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Gresham Computing (GHT)

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Thursday 12 July, 2001

Gresham Computing

Interim Results- Replacement

Gresham Computing PLC
12 July 2001


The issuer has made the following amendment to the Interim Results
announcement released today at 07:00 under RNS No 7844G.

The amendments have been noted by an (*) symbol.

There are no material changes to the content of the announcement.

The full corrected version is shown below.



                                 
                       Gresham Computing plc
                                 
       Interim results for the six months ended 30 April 2001
                                 
                                 
Gresham  Computing  plc,  provider  of  enterprise  software   and
solutions, announces its interim results for the six months  ended  
30 April 2001. The main results highlights  are  as follows:


*  Group turnover up 14% to £12.9m (2000: £11.2m)


*  Gross margins improved a further 5% to 45% (2000: 40%)


*  Disposal of SIM software testing business clears Group debt
   and gives financial stability


*  Strategic alliances with leading solutions providers have
   considerable ongoing potential



Andrew Walton-Green, Chief Executive of Gresham commenting on  the
results  said: 'We believe that the refocused Enterprise Solutions
business  and  the  strategic  alliances  entered  into   by   the
Enterprise  Software business provide the group with  considerable
ongoing  potential.   Our  focused  strategy,  coupled  with   our
strengthened  financial status positions the Group  well  to  take
advantage of the upturn in demand for our products and services.'


For further information, please contact:

Gresham Computing plc                                  01489 555522
Andrew Walton-Green, Chief Executive
Dean Osman, Finance Director

Square Mile BSMG Worldwide                            020 7601 1000
Edward Macquisten
Sally Lewis



CHAIRMAN'S STATEMENT

Group Results

Group  turnover for the six months ended 30 April 2001 was up  14%
to  £12.9m (2000: £11.2m). The gross margin improved from 40%   to
45% over the same period in the previous year.  The group recorded  
a   significantly   reduced   operating   loss   before   goodwill 
amortisation of £231,000 (2000: loss £2,254,000) and a loss before 
taxation of £721,000  (2000: loss £2,723,000).  This resulted in a  
loss  per share of 1.71 pence (2000: loss per share 6.06 pence).

Operations

We  have  continued  our progress in the last six  months  towards
becoming a product-led, sales-driven organisation focused  on  the
provision  of software and technology-led solutions to  enterprise
customers.  On 25 June we completed the disposal of the first  50%
plus  one  share  of our SIM testing business for up to £6m.   The
proceeds  of  this disposal will help us to invest in and  develop
our on-going businesses from a sound financial platform.

Enterprise Software

Enterprise  Software  recorded turnover of £4.2m  (2000:£3.8m)  an
increase of 11% compared with the equivalent period in 2000.  This
represents a small decrease of seven per cent in turnover compared
with  the second half of 2000.  This is primarily a result of  the
slow-down  in  the  US  economy, which has  affected  our  storage
management business in the US.  Our strategy of developing partner
alliances and distribution arrangements has nevertheless continued
and is beginning to bear fruit.

In  June we were delighted to report the signing of a key alliance
with Tivoli to distribute part of our storage management software.
This  alliance gives us access to a much wider customer  base  for
our  storage  products,  although the  impact  of  this  strategic
alliance  is  not  expected  to be significant  until  the  fourth
calendar  quarter  of this year.   We continue to  invest  in  our
software  products  and  are expanding  and  improving  our  sales
resources and routes to market.

Enterprise Solutions

Enterprise  Solutions  recorded turnover of £2.2m  (2000:  £3.9m).
The fall in turnover has arisen during a period when this business
has  been  refocused  around  our core strengths  of  integration,
migration  and connectivity powered by our application integration
technology Casablanca.   This strategy is beginning to work and we
are currently  pursuing  a  number of opportunities  based  around
Casablanca.

Contract Staff and Recruitment

This business contributed a solid performance in the first half of
the  year  with  net external turnover of £1.7m    (2000:  £1.7m).
This  division also provided £0.9m of resources to SIM during  the
first half, this turnover is eliminated as inter-group trading but
will become external revenue following the disposal of SIM.

Disposal of SIM Testing

SIM continued its strong performance from the second half of 2000,
recording turnover of £4.7m (2000: £1.8m).  The growth in turnover
has been achieved as a result of the successful implementation  of
its  key account strategy.  The completion of the disposal of  the
first  50%  plus one share of SIM was completed on 25  June  2001.
Prior to this date the Group results will include the full results
of  SIM. Subsequent to this date and until the completion  of  the
disposal of the remaining shares, SIM will be accounted for as  an
associated  undertaking and the Group's results will  continue  to
include 50% of SIM's profit.

The disposal proceeds for the first Tranche of SIM shares is for a
minimum  of  £5.25m,  which could increase to  £6m  based  on  the
performance  of SIM in the year ending on 31 October 2001.   These
proceeds  have  allowed  the  Group  to  repay  all  of  its  bank
borrowings and will help us to invest in and develop our  on-going
businesses  from a sound financial platform. The disposal  of  the
initial  Tranche  of  shares will result in a profit  on  disposal
being recorded in the second half of the year of approximately £2m
based on the minimum proceeds.  The completion of the disposal  of
the  remaining shares in SIM is contracted to complete by 30  June
2002 and the proceeds for these shares will be based primarily  on
revenue achieved by SIM in the year ended 30 October 2001.

Board

I was pleased to announce the appointment of Ted Aves to the board
as  a  non-executive  director in June.  Ted  brings  considerable
marketing experience to the board and played an important role  in
the  change  of strategy at SIM, which has been so successful.   I
would  also like to take this opportunity to thank the  staff  for
their continued support to the business.

Outlook

The  disposal  of SIM will not only realise a substantial  capital
profit  but  provide us with the resources to  fully  develop  the
potential of our software and solutions business.

The  market conditions being experienced by the ongoing businesses
remain  difficult, particularly in the US.  However, the directors
believe  that the refocused Enterprise Solutions business and  the
strategic  alliances  entered  into  by  the  Enterprise  Software
business  provide  the group with considerable ongoing  potential.
We  consider that this potential will start to be realised in  the
fourth  quarter  of  the current year and will  provide  a  strong
platform  for  growth in 2002.  Our focused strategy coupled  with
our strengthened financial status positions the Group well to take
advantage of the upturn in demand for our products and services.



S J Green
12 July 2001


For further information, please contact:

Gresham Computing plc                                 01489 555522
Andrew Walton-Green, Chief Executive
Dean Osman, Finance Director

Square Mile BSMG Worldwide                           020 7601 1000
Edward Macquisten
Sally Lewis


GRESHAM COMPUTING plc                                 
GROUP PROFIT AND LOSS ACCOUNT                         
for the six months ended 30 April 2001
                                                      
                                           Six months ended 30 April 2001

                                              Before     Goodwill  
                                  Notes     goodwill  amortisation  
                                               £'000        £'000    £'000
                                                      
TURNOVER                                              
  Continuing                          2        8,184                 8,184
  Discontinued                        2        4,680                 4,680
                                        --------------------------------------
                                              12,864                12,864
                                                      
Cost of sales                                  7,090                 7,090
                                        --------------------------------------
             
GROSS PROFIT                                   5,774                 5,774
                                                      
Administrative expenses                        6,005          351    6,356
Administrative expenses -        
 exceptional items                    3            -                     -
                                        --------------------------------------
             
OPERATING (LOSS)/PROFIT                         (231)        (351)    (582)
  Continuing Operations                         (832)        (160)    (992)
  Discontinued Operations                        601         (191)     410
                                                      
Net interest payable                            (139)                 (139)
                                        --------------------------------------
                                
LOSS ON ORDINARY ACTIVITIES         
 BEFORE TAXATION                                (370)        (351)    (721)
                                                      
Taxation on result on ordinary
 activities                                        -                     -

                                        --------------------------------------
             
LOSS ON ORDINARY ACTIVITIES         
 AFTER TAXATION                                 (370)        (351)    (721)
                                                      
Dividends  - non-equity interests                 33                    33

                                        --------------------------------------
             
Retained loss for the year                      (403)        (351)    (754)
                                        ======================================
             
Basic and diluted earnings per    
 share (pence)                        4        (0.91)       (0.80)   (1.71)
                                                      


GRESHAM COMPUTING plc                                
GROUP PROFIT AND LOSS ACCOUNT                        
for the six months ended 30 April 2000(*)
                                             Six months ended 30 April 2000(*)
                                              Before     Goodwill  
                                  Notes     goodwill  amortisation  
                                               £'000        £'000    £'000    
           
                           
                                                     
TURNOVER                                             
  Continuing                          2        9,376                 9,376
  Discontinued                        2        1,830                 1,830
                                        --------------------------------------
                                              11,206                11,206
                                                  
                                                     
Cost of sales                                  6,754                 6,754
                                        --------------------------------------
            
GROSS PROFIT                                   4,452                 4,452
                                                     
Administrative expenses                        6,032          351    6,383
Administrative expenses -        
 exceptional items                    3          674                   674
                                        --------------------------------------
            
OPERATING (LOSS)/PROFIT                       (2,254)        (351)  (2,605)
                                
  Continuing Operations                       (2,144)        (160)  (2,304)
                                  
  Discontinued Operations                       (110)        (191)    (301)
                                                     
Net interest payable                            (118)                 (118)
                                        --------------------------------------
                                
LOSS ON ORDINARY ACTIVITIES         
 BEFORE TAXATION                              (2,372)        (351)  (2,723)   
             
                                                     
Taxation on result on ordinary      
 activities                                     (183)                 (183)
                                                     
LOSS ON ORDINARY ACTIVITIES             --------------------------------------
 AFTER TAXATION                               (2,189)        (351)  (2,540)   
              
                                                     
Dividends  - non-equity interests                 33                    33

                                        --------------------------------------
           
Retained loss for the year                    (2,222)        (351)  (2,573)
                                        ======================================
                                                     
Basic and diluted earnings per    
 share (pence)                        4        (5.23)       (0.83)   (6.06)   
                       
                                                     


GRESHAM COMPUTING plc                               
GROUP PROFIT AND LOSS ACCOUNT                       
for the year ended 31 October 2000 (*)
                                           
                                          Year ended 31 October 2000 (*)

                                              Before     Goodwill  
                                  Notes     goodwill  amortisation  
                                               £'000        £'000    £'000    
    
                              
                                                     
TURNOVER                                             
  Continuing                          2       18,792                18,792
                                                   
  Discontinued                        2        4,533                 4,533
                                        --------------------------------------
                                              23,325                23,325
                                                   
                                                     
Cost of sales                                 13,796                13,796
                                        --------------------------------------
          
                                                     
GROSS PROFIT                                   9,529                 9,529
                                                     
Administrative expenses                       11,357          703   12,060
                                                   
Administrative expenses -         
 exceptional items                     3       1,489                 1,489
                                        --------------------------------------
            
OPERATING (LOSS)/PROFIT                       (3,317)        (703)  (4,020)
                                   
  Continuing Operations                       (3,371)        (322)  (3,693)
                                
  Discontinued Operations                         54         (381)    (327)
                                                     
Net interest payable                            (253)                 (253)
                                        --------------------------------------
                               
LOSS ON ORDINARY ACTIVITIES         
 BEFORE TAXATION                              (3,570)        (703)  (4,273)   
         
                                                     
Taxation on result on ordinary      
 activities                                     (267)                 (267)
                                        --------------------------------------
             
LOSS ON ORDINARY ACTIVITIES         
 AFTER TAXATION                               (3,303)        (703)  (4,006)   
         
                                                     
Dividends - non-equity interests                  66                    66

                                        --------------------------------------
            
Retained loss for the year                    (3,369)        (703)  (4,072)
                                   
                                        ======================================
            
Basic and diluted earnings per    
 share (pence)                            4    (7.76)       (1.62)   (9.38)   
                             
                                                     


GROUP BALANCE SHEET                                        
at 30 April 2001                               at 30        at 30    at 31 
                                               April        April  October 
                                                2001         2000     2000
                                               £'000        £'000    £'000
Fixed Assets                                               
Intangible assets                              7,622        8,447    8,047
Tangible assets                                2,521        3,141    2,737
                                             ---------------------------------
                                              10,143       11,588   10,784
                                             ---------------------------------
             
Current Assets                                             
Debtors                                        6,633        6,066     6,851
Cash at bank and in hand                         289          105       343
                                             ---------------------------------
                                               6,922        6,171     7,194
                                                           
Creditors: amounts falling due within      
 one year                                      6,722        6,309     6,807
                                             ---------------------------------
             
Net Current Assets / (Liabilities)               200         (138)      387
                                             ---------------------------------
             
Total Assets Less Current Liabilities         10,343       11,450    11,171
                                             ---------------------------------
             
Creditors: amounts falling due after       
 more than one year                            3,582        2,403     3,658
                                             ---------------------------------
             
                                               6,761        9,047     7,513
                                             =================================
             
                                                           
Capital and reserves                                       
Called up share capital                        2,714        2,664     2,714
Shares to be issued                                -        1,616         -
Share premium account                          5,232        5,230     5,232
Special reserve                                  313          313       313
Merger reserve                                   726            -       726
Profit and loss account                       (2,224)        (776)   (1,472)
                                             ---------------------------------
            
                                               6,761        9,047     7,513
                                             =================================
             
Shareholders' funds                                        
Equity interests                               6,251        8,537     7,003
Non-equity interests                             510          510       510
                                             ---------------------------------
                                               6,761        9,047     7,513
                                             =================================
             
                                                           


CASH FLOW STATEMENT                                   
for the six months ended 30 April 2001                
                                                 Six months ended Year ended
                                               
                                            30 April     30 April 31 October
                                                2001         2000       2000
                                               £'000        £'000      £'000
Operating loss                                  (582)      (2,605)    (4,020)
                                                      
Depreciation                                     440          479        938
Provision for diminution in value of  
 leasehold property                                -            -         95
Amortisation                                     423          421        821
Profit on sale of fixed assets                    (2)          (5)       (22)
Decrease in debtors                              294        2,206      1,406
(Decrease) / Increase in creditors               (23)         420      1,580
Foreign exchange movement                         19          (41)      (103)
                                             ---------------------------------
       
Net cash inflow from operating activities        569          875        695
                                             ---------------------------------
                                                      
Returns on investment and servicing of finance                  

Net interest paid                               (139)        (118)      (253)
Preference dividend paid                           -            -          -
                                             ---------------------------------
                                                (139)        (118)      (253)
                                             ---------------------------------
         
Taxation paid                                   (107)        (164)      (288)
                                             ---------------------------------
         
Capital expenditure and financial investment                    

Payments to acquire tangible fixed assets       (115)        (298)      (503)

Receipts from sale of tangible fixed assets       23           32        133
                                             ---------------------------------
                                                 (92)        (266)      (370)
                                             ---------------------------------
        
Acquisitions                                          
Purchase consideration and                         -          (63)       (66)
acquisition costs of subsidiary undertaking
                                             ---------------------------------
                                                   -          (63)       (66)
                                             ---------------------------------
        
Financing                                             
New long term loans                                -            -        500
Receipts from finance lease facility              18            -          -
Repayments of finance leases and loans          (347)        (134)      (276)
                                             ---------------------------------
Net (outflow)/inflow from financing             (329)        (134)       224
                                             ---------------------------------
        
(Decrease)/increase in net cash in the period    (98)         130        (58)

Opening net cash                                 (83)         (25)       (25)
                                             ---------------------------------
Closing net cash                                (181)         105        (83)
                                             ---------------------------------


NOTES TO THE INTERIM ACCOUNTS
For the six months ended 30 April 2001

1.The interim accounts have been prepared on the basis of  the
  accounting policies set out in the Group's 2000 statutory accounts
  and  are  unaudited.  The interim financial  statements  do  not
  constitute statutory accounts within the meaning of section 240 of
  the Companies Act 1985.

2.Segmental Analysis
  Analysis of turnover by business segment                                    
 
                            Six months ended 30     Six months ended 30
                               April 2001                April 2000
                                 Inter-                     Inter-  
                       Segment  Segment External  Segment  Segment  External
                      turnover turnover turnover turnover turnover  turnover
                         £'000    £'000    £'000    £'000    £'000     £'000
  Gresham Enterprise                                                
   Solutions
    Enterprise 
     Solutions           2,271      (33)   2,238    3,907        -     3,907
    Contract Staff and     
     Recruitment         2,623     (885)   1,738    2,315     (618)    1,697
                        ------------------------------------------------------
                                           
                         4,894     (918)   3,976    6,222     (618)    5,604
                                                                    
  Gresham Enterprise         
   Software              4,208        -    4,208    3,772        -     3,772
                                                                    
  SIM Testing            4,680        -    4,680    1,830        -     1,830
                        ------------------------------------------------------
                                            
                        13,782     (918)  12,864   11,824     (618)   11,206
                        ======================================================
                                              
  Analysis of turnover by source and destination                              
    
  
                                                 Source        Destination
                                               Six months       Six months
                                                ended 30         ended 30
                                                  April            April
                                              2001    2000      2001    2000
                                             £'000   £'000     £'000   £'000
   United Kingdom                            9,506   7,769     8,761   5,701
   Europe                                      162     206       711   2,117
   North America                             2,474   2,479     2,680   2,626
   Rest of the world                           892     752       797     762
   Inter-segment elimination                   (170)     -       (85)      -
                                            ----------------------------------
                    
                                             12,864  11,206   12,864  11,206
                                            ==================================
              

3.Exceptional Items
  The  exceptional  costs incurred in the year  ended  31  October
  2000  comprise  the costs of reorganising and restructuring  the
  group;  they include compensation for loss of office, redundancy
  costs, and professional fees related to group restructuring  and
  employee matters.

NOTES TO THE INTERIM ACCOUNTS
For the six months ended 30 April 2001


4.Earnings per Share
  The  calculation of earnings per ordinary share has  been  based
  on  the loss attributable to ordinary shareholders, adjusted for
  preference  dividends, of £754,000 (2000: loss £2,573,000,  year
  ended  31  October  2000: loss £4,072,000)  and  on  a  weighted
  average  number of shares of 44,078,778 (2000: 42,469,134,  year
  ended  31 October 2000: 43,427,491). Diluted earnings per  share
  are  identical to basic earnings per share for all periods shown
  because  potential  diluting events would  have  the  effect  of
  reducing the loss per ordinary share.

5.Reconciliation of shareholders' funds

                                              Six months           Year
                                                 ended            ended
                                         30 April  30 April  31 October
                                             2001      2000        2000
                                            £'000     £'000       £'000
Loss for the period                          (721)   (2,540)     (4,006)
                                                  
Exchange difference on                                       
 retranslation of net
 assets of subsidiary undertakings              2       (55)        (92)
                                            ----------------------------
Total recognised gains and losses            (719)   (2,595)     (4,098)
                                          
                                                             
Dividends                                     (33)      (33)        (66)
Shares issued                                   -     1,307       2,925
Shares to be issued                             -    (1,309)     (2,925)
                                            ----------------------------      

                                                             
Total movements during the year              (752)   (2,630)     (4,164)
                                          
Opening shareholders' funds                 7,513    11,677      11,677

                                            ----------------------------      
          
Closing shareholders' funds                 6,761     9,047       7,513
                                            ============================


6.Discontinued Operations
  On  23 May 2001 the group entered an agreement to dispose of the
  entire  issued  share  capital  of  SIM  Group  Limited  to  SQS
  Software Quality Systems AG.  The initial consideration  was  at
  least  £5.25m for 50% of the share capital plus one  controlling
  share  and  deferred consideration principally  based  upon  SIM
  Group's  future revenues for the remaining shares. The  disposal
  of   SIM   Group  was  approved  by  the  shareholders   at   an
  extraordinary  general meeting on 22 June 2001.   Completion  of
  the  first  tranche of the share sale agreement was on  25  June
  2001.    In   accordance   with  FRS  3   'Reporting   Financial
  Performance'  as the disposal of SIM was completed within  three
  months  of  the  end of the half year, the results  of  SIM  are
  shown as a discontinued operation.

7.An interim report will be sent to all shareholders by 25 July
  2001  and will be available to all members of the public  during
  normal business hours at the company's registered office: Sopwith
  House, Brook Avenue, Warsash, Southampton, SO31 9ZA.