Interim Results

RNS Number:7854K
StartIT.com PLC
27 September 2001


27 September 2001

                               STARTIT.COM PLC

                         INTERIM REPORT AND ACCOUNTS

                     for the period ended 30th June 2001



  * Focus on existing portfolio rather than new investments
  * Majority of post tax loss of #380,470 based on writing off one
    investment
  * Strong control of operational costs
  * Net asset value per ordinary share 5.84p



FULL STATEMENT ATTACHED

Enquiries:
Phill Brown,
StartIT.com plc                                       01274 623 478
Peter Addison,
Insinger English Trust                                020 7377 6161
Shane Dolan/James Benjamin,
Biddicks                                              020 7448 1000



CHAIRMAN'S STATEMENT



Results

The unaudited results for the six months ended 30th June 2001 show that there
was a post tax loss of #380,470. (In the six months to 30th June 2000, the
post tax loss was #134,559). The value of net assets per share at 30th June
2001 was 5.84p per share (the value as at 31st December 2000 was 6.71p).



Market Conditions

There has been little market enthusiasm for the sector in which we operate
with investors understandably cautious after the volatility which we witnessed
last year. We, too, have been much more cautious about making new investments
and have concentrated most of our efforts on the existing portfolio. No new
investments have been made in the first six months of this year. As shown
below, we have had mixed fortunes with the existing portfolio but overall,
your board remains confident in its overall viability. There follows a summary
of that portfolio.



GLS Software Ltd

  * Investment made in October 1999, based in Bradford
  * #100,000 (#20k equity and #90k loan) invested for 45% of the equity.
  * Develops and markets booking and invoicing systems for the private
    healthcare market.

The company has not yet broken into profit on a sustained basis. Nevertheless,
its products are good and increasingly accepted by the market leaders in the
UK. There have also been some tentative enquiries from the USA, but GLS is
wary of what would probably be an expensive diversion at this stage,
preferring instead to consolidate its UK base.

As part of that consolidation, the new VetMaster product has now been launched
and the company is also considering potential offshoots from its core
products. One of these could offer opportunities in the NHS (in both dental
and GP markets) and is being considered for launch in late 2001.

There is little doubt that the company has not expanded as quickly as all
would have liked, but with solid products and an increasingly receptive
market, prospects still look very promising.



enterpriseAsia.com plc


  * Investment made in February 2000, based in Hong Kong

  * #500,000 (all equity - company floated on AIM)

  * Provides venture capital for start-up projects in Hong Kong and Mainland
    China

enterpriseAsia's market fortunes have reflected the general market sentiment
about the sector. This is disappointing in that they are focusing their
activities in an area of the world which offers tremendous potential. The
company has seven investments currently having just withdrawn (at little cost)
from one (ecAgent) where a combination of market conditions for virtual office
services and the loss of the Chief Executive raised doubts about the long term
potential. The other investments, however, are going to plan and again,
suggest good long term potential. Your board noted that Artisan plc (who were
substantial shareholders in enterpriseAsia.com) no longer hold any interest in
the company.



Metalsonline Ltd


  * Investment made in May 2000, based in Manchester

  * #256,000 (#150k equity, #106k loan) invested for 45% of the equity

  * E-commerce and direct sales in the UK metals market

The key aspect to report here is the development of the business into direct
sales. This is an exciting development and mirrors recent trends in the USA.
Metalsonline have introduced a streamlined service to give very competitive
quotes online, with delivery within three days. The UK metals market has
traditionally had a hierarchical supply structure. Metalsonline are targeting
small to medium sized businesses many of which, until now, have not enjoyed
the advantages which larger customers could demand. The company is confident
that it offers the most competitive prices in the market for purchases up to
20 kilos. Whilst this expansion is key to the company's long-term success, it
has not neglected its trade directory and e-quote service. In a recent survey
of e-commerce in UK manufacturing by the Chartered Institute of Purchasing and
Supply, Metalsonline was rated as the second most important web site in the
UK, beating easyJet.com into third place.



CFN (UK) Ltd


  * Investment made in July 2000, based in London

  * #300,000 (all equity) invested for 11% of the equity

  * Provides broker-related services, specialising in China and the Far East

The company is currently in the process of applying for a licence with the
SFA. This is slightly behind the original schedule, but not worryingly so.
Your directors were pleased to facilitate the recent acquisition of 30% of CFN
(UK) Ltd's equity by iAsia Technology Ltd, a Hong Kong based company listed on
the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange. The
transaction is subject to the approval of the Hong Kong Stock Exchange.

iAsia provides online trading services to brokers and other financial
institutions in the Far East and your directors believe that there could be
considerable synergy between these activities and those of CFN(UK) Ltd.



estakeholder Pensions Ltd


  * Investment made in August 2000, based in Surrey

  * #300,000 (#200k equity, #100k loan) for 45% of the equity

  * Online stakeholder pension broker

Your directors are very disappointed to report that in August 2001, a decision
was made to cease trading. Whilst it is undoubtedly true that the take up of
Stakeholder Pensions has been much slower than expected (despite the
government deadline of 8th October fast approaching), your directors believed
that the project could still be viable. Unfortunately, the majority
shareholder did not share this view and the decision was made, therefore, to
cease trading. Your company has certain rights under the debenture agreement,
including the appointment of a Receiver and this latter action has now taken
place.

For the time being, your directors judge it to be prudent to write off the
whole investment. However, some commissions are due to the company and,
looking longer term, your directors believe that some value may be delivered
via the intellectual property associated with the online pension
administration system. The UK pensions market is still in a state of change
and I believe that opportunities still exist for a project similar in nature
to that of our original investment.



Yorkshire Place Ltd


  * Investment made in September 2000, based in Boston USA

  * US $500,000 (all equity) for 37.5% of the equity

  * Online and software recruitment services in the insurance and financial
    services

In the light of the tragedy of the World Trade Centre, these are surely
difficult times for the US insurance industry and Yorkshire Place will be
affected along with many others. However, the company has a very clear cost
saving service to sell and prospects are still good. The company may need some
further financial support, albeit on a very small scale. We would be willing
to provide this provided that other shareholders (in the main, the management)
also provide their share. There is every indication that they will do so.



TVtoBe Ltd


  * Investment made in November 2000, based in London

  * Investment of #250,000 (#180k equity, #70k debenture)

  * Matches TV programme procedures with those who commission programmes

The key to success for this venture will be the commissioning of TV programmes
via the company's service. This is likely to be a slow process but there has
been a lot of interest in this service since the company launched in March of
this year and over 500 UK production companies have now registered.
Broadcasters too, have shown interest and these include the BBC, Channels 4
and 5, UK Horizons and Discovery (USA). The last example is indicative of the
interest being shown by some USA and European networks to use TVtoBE as a
conduit to UK production talent and facilities.



Dividend

The directors are not recommending the payment of a dividend for the period
under review.

Peter So
Chairman


Profit and Loss Account
                                           Unaudited    Unaudited

                                            6 months     6 months   Year ended
                                               ended        ended           31

                                        30 June 2001 30 June 2000     December
                                                                          2000
                                                   #            #
                                                                             #
Turnover                                       9,921        1,250        7,754
Administration costs                       (129,250)    (142,105)    (278,035)
                                          __________   __________   __________
Operating loss                             (119,329)    (140,855)    (270,281)
Provision for diminution in value of       (300,182)     (70,000)     (70,000)
investment
Interest received                             39,041       76,296      130,469
                                          __________   __________   __________
Loss for the period before taxation        (380,470)    (134,559)    (209,812)
Taxation                                           -            -            -
                                          __________   __________   __________
Loss for the period after taxation         (380,470)    (134,559)    (209,812)
                                        ============ ============ ============

Basic loss per share                          0.810p       0.292p       0.450p


Balance Sheet
                                                                          As at

                                                Unaudited as at     31 December

                                                   30 June 2001            2000

                                                              #               #
Intangible assets                                         4,580           4,580
Tangible fixed assets                                     4,912           5,600
Fixed asset investments                               1,768,830       1,712,555
                                                      1,778,322       1,722,735
Current assets
Debtors                                                  23,760          11,314
Bank                                                  1,044,227       1,416,685
                                                      1,067,987       1,427,999
Current liabilities                                   (103,222)        (27,177)
Net current assets                                      964,765       1,400,822
Total assets less current liabilities                 2,743,087       3,123,557
                                                    ===========     ===========
Called up share capital                                 470,000         470,000
Share premium account                                 2,894,991       2,894,991
Profit & loss account                                 (621,904)       (241,434)
                                                     __________      __________
Equity shareholders funds                             2,743,087       3,123,557
                                                  =============    ============
Net asset value per ordinary share
- Basic                                                   5.84p           6.71p
                                                  =============   =============

Cash Flow Statement
                                              Unaudited   Unaudited

                                               6 months    6 months  Year ended
                                                  ended       ended          31

                                                30 June     30 June    December
                                                   2001        2000        2000

                                                      #           #           #
Net Cash Outflow from Operating Activities
Operating loss                                (119,329)   (140,855)   (270,281)
Depreciation of tangible assets                     844         589       1,427
Increase in debtors                            (12,446)    (16,691)     (2,179)
Increase in creditors                             6,045      29,729      11,707
Net cash outflow from operation activities    (124,886)   (127,228)   (259,326)
Returns on Investments and Servicing of
Finance
Interest received                                39,041      73,500     130,469
Investing Activities
Payment to acquire fixed assets:
-Intangible assets                                          (4,580)     (4,580)
-Tangible assets                                  (156)     (2,008)     (5,185)
-Investments                                  (286,457)   (680,000) (1,642,555)
Advance of loan to associated company                 -    (40,000)    (40,000)
Net Cash Outflow before Financing             (372,458)   (780,316) (1,821,177)
Financing
Proceeds from issue of share capital and              -     887,500     887,500
share options
Cost of shares issue in period                        -    (45,700)    (45,700)
Increase/(decrease) in cash balances          (372,458)      61,484   (979,377)
                                            =========== =========== ===========
                                                                              
Reconciliation of net cash flow to movement
in funds
(Decrease)/Increase in cash in period         (372,458)      61,484   (979,377)
Movement in net funds in period               (372,458)      61,484   (979,377)
Opening net funds                             1,416,685   2,396,062   2,396,062
Closing net funds                             1,044,227   2,457,546   1,416,685
                                            =========== =========== ===========



Interim Announcement - Notes

 1. The information relating to the six month period ended 30 June 2001 is
    unaudited. The information relating to the year ended 31 December 2000 is
    extracted from the audited accounts of the Company which have been filed
    at Companies House and on which the auditors issued an unqualified
    opinion.
 2. The above financial information does not constitute statutory accounts
    within the meaning of Section 240 Companies Act 1985
 3. The above financial information was approved by the Board of Directors on
    27 September 2001.
 4. Loss per share is based on the number of shares in issue during the period
    ended 30 June 2001 of 47,000,000 (2000: 46,148,352).



INDEPENDENT REVIEW REPORT

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2001 set out on the previous pages, and we have
read the other information contained in the interim report for any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where changes,
and the reason for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30th June 2001.

PRIDIE BREWSTER

Carolyn House

29-30 Greville Street

London

EC1N 8RB