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TG21 PLC (TGP)

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Tuesday 26 July, 2005

TG21 PLC

Interim Results


Embargoed Release: 07:00hrs Tuesday 26th July 2005

                                   TG21 plc                                    

          Interim Results for the six month period ended 30 June 2005          

Highlights

  * Total operating profit up 20%
   
  * Net profit up 10%
   
  * Increased operating profit in associate company - 21st Century
   
  * £1.1m of cash generated from operations
   
  * Speed camera warning device (Inforad) achieves encouraging early sales
   
  * Further growth anticipated from hands free installations and CCTV for
    public transport vehicles
   
  * Exit strategies in place for a number of peripheral activities to focus on
    proven growth areas
   
TG21 plc

Chairman's statement - Interims 2005

I am pleased to present our unaudited interim figures for the six months to 30
June 2005.

Total operating profit increased by almost 20% on 30 June 2004 to reach £1.2m
for the half year. While turnover is down by £1.9m on the comparative period
this does not include sales made by our associate company, 21st Century Crime
Prevention Services Ltd ('21st Century'), which recorded sales of £2.1m. The
contribution to profit from our share of the results of 21st Century has
enabled us to increase the group's net profit by 10% to £0.8m.

Cash flow remains strong. We have generated £1.1m (2004: £1.0m) from operations
in the first six months. Net debt stands at £3.9m, an increase of just £0.5m on
this time last year, despite the fact that since that date we have spent £2.6m
on our investment in 21st Century. The results of this associate company and
trading within our Services and Distribution divisions are reviewed below:

21st Century

In April 2005 we increased our stake in 21st Century to 49%. 21st Century
provides CCTV and black box recording systems for use on public transport
vehicles such as buses and trains.

21st Century's unaudited results for the first half of 2005 showed an increased
operating profit on sales of £2.1m (up 10% on the prior year). As we currently
do not hold a controlling interest in 21st Century we have not added its sales
to group turnover but have included our share of its profit in the attached
results. Recently 21st Century received the first order in respect of the
installation of CCTV and black box technology for a regional bus depot. The
total potential value of this one project is £1.5m with the work spread over
the next 6 months.

We believe that the desire of operators, backed by local authority funding, to
encourage the use of public transport by improving safety is a key driver of
long term growth.

Services

Principal Activities: Insurance replacement of in-car entertainment systems,
cameras and computers. The supply and installation of mobile phone hands-free
kits, telematics units, in-car entertainment and security systems to fleet and
private customers.

Turnover in this division at £6.2m was £0.7m (10%) down on the same period last
year. We have seen a 25% decline in our audio replacement business as this
market continues to contract. The installation of mobile phone hands-free kits
by contrast has grown during the first half of the year and is up by almost
30%. We have now undertaken over 50,000 installations in just over 18 months of
trading in this market. We understand that legislation to be introduced later
this year will impose penalty points for the illegal use of mobile phones while
driving. We believe that this will increase demand for hands-free kits further.

Our partnership with 21st Century has meant that we have invested more
resource, including training our engineers, in the installation of CCTV onto
public transport vehicles. To allow us to focus more efficiently and
effectively on this high growth area we have put in place strategies to exit
several peripheral business areas. We are now in a position to make a managed
withdrawal from the ACTRA telematics business, the camera and computer
replacement businesses and our Vehicle Inspection Service ('VIS').

Distribution

Principal Activities: The distribution of in-car entertainment systems, satnav/
communications equipment,speed camera alerts,audio leads and, own brand
automotive and motorcycle alarms to the retail trade.

Overall the sales in this division fell by £1.2m (11%) to £10.0m at the half
year. Most of this decline was anticipated as it fell within the mature car
security market. In more recent months we have seen very encouraging early
sales figures from our Inforad speed camera warning device which is currently
the least expensive product of its type on the market and has been extremely
well received by the motoring Press. In May 2005, we secured the UK
distribution rights to the product and took orders for in excess of 10,000
units within the first few weeks of launch. Halfords, Woolworths and Argos are
all stocking the product and we are looking forward to further growth in the
second half.

Current trading and the future

The Board is very encouraged by the improved profitability which has been made
with the restructuring of the group during the first half of 2005. The
strategic withdrawal from a number of peripheral activities will enable us to
accelerate our continued integration with 21st Century and focus on business
areas with real potential for the group. Current trading is in line with market
expectations and we are looking forward to the future with confidence.

Peter Ward

Chairman

For Further Information:

Peter Ward                 TG21 Plc                   020 8710 4000            
                                                                               
Chairman                                                                       
                                                                               
Andrew Tan                 Hansard Communications     020 7245 1100            
                                                                               
Account Executive                                                              

Consolidated profit and loss account

                         Unaudited six months ended 30 June    Unaudited Year ended
                                                       2005          six           
                                                                                 31
                                                            Months ended   December
                                                                                   
                                                            30 June 2004       2004
                                                                                   
                           Before Amortisation      After a                        
                     amortisation         of i  mortisation                        
                             of i   ntangibles         of i                        
                       ntangibles                ntangibles                        
                                                                                   
                            £'000        £'000        £'000        £'000      £'000
                                                                                   
Turnover                   16,214            -       16,214       18,126     34,574
                                                                                   
Cost of sales             (9,250)            -      (9,250)     (10,997)   (20,380)
                                                                                   
Gross profit                6,964            -        6,964        7,129     14,194
                                                                                   
Other operating           (5,883)         (60)      (5,943)      (6,152)   (12,874)
expenses                                                                           
                                                                                   
Group operating p           1,081         (60)        1,021          977      1,320
rofit                                                                              
                                                                                   
Share of operating            219         (75)          144            -        (6)
profit/(loss) of                                                                   
associate                                                                          
                                                                                   
Total operating             1,300        (135)        1,165          977      1,314
profit                                                                             
                                                                                   
Interest payable and        (253)            -        (253)        (232)      (547)
similar charges                                                                    
                                                                                   
Profit on ordinary          1,047        (135)          912          745        767
activities before                                                                  
taxation                                                                           
                                                                                   
Taxation                     (66)            -         (66)            -          -
                                                                                   
Profit on ordinary            981        (135)          846          745        767
activities after                                                                   
taxation                                                                           
                                                                                   
Minority interests           (36)            -         (36)          (6)        (1)
                                                                                   
Profit attributable           945        (135)          810          739        766
to members of the                                                                  
parent company                                                                     
                                                                                   
Earnings per share -        1.16p      (0.17)p        0.99p        0.94p      0.97p
basic                                                                              
                                                                                   
Earnings per share -        1.16p      (0.17)p        0.99p        0.90p      0.94p
diluted                                                                            

Consolidated balance sheet

                        Unaudited Unaudited 31 December                        
                                                                               
                          30 June   30 June        2004                        
                             2005      2004                                    
                                                                               
                            £'000     £'000       £'000                        
                                                                               
Fixed Assets                  592     1,168         634                        
                                                                               
Intangible assets                                                              
                                                                               
Tangible assets             4,424     3,053       4,406                        
                                                                               
Investments                 2,658         -       1,774                        
                                                                               
                            7,674     4,221       6,814                        

Current Assets              3,709     4,337       3,678                        
                                                                               
Stocks                                                                         
                                                                               
Debtors                     5,558     6,373       5,000                        
                                                                               
Cash at bank and in         2,370       443         809                        
hand                                                                           
                                                                               
                           11,637    11,153       9,487                        

Creditors: amounts        (8,784)   (7,668)     (7,626)                        
falling due within                                                             
one year                                                                       

Net current assets          2,853     3,485       1,861                        

Total assets less          10,527     7,706       8,675                        
current liabilities                                                            

Creditors: amounts        (1,981)   (1,433)       (975)                        
falling due after                                                              
more than one year                                                             
                                                                               
Minority interests           (36)       (6)           -                        
                                                                               
Net Assets                  8,510     6,267       7,700                        

Capital and reserves        8,169     8,169       8,169                        
                                                                               
Called-up share                                                                
capital                                                                        
                                                                               
Share premium account      12,110    12,110      12,110                        
                                                                               
Share capital to be            43        43          43                        
issued                                                                         
                                                                               
Revaluation reserve         1,392         -       1,406                        
                                                                               
Profit and loss          (13,204)  (14,055)    (14,028)                        
account                                                                        
                                                                               
                            8,510     6,267       7,700                        

Shareholders' funds         8,510     5,488       7,700                        
                                                                               
Equity                                                                         
                                                                               
Non equity                      -       779           -                        
                                                                               
                            8,510     6,267       7,700                        

Consolidated cash flow statement

                              Unaudited Unaudited      Year                    
                             six months       six     ended                    
                                  ended    months                              
                                            ended        31                    
                                30 June            December                    
                                   2005   30 June      2004                    
                                             2004                              
                                                                               
                                  £'000     £'000     £'000                    
                                                                               
Net cash inflow from              1,112     1,049     3,002                    
operating activities                                                           

Returns on investments and        (210)     (189)     (463)                    
servicing of finance                                                           
                                                                               
Interest payable and                                                           
similar charges                                                                

Capital expenditure and                                                        
financial investment                                                           
                                                                               
Purchase of tangible fixed        (259)     (348)     (513)                    
assets                                                                         
                                                                               
Sale of tangible fixed                -         -         5                    
assets                                                                         
                                                                               
                                  (259)     (348)     (508)                    

Acquisitions                      (805)         -   (1,780)                    
                                                                               
Purchase of investment in                                                      
associate                                                                      

Cash inflow before                (162)       512       251                    
financing                                                                      

Financing                             -        25        25                    
                                                                               
Issue of shares                                                                
                                                                               
Net movement in long term         1,000     (500)   (1,000)                    
borrowings                                                                     
                                                                               
Repayment of principal              (2)       (7)      (13)                    
under finance leases                                                           
                                                                               
                                    998     (482)     (988)                    
                                                                               
Increase/(decrease) in cash         836        30     (737)                    
in period                                                                      

Notes

 1. Basis of preparation
   
The interim statement has been prepared on the basis of the accounting policies
set out in the group's statutory accounts to 31 December 2004. The financial
information contained in the interim report does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The interim
report has neither been audited nor reviewed by the group's auditors. A copy of
the group's 2004 statutory accounts has been filed with the Registrar of
Companies: the Auditors' opinion on those accounts was unqualified and did not
contain any statement under section 237 of the Companies Act 1985. The interim
statement for the six months ended 30 June 2005 was approved by the directors
on 25 July 2005.

2. Reconciliation of movements in shareholders funds

                                        Unaudited six    Unaudited   Year ended
                                         months ended          six             
                                                                    31 December
                                         30 June 2005 Months ended         2004
                                                                               
                                                      30 June 2004             
                                                                               
                                                £'000        £'000        £'000
                                                                               
Net profit for the period                         810          739          766
                                                                               
Revaluation surplus                                 -            -        1,406
                                                                               
Exercise of share options                           -           25           25
                                                                               
Net movement in shareholders' funds               810          764        2,197
                                                                               
Opening shareholders' funds                     7,700        5,503        5,503
                                                                               
Closing shareholders' funds                     8,510        6,267        7,700

3. Reconciliation of operating profit to net cash flow from operating
activities

                                         Unaudited six   Unaudited   Year ended
                                          months ended         six             
                                                                    31 December
                                          30 June 2005      Months         2004
                                                             ended             
                                                                               
                                                           30 June             
                                                              2004             
                                                                               
                                                 £'000       £'000        £'000
                                                                               
Operating profit                                 1,165         977        1,314
                                                                               
Depreciation of tangible fixed assets              223         201          414
                                                                               
Amortisation of intangible fixed assets             60         153          690
                                                                               
Share of operating (profit)/loss in              (144)           -            6
associate                                                                      
                                                                               
(Increase)/decrease in working capital           (192)       (282)          578
balances                                                                       
                                                                               
Net cash inflow from operating                   1,112       1,049        3,002
activities                                                                     

4. Reconciliation of net cash flow to movement in net debt

                                         Unaudited six   Unaudited   Year ended
                                          months ended         six             
                                                                    31 December
                                          30 June 2005      Months         2004
                                                             ended             
                                                                               
                                                           30 June             
                                                              2004             
                                                                               
                                                 £'000       £'000        £'000
                                                                               
Increase/(decrease) in cash in the                 836          30        (737)
period                                                                         
                                                                               
Cash (inflow)/outflow from (increase)/           (998)         507        1,013
decrease in net debt                                                           
                                                                               
Changes in net debt resulting from cash          (162)         537          276
flows                                                                          
                                                                               
Other                                             (43)        (43)         (85)
                                                                               
Movement in net debt in the period               (205)         494          191
                                                                               
Net debt at start of period                    (3,725)     (3,916)      (3,916)
                                                                               
Net debt at end of period                      (3,930)     (3,422)      (3,725)