Final Results

Cater Barnard PLC
05 February 2004

FOR IMMEDIATE RELEASE                                            5 February 2004

                                Cater Barnard plc
                       ('Cater Barnard' or the 'Company')

            PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003

                              CHAIRMAN'S STATEMENT
Dear Shareholder,

I am pleased to report an improvement in the operating performance of the
Company during the year under review.

The Company also acquired a 40% shareholding in Navitas Hemway Limited
('Navitas'), a property support services company. The Company also holds an
option to acquire the balance of 60% of Navitas anytime up to 7 October 2004. We
believe that the highly fragmented nature of this industry sector will give rise
to various acquisition opportunities. The Company is actively pursuing these,
albeit at early stages of development.

In order to pursue these opportunities the Company has appointed Mr. David
Williams as Executive Director. Mr. Williams has extensive experience in the
property support services sector having served on the board of numerous
facilities management companies.

Mr. Aidan Mills-Thomas was appointed Non-Executive Director to replace Adrian
Stecyk who retired during the year. Since the year end the Company has completed
the policy of divestment of its non-core investments and the only significant
shareholding remaining as at 30 September 2003 is the shareholding in Dialog
Group, Inc. ('Dialog'). The Board has entered into an option agreement to sell
this investment for a minimum of
US$ 2,547,632 to Sterling Financial Securities Limited. Provided the option is
exercised, this will produce a substantial improvement to the current written
down value of Dialog of £261,974.

In the year ended 30 September 2003, turnover increased 20.5% to £944,263 (2002:
£783,494). Administrative costs reduced significantly to £961,166 (2002
£1,506,793). Loss before tax and loss per share amounted to £6,874,982 (2002:
loss £13,287,515) and (0.87)p (2002: (2.45)p) respectively.

Shareholders funds reduced to £401,912 (2002: £7,247,669). This loss is
primarily due to the £6,718,736 write down of the value of the investment in
Dialog, and is required to reflect its current stock market valuation. At the
year -end the Group had net cash of £97,724.

Since the year-end, Global Investments Limited has subscribed for £316,000 of
new Cater Barnard Ordinary Shares ('Ordinary Shares') at the then mid-market
price of 0.316p per Ordinary Share and entered into a convertible loan agreement
under which the Company can require it to subscribe for a further £171,323 of
new Ordinary Shares at the same price. In addition, the initial investment in
Navitas was made wholly by the issue of 52,533,333 new Ordinary Shares at 0.5p
per Ordinary Share, improving the net asset value of the Company to £1,151,901
on a pro forma basis as at 30 September 2003.

The future strategy of the Company will be to become a leading provider of
services to the property support services sector both through acquisition and
organic growth

I would like to take this opportunity to thank staff and advisers for their
continued support and look forward to the future with confidence.

Stephen Dean
Chairman


CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30 September 2003


                            Goodwill &
                           Investments    Trading         2003          2002
                                 £           £              £             £

TURNOVER -
Continuing                           -     944,263       944,263       783,494

COST OF SALES                        -    (120,344)     (120,344)      (96,735)
                              _________     _______     ________      _________
GROSS PROFIT                         -     823,919       823,919       686,759

Administrative
expenses                             -    (961,166)     (961,166)   (1,506,793)
Goodwill impairment
write off                      (19,600)          -       (19,600)   (1,056,848)
                             _________     _________   _________     _________
OPERATING LOSS                 (19,600)   (137,247)     (156,847)   (1,876,882)
Continuing                                              (156,847)   (1,876,882)

Losses on fixed
asset investments           (6,718,737)          -    (6,718,737)  (11,362,440)
Interest receivable
and similar income                   -      24,951        24,951        85,362
Interest payable and
similar charges                      -     (24,349)      (24,349)     (133,555)
                             ___________   ________    __________    _________
LOSS ON ORDINARY
ACTIVITIES BEFORE
TAXATION                    (6,738,337)   (136,645)   (6,874,982)  (13,287,515)
                             __________    ________
Tax on loss on
ordinary activities                                            -       305,825
                                                       ___________   _________
LOSS ON ORDINARY                   
ACTIVITIES AFTER
TAXATION                                              (6,874,982)  (12,981,690)
Minority interest                                         39,128       209,869
                                                       ___________   _________
Retained LOSS for the
financial YEAR                                        (6,835,854)  (12,771,821)
                                                       ___________   ________

Loss per Ordinary
Share (Note 1)                                             (0.87)p       (2.45p)
                                                         _____         ____
Diluted loss per
Ordinary Share (Note 1)                                   (0.87)p       (2.45p)
                                                         _____         ____
All activities derive from continuing
operations.




CONSOLIDATED BALANCE SHEET
As at 30 September 2003
                                                          2003               2002
                                                           £                  £
FIXED ASSETS
Tangible assets                                         11,183             35,020
Investments                                            261,975          8,629,307
                                                     _________          _________
                                                       273,158          8,664,327
                                                     _________          _________
CURRENT ASSETS
Trade investments                                      365,245                  -
Debtors                                                419,634            364,906
Cash at bank and in hand                               101,175             18,678
                                                     _________          _________
                                                       886,054            383,584
CREDITORS: amounts falling due                        (636,514)        (1,578,912)
within one year
                                                     _________          _________
NET CURRENTASSETS/( LIABILITIES)                       249,540         (1,195,328)
                                                     _________          _________
TOTAL ASSETS LESS CURRENT LIABILITIES                  522,698          7,468,999

CREDITORS: amounts falling due
after more than                                        (42,656)          (139,515)
one year
Equity minority interest                               (78,130)           (81,815)
                                                      ________          _________
NET ASSETS                                             401,912          7,247,669
                                                      ________          _________

CAPITAL AND RESERVES
Called up share capital                              7,862,386          7,862,386
Share premium account                                        -         13,103,185
Other reserve                                          156,953                  -
Profit and loss account                             (7,617,427)       (13,717,902)
                                                     _________          _________
EQUITY SHAREHOLDERS' FUNDS                             401,912          7,247,669
                                                     _________          _________

Net assets per Ordinary Share                            0.051p              0.92p
                                                       ______              ______




CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 September 2003

                                                        2003                2002
                                    Note                 £                   £

Net cash outflow from operating         3            (654,720)         (1,030,326)
activities

Returns on investments and servicing of
finance
Interest received                                      24,951              85,362
Interest paid                                         (24,349)           (133,555)
                                                     ________            ________
Net cash inflow/(outflow) from                            602             (48,193)
returns on
Investments and servicing of
finance
                                                    ________             ________

Taxation Paid                                               -                   -
                                                    ________             ________

Capital expenditure and financial
Investment
Payments to acquire tangible fixed                     (2,209)            (33,287)
assets
Receipts from sales of tangible                        31,420              34,678
fixed assets
Payments to acquire investments                    (1,857,826)         (3,296,817)
Receipts from sales of investments                  3,077,826           1,831,753
                                                    _________          __________
Net cash inflow/(outflow) from investing            1,249,211          (1,463,673)
activities
                                                    _________          __________

Acquisitions and disposals
Purchase of subsidiary undertakings                  (185,806)                  -
Proceed of part disposal of                           280,000                   -
subsidiary
                                                    _________           _________
Net cash outflow from acquisitions                     94,194                   -
and
Disposals
                                                    _________           _________

Net cash inflow/(outflow) before                      689,287          (2,542,192)
financing
                                                    _________           _________
Financing
Issue of ordinary share capital                             -           6,198,929
Debt finance (repaid)                                 (96,859)         (4,060,485)
Expenses on issuing equity share /
conversion of                                          (9,903)           (243,651)
share premium
                                                    _________           _________
Net cash (outflow)/inflow from                       (106,762)          1,894,793
financing
                                                    _________           _________
Increase/(decrease) in cash in the                    582,525            (647,399)
year
                                                    _________           _________



PRO FORMA BALANCE SHEET
As at 30 September 2003

                  Original     Debt        Loan to     Navitas      Pro Forma
                               converted   be          investment
                                           converted
                               (note i)    (note ii)   (note iii)
                         £          £           £            £            £
FIXED ASSETS
Tangible assets       11,183                                            11,183
Investments          261,975                              262,666      524,641
                  _________                                         _________
                     273,158                                           535,824
                  _________                                         _________
CURRENT ASSETS
Trade investments    365,245                                           365,245
Debtors              419,634                                           419,634
Cash at bank and
in hand              101,175                                           101,175
                  _________                                         _________
                     886,054                                           886,054
CREDITORS:
amounts
falling due         (636,514)    316,000     171,323                  (149,191)
within
one year
                  _________                                         _________
NET CURRENTASSETS    249,540                                           736,863
                  _________                                         _________
TOTAL ASSETS LESS
CURRENT
LIABILITIES          522,698                                         1,272,687

CREDITORS:
amounts              (42,656)                                          (42,656)
falling due after
more than one
year
Equity minority
interest             (78,130)                                          (78,130)
                  ________     ________    ________    ________     ________
NET ASSETS           401,912     316,000     171,323      262,666    1,151,901
                  ________     ________    ________    ________     ________

CAPITAL AND
RESERVES
Called up share
capital            7,862,386     100,000      54,216       52,533    8,069,135
Share premium
account                    -     216,000     117,107      210,133      543,240
Other reserve        156,953                                           156,953
Profit and loss
account           (7,617,427)                                       (7,617,427)
                  _________    _________   _________   _________    _________
EQUITY
SHAREHOLDERS'
FUNDS                401,912     316,000     171,323      262,666    1,151,901
                  _________    _________   _________   _________    _________

Notes
i)   Subscription by Global Investments Limited ('Global') for £316,000 of new 
     Ordinary Shares at 0.316p each
ii)  Undertaking by Global to subscribe for £171,323 of new Ordinary Shares at 
     0.316p each
iii) Initial payment for 40% investment in Navitas satisfied by the issue of 
     52,533,333 new Ordinary Shares at 0.5p each



NOTES
1 Loss Per Ordinary Share
Basic loss per Ordinary Share is calculated by dividing the losses attributable
to ordinary shareholders by the weighted average number of Ordinary Shares
during the period. Diluted loss per Ordinary Share is calculated by adjusting
the weighted average number of Ordinary Shares in issue on the assumption of
exercise of all options or warrants to subscribe for new Ordinary Shares, where
the exercise price is less than the average price of the Company's Ordinary
Shares during the period.
                                                          2003            2002
                                                           £               £
Loss attributable to ordinary shareholders          (6,835,854)    (12,771,821)
                                                        ________       _______

Weighted average number of Ordinary Shares ('000)      786,238         521,214
Dilutive share options and warrants ('000)                   -               -
                                                        ________       _______
Adjusted weighted average number of Ordinary
Shares ('000)                                          786,238         521,214
                                                        ________       _______

Basic and fully diluted loss per Ordinary Share          (0.87)p         (2.45)p
                                                        _______        _______



2 Post Balance Sheet Events
On 7 October 2003 the Company granted an option to Sterling Securities
International Limited to purchase the Company's remaining investment in Dialog
an American information services business, quoted on the Nasdaq OTCBB. The
option expires on 30 September 2005, and is exercisable at a price of 171/2
cents per Dialog ordinary share during the first year and 20 cents per Dialog
ordinary share during the second year, plus 10% of any net gain made by Sterling
Securities International Limited on a short term resale of any Dialog ordinary
shares so acquired.

The company has agreed to lend up to £300,000 from its cash resources to
Navitas, a Crewe-based company providing facilities maintenance services to
businesses. A sum of £300,000 has since been advanced under the facility to
Navitas. Sums advanced carry interest at 7.8% and are repayable on 7 October
2004.

Cater Barnard has also been granted an option over the entire issued share
capital of Navitas, exercisable at any time up to 7 October 2004. On 28
November, Cater Barnard plc exercised its option over 40% of the share capital
of Navitas. The price for the 40% interest in Navitas is £788,000 subject to
Navitas achieving profits before tax of £560,000 in any 12 month period up to 30
June 2005. The consideration reduces proportionately for any shortfall in
profits. The consideration is wholly payable by the issue of new ordinary shares
in Cater Barnard at 0.5p per share. David Williams and Aidan Mills-Thomas are
related parties in respect of Navitas. The exercise of the balance of this
option would be subject to approval by the Company's shareholders.

On 24 November 2003 Global Investments Limited converted £316,000 of its debt
into new Cater Barnard Ordinary Shares at a price of 0.316p. The company also
entered into an agreement under which the balance of this debt can be converted
into new Cater Barnard Ordinary Shares.

On 5 December 2003, the Company completed the sale of its entire holding in
Cater Barnard (USA) plc, and therefore this business ceased to be a subsidiary.



3 Net cash outflow from operating activities
                                                         2003             2002
                                                          £                £
Operating loss                                       (156,847)      (1,876,882)
Depreciation charge                                     2,865           18,201
Amortisation                                                -          105,748
Goodwill impairment                                    19,600        1,056,848
Profit on disposal of fixed assets                     (8,240)               -
(Increase)/decrease in debtors                        (54,728)         779,518
Decrease in creditors                                (457,370)      (1,113,759)
                                                      _______       ________
Net cash outflow from operating activities           (654,720)      (1,030,326)
                                                      _______       ________
4              The financial information set out in this document does not
constitute statutory group accounts.
5         The above financial information for the year ended 30 September 2003
and 2002 has been extracted from the statutory accounts for those years on which
the auditors gave an unqualified opinion. Statutory accounts for the year ended
30 September 2002 have been delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 September 2003 will shortly be posted
to shareholders and, after being laid before the Annual General Meeting, will be
delivered to the Registrar of Companies.
6         The preliminary announcement was approved by the Board of Directors on
30 January 2004.
7         The Board of Directors does not propose to pay a dividend.

Copies of the Report and Accounts will be available to the public, free of
charge, from the registered office of Cater Barnard plc, Hilden Park House, 79
Tonbridge Road, Hildenborough, Kent, TN11 9BH during normal office hours, with
the exception of Saturdays, Sundays and bank holidays, for one month from today.

Enquiries:

Cater Barnard plc 020 7422 6555
Stephen Dean, Chairman 0034 605 282211
David Williams, Director 020 7422 6555

Beaumont Cornish Limited
Roland Cornish 020 7628 3396



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