by Article 12 of the Companies (Northern Ireland) Order
1990). The results for the period ended 28th February 2003 were reported on by
the auditors and received an unqualified audit report. Full accounts for the
period ended 28th February 2003 have been delivered to the Registrar of
Companies.






2.         Dividends

            No dividend is proposed for the period ended 31st August 2003.



3.         Earnings per Share


The earnings per share for the six months ended 31 August 2003 has been
calculated on the basis of the profit after taxation.  The calculation of
earnings per share is based on the profit on ordinary activities.   Earnings per
share has been calculated based on 12,296,158 shares outstanding.



4.         Reconciliation of operating profit to net cash inflow from operating
activities


                                                        6 months ended     6 months ended 31      12 months ended
                                                        31 August 2003           August 2002     28 February 2003
                                                                 £'000                 £'000                £'000

Operating profit                                                   251                   125                  415
Depreciation on tangible fixed assets                              108                     9                   20
Decrease/(increase) in debtors                                      77                   419                  224
(Decrease)/increase in creditors                                 (306)                 (470)                   35

Net cash inflow/(outflow) from operating activities                130                    83                  694



5.         Analysis of net changes in debt during the period


                                                     28 February 2003             31 August      28 February 2003
                                                                                       2002
                                                                £'000                 £'000                 £'000

            Cash in hand and bank                                 393                     -                   556
             Bank overdraft                                         -                 (267)                     -
             Debt due within one year                           (108)                   (4)                  (18)
             Debt due after one year                            (484)                                       (215)

                                                                (199)                 (271)                   323



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