Interim Results

RNS Number:6522B
TradingSports Exchange Systems PLC
05 August 2004


                       TRADINGSPORTS EXCHANGE SYSTEMS PLC

                       ("TradingSports" or "the Company")


Unaudited Interim results of TradingSports Exchange Systems plc for the six
months ended 30 June 2004


As stated in the various announcements made to the Stock Exchange and in the
circular sent to Shareholders dated 5 August 2004, trading for the six months to
30 June 2004 has been behind Directors' expectations.


As a result, the Board asked Roger Mitchell to undertake a full strategic review
of the Company's business, as the original business model was not performing as
had been expected.


The revised plan is currently being implemented, including the closure of the
London office and consolidation of activities in Glasgow, and having announced
the proposed subscription on 5 August 2004, the Company will have sufficient
funds to deliver its plan and the Board looks forward to the future with
confidence.


Andrew Tottenham
Chairman





For further information:

TradingSports Exchange Systems plc                       Tel: [phone]
Roger Mitchell, Chief Executive Officer





Consolidated Profit and Loss
Account
for the six month ended 30 June
2004
                                      Six months       Six months   Year ended
                                                    ended 30 June
                                                           2003
                                           ended                   31 December
                                    30 June 2004                          2003
                                     (Unaudited)    (Unaudited)      (Audited)
                                               #              #              #
Turnover                                 107,713         25,077        160,536
Cost of sales                             (8,305)       (12,884)       (42,819)
                                        ----------     ----------     ----------
Gross profit                              99,408         12,193        117,717
Administrative expenses               (1,208,390)      (355,325)    (1,735,631)
                                        ----------     ----------     ----------
Operating loss                        (1,108,982)      (343,132)    (1,617,914)
Reorganisation costs                    (399,057)      (510,579)      (485,239)
                                        ----------     ----------     ----------
Loss on ordinary activities before    (1,508,039)      (853,711)    (2,103,153)
interest and taxation
Interest receivable                       12,519          9,234         39,475
Interest payable                          (1,209)        (1,611)        (3,624)
                                        ----------     ----------     ----------
Loss on ordinary activities before    (1,496,729)      (846,088)    (2,067,302)
taxation
Tax on loss on ordinary                        -              -              -
activities                              ----------     ----------     ----------
Retained loss for the financial       (1,496,729)      (846,088)    (2,067,302)
period                                  ==========     ==========     ==========
Loss per ordinary share
Basic loss per share (pence)               (13.9)         (30.1)         (29.0)
                                        ==========     ==========     ==========



Balance Sheets as at 30 June          Unaudited       Unaudited        Audited
2004
                                   as at                  as at          as at

                                   30 June 2004    30 June 2003    31 December

                                                                          2003

                                              #               #              #
Fixed assets
Tangible assets                         964,675       1,212,824      1,059,375
Investments                                   -               -              -
                                       ----------      ----------     ----------
                                        964,675       1,212,824      1,059,375

Current assets
Debtors                                 188,359         239,353        286,309
Cash at bank                            527,565       2,692,250      1,233,062
                                       ----------      ----------     ----------
                                        715,924       2,931,603      1,519,371

Creditors: amounts falling due         (943,190)       (904,073)    (559, 607)
within one year                        ----------      ----------     ----------
Net current assets                     (227,266)      2,027,530        959,764

Net assets                              737,409       3,240,354      2,019,139
                                       ==========      ==========     ==========

Capital and reserves

Called up share capital               1,149,426       1,049,426      1,049,426
Share premium account                 3,152,015       3,037,016      3,037,015
Profit and loss account              (3,564,033)       (846,088)    (2,067,302)
                                       ----------      ----------     ----------
Shareholders' funds                     737,409       3,240,354      2,019,139
                                       ==========      ==========     ==========







Consolidated Cash Flows for the       Unaudited       Unaudited        Audited
six months ended 30 June 2004
                                   30 June 2004    30 June 2003    31 December
                                                                          2003
                                              #               #              #
Net cash outflow from operating        (909,680)       (815,883)    (2,283,458)
activities                             ----------      ----------     ----------

Returns on investment and
servicing of finance
Interest received                        12,519           9,234         39,475
Interest paid                            (1,209)         (1,611)        (3,624)
                                       ----------      ----------     ----------
Net cash inflow from returns on          11,310           7,623         35,851
investment and servicing of            ----------      ----------     ----------
finance

Capital expenditure
Payments to acquire tangible            (24,537)        (20,981)       (40,824)
fixed assets
Receipts from disposal of                 2,410               -              -
tangible fixed assets                  ----------      ----------     ----------
Net cash outflow from capital           (22,127)        (20,981)       (40,824)
expenditure

Acquisitions and disposals
Acquisition of subsidiary                     -              (1)            (1)
Disposal subsidiary                           -               -              1
Net cash acquired with                        -         136,651        136,651
subsidiary                             ----------      ----------     ----------
Net cash inflow from acquisitions             -         136,651        136,651
and disposals                          ----------      ----------     ----------

Net cash outflow before                (920,497)       (692,591)    (2,151,780)
financing

Financing
Issue of ordinary share capital         215,000       4,000,001      4,000,001
Cost of share issue                           -        (615,159)      (615,159)
                                       ----------      ----------     ----------
Net cash inflow from financing          215,000       3,384,842      3,384,842
                                       ----------      ----------     ----------

(Decrease)/increase in cash in         (705,497)      2,692,250      1,233,062
the period                             ==========      ==========     ==========







Notes to the Unaudited Interim Results


1. Basis of preparation of interim financial results


The interim results for the six months ended 30 June 2004 and six months ended
30 June 2003 are un-audited and do not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985. They have been drawn up using
accounting policies and principles consistent with those applied in the
preparation of the audited accounts for the year ended 31 December 2003. The
comparative information contained in the report for the year ended 31 December
2003 does not constitute the statutory accounts for that financial period. Those
accounts have been reported on by the Company's Auditors, Nexia Audit Limited,
and delivered to the Registrar of Companies. The report of the auditors was
unqualified.


2. Reorganisation costs

These costs are expected to arise entirely as the result of the strategic
reorganisation of the business as announced on 5 May 2004 and as explained in
the circular to shareholders dated 4 August 2004.


3. Earnings per ordinary share


Basic earnings per share figures have been calculated based upon 11,494,261
shares in issue, being the weighted average number of ordinary shares in issue
during the period.


4. Interim Report


This interim report was approved by the Directors on 4 August 2004. A copy of
the Interim Report will be posted to shareholders in the circular to
shareholders dated 5 August 2004.



5 August 2004







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