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Web Shareshop (SVE)

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Wednesday 20 March, 2002

Web Shareshop

Interim Results

Web Shareshop (Holdings) PLC
20 March 2002




                          Web Shareshop (Holdings) plc

                                 Interim report

                        Half year ended 31 January 2002


Interim report - six months ended 31 January 2002

Management commentary
Highlights

The Directors present their Interim Report for the six months ended 31 January
2002.

As was explained in the previous Chairman's statement of 17 October 2001
accompanying the financial statements and in his announcement to shareholders
dated 14 January 2002, market conditions have prevented the Group from
proceeding with the original business plan.  Consequently, the Directors sought
other ways to generate Shareholder value whilst remaining focused on new issues
and pre-IPO small company stocks.

Accordingly, since the financial statements for the period to 31 July 2001 were
issued, the Group has:

  • Mothballed the Placings Club software and closed the web-site;
  • Significantly reduced overheads;
  • Issued 6,450,000 Ordinary shares of £0.01 each to Mr Bruce Rowan at a
    price of £0.025 per share to raise £161,250 of new money for the Company;
  • Appointed Mr Bruce Rowan as Chairman and Chief Executive; with the
    exception of Mr John Watkins, all other directors have resigned;
  • Made the first investments in accordance with the new business plan.

Results

Results for the six months to 31 January 2002 record an operating loss of
£303,343, reflecting the continued web-site maintenance costs together with
professional and business development costs.  The loss was offset by interest of
£7,989, reducing the loss for the six months period to £295,354.

At 31 January 2002, the Group had £438,038 cash in the bank, net current assets
of £538,872 and net assets of £539,302.

No dividends have been proposed for the period.

Prospects

The Group has now completed the re-focus of the business into underwriting small
company new issues and pre-IPO stocks from which the Directors expect to deliver
improved Shareholder value.

At the same time, the Directors will continue to seek ways by which value can be
obtained from the investments made in the Company's information systems and the
Placings Club.

I look forward to having more positive news to report to you following the
Group's year end.




R Bruce Rowan
Chairman & Chief Executive

19 March 2002

Consolidated Profit & Loss Accounts

                                            Note          6 months to 31   12 months to   18 month period
                                                                 January     31 January     ended 31 July
                                                                    2002           2001              2001
                                                               Unaudited      Unaudited           Audited
                                                                   £,000          £,000             £,000

Commission earned                                                      0              1                 3

Group establishment expenses                                                        (4)
Group administrative expenses                                      (303)          (743)           (1,184)

Group operating loss                                               (303)          (746)           (1,181)

Group interest receivable                                              8             22                50

Loss on ordinary activities before taxation                        (295)          (724)           (1,131)

Tax on loss on ordinary activities                                     -              -                 -

Loss on ordinary activities after taxation                         (295)          (724)           (1,131)

Dividends on equity shares                                             -              -                 -

Retained loss for the period                                       (295)          (724)           (1,131)

Loss per share
Basic and diluted                           3                      (1.4)          (4.4)             (6.5)



Consolidated Balance Sheet

                                            Note          6 months to 31   12 months to   18 month period
                                                                 January     31 January     ended 31 July
                                                                    2002           2001              2001
                                                               Unaudited      Unaudited           Audited
                                                                   £,000          £,000             £,000

Fixed assets
Intangible assets                                                      0             12                 9
Tangible assets                                                        1             62                32
                                                                       1             74                41


Current assets
Debtors                                                               16            132                62
Cash at bank and in hand                                             438          1,135               725
Trade investments                           2                        112              -                 -
                                                                     566          1,267               787


Creditors
Amounts falling due within one year                                 (28)          (261)             (155)


Net current assets                                                   538          1,006               632


Total assets less current liabilities                                539          1,080               673


Capital and reserves
Called up share capital                                              262            198               198
Share premium account                                              1,325          1,227             1,227
Merger reserves                                                      424            424               424
Profit and loss account                                          (1,472)          (769)           (1,176)


Equity shareholders' funds                                           539          1,080               673



Reconciliation of Movement in Shareholders' Funds
                                                          6 months to 31   12 months to   18 month period
                                                                 January     31 January     ended 31 July
                                                                    2002           2001              2001
                                                               Unaudited      Unaudited           Audited
                                                                   £,000          £,000             £,000

Total recognised losses relating to the period                     (295)          (724)           (1,131)
Net proceeds of share issues                                         161          1,432             1,432


Increase/(decrease) in shareholders' funds                         (134)            708               301
Opening shareholders'  funds                                         673            372               372


Closing shareholders' funds                                          539          1,080               673


Notes


1.      History and funding

Web Shareshop (Holdings) plc was incorporated on 20 April 2000.  On 30 May 2000,
the Company acquired 100% of the share capital of The Web Shareshop Limited and
its subsidiaries by way of a share for share exchange.   Following an offer for
subscription through which it raised £1,569,540 of new capital, the Company's
shares were admitted for trading to the Alternative Investment Market on 5
September 2000; a further £39,999 was raised in October 2000.

In accordance with an agreement dated 16 October 2001, on 11 January 2002 the
Company raised a further £161,250 by the issue of 6,450,000 new Ordinary shares
of £0.01 at a price of £0.025 each to Mr Bruce Rowan.

2.      Basis of accounting

The consolidated financial statements have been prepared using merger
accounting.  Under merger accounting the results and cash flows are combined
from the beginning of the financial period and all comparatives are stated on
the combined basis.  These interim financial statements consolidate the
financial statements of the Company and its subsidiaries.

The first full reporting period of the Company and the Group was for the period
ended 31 July 2001; the Company and Group will report again for the full year to
31 July 2002.

These interim financial statements cover the six month period to 31 January 2002



The Group's investment at 31 January 2002 is valued at cost.

3.      Loss per share
                                                  6 months to 31 12 months to 31    18 month period
                                                    January 2002    January 2001 ended 31 July 2001
                                                       Unaudited       Unaudited            Audited
                                                           £,000           £,000              £,000

These have been calculated on losses of                    (295)           (724)            (1,131)


The weighted average number of shares used was:       20,316,630      16,486,370         17,410,380

Basic and diluted loss per share:                           1.4p            4.4p               6.5p



4.      Interim report

This interim report was neither audited nor reviewed by the auditors.  It was
approved by the Board on 19 March 2002.  It has been prepared using accounting
policies that are consistent with those adopted in the statutory accounts for
the period ended 31 July 2001 by the Group and its subsidiary undertakings.



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