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Knowledge Technology (ARC)

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Wednesday 23 March, 2005

Knowledge Technology

Interim Results

Knowledge Technology Solutions PLC
23 March 2005



RNS Release

23 March 2005


           Interim results for the six months ended 31 December 2004

Knowledge Technology Solutions PLC (KTS), provider of professional financial
information services, reports its unaudited results for the six months to 31
December 2004.

Financial and business highlights:

   • Turnover up 92% to £572,283 (2003: £298,323)

   • Following continued investment in research & development and additional
     exchange coverage, losses before tax of £419,898 (2003: £432,656)

   • Strong cash position of £2.3 million (2003: £1.1 million)

   • Total number of client organisations now stands at 130

   • Accessibility and ease of use continue to stimulate client demand for
    KTS QuoteTerminal and KTS MarketTerminal


Dr. Marc Pinter-Krainer, Chief Executive of KTS, said:

'We have delivered strong revenue growth in the first six months reflecting the
increasing penetration of KTS QuoteTerminal and KTS MarketTerminal. Our
commitment to customers and improving our services means we are confident of
continued growth in client numbers in the second half.'

Enquiries, please contact:

Dr. Marc Pinter-Krainer  Knowledge Technology Solutions PLC     020 7256 2300
Oliver Scott             KBC Peel Hunt Ltd                      020 7418 8900
Neil Boom/Jenny Leahy    Gresham PR Ltd                         020 7404 9000


Chief Executive's Statement

KTS has made further good progress in the first half of the year, including a
doubling of client organisations subscribing to the professional financial
market data services KTS QuoteTerminal and KTS MarketTerminal.

As a consequence of this growth, turnover in the period reviewed rose by 92% to
£572,283 (2003: £298,323). The increase in turnover reflects the growing 
subscriber base, which now stands at more than 130 organisations.

Losses before tax on ordinary activities were £419,898 (2003: £432,656)
reflecting continued investment in our technology, extended exchange coverage
and service enhancements. Our cash position remains strong at £2.3 million
(2003: £1.1 million).

Both our services have seen a considerable number of refinements and new
functions. New content has been added as part of the standard subscription fee,
including news from AFX International Focus on KTS MarketTerminal, and AFX UK
Focus news on KTS QuoteTerminal.

Also new to KTS QuoteTerminal is data on the performance of funds from leading
provider Financial Express. Subscribers can now access information on more than
8,000 funds including Unit Trusts and Open Ended Investment Companies.

Development by our expanded technical team, headed by Stuart Calder, has
included new bespoke versions of KTS MarketTerminal that will operate on
handheld platforms including wireless Personal Digital Assistants (PDAs) such as
the Blackberry.

As in previous years, we have maintained accounting best practice by writing off
development costs as incurred.

In addition to improving our technology base and services, we have established a
customer service team.

The main attraction of KTS MarketTerminal and KTS QuoteTerminal is that they are
very user-friendly and require no installation of infrastructure, hardware or
software. They are based on our 'zero-client' application service technology and
consequently are simplicity itself to deploy. The cost of ownership and ongoing
support is attractive when compared to competing market data suppliers, and the
application service is easily accessible from any location. These factors
continue to stimulate increased client interest in our services.

Following his involvement with KTS as non-executive chairman since 2003, Gavin
Casey has indicated that he is looking to reduce his current commitments and as
part of this he has advised the board that he intends to step down in due
course. At the same time we are seeking an independent director to join the
board. Gavin's skills and experience have been greatly appreciated and we extend
our warm thanks and wish Gavin well for the future.

Outlook

We have delivered strong revenue growth in the first six months reflecting the
increasing subscription levels of KTS QuoteTerminal and KTS MarketTerminal. Our
commitment to customers and improving our services means we are confident of
continued growth both in client numbers and revenues in the second half.

Dr. Marc Pinter-Krainer
Chief Executive
23 March 2005



                       KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
                       CONSOLIDATED PROFIT & LOSS ACCOUNT
                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2004



                                      Period ended   Period ended   Year ended
                                       31 December    31 December      30 June
                                              2004           2003         2004
                                        (unaudited)    (unaudited)    (audited)
                              Notes              £              £            £
                         

Turnover                          3        572,283        298,323      770,185
Distribution costs                        (529,795)      (289,443)    (686,722)
Administrative costs                      (519,787)      (455,606)  (1,062,895)
                                          ----------   ------------ ------------
Operating loss                            (477,299)      (446,726)    (979,432)
Interest receivable                         57,401         14,070       39,271
                                          ----------   ------------ ------------

Loss on ordinary activities
before taxation                           (419,898)      (432,656)    (940,161)

Taxation on loss on
ordinary activities                4              -              -       92,071
                                          ----------   ------------ ------------

Loss on ordinary activities
after taxation                            (419,898)      (432,656)    (848,090)

Dividends                         5              -              -            -
                                          ----------   ------------ ------------
Retained loss                             (419,898)      (432,656)    (848,090)
                                          ==========   ============ ============

Basic earnings per
ordinary share                    6          (0.28)p        (0.38)p      (0.71)p
                                          ==========   ============ ============
Diluted earnings per
ordinary share                    6          (0.28)p        (0.38)p      (0.71)p
                                          ==========   ============ ============

All of the results relate to continuing operations.

There are no recognised gains and losses other than the loss for the period.

                       
                        KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
               CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004

                                              As at         As at        As at
                                        31 December   31 December      30 June
                                               2004          2003         2004
                                         (unaudited)   (unaudited)    (audited)
                               Notes              £             £            £
                          
Fixed assets
Tangible fixed assets                       194,952       181,923      175,677
                                          -----------   -----------    ---------

Current assets
Debtors                                     162,419       142,727      113,586
Cash at bank and in hand                  2,270,839     1,107,486    2,702,533
                                          -----------   -----------    ---------
                                          2,433,258     1,250,213    2,816,119

Creditors: amounts falling
due within one year                        (278,665)     (178,417)    (234,053)
                                          -----------   -----------    ---------

Net current assets                        2,154,593     1,071,796    2,528,066
                                          -----------   -----------    ---------

Total assets less current
liabilities                               2,349,545     1,253,719    2,757,743
                                          ===========   ===========    =========

Capital and reserves
Called up share capital                     148,275       119,443      148,015
Share premium account                     4,777,574     2,875,248    4,766,134
Profit and loss account                  (2,576,304)   (1,740,972)  (2,156,406)
                                          -----------   -----------    ---------

Equity shareholders' funds          9     2,349,545     1,253,719    2,757,743
                                          ===========   ===========    =========




                        KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
                        CONSOLIDATED CASH FLOW STATEMENT
                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2004

                                      Period ended   Period ended   Year ended
                                       31 December    31 December      30 June
                                              2004           2003         2004
                                       (unaudited)    (unaudited)    (audited)
                              Notes              £              £            £

Net cash outflow from
operating activities              7       (449,842)      (392,503)    (809,156)
                                           ---------    -----------  -----------

Returns on investment and
servicing of finance

Interest received                           57,401         14,070       39,271
                                           ---------    -----------  -----------

Net cash inflow from returns on
investments and servicing of
finance                                     57,401         14,070       39,271
                                           ---------    -----------  -----------

Taxation
Corporation tax refund                           -              -       92,071
                                           ---------    -----------  -----------
Net cash inflow from taxation                    -              -       92,071
                                           ---------    -----------  -----------
Capital expenditure
Purchase of tangible fixed
assets                                     (50,953)       (28,568)     (53,598)
                                           ---------    -----------  -----------
Net cash outflow from
capital expenditure and financial
investment                                 (50,953)       (28,568)     (53,598)
                                           ---------    -----------  -----------
Net cash outflow before
financing                                 (443,394)      (407,001)    (731,412)
                                           ---------    -----------  -----------
Financing

Issue of share capital                      11,700      1,123,018    3,123,019
Expenses paid in connection
withshare issues                                -        (47,776)    (128,319)
                                           ---------    -----------  -----------
Net cash inflow from
financing                                   11,700      1,075,242    2,994,700
                                           ---------    -----------  -----------

(Decrease)/Increase in cash       8       (431,694)       668,241    2,263,288
                                           ---------    -----------  -----------

All cash flows relate to continuing operations.

                       KNOWLEDGE TECHNOLOGY SOLUTIONS PLC
                NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS
                             ENDED 31 DECEMBER 2004

1 Basis of preparation

The interim financial information in respect of the six months ended 31 December
2004 is unaudited and has been prepared on the basis of the accounting policies
set out in the company's audited accounts for the year ended 30 June 2004.
The financial information contained in this statement does not constitute
statutory accounts. Statutory accounts for the year ended 30 June 2004 received
an unqualified audit report and have been filed with the Registrar of Companies.

2 Continuing activities

All of the activities are continuing.

3 Turnover

All of the turnover arises in the United Kingdom.

4 Taxation

As a result of losses available no liability to corporation tax is expected to
arise.

5 Dividends

The Directors do not recommend the payment of an interim dividend.

6 Earnings per ordinary share

The basic earnings per ordinary share has been calculated by dividing the loss
on ordinary activities after tax attributable to shareholders by the weighted
average number of ordinary shares in issue during the period which carry the
right to receive a dividend.

The diluted earnings per ordinary share has been calculated as above on the
basis of full exercise of options and warrants.

7 Reconciliation of operating loss to net cash outflow from operating activities

                                 Period ended      Period ended     Year ended
                                  31 December       31 December        30 June
                                         2004              2003           2004
                                            £                 £              £

Operating loss                       (477,299)         (446,726)      (979,432)
Depreciation of fixed assets           29,066            31,594         62,869
Loss on disposal of fixed assets        2,612                 -              -
(Increase)/Decrease in debtors        (48,833)          (53,723)       (24,582)
Increase in creditors                  44,612            76,352        131,989
                                      ---------       -----------    -----------
Net cash outflow from operating
activities                           (449,842)         (392,503)      (809,156)
                                      ---------       -----------    -----------

8 Reconciliation of net cash flow to movement of liquid funds

                                     Period ended   Period ended   Year ended
                                      31 December    31 December      30 June
                                             2004           2003         2004
                                                £              £            £

Net funds at start of period            2,702,533        439,245      439,245
(Decrease)/Increase in cash for the
period                                   (431,694)       668,241    2,263,288
                                          ---------    -----------  -----------
Net funds at end of period              2,270,839      1,107,486    2,702,533
                                          ---------    -----------  -----------
Net funds at the end of the period relate to cash at bank and in hand.

9 Reconciliation of movement in shareholders' funds

                                     Period ended   Period ended   Year ended
                                      31 December    31 December      30 June
                                             2004           2003         2004
                                                £              £            £

Loss for the period                      (419,898)      (432,656)    (848,090)
New share capital issued less costs        11,700      1,075,242    2,994,700
                                          ---------    -----------  -----------
Net (reduction)/additions during
the period                               (408,198)       642,586    2,146,610
Opening shareholders' funds             2,757,743        611,133      611,133
                                          ---------    -----------  -----------
Closing shareholders' funds             2,349,545      1,253,719    2,757,743
                                          ---------    -----------  -----------



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