Final Results

RNS Number:8368F
Advance Visual Communications PLC
30 November 2004


                      ADVANCE VISUAL COMMUNICATIONS PLC

                              Preliminary results

                        For the year ended 30 June 2004


Chairman's statement

Background

During the past year, your Board has continued to assess various appropriate
opportunities to reverse a new business into the Company. The criteria which the
Board had set were to identify good quality profitable businesses, the logic
being that a reverse acquisition of such a business by AVC could prove to be an
attractive route to market for the target company and one which may allow your
Board to create value over the longer term for shareholders. This has not proved
possible, mainly because as stockmarket conditions steadily improved during the
year, many good quality businesses were able to pursue their own flotation plans
independently. Your Board was further hampered by the fact that the limited
amount of cash remaining made the undertaking of due diligence extremely
difficult. Consequently, your Board has subsequently held discussions with a
number of parties with a view to seeking a capital injection into the Company.

Advance Visual Communications SA in Geneva made a distribution of #22,527 to AVC
as a final distribution and the liquidation process for this Company has now
been completed.

Results

Revenues for the year ended 30 June 2004 were nil, which reflects the previous
close-down of the Group's remaining operating activities.

Losses before and after taxation for the period were #112,320 compared to a
#197,522 loss before and after taxation for the prior year comparable period.
Running costs have now been reduced to a minimum and there are no full time
employees in the Company. Ongoing operating costs relate principally to
maintaining the Company's trading facility on AIM. The Board consists of myself,
Graham Leask and Massoud Amiri, all non-executive Directors.

The cash balances at the end of the period were #87,999 of which #76,707 was
held by the Company in the UK. By 24 November 2004, these had reduced to #79,813
(amounting to 0.049p per share) and #70,275 (amounting to 0.044p per share)
respectively.

Prospects

I would draw your attention to the fact that the cash reserves are declining
steadily and that the Directors do not consider that the Company can continue
for a period of at least twelve months from the date of signing the accounts.
Accordingly, the accounts for the year ended 30 June 2004 are not presented on a
going concern basis and, in the absence of a capital injection proceeding in the
near future, your Board will need to consider placing the Company into voluntary
liquidation.

Barclay Douglas
Chairman of the Board


ADVANCE VISUAL COMMUNICATIONS PLC

Consolidated profit and loss account
Year ended 30 June 2004
                                                         Year ended 30 June         Year ended 30 June
                                                                       2004                       2003
                                                                          #                          #
Turnover

Continuing operations                                                     -                          -
Discontinued operations                                                   -                          -
                                                                          -                          -
Administrative expenses                                           (139,142)                  (244,357)


Operating loss

Continuing operations                                             (139,142)                  (145,021)
Discontinued operations                                                   -                   (99,336)

                                                                  (139,142)                  (244,357)

Profit/(loss) on disposal and liquidation of                         22,527                     40,070
subsidiaries

Interest receivable (bank interest)                                   4,295                      7,052

Interest payable and similar charges                                      -                      (287)

Loss on ordinary activities before taxation                       (112,320)                  (197,522)

Tax on loss on ordinary activities                                        -                          -

Loss on ordinary activities after taxation for the
financial year withdrawn from reserves                            (112,320)                  (197,522)

Basic loss per ordinary share                                        (0.1)p                     (0.1)p

Diluted loss per ordinary share                                      (0.1)p                     (0.1)p


ADVANCE VISUAL COMMUNICATIONS PLC

Consolidated balance sheet
30 June 2004
                                                                   30 June 2004           30 June 2003
                                                                              #                      #
Fixed assets
Tangible                                                                      -                      -

Current assets
Debtors                                                                       -                 15,175
Cash at bank and in hand                                                 87,999                200,886
                                                                         87,999                216,061
Creditors: amounts falling due within one year                         (31,492)               (47,234)

Net current assets                                                       56,507                168,827

Total assets less current liabilities                                    56,507                168,827

Capital and reserves

Called up share capital                                               1,615,755              1,615,755
Share premium account                                                 6,634,893              6,634,893
Merger reserve                                                        1,645,924              1,645,924
Profit and loss account                                             (9,840,065)            (9,727,745)

Total equity shareholders' funds                                         56,507                168,827



ADVANCE VISUAL COMMUNICATIONS PLC

Consolidated cash flow statement
Year ended 30 June 2004
                                                                    Year ended               Year ended 
                                                                  30 June 2004             30 June 2003
                                                                             #                        #
Net cash outflow in respect of operating activities                  (139,709)                (256,734)
Returns on investments and servicing of finance
Interest received                                                        4,295                    7,052
Interest and interest element of finance lease rentals                       -                    (287)

Net cash inflow from returns on investments and servicing
of finance                                                               4,295                    6,765

Acquisitions and disposals                                              22,527                   40,070

Net cash inflow from acquisitions and disposals                         22,527                   40,070

Decrease in cash                                                     (112,887)                (209,899)



Statement of total recognised gains and losses
Year ended 30 June 2004

                                                                             Year                     Year
                                                               ended 30 June 2004       ended 30 June 2003
                                                                                #                        #
Loss for the financial year and total recognised gains and
losses relating to the year                                             (112,320)                (197,522)


Notes on the Preliminary Results
     
1.   The financial information incorporated in this announcement does not
     constitute full statutory accounts within the meaning of the Companies Act
     1985 but is derived from those accounts. Full accounts for the year ended 
     30 June 2003 upon which Deloitte & Touche LLP have given an unqualified 
     audit report have been filed with the Registrar of Companies. Full accounts 
     for the year ended 30 June 2004, prepared on the basis that the Company is 
     no longer a going concern due to the lack of availability of post year-end
     funding and financial support, upon which MRI Moores Rowland LLP have given
     an unqualified audit report will be filed with the Registrar of Companies 
     in due course. Neither report contained statements under Section 237(2) or 
     (3) of the Companies Act 1985.

2.   The calculation of basic loss per share is based on the loss attributable 
     to ordinary shareholders divided by the weighted average number of shares 
     in issue during the period of 161,575,486 (2003: 161,575,486). FRS 14 
     requires presentation of diluted earnings per share when a company could be 
     called upon to issue shares that would decrease net profit or increase net 
     loss per share. For a loss making company with outstanding share options, 
     net loss per share would only increase by the exercise of out-of-the-money 
     options. Since it is inappropriate to assume that the option holders would 
     act irrationally and there are no other diluting future share issues for 
     the current year, diluted loss per share equals basic loss per share.

3.   Reconciliation of operating loss to net cash outflow from operating
     activities:

                                                                Year ended 30 June    Year ended 30 June
                                                                              2004                  2003
                                                                                 #                     #

                                                                                                       
Operating loss                                                           (139,142)             (244,357)

Loss before interest and tax                                             (139,142)             (244,357)
Depreciation                                                                     -                   858
Decrease/(increase) in debtors                                              15,175               (2,250)
Decrease in creditors                                                     (15,742)              (10,985)

Net cash outflow from operating activities                               (139,709)             (256,734)

     
4.   Reconciliation of movements in equity shareholders' funds:

                                                                Year ended 30 June    Year ended 30 June
                                                                              2004                  2003
                                                                                 #                     #

Group
Loss for the financial year                                             (112,320)              (197,522)
Issue of shares                                                                 -                      -

Net reductions in equity shareholders' funds                            (112,320)              (197,522)
Opening equity shareholders' funds                                        168,827                366,349

Closing equity shareholders' funds                                         56,507                168,827
     
5.   The Registered Office of the Company is 3 Sheldon Square, London W2 6PS.  
     Copies of the Annual Report and Accounts may be obtained from the Company
     Secretary at this address.
     
6.   This announcement has been prepared on the basis of the accounting
     policies as stated in the previous years' financial statements.


Enquiries:

Advance Visual Communications plc:
Graham Leask                        01628 552 000

Shore Capital:
Alex Borrelli                       020 7408 4090


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