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Gresham Computing (GHT)

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Tuesday 16 April, 2002

Gresham Computing

Preliminary Results

Gresham Computing PLC
16 April 2002

                     GRESHAM COMPUTING PLC
                  ('Gresham' or the 'Group')
                               
 Preliminary Results for the 14 months ended 31 December 2001

                               
Financial Highlights
                                              2001        2000
Turnover                                    £24.8m      £23.3m
Pre-tax profit*                              £0.9m     £(3.6)m
Loss before tax                            £(1.0)m     £(4.3)m
Earnings per share                         (3.32)p     (9.38)p

*before goodwill amortisation and impairment

Gresham  Computing  plc, provider of enterprise  software  and
solutions, announces its preliminary results for the 14  month
period ended 31 December 2001. The main results highlights are
as follows:


* Group profit before tax, goodwill amortisation and
  impairment increased to £0.9m (2000: loss before tax £3.6m)

* Significant strategic partnership with Cable & Wireless
  for Real-Time Nostro software

* Disposal of first tranche of SIM shares completed for
  £5.85m.  Disposal of remaining shares in SIM completed on 15
  April 2002 for an initial consideration of £6.9m plus 10% of
  SIM's turnover to October 2002

* Business now focused on 3 core areas of operation:
     -  Storage Management
     -  Casablanca
     -  Real-Time Nostro

Andrew Walton-Green, Chief Executive of Gresham commenting  on
the  results  said: 'Despite difficult trading  conditions  in
2001,  the  disposal of the first tranche of  SIM  shares  has
returned  the  Group  to  a  net  cash  position.    This   is
strengthened by the completion of the second tranche of shares
today.   After a review of operations, the Board is  confident
that  its  continued investment into intellectual property  is
the  right direction for Gresham. We are now focused on  three
areas of operation which we believe will show significant long-
term growth potential.'


For further information, please contact:

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

Weber Shandwick Square Mile                      020 7950 2800
Tim Jackaman
Sally Lewis



                                                 16 April 2002
                               
                               
                     GRESHAM COMPUTING PLC
          ('Gresham' or the 'Group' or the 'Company')
                               
 Preliminary Results for the 14 months ended 31 December 2001
                               
                     Chairman's Statement

Results
In  this statement the period refers to the 14 months ended 31
December  2001 and the comparative figures are  for  the  year
ended  31  October  2000.  Turnover for the period  was  £24.8
million  (2000:  £23.3  million). The profit  before  tax  and
goodwill  amortisation was £0.9 million (2000:  loss  of  £3.6
million),  while  the loss per ordinary share  after  goodwill
amortisation was 3.32 pence (2000: 9.38 pence).

Turnover  from  ongoing operations was  £18.3  million  (2000:
£18.8 million).   SIM Group Limited, which is classified as  a
discontinued operation following the disposal of 50% plus  one
controlling  share  by the group on 25 June 2001,  contributed
revenue up to that date of £6.4 million (year ended 31 October
2000:  £4.5 million). The total operating loss before goodwill
amortisation  and  impairment was  £1.7  million  (2000:  £3.3
million). A profit on disposal of operations and fixed  assets
contributed   £2.7  million,  and  the  charge  for   goodwill
amortisation  during  the  period  was  £1.9  million,   which
included an exceptional charge for impairment of £1.2  million
and a charge of £0.3 million in respect of SIM Group.

Trading  conditions throughout the period were  difficult,  in
particular for our solutions business, however the  Board  has
continued  to invest in research and development  to  maximise
the  Group's  intellectual property for the  long  term.   The
Group's   financial   position  has   significantly   improved
following the disposal of the first tranche of shares  in  SIM
Group  and  careful cash management. At 31 December 2001,  the
Group  had  a net cash balance of  £0.5 million compared  with
net debt at 31 October 2000 of  £3.2 million.

Disposal of SIM Group
The  disposal of the SIM Group, which is consistent  with  our
corporate  strategy,  realised £5.85  million  for  the  first
tranche  of shares, resulting in a profit on disposal of  £2.6
million in the results for the period.

The  completion of the disposal of our remaining shares in SIM
Group  was  completed  today  for  initial  proceeds  of  £6.9
million.   Further proceeds of ten per cent  of  the  turnover
achieved by SIM Group in the year ending 31 October 2002  will
be  payable in cash by 30 December 2002..  This will result in
a  profit  on  disposal  of  approximately  £5  million  being
recorded  in  the first half of 2002.  These proceeds  further
strengthen the Group's financial position.  The total proceeds
for  the  disposal  of SIM Group are expected  to  exceed  £13
million,  an  excellent  return on  the  £6  million  cost  of
acquiring SIM Group in April 1999.

Strategy
Two years ago, the initial action of the executive team was to
evaluate  the  potential value within the group of  companies,
following  the  series  of acquisitions which  commenced  four
years  ago.  That process identified intellectual property  of
immense  potential  within the Group even though  it  required
further  investment  to  be  fully  developed.   Despite   the
difficult trading and financial position of the Group at  that
time,  the  Board have continued to invest in our intellectual
property   throughout  the  period  and  will   continue   the
investment in order to recognise that potential.

Our  strategy  is  to focus primarily on the  three  areas  of
operation  that  we  consider  to have  significant  long-term
growth prospects: Storage Management, Casablanca and Real Time
Nostro.   These  three  areas  will  be  underpinned  by   the
traditional  strength of Gresham in its  ongoing  support  and
maintenance of customers.  Loss-making businesses that have no
part  in our strategy have been greatly reduced in size.  This
process  has led to the closure in March 2002 of the Automated
Solutions  business and a resultant write-off of  goodwill  of
£1.2 million in the preliminary results.
                                                              
Storage management
The  Extended Data Technology (EDT) family of products provide
enhanced integration and efficiency for Tivoli Storage Manager
and  StorageTek library users. Sales of EDT during the  period
have  not  yet met our expectations, as a result of  difficult
market   conditions  in  the  US.  In  addition,  our  channel
relationships are taking longer than expected to become  fully
operational.  However, we consider that EDT and its successors
have considerable market potential.  To realise this potential
we   are   forging  business  relationships  with  world-class
providers  of storage media, including our global distribution
agreement announced with Tivoli-IBM in June 2001.

Casablanca
Casablanca  is  the  Group's flagship  enterprise  application
integration  (EAI)  engine.  Through its orchestration  layer,
Casablanca  has  the capability not only of integrating  large
numbers of applications but other EAI software tools as  well.
During the period, contracts have been signed with two leading
banks  for  Casablanca software.  This resurgence of  interest
has  arisen  from the development of the new 'C3'  version  of
Casablanca, adding speed and scalability to what was already a
fine  product.   This will provide an excellent  platform  for
further  sales to financial organisations.  Casablanca  has  a
wide  range of applications and we intend to use the financial
sector as a platform to advance into other markets.

Real Time Nostro
The  revenue sharing contract with Cable & Wireless to provide
the  Real  Time Nostro software is possibly our most  exciting
opportunity.   With  the  combination  of  Gresham's   thought
leadership and the backing and renowned technical and delivery
resources  of  Cable  &  Wireless, Real  Time  Nostro  is  now
positioned  to be commercially realised. The Real Time  Nostro
service remains on target to be operational in the second half
of the year. Whilst the build-up of revenues will initially be
slow as the service is rolled out, the directors consider that
this  service provides the Group with an excellent opportunity
for significant recurring revenue growth in 2003 and beyond.

Outlook
We are committed to continue to invest in order to deliver the
potential   long-term  growth  within  the   business.    This
continued  investment,  combined with  the  difficult  trading
conditions  experienced  by all our businesses  including  SIM
Group  during the first quarter of 2002 is expected to  result
in an operating loss for 2002, although this is expected to be
more than offset by the profit realised on the disposal of the
Tranche   2  SIM  Group  shares.   We  anticipate   that   our
significant business opportunities will come on stream  during
the second half of 2002 and build in 2003, providing the Group
with a platform for growth in 2003 and beyond.

The  past  three years have been the most difficult period  in
the  history of Gresham, and shareholders will naturally  have
felt  concern for the security of their investment during this
period.  Being  a significant shareholder myself,  I  have  no
hesitation in expressing my total confidence in the  executive
arm of the board.  We have chosen a strategy for recovery that
needs great courage and, due to the skill and determination of
the board and management team, we are now beginning to deliver
on  this  strategy. There is still much to do, but  I  believe
that your company is now firmly back on track to regain growth
and prosperity.

This  position  would  never have been  possible  without  the
loyalty  and ingenuity of our staff.  They have weathered  the
worst  of the recent times and yet have given unstintingly  of
their  efforts, and to every one of them I extend my heartfelt
gratitude and thanks.

Sid Green
Chairman

For further information, please contact:

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

Weber Shandwick Square Mile                      020 7950 2800
Tim Jackaman
Sally Lewis



GRESHAM COMPUTING PLC
Group Profit and Loss Account
for the 14 months ended 31 December 2001

                                                 Before             
                                               goodwill     Goodwill    Total
                                           amortisation amortisation    Group
                                        14 months ended
                                            31 December
                                Notes              2001         2001     2001
                                                  £'000        £'000    £'000
------------------------------------------------------------------------------
TURNOVER                                               
Continuing operations                            18,321            -   18,321
Discontinued operations                           6,440            -    6,440
------------------------------------------------------------------------------
Group Turnover                     2             24,761            -   24,761
Cost of sales                                    13,988            -   13,988
------------------------------------------------------------------------------
GROSS PROFIT                                     10,773            -   10,773
------------------------------------------------------------------------------
Administrative expenses                          
  - pre-exceptional items                        12,643          627   13,270
Administrative expenses                
  - exceptional items                               260        1,155    1,415
------------------------------------------------------------------------------
Administrative expenses                          12,903        1,782   14,685
------------------------------------------------------------------------------
OPERATING LOSS                                   (2,130)      (1,782)  (3,912)
------------------------------------------------------------------------------
Continuing operations                            (3,034)      (1,533)  (4,567)
Discontinued operations                             904         (249)     655
Share of operating                                  
profit in associate                                 450          (88)     362
------------------------------------------------------------------------------
TOTAL OPERATING LOSS:                            
GROUP AND SHARE OF ASSOCIATE                     (1,680)      (1,870)  (3,550)
------------------------------------------------------------------------------
Profit on disposal of tangible 
fixed assets (continuing operations)3                84            -       84
Profit on sale of operations             
(discontinued operations)           3             2,647            -    2,647
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES 
BEFORE INTEREST AND TAXATION                      1,051       (1,870)    (819)
Net interest payable                               (154)           -     (154)
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY                        
ACTIVITIES BEFORE TAXATION                          897       (1,870)    (973)
Taxation on profit/(loss) on         
ordinary activities                                 444            -      444
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY 
ACTIVITIES AFTER TAXATION                           453       (1,870)  (1,417)
Dividends- non-equity interests                      66            -       66
------------------------------------------------------------------------------
RETAINED LOSS FOR THE PERIOD/YEAR                   387       (1,870)  (1,483)
------------------------------------------------------------------------------
Basic and diluted earnings 
per share (pence)                   4              0.87        (4.19)   (3.32)
------------------------------------------------------------------------------


GRESHAM COMPUTING PLC
Group Profit and Loss Account
for the 14 months ended 31 December 2001


                                                 Before             
                                               goodwill      Goodwill   Total
                                           amortisation  amortisation   Group
                                             Year ended            
                                             31 October 
                                    Notes          2000          2000    2000
                                                  £'000         £'000   £'000
-----------------------------------------------------------------------------
TURNOVER                                          
Continuing operations                            18,792                18,792
Discontinued operations                           4,533                 4,533
------------------------------------------------------------------------------
Group Turnover                         2         23,325             -  23,325
Cost of sales                                    13,796             -  13,796
------------------------------------------------------------------------------
GROSS PROFIT                                      9,529             -   9,529
------------------------------------------------------------------------------
Administrative expenses                          
  - pre-exceptional items                        11,357           703  12,060
Administrative expenses                
  - exceptional items                  3          1,489             -   1,489
------------------------------------------------------------------------------
Administrative expenses                          12,846           703  13,549
------------------------------------------------------------------------------
OPERATING LOSS                                   (3,317)         (703) (4,020)
Continuing operations                            (3,371)         (322) (3,693)
Discontinued operations                              54          (381)   (327)
Share of operating profit in associate                -             -       -
------------------------------------------------------------------------------
TOTAL OPERATING LOSS:                         
GROUP AND SHARE OF ASSOCIATE                     (3,317)         (703) (4,020)
------------------------------------------------------------------------------
Profit on disposal of tangible fixed 
assets (continuing operations)         3              -             -       -
Profit on sale of operations          
(discontinued operations)              3              -             -       -
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY                     
ACTIVITIES BEFORE INTEREST AND TAXATION          (3,317)         (703) (4,020)
Net interest payable                               (253)            -    (253)
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES 
BEFORE TAXATION                                  (3,570)         (703) (4,273)
Taxation on profit/(loss) on 
ordinary activities                                (267)            -    (267)
------------------------------------------------------------------------------
PROFIT/(LOSS) ON ORDINARY ACTIVITIES        
AFTER TAXATION                                   (3,303)         (703) (4,006)
Dividends- non-equity interests                      66             -      66
------------------------------------------------------------------------------
RETAINED LOSS FOR THE PERIOD/YEAR                (3,369)         (703) (4,072)
------------------------------------------------------------------------------
Basic and diluted earnings per 
share (pence)                     4               (7.76)        (1.62)  (9.38)
------------------------------------------------------------------------------




GRESHAM COMPUTING PLC
Group Balance Sheet
at 31 December 2001

                                                           31            31
                                                     December       October
                                                         2001          2000
                                                        £'000         £'000
------------------------------------------------------------------------------
                                                   
FIXED ASSETS                                        
Intangible assets                                       1,274         8,047
Tangible assets                                         1,832         2,737
Investment in Associate                                 2,865             -
------------------------------------------------------------------------------
                                                        5,971        10,784
------------------------------------------------------------------------------
CURRENT ASSETS                                      
Debtors                                                 4,008         6,851
Cash at bank and in hand                                  958           343
------------------------------------------------------------------------------
                                                        4,966         7,194
------------------------------------------------------------------------------
Creditors: amounts falling due within one year          4,146         6,807
------------------------------------------------------------------------------
NET CURRENT ASSETS                                        820           387
------------------------------------------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES                   6,791        11,171
------------------------------------------------------------------------------
Creditors: amounts falling due after more than one year   763         3,658
------------------------------------------------------------------------------
                                                        6,028         7,513
------------------------------------------------------------------------------
CAPITAL AND RESERVES                                
Called up share capital                                 2,332         2,714
Share premium account                                   5,614         5,232
Special reserve                                           313           313
Merger reserve                                            726           726
Profit and loss account                                (2,957)       (1,472)
------------------------------------------------------------------------------
                                                        6,028         7,513
------------------------------------------------------------------------------
SHAREHOLDERS' FUNDS                                 
Equity interests                                        6,028         7,003
Non-equity interests                                        -           510
------------------------------------------------------------------------------
                                                        6,028         7,513
------------------------------------------------------------------------------



GRESHAM COMPUTING PLC
Group Statement of Cash Flow
for the period ended 31 December 2001

                                                    14 months         Year
                                                     ended 31     ended 31
                                                     December      October
                                             Notes       2001         2000
                                                        £'000        £'000
------------------------------------------------------------------------------
                                                           
NET CASH (OUTFLOW)/INFLOW FROM            
OPERATING ACTIVITIES                           6         (848)         695
------------------------------------------------------------------------------
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received                                          39           11
Interest paid                                            (207)        (264)
Dividends paid to preference shareholders                (132)           -
------------------------------------------------------------------------------
                                                         (300)        (253)
------------------------------------------------------------------------------
TAXATION                                                   
Tax paid                                                 (144)        (288)
------------------------------------------------------------------------------
                                                         (144)        (288)
------------------------------------------------------------------------------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT               
Payments to acquire tangible fixed assets                (477)        (503)
Receipts from sale of tangible fixed assets               442          133
------------------------------------------------------------------------------
                                                          (35)        (370)
------------------------------------------------------------------------------
ACQUISITIONS AND DISPOSALS                                 
Sale of subsidiary undertaking                          5,850            -
Costs of disposal                                        (434)           -
Net cash disposed of with subsidiary undertaking         (363)           -
Purchase consideration for subsidiary undertakings          -          (66)
------------------------------------------------------------------------------
                                                        5,053          (66)
------------------------------------------------------------------------------
EQUITY DIVIDENDS PAID                                       -            -
------------------------------------------------------------------------------
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING              3,726         (282)
------------------------------------------------------------------------------
FINANCING                                                  
New long-term loans                                         -          500
Repayment of long-term loans                           (2,500)           -
Receipt of short-term loans                               250           (4)
Repayment of short-term loans                            (219)           -
Repayments of finance leases                             (216)        (272)
------------------------------------------------------------------------------
Net (outflow)/inflow from financing                    (2,685)         224
------------------------------------------------------------------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD/YEAR          1,041          (58)
------------------------------------------------------------------------------
Reconciliation of Net Cash Flows to Movement               
in Net Funds/(Debt)
Increase/(Decrease) in cash                             1,041          (58)
Cash inflow from increase in loans                        (31)        (500)
Repayments of loans                                     2,500            4
Repayments of capital element of finance leases           216          272
------------------------------------------------------------------------------
Change in net funds resulting from cashflows            3,726         (282)
Finance lease obligations disposed of with 
subsidiary undertaking                                    109            -
Other                                                    (105)           -
Exchange differences                                        -          (25)
------------------------------------------------------------------------------
MOVEMENT IN NET FUNDS                                   3,730         (307)
NET DEBT AT 1 NOVEMBER                                 (3,217)      (2,910)
------------------------------------------------------------------------------
NET FUNDS/(DEBT) AT 31 DECEMBER/31 OCTOBER                513       (3,217)
------------------------------------------------------------------------------




GRESHAM COMPUTING PLC
Group Statement of Total Recognised Gains and Losses
for the period ended 31 December 2001

                                                      14 months        Year
                                                       ended 31    ended 31
                                                       December     October
                                                           2001        2000
                                                          £'000       £'000
------------------------------------------------------------------------------
                                                           
Loss for the financial period/year                       (1,417)     (4,006)
Exchange difference on retranslation of net    
assets of subsidiary undertakings                            (2)        (92)
------------------------------------------------------------------------------
Total recognised gains and losses relating to the period (1,419)     (4,098)
------------------------------------------------------------------------------


Reconciliation of consolidated shareholders' funds
for the period ended 31 December 2001

                                                       14 months       Year
                                                        ended 31   ended 31
                                                        December    October
                                                            2001       2000
                                                           £'000      £'000
------------------------------------------------------------------------------
                                                           
Total recognised gains and losses                         (1,419)    (4,098)
Dividends                                                    (66)       (66)
Issue of shares                                                -      2,925
Shares to be issued                                            -     (2,925)
                                                       -----------------------
Total movements during the year                           (1,485)    (4,164)
Opening shareholders' funds                                7,513     11,677
------------------------------------------------------------------------------
Closing shareholders' funds                                6,028      7,513
------------------------------------------------------------------------------



GRESHAM COMPUTING PLC
NOTES TO THE PRELIMINARY RESULTS ANNOUNCEMENT FOR THE PERIOD ENDED
31 DECEMBER 2001


1.    The  above  financial information  does  not  constitute
statutory  accounts as defined in section 240 of the Companies
Act  1985.  The results for the period ended 31 December  2001
and  the  balance  sheet at that date are extracted  from  the
statutory  accounts  (on  which the  auditors  have  given  an
unqualified opinion), which will be filed with the Registrar of
Companies.  The comparative financial information is extracted
from the statutory accounts for the year ended 31 October 2000
(on  which  the  auditors have given an unqualified  opinion),
which have already been sent to shareholders and filed with the
Registrar of Companies.

2.   Turnover and segmental analysis
Geographical analysis of turnover by source and destination

Analysis of turnover by segment
                       Turnover   Inter   External  Turnover  Inter  External
                                segment                     segment
                               turnover   turnover         turnover  turnover 
                      14 months                         Year
                          ended                        ended
                    31 December                   31 October
                           2001    2001       2001      2000   2000      2000
                          £'000   £'000      £'000     £'000  £'000     £'000
------------------------------------------------------------------------------
                                   
Solutions                 4,748      (2)     4,746     7,112      -     7,112
Specialist contract staff 6,167  (1,291)     4,876     4,757 (1,365)    3,392
------------------------------------------------------------------------------
Enterprise Solutions     10,915  (1,293)     9,622    11,869 (1,365)   10,504
Enterprise Software       8,699       -      8,699     8,288      -     8,288
------------------------------------------------------------------------------
Continuing operations    19,614  (1,293)    18,321    20,157 (1,365)   18,792
SIM Testing (discontinued)6,449      (9)     6,440     4,533      -     4,533
------------------------------------------------------------------------------
                         26,063  (1,302)    24,761    24,690 (1,365)   23,325
------------------------------------------------------------------------------
                                                                     

Geographical analysis of turnover by source                    
                       Turnover   Inter   External  Turnover  Inter  External
                                segment                     segment
                               turnover   turnover         turnover  turnover 
                       14 months ended 31 December      Year ended 31 October
                           2001    2001       2001      2000   2000      2000
                          £'000   £'000      £'000     £'000  £'000     £'000 
------------------------------------------------------------------------------
              
United Kingdom-                                                    
continuing operations    12,742  (1,244)    11,498    12,673 (1,545)   11,128
United Kingdom-                                                    
discontinued operations   6,449      (9)     6,440     4,533      -     4,533
North America             4,710    (226)     4,484     5,590    (56)    5,534
Rest of world             2,765    (426)     2,339     2,206    (76)    2,130
------------------------------------------------------------------------------
                          26,66  (1,905)    24,761    25,002 (1,677)   23,325
------------------------------------------------------------------------------

Geographical analysis of turnover by destination
                                            14 months                 Year
                                    ended 31 December     ended 31 October
                                                 2001                 2000
                                                £'000                £'000
------------------------------------------------------------------------------
United Kingdom-continuing operations           10,002                8,199
United Kingdom-discontinued operations          6,440                4,118
Europe - continuing operations                  1,730                3,124
Europe - discontinued operations                    -                  415
North America                                   4,498                5,669
Rest of world                                   2,091                1,800
------------------------------------------------------------------------------
                                               24,761               23,325
------------------------------------------------------------------------------


Analysis of profit/(loss) on ordinary activities before       
taxation by segment.  Common costs comprise the costs of all
central group services

              Profit/(loss)                  Profit/(loss) 
                    before                         before            
                  goodwill     Goodwill          goodwill     Goodwill 
              amortisation amortisation      amortisation amortisation
                 14 months ended  31 December       Year ended 31 October
                      2001         2001    2001      2000         2000   2000
                     £'000        £'000   £'000     £'000        £'000  £'000
------------------------------------------------------------------------------
                                   
Enterprise Solutions(2,106)         (72) (2,178)   (2,249)         (60)(2,309)
Enterprise software    737       (1,461)   (724)    1,612         (262) 1,350
------------------------------------------------------------------------------
Continuing operations(1,369)     (1,533) (2,902)     (637)        (322)  (959)
SIM Testing        
(discontinued)          904        (249)    655        54         (381)  (327)
------------------------------------------------------------------------------
                       (465)     (1,782) (2,247)     (583)        (703)(1,286)
Common costs         (1,665)          -  (1,665)   (2,734)           - (2,734)
------------------------------------------------------------------------------
Operating loss       (2,130)     (1,782) (3,912)   (3,317)        (703)(4,020)
Share of operating    
profit of associate     450         (88)    362         -            -      -
Non-operating 
exceptional items     2,731           -   2,731         -            -      -
Net interest payable   (154)          -    (154)     (253)           -   (253)
------------------------------------------------------------------------------
Profit/(Loss)on ordinary  
activities before 
taxation                897      (1,870)   (973)   (3,570)        (703)(4,273)
------------------------------------------------------------------------------
                                                                  

Analysis of profit / (loss) on ordinary activities before taxation by source
                       £'000    £'000    £'000    £'000     £'000     £'000
------------------------------------------------------------------------------
                                   
United Kingdom          (238)             (238)    (383)        -      (383)
North America           (977)  (1,411)  (2,388)       6      (220)     (214)
Rest of world           (154)    (122)    (276)    (260)     (102)     (362)
------------------------------------------------------------------------------
                      (1,369)  (1,533)  (2,902)    (637)     (322)     (959)
United Kingdom     
(discontinued)           904     (249)     655       54      (381)     (327)
------------------------------------------------------------------------------
                        (465)  (1,782)  (2,247)    (583)     (703)   (1,286)
------------------------------------------------------------------------------
Common costs          (1,665)           (1,665)  (2,734)       -     (2,734)
Share of operating     
profit of associate      450      (88)     362        -        -          -
------------------------------------------------------------------------------
Total operating loss:    
Group and share of 
associate             (1,680)  (1,870)  (3,550)  (3,317)    (703)    (4,020)
Non-operating 
exceptional items      2,731        -    2,731        -        -          -
Net interest payable    (154)       -     (154)    (253)       -       (253)
------------------------------------------------------------------------------
Profit/(Loss)on 
ordinary activities   
before taxation          897   (1,870)    (973)  (3,570)    (703)    (4,273)
------------------------------------------------------------------------------


3.   Exceptional items
                                                  14 months              Year
Recognised in arriving at operating loss: ended 31 December  ended 31 October
                                                       2001              2000
                                                      £'000             £'000
------------------------------------------------------------------------------
Compensation for loss of office                           -               237
Reorganisation and restructuring costs                  263               982
Bad debts                                                 -               175
Provision for impairment in value of goodwill         1,155                 -
Reversal of previous provision for impairment         
in value of freehold property                          (125)                -
Provision for impairment in value of leasehold 
property improvements                                   122                95
------------------------------------------------------------------------------
TOTAL EXCEPTIONAL COSTS                               1,415             1,489
------------------------------------------------------------------------------
                                                          
Recognised below operating loss:                          
Profit on disposal of tangible fixed assets              84                 -
Profit on sale of 50.01% interest in SIM Group Limited2,647                 -
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Exceptional Profits                                   2,731                 -
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4.   Earnings per share (EPS)
The calculation of earnings per ordinary share has been based on the
loss  attributable  to shareholders, adjusted  for  preference
dividends of  £1,483,000 (2000: £4,072,000) and on a  weighted
average  number  of  shares of 44,625,110  (2000  43,427,491).
Diluted earnings per share are identical to basic earnings per
share  because potential diluting events would have the effect
of reducing the loss per ordinary share.

5.   Dividends
The directors do not propose the payment of an ordinary dividend in
respect of the period ended 31 December 2001.
     
6.   Reconciliation of operating loss to net cash flow from
operating activities
                                                  14 months              Year
                                         ended 31  December  ended 31 October
                                                       2001              2000
                                                      £'000             £'000
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Operating loss                                       (3,912)           (4,020)
Depreciation and impairment of tangible fixed assets    887             1,033
Amortisation and impairment in value of goodwill      1,903               821
(Profit) / loss on sale of fixed assets                   -               (22)
Decrease in debtors                                   1,150             1,406
(Decrease)/increase in creditors                       (876)            1,580
Foreign exchange movement                                 -              (103)
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Net cash (outflow)/inflow from operating activities    (848)              695
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7.This preliminary statement of results will not appear  as  an
advertisement in any newspaper but the annual report  is  being
sent  to  all shareholders by 23 April 2002 and copies will  be
available   to  members  of  the  public  from  the   company's
registered  office:  Sopwith  House,  Brook  Avenue,   Warsash,
Southampton SO31 9ZA.





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