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Zeta Compliance (ZCGP)

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Tuesday 07 September, 2010

Zeta Compliance

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31ST J...



                                                                                               07/09/2010

                                                                                GB00B2R2Z520/GBP/PLUS-exn

                                         ZETA COMPLIANCE GROUP plc

                                          (PLUS-Quoted Code: ZCG)

                          INTERIM RESULTS FOR THE SIX MONTHS ENDED 31ST JULY 2010

The  Board  of  Zeta  Compliance Group plc ("Zeta" or "the Company") is pleased to  present  the  Company's
unaudited  results  for  the six months ended 31st July 2010 and a period of very positive  achievement  in
terms of the Company's strategic development.

Compared  to  the same period in 2009, the Company achieved turnover growth of 21.4% and a  36.7%  rise  in
EBITDA  on  a  'like  for  like' basis, ie before taking in to consideration the  effect  of  new  business
activities.

The  new activities referred to above are the launch of a new Carbon, Energy & Sustainability business unit
in March 2010 and the acquisition of The Fire Strategy Company Limited in May 2010.

Both of these initiatives are a response to our customers wanting to use Zeta's services on a broader basis
across  their  built environment and the belief that ZetaSafe technology can be beneficially applied  to  a
spectrum  of  relevant  compliance  areas.   The direct costs  of  introducing  the  new  Carbon  and  Fire
capabilities  into the Company have been material, to which the opportunity costs of senior executive  time
must  also  be  added. Now, full concentration will be applied to operational performance of  the  expanded
business with no similar new developments being planned until integration and results have been achieved.

Total  EBITDA including these new activities was £174,050(£191,130), reflecting the start up costs  of  the
new activities. Those costs also impacted on profit before taxation of £68,210 (£117,442).

In  the  USA,  although the numbers at this stage remain small, it is pleasing to note that  our  associate
company,  Zeta LLC, has been able to report profits for the first time with a good order book  that  should
ensure further progress in the next six months.

The  second half of our financial year has started strongly and there is very reason to believe that Zeta's
results  for  its full year to 31st January 2011 will be ahead of the comparative results for the  previous
year.

A summary of the Company's profit and loss account for the six months ended 31 July 2010 is as follows:

                                                  6 months to 31st July (Unaudited)*1
                                                             2010                                        2009
                                 'Like for      Carbon, Energy and       The Fire            Total            Total
                                     Like'          Sustainability       Strategy
                                                                      Company Ltd
                                  £                    £                  £               £                £

Turnover                         1,253,236                   8,721         76,339        1,338,296        1,032,221

Gross Profit                       814,207                (30,126)         69,382          853,460          680,468
Administrative Expenses            552,792                  32,750         93,868          679,410          489,338

Earnings before Interest,          261,415                (62,876)       (24,486)          174,050          191,130
 Depreciation, Taxation
 and Amortisation

Share of Minority                                                                          (4,994)            1,600
Interest loss/ (profit)*2                                                                                           

Interest payable                                                                             3,606           14,411

Depreciation                                                                                 7,686            4,092

Amortisation:                                                                                                      
- Software                                                                                  69,626           52,564     

- Goodwill                                                                                   1,020            1,021

Cost of acquisition                                                                         24,204               -     

Finance cost of deferred                                                                                           
consideration                                                                                4,692               -                                                                        
Profit before Taxation                                                                      68,210          117,442

Taxation                                                                                    20,000           30,000

Profit after Taxation                                                                       48,210           87,442

Basic EPS (p)                                                                                 0.54             1.25

Consolidated Balance Sheet
                                                                   31 July 2010                 31 January 2010
                                                                              £                               £
ASSETS                                                                                                         
NON-CURRENT ASSETS                                                                                             
Goodwill                                                                963,852                          37,172
Intangible Assets                                                       311,677                         307,266
Property, plant and Equipment                                            48,497                          37,823
Interest in associate                                                    14,119                           9,125
Trade and Other receivables                                              55,382                          21,714
                                                                      1,393,527                         413,100
CURRENT ASSETS                                                                                                 
Trade and other receivables                                             806,932                         739,485
Cash                                                                    145,583                         310,859
                                                                        952,515                       1,050,344
LIABILITIES                                                                                                    
CURRENT LIABILITIES                                                                                            
Trade and other payables                                                643,468                         533,756
Interest bearing loans & borrowings                                      36,531                          32,491
Tax payable                                                              84,225                          64,221
                                                                        764,223                         630,468
NET CURRENT ASSETS                                                      188,292                         419,876

NON-CURRENT LIABILITIES                                                                                        
Deferred tax                                                              9,992                           8,751
Deferred consideration accrual                                          668,392                                
                                                                        678,384                           8,751
NET ASSETS                                                              903,435                         824,225

SHAREHOLDERS EQUITY                                                                                            
Called up share capital                                                  87,732                          86,932
Share premium                                                           512,185                         472,985
Other reserves                                                           10,917                           9,917
Retained earnings                                                       292,601                         244,391
TOTAL EQUITY                                                            903,435                         824,225

The directors of the Issuer are responsible for the contents of this announcement.

ENQUIRIES:

Graham Brown,
ZETA COMPLIANCE GROUP plc
Tel:  01869 238073 

Duncan Vasey/Mark Anwyl,
ST HELENS CAPITAL PARTNERS LLP
Tel: 020 7369 6959 

_______________________________
*1  The  interim results for the six months ended 31 July 2010 are unaudited and do not constitute  accounts
within  the meaning of section 240 of the Companies Act 1985. The interim results have been drawn up  using
accounting  policies and presentation consistent with those applied in the audited accounts  for  the  year
ended  31 January 2010. The comparative information contained in this report for the period ended  31  July
2009 does not constitute statutory accounts for that financial period.

*2 Share of minority interest was not included in the Trading Statement of the 2009 Interim Statement

*3 The information contained in this announcement has not been reviewed by the Company's auditor.

Zeta Compliance Group Plc