Interim Results

RNS Number:4898M
CYC Holdings PLC
19 June 2003

19 June 2003



CYC Holdings plc

Interim Results to 30 April 2003.

Chairman's Statement

I have pleasure in announcing the Group's unaudited interim financial statements
for the six months ended 30 April 2003.

The preceding six months have seen considerable fluctuations on the major stock
markets, falls being recorded in the early period, followed by a gradual and as
yet uncertain recovery, being frequently referred to as "the "Baghdad bounce".
Chinese equity markets largely tracked western exchanges and the uncertainty
surrounding the commencement of hostilities in the Gulf caused investors to
extend their already cautious position to that of reducing their exposures. This
led to further declines in values. However once the engagement in the war
against Saddam Hussein took place, at least one uncertainty was removed from
investors' minds.

Given this backdrop, market sentiment was reflected by a downturn in general
commercial activity in China. Investment decisions were postponed until there
was less uncertainty on the world stage. Just when things were showing signs of
improvement, SARS emerged. The continuing economic impact on China has everyone
guessing. Economists and pundits alike are forecasting a reduction of GNP for
this year between 2 - 4%, a wide-ranging guess. No one knows the short-term
effect let alone what may happen in the longer term. Certain sectors, namely
manufacturing and agriculture have been largely unaffected. However a slowdown
in retailing and Foreign Direct Investment decisions have been detected.
Certainly, travel restrictions published by the WHO have severely hampered
foreign business travel and tourism, leading to delays and possible cancellation
of projects. Domestic travel restrictions were an even more effective brake on
commercial activity. With the sharp decline in new cases there is evidence that
the disease is being brought under control. It is hoped that business life will
return to normal in the next 3 months.

Your company like all others with Chinese activities has been affected by this
situation. So far the consequence has been confined to time induced delays not
cancellation. We have a number of projects under development, of which two are
approaching completion. One is being scheduled for flotation; the other is in
the final stages of due diligence investigation. With the anticipated lifting of
travel restrictions to Beijing in the next two months, these projects should be
advanced and the benefits of your company's endeavours should be seen coming
through in the second half of the year. In the meantime, to mitigate overheads,
the Directors have been actively pursuing revenue-generating consultancy related
to our core activities. One such strategy is the rehabilitation of UK shell
companies in anticipation that they can subsequently be used as reverse
take-over vehicles for Chinese businesses. Two UK shell companies are in the
final stages of restoration and your company is scheduled to receive accrued
fees in the second half. In the meantime, strenuous efforts have been made to
husband the original cash raised on flotation. The strength of company's balance
sheet is evidenced by the preservation of over #1.2 million of capital and
reserves.

It could be said that world events have not been kind to us, but this is largely
the same for all companies in our fields of activity. Your company's pursuit of
the corporate development of Chinese businesses is, by necessity, a long-term
process, especially in China. In reality it should be recognised that having an
extended developmental time frame, political, economic and now health induced
turbulence would be bound to affect us.

Yours sincerely,

The Viscount Torrington

For further information please contact  Ken Rees at Winningtons on 0117 317 9477
or 07802 466567


                         CONSOLIDATED PROFIT AND LOSS ACCOUNT   
                       for the six months ended 30 April 2003  
                                                                                                        6 months ended
                                                                                                        30 April 2002 
                                                                            #                                       # 
                                                                                                                      
  OTHER OPERATING INCOME                                              14,635                                  43,289  

  OPERATING EXPENSES                                                (140,343)                               (144,608) 

  OPERATING LOSS                                                    (125,708)                               (101,319) 

  Interest payable                                                         -                                      (4) 
                                                                                                                      
  LOSS ON ORDINARY ACTIVITIES                                                                                         
                    BEFORE TAXATION                                 (125,708)                               (101,323) 
                                                                                                                      
  RETAINED LOSS FOR THE PERIOD                                      (125,708)                               (101,323) 

  LOSSES BROUGHT FORWARD                                          (2,523,058)                             (2,264,133) 
                                                                                                                      
  LOSSES CARRIED FORWARD                                          (2,648,766)                             (2,365,456) 
                                                                                                                      
  EARNINGS PER SHARE                                                 (0.04 p)                                (0.03 p) 

                                                                                                                      
  The loss for the period has been calculated on the historical cost basis and 
  contains all the gains and losses recognised in the period.                                                           
                               
                                                                                                                      
                   CONSOLIDATED BALANCE SHEET                                                                           
                        at 30 April 2003                                                                                
                                                                                                                      
                                                                                                        30 April 2002 
                                                         #                  #                  #                    # 
  FIXED ASSETS                                                                                                        
  Intangible assets                                     -                                     -                       
  Tangible assets                                   1,460                                 1,156                       
                                                                                                                      
                                                                       1,460                                   1,156  
                                                                                                                      
  CURRENT ASSETS                                                                                                      
  Investments                                      86,727                               530,624                       
  Debtors                                          51,844                                24,564                       
  Cash at bank and in hand                      1,114,837                               972,680                       
                                                                                                                      
                                                1,253,408                             1,527,868                       
  CREDITORS                                                                                                           
  Amounts falling due within one year             (33,507)                              (24,353)                      
                                                                                                                      
  NET CURRENT ASSETS                                               1,219,901                               1,503,515  
                                                                                                                      
  NET ASSETS                                                      #1,221,361                              #1,504,671  
                                                                                                                      
  CAPITAL AND RESERVES                                                                                                
  Called-up share capital                                          3,080,000                               3,080,000  
  Share premium account                                              790,127                                 790,127  
  Profit and loss account                                         (2,648,766)                             (2,365,456) 
                                                                                                                      
                                                                  #1,221,361                              #1,504,671  


                                                                                                                      
 
                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IR UWAVROKRNAAR