Preliminary Results -5-

derives from the Group's two operating segments as follows: 
 
 
+--------------------------------------------------------+----------+----------+ 
|                                                        |     2009 |     2008 | 
|                                                        |  GBP'000 |  GBP'000 | 
+--------------------------------------------------------+----------+----------+ 
| Revenue                                                |          |          | 
+--------------------------------------------------------+----------+----------+ 
| Services                                               |   51,969 |   57,920 | 
+--------------------------------------------------------+----------+----------+ 
| Products and software                                  |   21,490 |   23,140 | 
+--------------------------------------------------------+----------+----------+ 
| Intra-group sales                                      |  (2,804) |  (1,886) | 
+--------------------------------------------------------+----------+----------+ 
|                                                        |   70,655 |   79,174 | 
+--------------------------------------------------------+----------+----------+ 
|                                                        |          |          | 
+--------------------------------------------------------+----------+----------+ 
| Underlying profit from operations                      |          |          | 
+--------------------------------------------------------+----------+----------+ 
| Services                                               |    3,605 |    3,545 | 
+--------------------------------------------------------+----------+----------+ 
| Products and software                                  |    (235) |    1,584 | 
+--------------------------------------------------------+----------+----------+ 
| Central costs                                          |  (1,817) |  (1,615) | 
+--------------------------------------------------------+----------+----------+ 
|                                                        |    1,553 |    3,514 | 
+--------------------------------------------------------+----------+----------+ 
 
 
3. Exceptional reorganisation costs 
 
+-------------------------------------------------------------------------+--------------+--+-------------+ 
|                                                                         |         2009 |  |        2008 | 
|                                                                         |      GBP'000 |  |     GBP'000 | 
+-------------------------------------------------------------------------+--------------+--+-------------+ 
| Reorganisation costs                                                    |        1,350 |  |           - | 
+-------------------------------------------------------------------------+--------------+--+-------------+ 
 
 
Following the strategic review announced in February 2009, reorganisation costs 
of GBP1,350,000 have been expensed in the period, and primarily relate to 
redundancy and related costs (GBP895,000), and costs of rationalising certain 
properties (GBP455,000). 
 
 
4. Goodwill Reduction in respect of tax losses 
The Goodwill reduction in respect of tax losses in 2008 arises as a result of 
the recognition of tax losses that were not originally included in the 
acquisition balance sheet of Protec plc in November 2005. 
 
 
5. Finance income 
 
 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |     2009 |  |     2008 | 
|                                                     |  GBP'000 |  |  GBP'000 | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Bank interest receivable                            |      157 |  |      218 | 
+-----------------------------------------------------+----------+--+----------+ 
| Expected return on pension scheme assets            |      276 |  |      241 | 
+-----------------------------------------------------+----------+--+----------+ 
| Interest receivable from HMRC on tax repayments     |      119 |  |        - | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |      552 |  |      459 | 
+-----------------------------------------------------+----------+--+----------+ 
 
 
 
6. Finance costs 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |     2009 |  |     2008 | 
|                                                     |  GBP'000 |  |  GBP'000 | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Interest payable on bank overdrafts                 |        5 |  |        2 | 
+-----------------------------------------------------+----------+--+----------+ 
| Other interest payable                              |        6 |  |        - | 
+-----------------------------------------------------+----------+--+----------+ 
| Interest on pension scheme liabilities              |      276 |  |      241 | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |      287 |  |      243 | 
+-----------------------------------------------------+----------+--+----------+ 
 
 
7. Taxation 
+-----------------------------------------------------+----------+--+----------+ 
| Tax charge                                          |     2009 |  |     2008 | 
|                                                     |  GBP'000 |  |  GBP'000 | 
+-----------------------------------------------------+----------+--+----------+ 
| Current taxation:                                   |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| UK tax                                              |      250 |  |      525 | 
+-----------------------------------------------------+----------+--+----------+ 
| Overseas tax                                        |       19 |  |      423 | 
+-----------------------------------------------------+----------+--+----------+ 
| Adjustments in respect of prior years               |    (154) |  |    (278) | 
+-----------------------------------------------------+----------+--+----------+ 
| Total current tax                                   |      115 |  |      670 | 
+-----------------------------------------------------+----------+--+----------+ 
| Deferred taxation:                                  |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Origination and reversal of timing differences      |      204 |  |      532 | 
+-----------------------------------------------------+----------+--+----------+ 
| Adjustments in respect of prior years               |    (107) |  |    (165) | 
+-----------------------------------------------------+----------+--+----------+ 
| Total deferred tax                                  |       97 |  |      367 | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |      212 |  |    1,037 | 
+-----------------------------------------------------+----------+--+----------+ 
Reconciliation of tax charge for the year 
The corporation tax assessed for the year differs from the standard rate of 
corporation tax in the UK of 28% (2008: 29.7%). The differences are explained 
below: 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |     2009 |  |     2008 | 
|                                                     |  GBP'000 |  |  GBP'000 | 
+-----------------------------------------------------+----------+--+----------+ 
|                                                     |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Profit on ordinary activities before tax            |      471 |  |    4,394 | 
+-----------------------------------------------------+----------+--+----------+ 
| Tax on profit on ordinary activities before tax at  |      132 |  |    1,304 | 
| standard rate of 28% (2008: 29.7%)                  |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Effects of:                                         |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Expenses not deductible for tax purposes and timing |      155 |  |      231 | 
| differences                                         |          |  |          | 
+-----------------------------------------------------+----------+--+----------+ 
| Other timing differences                            |     (54) |  |     (72) | 
+-----------------------------------------------------+----------+--+----------+ 
| US profits taxed at higher rate                     |        7 |  |       82 | 
+-----------------------------------------------------+----------+--+----------+ 
| Goodwill reduction not qualifying for tax relief    |        - |  |       42 | 
+-----------------------------------------------------+----------+--+----------+ 
| Utilisation of tax losses                           |        - |  |    (146) | 
+-----------------------------------------------------+----------+--+----------+ 
| Release of deferred tax asset                       |      233 |  |        - | 
+-----------------------------------------------------+----------+--+----------+ 
| Rate change on deferred tax balance                 |        - |  |       39 |