Preliminary Results

I2S PLC 6 July 2000 I2S Plc Chairman's statement Period ended 31 March 2000 Introduction The year to 31 March 2000 has been an eventful period for your company. As part of a wide ranging investigation into how best to enhance shareholder value, your Directors concluded that there are growing and potentially lucrative opportunities for the provision of financing primarily for internet, media and technology related companies which have successfully emerged from the start-up process and for which a flotation, sale or other realisation can be facilitated by the injection of such financing. To this end, we recently announced a change in company name to I2S plc and a 5 for 2 Rights Issue of 5.3 million Rights Shares at 100p per share to raise an additional £5.1 million after costs. Full details were circulated to shareholders on 3 February 2000 together with proposals to adopt a new share option scheme, new Articles of Association and amendments to the Company's Memorandum of Association. I am pleased to inform you that shareholders approved all of the resolutions put before them at an Extraordinary General Meeting of the Company on 28 February 2000 and that 93.4 % of the new Rights Shares were taken up by existing shareholders with the balance placed by the Company's brokers. The net proceeds of the Rights Issue combined with existing cash of £1.6 million provided the Company with total cash assets of £6.7 million (90.3p per ordinary share). Financial Results Turnover for the year ended 31 March 2000 (derived from monies on deposit) was £73,572 (31 March 1999 £91) resulting in a loss before tax of £1,987 (7 April 1999 - loss £618,476). As indicated in the circular to shareholders of 3 February 2000, your Directors are not recommending payment of a dividend for the year to 31 March 2000. As at 31 March 2000, your Company's portfolio was split as to 23 % in unquoted investments at cost and 77 % in cash. The company's net asset value per share at 31 March 2000 was 89.9p. Investments During the year, your Directors made two investments - £900,000 in ordinary shares and warrants in Sit-up.com, a provider of interactive content for multiple digital platforms and £633,192 in convertible preferred stock in Eighteen Global Inc., an on-line service for golfers. Since the year end we have made two further investments - £500,000 in ordinary shares in GetMapping.com - an AIM listed provider of digital aerial maps and £321,709 in ordinary shares in Arnhold Holdings Limited, a Hong Kong listed technology investment fund. As at 30 June 2000 your Company's portfolio was split as to 22 % in unquoted investments at cost, 15 % in quoted investments at mid market price and 63 % in cash. The Company's net asset value per share was 92.3p. Outlook Your Directors have continued to seek out sensibly priced investment opportunities and have deliberately maintained a very high proportion of your Company's portfolio in cash. The recent shake-out in the quoted technology sector has already had a significant impact on the pricing of second-round financing opportunities which will be to the advantage of I2S shareholders. Your Directors remain confident that your Company's strategy of investing primarily in the internet, media and technology related sectors, combined with very low management overheads, will optimise shareholder value. Profit and loss account Period ended 31 March 2000 Period Period ended ended 31 March 7 April 2000 1999 £ £ Continuing Discontinued Operations Operations TURNOVER - 4,900,302 Cost of sales - (3,592,740) GROSS PROFIT - 1,307,562 Distribution costs - (72,602) Administrative expenses (75,559) (1,061,560) Other operating income - 48,802 OPERATING (LOSS)/PROFIT (75,559) 222,202 Loss on disposal/cessation of an operation - (671,560) Loss on disposal of fixed assets - (233,671) (75,559) (683,029) Income from shares in group undertakings - 160,000 Income from participating interests - 2,000 Interest receivable and similar items 73,572 91 Amounts written off investments - (51,958) Interest payable and similar items - (45,580) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,987) (618,476) TAXATION - 103,136 LOSS FOR THE FINANCIAL YEAR (1,987) (515,340) DIVIDENDS - (29,150) (1,987) (544,490) Loss per share - basic 0.087p 24.3p There were no recognised gains or losses for the period other than those included in the profit and loss account. Balance sheet Period ended 31 March 2000 Period Period ended ended 31 March 7 April 2000 1999 £ £ FIXED ASSETS Investments 1,533,192 - CURRENT ASSETS Debtors 6,326 850,000 Cash at bank and in hand 5,276,448 850,000 5,282,774 1,700,000 CREDITORS: amounts falling due within one year (142,882) (108,254) NET CURRENT ASSETS 5,139,892 1,591,746 TOTAL ASSETS LESS CURRENT LIABILITIES 6,673,084 1,591,746 CAPITAL AND RESERVES Called up share capital 1,855,000 530,000 Share premium account 3,827,925 69,600 Profit and loss account 990,159 992,146 SHAREHOLDERS' FUNDS 6,673,084 1,591,746 Cash flow statement Period ended 31 March 2000 Period Period ended ended 31 March 7 April 2000 1999 £ £ Reconciliation of operating (loss)/profit to net cash inflow from operating activities Operating (loss)/profit (75,559) 222,202 Depreciation of tangible fixed assets - 190,276 Profit on sale of fixed assets - (16,810) Decrease in stocks - 213,371 Increase/(decrease) in creditors 24,941 (135,658) Net cash inflow from operating activities 793,056 334,481 CASH FLOW STATEMENT Net cash inflow from operating activities 793,056 334,481 Returns on investments and servicing of finance 73,572 116,511 Taxation paid - (68,795) Capital expenditure (1,533,192) 208,141 Acquisitions and disposals - 902,630 Equity dividends paid - (69,960) (666,564 1,423,008 Financing 5,083,325 - Increase in cash 4,416,761 1,423,008 Reconciliation of net cash flow to movement in net debt Increase in cash in the period 4,416,761 1,423,008 Net cash/(debt) at 8 April 1999 850,000 (573,008) Net cash at 31 March 2000 5,266,761 850,000 Period ended 31 March 2000 Notes 1. Financial information set out above does not constitute full accounts within the meaning of Section 254 of the Companies Act 1985. 2. The Report and Accounts will be posted to all shareholders on the register by the end of July 2000 and copies will be available from that date at the company's registered office: 7th Floor 39 St James's Street LONDON SW1A 3JD 3. The calculations of loss per share are based on the weighted average of the issued ordinary shares in the period of 2,282,850 (1999 - 2,120,000) shares: Period Period ended ended 31 March 7 April 2000 1999 £ £ Loss for the financial year 1,987 515,340 4. The figures for the period ended 31 March 2000 have been extracted from the full accounts for the period on which the auditors have given an unqualified report.

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