Interim Results

RNS Number:2733J
MG Capital PLC
27 March 2003


                      MG Capital Plc Interim Report

                           Chairman's Statement


Against the background of the continuing global bear market, the six month
period to 31st December 2002 was again characterized by investor pessimism,
dwindling retail interest in equity investment, and growing economic
uncertainty.  Against this unforgiving background we nevertheless continued to
make progress during the period.



As noted in the Annual Report, we were involved in the establishment of New
Opportunities Investment Trust Plc. This new investment trust was launched on
25th September 2002, and we benefited from fees relating to the launch. A new
group subsidiary NOIT Services Limited also provides certain services to the
Trust for which it receives a monthly fee at the annual rate of 1.5 per cent of
the Trust's net asset value.



The Elite MoneyGuru Income with Growth Trust, to which our regulated subsidiary
MoneyGuru Limited is portfolio adviser, continued to perform very well, although
the negative investment background has clearly hindered the marketing of the
fund. At the end of December 2002 the fund had outperformed the FT All-Share
(total return) Index by 21.3% since its launch in February 2002, and was 10th
out of its UK Equity Income peer group of 80 funds.  Its good record has
continued since then.  On 28th February 2003 it completed its first year and at
that time was 6th in its peer group. At the moment the fund is small but once
investor sentiment shows signs of improvement we would hope to be able to market
it successfully.



A number of new products are under preparation, designed to address specific
investment needs.  None of them rely on any sudden rebound in investor sentiment
for a successful launch, and we hope to move ahead with the first one of them
shortly.



As well as securing the new revenues mentioned above we have taken steps to
further contain our costs, and since the last year end we have raised #300,000
of additional equity capital by an issue of new ordinary shares.


27 March 2003



                                   MG Capital Plc
                             Interim Results (Unaudited)
                     For the half year ended 31st December 2002.
                                                               #                  #
Profit and Loss Account
                                                           Unaudited          Audited
                                                         6 months to     12 months to
                                                          31/12/2002       30/06/2002

Turnover        Continued operations                         613,347          436,440
                Discontinued operations                                       359,961
                Total                                        613,347          796,401

Operating       Continued operations                         102,205       -1,753,403
Profit /
 (Loss)         Discontinued operations                                       -13,512
                Total                                        102,205       -1,766,915

Interest Payable                                            -133,223          -85,871
Interest Receivable                                              163            2,004

Loss on ordinary activities before taxation                  -30,855       -1,850,782

Tax on loss on ordinary activities                                 0                0

Loss on ordinary activities after taxation                   -30,855       -1,850,782

Non-equity dividend payable                                  -46,036          -91,819

Loss for the financial period                                -76,891       -1,942,601

Basic and diluted earnings per share                         -0.003p          -0.813p



Summarised Balance Sheets                                                     
                                                                                                   
                                                          31/12/2002    30/06/2002 
     Fixed Assets                                                                  
     Tangible at net book value                              141,039       172,371 
     Intangible at net book value                                  0         3,137 
     Purchased Goodwill less amortisation                         00               
                                                             141,039       175,508 
     Current Assets                                                                
     Debtors                                                 341,094        98,230 
     Cash                                                      3,059         2,667 
                                                             344,153       100,897 
                                                                                                   
     Creditors (falling due within 1 year)                  -728,675      -789,039 
                                                                                                   
     Net Current Liabilities                                -384,522      -688,142 
                                                                                                   
     Net Assets                                             -243,483      -512,634 
                                                                                                   
                                                                                                   
     Creditors (falling due after 1 year)                                          
     Convertible unsecured loan stock                        867,530       867,530 
     Subordinated loan                                        85,000        85,000 
     Total creditors falling due after 1 year                952,530       952,530 
                                                                                                   
     Capital and Reserves                                                          
     Called up share capital                               2,467,859     2,407,859 
     Share premium account                                 2,467,247     2,243,489 
     Profit and Loss account                              -6,318,510    -6,257,868 
     Preference dividend reserve                             187,391       141,356 
                                                          -1,196,013    -1,465,164 
                                                                                                   
     Total capital employed                                 -243,483      -512,634 
                                                                                                   
     Turnover - Geographical Analysis                                              
     United Kingdom                                          613,347       793,501 
     North America                                                 0             0               
     Australasia                                                   0         2,900 
                                                             613,347       796,401 
                                                                                                             
     Consolidated Cashflow Statement:                                                                 

     Net Inflow from operations                              -40,663    -1,453,204 
                                                                                                             
     Returns on investments and servicing of finance                                                  
     Interest paid                                          -105,121       -14,206 
     Interest received                                           163         2,004 
     Net Cash outflow from returns on investments and 
     servicing of finance                                   -104,958       -12,202 
                                                                                                             
     Taxation                                                      0          -710                                      
                                                                                             
     Capital expenditure and financial investment                                                     
     Payments to acquire tangible fixed assets                     0             0                                      
     Sale of trade investment                                      0             0                                      
     Proceeds from sale of tangible fixed assets                   0         6,353                                      
     Net cash outflow from capital expenditure and 
     financial investment                                          0         6,353 
                                                                                                             
     Financing                                                                                        
     Issue of share capital                                  175,000     1,124,411 
     Conversion / Issue of debt                                    0       -30,000                                      
     Expenses paid in connection with share issue                  0             0                                  
     Net cash inflow from financing                          175,000     1,094,411 
                                                                                                             
     (Reduction) / Increase in cash                           29,379      -365,352 
 




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