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Asite PLC (ASE)

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Thursday 28 September, 2006

Asite PLC

Interim Results

Asite PLC
28 September 2006

28 September 2006

                                   ASITE PLC

             Interim Results for the six months ended 30 June 2006

Chairman's Statement

Results and Dividends

The Group's operating loss of £0.331 million compares with a loss of £0.959
million in the six months ended 30 June 2005 and £1.316 million for the 12
months ended 31 December 2005.  Included in administrative expenses is
depreciation which amounted to £0.161 million in the period.  The operating loss
before depreciation in the period was, therefore, £0.17 million, representing an
improvement of £0.558 million over the corresponding period.

The loss per share was 0.2p compared with 0.5p and 0.7p for the previous half
year and full year respectively.  The Board does not propose declaring a
dividend (30 June 2005: nil).

Development of the Group

The Group's strategy of reducing reliance on reseller agreements is now almost
complete.  As a result, whilst turnover was slightly down, gross profit remained
relatively stable at £0.561 million.

Asite released Version 2.0 of its construction workflow software which covers
sourcing, procurement, and collaboration within the supply chain.

In February 2005, Mr Gordon Ashworth was appointed Acting Chief Executive
Officer. Having completed the strategy of reducing the Group's cost base Mr
Gordon Ashworth stepped down in May 2006, however, he remains as a non-executive
director of the Group. Mr Tony Ryan was appointed Chief Executive Officer in May
2006. The board will continue to monitor the position with regard to appointing
a Finance Director.

Operational Review

Take up and usage of the Asite platform remains strong.  The number of users
accessing the platform between January and June 2006 totals 404,604 an increase
of 45% on the same period in 2005.

In August 2006 Asite was awarded a contract for collaboration services from the
Welsh Health Estates and was designated as their preferred supplier for the '
Designed for Life: Building for Wales' initiative.


In the first half of 2006 the Group has continued to reduce costs whilst
maintaining revenue levels.  In mid-June 2006, the Group increased its sales
team and is now focused on a growth strategy. The Board believes that the Group
is on course to a position of profitable trading and continues to innovate to
improve the state of software development for the construction industry.

Mr Colin Goodall


27 September 2006


For the six months ended 30 June 2006

                                                                   Note Unaudited six    Unaudited    Audited
                                                                         months to 30   six months year to 31
                                                                            June 2006   to 30 June   Dec 2005
                                                                                £'000        £'000      £'000
TURNOVER                                                                          719          793      1,529
Cost of sales                                                                   (158)        (210)      (377)

Gross Profit                                                                      561          583      1,152

Sales & distribution costs                                                      (125)        (221)      (361)

Administration expenses                                                         (770)      (1,321)    (2,107)
Exchange gain arising on translation                                                3            -          -

OPERATING LOSS                                                                  (331)        (959)    (1,316)
Net finance costs                                                                   -          (3)       (11)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                     (331)        (962)    (1,327)
Tax credit on loss on ordinary activities                                           -            -          -

LOSS ON ORDINARY ACTIVITIES AFTER TAXATION                                      (331)        (962)    (1,327)
Minority interest                                                                   -            5          7

LOSS FOR THE PERIOD                                                             (331)        (957)    (1,320)

Loss per share - basic & diluted                                      3        (0.2p)       (0.5p)     (0.7p)

There are no recognised gains or losses in either financial period other than
the loss for each period, and therefore, no statement of total recognised gains
and losses has been prepared.

All transactions are derived from continuing operations.


As at 30 June 2006
                                                                   Note Unaudited six    Unaudited     Audited
                                                                         months to 30   six months  year to 31
                                                                            June 2006   to 30 June    Dec 2005
                                                                                £'000        £'000       £'000
Tangible assets                                                                   586          854         738

Debtors                                                                           407          490         513
Work in progress                                                                  105          115         104
Cash at Bank                                                                       49           96           7
                                                                                  561          701         624
CREDITORS: amounts falling due within one year                                (1,023)      (1,299)     (1,232)

                                                                                (462)        (598)       (608)

TOTAL ASSETS LESS CURRENT LIABILITIES                                             124          256         130

CREDITORS: falling due after more than one year                               (1,313)        (558)       (977)

PROVISIONS FOR LIABILITIES AND CHARGES                                           (28)        (219)        (39)

EQUITY MINORITY INTERESTS                                                           9            7           9

                                                                              (1,208)          514       (877)

Called up share capital                                               4        18,750       18,750      18,750
Share premium account                                                 4         2,442        2,442       2,442
Profit and loss account                                               4      (22,400)     (21,706)    (22,069)

EQUITY SHAREHOLDERS' (DEFECIT)  / FUNDS                                       (1,208)        (514)       (877)

These financial statements were approved by the Board of Directors on 27
September 2006.

Signed on behalf of the Board of Directors


Mr Tony Ryan
Chief Executive Officer


For the six months ended 30 June 2006
                                                           Note Unaudited six    Unaudited     Audited
                                                                 months to 30   six months  year to 31
                                                                    June 2006   to 30 June    Dec 2005
                                                                        £'000        £'000       £'000

Net cash flow from operating activities                      5          (259)         (452)       (881)

Returns on investments and servicing of finance
Interest received                                                          -             1           1
Interest paid                                                              -            (4)         (4)

Net cash outflow from return on investments and servicing of               -            (3)         (3)

Capital expenditure
Payments to acquire tangible assets                                       (9)          (34)        (102)
Proceeds from sale of tangible assets                                      -             -            1

Net cash outlow from capital expenditure                                  (9)          (34)        (101)

Net cash outflow before financing                                       (268)         (489)        (985)

Net proceeds from borrowings                                             340           558          977

Net cash inflow from financing                                           340           558          977

Decrease in cash in the year                                 6            72            69           (8)


For the six months ended 30 June 2006


The early stage of development of the Group's business is such that there can be
considerable unpredictable variation in the amount of revenue and timing and
amounts of cash flows.  The directors have projected cash flow information for
the period to 31 December 2007.  On the basis of this cash flow information, the
directors are of the opinion that additional funding will be required.  The
directors are working towards bringing the Group to a level of profitable
trading.  In doing so, they are assessing, on a regular basis, cost levels,
sales activities and research and development expenditure.

Over the past twelve months, Mr Robert Tchenguiz has provided the Group with the
financial support it has required in the form of a loan from R20 Limited, of
which Mr Robert Tchenguiz is a director.  The directors believe that Mr Robert
Tchenguiz will continue to provide the funding required and have received
written confirmation from him that he intends to provide this funding in the
form of an additional loan facility, which amounts to £0.711million at 31
December 2005 and that he will not call for the repayment of this new loan
before 31 December 2007.  The total loan facility amounts to £1.688million.  The
balance drawn on these facilities was £1.317million at 30 June 2006.

There is inherent uncertainty as to the realisation of the forecasts.  The
directors consider that in preparing the financial statements they have taken
into account the uncertainty and all information that could reasonably be
expected to be available.   On this basis, the directors have formed a judgement
at the time of approving the financial statements that they consider it
appropriate to prepare these financial statements on the going concern basis.
The financial statements do not include any adjustments that would result should
the going concern basis of accounting no longer be appropriate.

If the Group were unable to continue in operational existence for the
foreseeable future, adjustments would have been made to reduce the balance sheet
values of assets to their recoverable amounts, to provide for further
liabilities that might arise and to reclassify assets and long-term liabilities
as current assets and liabilities.

2.         COMPANIES ACT 1985

These accounts are not the statutory accounts of the Group. The statutory group
accounts of Asite plc for the year to 31 December 2005 were filed with the
Registrar of Companies, following the AGM on 27 July 2006.  The interim report
contains financial information on the year ended 31 December 2005 which
constitutes non-statutory accounts for the purposes of section 240 of the
Companies Act 1985.  The auditors provided an emphasis of matter on their
opinion on these accounts on the basis of the ability of Asite Plc to continue
as a going concern as detailed in note 1.  The numbers in the interim financial
statements to 30 June 2006 are not audited.

The financial statements are prepared in accordance with applicable accounting
standards.  They have all been applied consistently throughout the year and the
preceding year.

3.            LOSS PER SHARE

                                                      Unaudited six     Unaudited six    Audited year to
                                                  months to 30 June      months to 30        31 Dec 2005
                                                               2006         June 2005
Net loss for the year:                                    £(331,000)        £(957,000)       £(1,320,000)
Weighted average number of ordinary shares outstanding  187,495,637       187,495,637        187,495,637

Loss per share:                                                0.2p              0.5p               0.7p

FRS 14 requires presentation of diluted loss per share when a company could be
called upon to issue shares that would decrease net profit or increase net loss
per share.  For a loss making company with outstanding share options, net loss
per share would only be increased by the exercise of out-of-the-money options.
No adjustment has been made to diluted loss per share for out-of-the-money share
options and there are no other diluting future share issues, therefore diluted
loss per share is the same as basic loss per share.


                                                 Called up share          Share     Profit and     Total
                                                         Capital        premium   loss account
                                                          £'000           £'000          £'000     £'000
At 1 January 2006                                        18,750           2,442        (22,069)     (877)
Loss for the period                                           -               -           (331)     (331)

At 30 June 2006                                          18,750           2,442        (22,400)   (1,208)


                                                 Unaudited six     Unaudited six   Audited year to
                                             months to 30 June      months to 30       31 Dec 2005
                                                          2006         June 2005
                                                         £'000             £'000             £'000
Operating loss                                            (331)             (959)           (1,316)
Depreciation of tangible assets                            161               231               408
Loss on disposal of fixed assets                             -                 -                 6
Fees received in advance                                    (9)               (8)                4
Increase in work in progress                                (1)              (31)              (20)
Decrease / (increase) in debtors                           101                 8               (15)
Decrease in share capital not paid                           -               199               199
(Decrease) / increase in creditors                        (169)              128                53
Decrease in provisions                                     (11)              (20)             (200)

                                                          (259)             (452)             (881)


                                                 Unaudited six     Unaudited six   Audited year to
                                             months to 30 June      months to 30       31 Dec 2005
                                                          2006         June 2005
                                                         £'000             £'000             £'000

Increase / (decrease) in cash in the period                 72                69                (8)
Funding received                                          (340)             (558)             (977)

Movement in net debt in the period                        (268)             (489)             (985)
Net debt at start of period                             (1,008)              (23)              (23)
Net debt at end of period                               (1,276)             (512)           (1,008)


                                                  At I Jan 2006         Movement  At 30 June 2006
                                                          £'000            £'000            £'000
Cash                                                          7               42               49
Overdraft                                                   (38)              30               (8)
                                                            (31)              72               41
Loan                                                       (977)            (340)          (1,317)
                                                         (1,008)            (268)          (1,276)

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