Interim Results

Ingenta PLC
04 August 2005


Date:               Embargoed until 07.00am, Thursday 4 August 2005

Contacts:           Ingenta
                    Martyn Rose, Non-Executive Chairman
                    Simon Dessain, Chief Executive
                    Tel:  [phone]
                    Website:  www.ingenta.com

                    Hudson Sandler
                    Alistair Mackinnon-Musson
                    Philip Dennis
                    Tel:  [phone]
                    Email: [e-mail]



                               Ingenta plc

                             INTERIM RESULTS


Ingenta plc, the technology and services provider to the publishing and
information industries, is pleased to announce its Interim results for the six
months to 30 June 2005.



The key points are:



  • Turnover up 6.5% against same period 2004
  • Article 'pay per view' revenue increased by 14%
  • Further sales based on Ingenta's new Information Commerce System (ICS)
    announced
  • Loss for the financial period substantially reduced to £(0.3) million
    (2004: loss £(1.3) million)
  • 24% reduction in overheads against same period last year
  • Since December 2004 the monthly payroll costs are down 24%
  • Substantial progress towards profitability made during the period



Commenting, Simon Dessain, Chief Executive, said:



'Ingenta remains highly focussed on our goal of delivering a profit for the
year. Substantial progress towards this aim was made during the first half '.



'During the first six months we completed a programme of cost reductions and a
reorganisation.  As a result we are poised to achieve profitability, based upon
a continued modest upward trend in revenue'.




                                  Ingenta plc

         UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005



Financial Review

Ingenta made substantial progress towards profitability in the six months to 30
June 2005.



The group achieved a 6.5% increase in turnover during the period to £3.3
million,  compared to the first half of last year (2004: £3.1 million).  Profit
margins of 76% (2004: 77%) were adversely affected, albeit only slightly, as a
result of increased (lower margin) 'pay per view' revenues as a proportion of
total revenue.  A £0.9 million reduction in overheads to £2.9 million in the
first half (2004: £3.8 million) when combined with the overall increase in group
turnover resulted in substantially reduced losses for the period of £(0.3)
million (2004: loss £(1.3) million).



The group had cash resources of £0.3 million at 30 June 2005 (31 December 2004:
£0.9 million).  Creditors of £3.6 million at the period end were reduced by £1.3
million over the first six months, with other balance sheet items generally
showing no more than expected seasonal movements.



The group operates in highly competitive markets but has demonstrated that its
investments in technology to automate processes have enabled it to deliver
improving contributions at ever lower cost.  The introduction of new products is
also providing the group with competitive advantage.



Trading during the first half of the financial year has delivered encouraging
results from all three operating divisions, as described below, together with a
summary of the activities in each of the operating groups:



1)  IngentaConnect



IngentaConnect represents 56% of group revenues (2004: 59% - 15 month period)
and over 8,000 publications are now available via IngentaConnect.



Usage of the IngentaConnect platform, for accessing online subscription content,
continues to increase rapidly - with monthly peak user sessions during the
period being up 40% over the 2004 peak.  Ingenta added titles from 21 new
publishers during the period, including increasing the number available from
Springer to over 1,000.



Ingenta has also funded a research project through the American Library
Association in recognition of the importance of the North American market.



The gross margin on document delivery increased during the first half, as well
as showing a 14% rise in revenues.  The combination of these two factors results
in an improved contribution for Ingenta, as well as increases in royalties
payable to publishers.



Whilst the market for online delivery remains competitive, IngentaConnect can
deliver profitably at increasingly low costs.





2)  Information Commerce Systems (ICS) and Publication Websites



Revenues from the ICS and Publication Websites unit represent 29% of group
turnover (2004: 28% - 15 month period).


This unit provides technology, services and software to academic, research and
professional publishers for the websites of specialist publications.  At the
heart is Ingenta's core competence of enabling easy to use, large scale,
subscription access, rights management and e-commerce skills, both within the
publication websites Ingenta builds and operates and as external software sales.



The publication website for the British Standards Institute (as previously
announced) went into live production during the period.  Additionally, the early
delivery phases of the Institute of Physics Publishing project - of the unit's
new Information Commerce Systems (ICS) - have been completed.  Furthermore,
UNESCO has become a new client and the OECD has signed a new long term agreement
- both are for ICS enabled publication websites.



These activities show the first signs of a financial return on the substantial
investment that Ingenta has made and continues to make into ICS technologies.
These investments are enabling sales of high functionality software and
publication websites at a lower cost of sale.



3)  Publisher Communications Group



Ingenta's Publisher Communication Group (PCG) continues to enhance its
reputation as a high quality provider of marketing, sales and research services
to academic publishers.  During the period the unit worked with 6 new publishers
and further expanded its European presence as a result of increased demand.  PCG
represents 15% of group revenue (2004:  13% - 15 month period).



Operations and Staff



As outlined above and in the 2004 Annual Report, Ingenta now comprises three
principal activities.  During the period the group created three business units
around these activities. This structure enables the management of each unit to
focus on their own specific objectives and will allow each to develop in more
independent ways, as befits their differing business models and individual
stages of development.



Overall, group staff numbers were down to 98 at 30 June 2005 from 114 at 31
December 2004.  Despite these further reductions in staffing, Ingenta is
delivering more publication content, user sessions and services on behalf of our
publisher clients.  The contribution of Ingenta's staff during the period has
been magnificent and the Board would like to thank all of them for their
continuing hard work.



Current Trading and Prospects



Results for the second half of the current financial year will receive some
benefit from orders taken during the first six months, however, a modest number
of further new sales will be required during the second half in order to ensure
the company's goals for the year are achieved.



A recent review of the new business forecast for the second half, together with
the benefit of further cost reductions as a result of actions already taken,
supports the Board's current business plan and forecast.  This enables Ingenta
to maintain its expectation of further trading improvements in the second half.




UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005




Ingenta plc
Consolidated Profit and Loss Account
for the 6 months ended 30 June 2005

                                                    6 months ended     6 months ended      15 months ended
                                                           30 June            30 June          31 December
                                                              2005               2004                 2004
                                                       (unaudited)        (unaudited)            (audited)
                                                               £'m                £'m                  £'m
Turnover                                                       3.3                3.1                  8.8
Cost of sales                                                (0.8)              (0.7)                (2.3)

Gross profit                                                   2.5                2.4                  6.5

Overheads                                                    (2.9)              (3.8)                (9.5)

Exceptional items                                                                   -                (0.7)

Operating loss and loss before tax                           (0.4)              (1.4)                (3.7)
Tax                                                            0.1                0.1                  0.4

Loss for the financial period                                (0.3)              (1.3)                (3.3)

Basic and diluted loss per share                            (0.2)p             (1.0)p               (2.5)p





Ingenta plc
Consolidated Balance Sheet
as at 30 June 2005
                                                                     As at           As at           As at
                                                                   30 June         30 June     31 December
                                                                      2005            2004            2004
                                                               (unaudited)     (unaudited)       (audited)
                                                                       £'m             £'m             £'m
Fixed assets
Tangible assets                                                        0.3             0.7             0.4
Investments                                                            0.2             0.2             0.2
                                                                       0.5             0.9             0.6

Current assets
Debtors                                                                1.6             2.3             2.7
Cash at bank and in hand                                               0.3             0.1             0.9
                                                                       1.9             2.4             3.6
Creditors: amounts falling due within one year                       (3.6)           (4.7)           (4.9)
Net current liabilities                                              (1.7)           (2.3)           (1.3)

Total assets less current liabilities                                (1.2)           (1.4)           (0.7)

Creditors: amounts falling due after more than one year                 -            (0.2)               -
Provisions for liabilities and charges                               (0.3)           (0.6)           (0.5)
Net liabilities                                                      (1.5)           (2.2)           (1.2)

Capital and reserves
Called up share capital                                                7.5             6.7             7.5
Share premium account                                                 21.0            19.8            21.0
Merger reserve                                                        11.0            11.0            11.0
Reverse acquisition reserve                                           12.7            12.7            12.7
Profit and loss account                                             (53.7)          (52.4)          (53.4)

Equity shareholders' deficit                                         (1.5)           (2.2)           (1.2)





Ingenta plc
Consolidated Cash Flow Statement
6 months ended 30 June 2005
                                                            6 months ended  6 months ended  15 months ended
                                                                   30 June         30 June 31 December 2004
                                                                      2005            2004
                                                               (unaudited)     (unaudited)        (audited)
                                                                       £'m             £'m              £'m
Cash flow from continuing operating activities
Loss before tax                                                      (0.4)           (1.4)            (3.7)
Depreciation charge                                                    0.1             0.3              0.7

(Increase) / decrease in debtors                                       0.7             0.8            (0.2)
Increase/(decrease) in creditors                                     (1.3)           (1.9)            (0.6)
Increase/(decrease) in provisions                                    (0.2)           (0.2)            (0.1)

Net cash outflow from operating activities                           (1.1)           (2.4)            (3.9)

Tax received                                                           0.5             0.3              0.3
Capital expenditure and financial investments
Purchase of tangible fixed assets                                        -           (0.1)            (0.1)

Management of liquid resources
Sale/(purchase) of short term deposits                                 0.7               -            (0.7)

Net cash inflow/(outflow) before financing                             0.1           (2.2)            (4.4)

Financing
Issue of shares net of expenses                                          -             3.0              5.0
Repayment of principal under finance leases                              -               -            (0.1)
Net cash inflow from financing                                           -             3.0              4.9

Increase in cash in the period                                         0.1             0.8              0.5

Analysis of net funds
Cash in hand and at bank                                               0.3             0.1              0.2

Cash on short term deposit                                               -               -              0.7
                                                                       0.3             0.1              0.9




Statement of consolidated total recognised gains and losses
for the six months ended 30 June 2005

                                                        6 months ended   6 months ended  15 months ended
                                                               30 June          30 June 31 December 2004
                                                                  2005             2004
                                                           (unaudited)      (unaudited)        (audited)
                                                                   £'m              £'m              £'m
Loss for the financial period                                    (0.3)            (1.3)            (3.3)
Currency translation differences on foreign currency                 -              0.1              0.2
net investments
Total recognised losses for the period                           (0.3)            (1.2)            (3.1)





Ingenta plc
Notes to the Unaudited Interim Report
for the six months ended 30 June 2005



1.  Basis of preparation



The Interim Financial Information has been prepared on the basis of the
accounting policies set out in the Group's Annual Report and Accounts for the 15
months ended 31 December 2004 which have remained unchanged.





2.  Publication of Non-Statutory Accounts



The financial information contained in this interim report is unaudited and has
not been reviewed by the auditors.  It does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.  Statutory accounts for the 15
months ended 31 December 2004 incorporating an unqualified audit report have
been filed with the Registrar of Companies.



3.  Basis of EPS Calculation



The basic loss per share has been calculated by dividing the loss for the period
by the weighted number of ordinary shares of 186,207,420 (6 months to 30 June
2004: 121,557,264; 15 months ended 31 December 2004: 130,244,269) in issue
during the 6 month period ended 30 June 2005. The company had no dilutive
ordinary shares in issue in any of the periods and there is therefore no
difference between the loss per ordinary share and the diluted loss per ordinary
share. There was no change in the number of shares in issue during the period.



4.  Comparative period



Last year's Interim results were in respect of the six months to 31 March 2004,
which was for the first six months of an extended reporting period of 15 months
(to 31 December 2004). In order to report performance consistently and
appropriately, the comparative figures used in this report are for the six month
period ending 30 June 2004. The results for that period have been prepared on
the same basis and under the same accounting policies as those set out in the
Group's Annual Report and Accounts for the 15 months ended 31 December 2004.



5.  Copies of Announcement



Copies of this announcement will be available on the investors section of the
company's website: http://www.ingenta.com/corporate/company/investors/finan_ann/
or from the company's registered office at 23-38 Hythe Bridge Street, Oxford
OX1 2ET.







                                    - ENDS -


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