NAV update and board changes

RNS Number:2862O
Springboard PLC
04 August 2003


                                Springboard PLC

                                 NAV update and
                                 Board changes


On announcement of our interim results to 31 December 2002 we identified three
companies that were at a critical stage of their development and indicated that
we would keep shareholders informed as to the progress of these companies. We
are now in a position to do so and at the same time we are providing
shareholders with an update on our strategy.

One of the three companies has successfully defended litigation that could have
had a material adverse impact on part of its business. A second, Build Assured,
was unable to renegotiate with its major creditors and has been placed into
administration. We have so far realised over #300,000 after the year end from
this investment, which had a carrying value of #1.1m. It is still uncertain
whether the third business will be able to establish a profitable business model
and we shall make a partial provision against this investment at our year end.

Over the past 18 months we have made only 3 investments in new companies and are
seeking to balance the portfolio between early stage companies in the
development phase and growing profitable businesses. As our portfolio becomes
profitable and cash generative we may increase our shareholdings when we are
presented with opportunities to acquire holdings on appropriate terms. Whilst
seeing few interesting new investment opportunities at present, we will continue
to invest alongside the very best management teams who are completely committed
to new ventures that they have founded, where the funding requirement is modest,
because early profitability is anticipated and we are sole or institutional
investor.

Springboard is currently treated as a trading company, although in our Report
and Accounts for the period ended 30 June 2002 we adopted many of the reporting
aspects of an Investment Trust, including valuing our investments in accordance
with BVCA guidelines. We believe our shareholders should view Springboard as an
investment rather than a trading business since our investments are generally
held for the long term.

In due course it would be attractive for Springboard to convert into an
Investment Trust, which would give the company an ability to shelter capital
gains. However, there are no immediate advantages in doing so as we have
substantial unutilised tax losses and can therefore make substantial capital
gains without paying corporation tax. Our current structure has the advantage
over an Investment Trust in that we are able to distribute profits from capital
gains once we have distributable reserves. At the appropriate time, we intend to
restructure the balance sheet to bring forward our ability to pay dividends to
shareholders.

The results to 30 June 2003 will show a trading loss, due to declining
investment income and a decrease in asset value due to provisions against a
number of our portfolio companies. Although trading in the majority of our
investee companies has continued to improve, particularly over the last quarter,
we are unable to reflect these increases in our valuations, yet must provide for
those whose value has declined. The overall effect will be to reduce NAV at 30
June by around 15% on the December 2002 figure of 168p per share.

We are running the business according to the disciplines of an investment
company and have been hampered in our efforts to fund costs of current income by
declining interest rates. We will therefore be seeking to reduce our cost base
still further.

Following the AGM in December Brian North, Chairman, will retire as he
approaches his 70th birthday. Stephen Ross, currently CEO, will become part-time
exectuive Chairman, will remain on Springboard's investment committee and will
continue to hold certain other part time executive responsibilities. Reflecting
the investment focus of the business, Simon Smith, will move from Chief
Investment Officer to CEO. Simon has an outstanding track record as an investor
and has made a substantial impact on the portfolio since joining Springboard in
January 2001 and the board is delighted that he has accepted this role. These
appointments will be effective from 1 January 2004, will not involve any
compensation payments, and will reduce the company's payroll costs by #100,000
pa.

We believe the focus on the existing portfolio, the reduction in costs, and the
clear commitment towards a distribution policy all are attractive to our
shareholders and will allow us to be compared favourably with Investment Trusts
that specialise in venture capital.

For further information please contact:

Stephen Ross/ Simon Smith
Springboard PLC
tel: [phone]




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