Final Results

Netcentric Systems PLC
26 March 2003


NETCENTRIC SYSTEMS PLC
26 MARCH 2003 - EMBARGOED FOR 7AM



             NETCENTRIC SYSTEMS PLC ('Netcentric' or the 'Company')

            PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002



CHAIRMAN'S STATEMENT


The Company recorded a group loss after tax of £278,000.



Review



In October 2001, at the beginning of the year, the whole of the Board of
Directors of the Company Netcentric Systems plc (Netcentric) resigned except for
Gerard Thompson.  John May, FCA, was appointed as Finance Director and I was
appointed Chairman. We introduced a 'rescue package' for the Company, which
involved a successful Company Voluntary Arrangement (CVA) for the operating
subsidiary, and the re-negotiation and challenging of the Group's debts in order
to create a company with sufficient cash to attract a new business for a '
reverse' takeover.



Prior to those Board appointments, the Company had licensed for three years the
continued development and sale in Europe of the Lychee(R) product to a company
managed by Netcentric's former sales manager in return for a commission payment
on all sales within the defined territory. It should be borne in mind that the
exploitation of this product is not expected to produce significant income for
the Company and the arrangement has not featured in our plans for of the future
of the Company. The Board has concentrated its efforts on the 'clean-up' process
and finding a new business to inject into the Company.



As mentioned above, the new Board has taken steps to conserve the remaining cash
in the Company and to collect cash owing to the company from debtors and the
Inland Revenue, and instituted a CVA for the principal operating subsidiary,
Netcentric Systems (Europe) Limited.  Since the Company was unable to issue its
own shares, at less than par value, to creditors in the CVA in lieu of debt, the
creditors of Netcentric Systems (Europe) Limited were offered 10 pence in the
pound in cash and 90 pence in the pound in London & Boston Investments plc
shares, a major shareholder in Netcentric Systems plc and a Company of which I
am also Chairman.  The CVA was approved by creditors on 26 November 2001 and
became effective as of that date. L&Bi has accepted Netcentric shares in
repayment of the debt created in this way with the result that it now has 48.94%
of Netcentric. A Rule 9 waiver was approved by shareholders on 22 July 2002 in
respect to this transaction.



Also in November 2001, Pricewaterhouse Coopers resigned their position as the
Company's auditors and new auditors, Milsted Langdon, were invited and accepted
the position.



We have shareholders' approval, to reconstruct the Company's share capital and
this process was confirmed by the Isle of Man Courts. We are pushing forward
with our plans to find a suitable business to reverse into the Company so that
new value may be created for our shareholders and so that the full value of the
Company's AIM listing can be utilised.   We are in discussions with a number of
parties with a view to the reverse of a new business into the Company.



During the year we were joined by two experienced Non Executive Directors - Paul
Hughes ACIB and Emanuel Mond. The first stage of our resurrection of the
Company's fortunes is complete and I hope that we will be able to make an
announcement about a suitable acquisition in due course.



On a personal note; I am particularly grateful to both John May and Gerry
Thompson for their dedication to the task we set ourselves and for their lateral
and creative thinking in bringing the Company back to viability.









S A Komlosy

Chairman, 25 March 2003








GROUP PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2002



                                                                  2002                     2001
                                                               £'000       £'000        £'000        £'000
TURNOVER

Continuing operations                                                         11                       435
Discontinued operations                                                       22                       557
                                                                         -------                   -------
TOTAL TURNOVER                                                                33                       992


Cost of sales                                                                  -                     (411)
                                                                         -------                   -------

GROSS PROFIT                                                                  33                       581



Net operating expenses                                                     (945)                   (5,279)



OPERATING LOSS

Continuing operations                                          (558)                  (4,889)
Discontinued operations                                        (354)                      191
                                                              ------                  -------

                                                                           (912)                   (4,698)

Exceptional operating costs                                                    -                     (238)
                                                                         -------                   -------

TOTAL OPERATING LOSS                                                       (912)                   (4,936)


Loss on disposal of subsidiary                                                 -                     (109)
Release of provision for future losses and fixed asset
writedowns                                                                   341                     4,587
                                                                         -------                   -------


LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST

                                                                           (571)                     (458)
Interest income                                                               27                        76
Interest payable and similar charges                                        (10)                     (272)
                                                                         -------                   -------


LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                (554)                     (654)


Taxation                                                                     276                         6
                                                                         -------                   -------

LOSS FOR THE YEAR                                                          (278)                     (648)
                                                                         -------                   -------
LOSS PER SHARE - BASIC                                                     0.44p                     0.25p

                                                                         -------                   -------
               - DILUTED                                                   0.44p                     0.25p
                                                                         -------                   -------



STATEMENT OF GROUP TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 September 2002


                                                               Notes                  2002             2001
                                                                                     £'000             £'000


Loss for the financial year                                                          (278)             (648)


Prior year adjustments                                           32                      -           (8,190)
                                                                                   -------          --------
Total gains and losses recognised in the accounts since the
last annual report
                                                                                     (278)           (8,838)
                                                                                   -------          --------



NOTE OF GROUP HISTORICAL COST PROFIT AND LOSSES
for the year ended 30 September 2002


                                                                                                         
                                                                                         2002            2001
                                                                                        £'000           £'000

Loss on ordinary activities before taxation                                             (554)           (654)


Realisation of property revaluation gains of previous years                                75              14
                                                                                    ---------       ---------
Historical cost loss on ordinary activities before taxation                             (479)           (640)
                                                                                    ---------       ---------

Historical cost loss on ordinary activities after taxation                              (203)           (634)
                                                                                    ---------       ---------



BALANCE SHEET
at 30 September 2002




                                                           GROUP                    COMPANY

                                                         2002         2001         2002         2001
                                                        £'000        £'000        £'000        £'000
FIXED ASSETS

Intangible assets                                           -            -            -            -

Tangible assets                                             -        1,760            -        1,760

Investments                                               158            -          511        1,339
                                                     --------     --------     --------     --------

                                                          158        1,760          511        3,099

CURRENT ASSETS

Debtors                                                   631          494          623          412

Cash at bank                                               46          747           36          352
                                                     --------     --------     --------     --------

                                                          677        1,241          659          764


CREDITORS: amounts falling due within one year          (207)      (2,248)        (552)      (3,508)
                                                     --------     --------     --------     --------

NET CURRENT ASSETS/(LIABILITIES)

                                                          470      (1,007)          107      (2,744)
                                                     --------     --------     --------     --------

TOTAL ASSETS LESS CURRENT LIABILITIES

                                                          628          753          618          355

PROVISIONS                                                  -        (341)            -            -
                                                     --------     --------     --------     --------

NET ASSETS                                                628          412          618          355
                                                     --------     --------     --------     --------

Represented by:



CAPITAL AND RESERVES
Called up share capital                                13,181       12,737       13,181       12,737
Reserves                                             (12,553)     (12,325)     (12,563)     (12,382)
                                                     --------     --------     --------     --------

SHAREHOLDERS' FUNDS                                       628          412          618          355
                                                     --------     --------     --------     --------




GROUP CASH FLOW STATEMENT
for the year ended 30 September 2002



                                                                                        2002            2001
                                                                                       £'000           £'000
OPERATING ACTIVITIES

Net cash outflow from continuing operating activities                                  (685)         (4,236)
Net cash (outflow)/inflow from discontinued operating activities

                                                                                       (353)             191
                                                                                   ---------       ---------

NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                           (1,038)         (4,045)



RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                                                         27              76

Interest paid                                                                           (10)           (272)
                                                                                   ---------       ---------

                                                                                          17           (196)



TAXATION
Isle of Man taxation paid                                                                  -             (4)


CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of tangible fixed assets                                                          -           (312)

Sale of tangible fixed assets                                                          1,759           2,766

Sale of investments                                                                        -             180
                                                                                   ---------       ---------

                                                                                       1,759           2,634
                                                                                   ---------       ---------

ACQUISITIONS AND DISPOSALS
Sale of subsidiaries                                                                       -              43

Loan/(cash) transferred on sale                                                            -           2,122
                                                                                   ---------       ---------

                                                                                           -           2,165
                                                                                   ---------       ---------



NET CASH INFLOW BEFORE FINANCING                                                         738             554


FINANCING

Decrease in debt                                                                     (1,350)         (3,023)
                                                                                   ---------       ---------

                                                                                     (1,350)         (3,023)
                                                                                   ---------       ---------



DECREASE IN CASH IN THE YEAR                                                           (612)         (2,469)
                                                                                   ---------       ---------






NOTES TO THE FINANCIAL STATEMENTS - 30 SEPTEMBER 2002



1.     SEGMENTAL ANALYSIS BY CLASS OF BUSINESS




                                          Turnover         Loss before taxation   Operating net assets
                                                               
                                          2002      2001       2002       2001       2002        2001
                                         £'000     £'000      £'000       £'000      £'000       £'000


Investment properties                       28       802      (162)       (431)        323       1,825

IT solutions                                 5       190       (29)           -        257       (705)

Common costs                                 -         -      (363)       (223)          -           -
                                        ------     -----     ------     -------     ------     -------
                                            33       992      (554)       (654)        580       1,120
                                        ------     -----     ------     -------
Cash at bank                                                                            46         731
Borrowings                                                                               -     (1,439)
                                                                                    ------     -------
Net assets                                                                             626         412
                                                                                    ------     -------



2.     SEGMENTAL ANALYSIS BY GEOGRAPHICAL AREA



The whole of the Group's turnover and loss before taxation arise within the Isle
of Man and United Kingdom.  Similarly, all net assets are in the Isle of Man and
United Kingdom with the exception of the outstanding loan to Harrell Hospitality
Group inc. of £103,000 which is a company based in the United States of America.



3.       EXCEPTIONAL ITEMS




                                                                                               2002         2001

                                                                                              £'000        £'000


                                                                                                  -        (109)

Loss on sale of Manx Crawley Limited

Release of provision for future losses and fixed asset writedowns                               341        4,587
                                                                                            -------      -------





Provisions for future losses had been made in accordance with the requirements
of break-up basis accounting regarding Netcentric Systems (Europe) Limited.  No
further losses are anticipated.





4.  LOSS PER ORDINARY SHARE



The calculation of loss per ordinary share is based upon a loss after taxation
of £278,000 (2001: £648,000) and on 63,592,418  being the weighted number of
ordinary shares in issue during the year (2001: 254,743,956).



Share options and warrants do not have a dilutive effect.





5.     REPORT & ACCOUNTS



The financial information set out above does not constitute statutory accounts
within the meaning of Section 6 and Schedule 1 of the Isle of Man Companies Act
1982.  Statutory financial statements for the financial year ended 30 September
2002 will be delivered to the Registrar of Companies.



The Report and Accounts will be posted to the shareholders shortly and will be
available from 133 Ebury Street, London, SW1W 9QV.





6.     ANNUAL GENERAL MEETING



The Annual General Meeting will be held at the offices of Wallace and Partners,
1 Portland Place, London W1B 1PN at 5.00pm on 25 April 2003.


                      This information is provided by RNS
            The company news service from the London Stock Exchange