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1 June 2009

Pilat Media Global PLC

('Pilat Media', the 'Group' or the 'Company')

Results for the three months ended 31 March 2009

Pilat Media Global plc (AIM:PGB), the London-based supplier of business management software to the media industry around the world, today announces its results for the three months ended 31 March 2009 ('the Quarter' or 'Q1').

Highlights:

	Q1 revenues £4.10 million (Q1 2008: £4.26 million), in line with expectations
	Q1 operational losses before amortisation £145,000 (Q1 2008: loss £117,000)
	Three new contracts already signed this year, two in the USA
	Expansion of IBMS into a new market: out-of-home video advertising
	Large rollouts in the USA continue and enable cash collections on achieving milestones

Post period

Lapse of potential merger with SintecMedia Ltd; Pilat Management remains confident of the Company's prospects as a continuing independent business

The lapse of the SintecMedia offer was disappointing since the management could see the benefit of consolidation in the industry but this offer was an opportunity, not a necessity. The management views its future as an independent company with confidence, while always mindful that other opportunities may arise in the future for such deals to be explored.'

For further information:

Pilat Media Global plc
Avi Engel, Chief Executive Officer Martin Blair, Chief Financial Officer	Tel: +44 (0) 20 8782 0700
aengel@pilatmedia.com	www.pilatmedia.com

Shore Capital
Dru Danford / Stephane Auton	Tel: +44 (0) 20 7408 4090
drudanford@shorecap.co.uk	www.shorecap.co.uk

Media enquiries: 

Abchurch
Chris Lane / Jack Ballantyne	Tel: +44 (0) 20 7398 7714
	www.abchurch-group.com

  Chairman's and CEO's Statement

Pilat Media Global plc is pleased to announce its results for the three months ended 31 March 2009.  

The offer our shareholders received to sell their shares to SintecMedia Ltd ('Sintec') did not attract sufficient acceptance and therefore the merger that was contemplated will not materialise as intended.  While there was good logic behind the merger, we feel equipped to continue without it since, as stated, it was borne out of opportunity, not necessity.   The message from the majority of our shareholders was that they place a much higher value on the company and its future opportunities than the Offer from Sintec.  We are glad that we have finality and can continue to be fully focused on our business, pleasing our clients and creating value for our shareholders. 

Despite the distraction of the merger process we have continued to move the business forward.  Within the first few months of this year we signed three new contracts:

The first contract to be signed was with a major US based cable television network where IBMS will manage and integrate content acquisition, channel scheduling, on-demand services and media preparations. 

We subsequently signed a contract with a large broadcaster in Thailand. The initial phase is a paid for business review and solution design based on IBMS and we expect this to lead to a contract for the full implementation of IBMS, which will help us to build our presence in South East Asia where, to date, we have had limited penetration.

In the last few weeks we announced the signing of another contract in the US, this time with a major US out-of-home advertising company. This contract is particularly significant as this is a new application area for IBMS. By being selected to support a business outside the TV advertising IBMS proves that it is the most flexible software product of its kind. The out-of-home video advertising market is a rapidly growing billion dollar industry that includes video networks for stores, restaurants, airports and cinemas and a successful implementation for the new client may pave the way for more similar sales and a market expansion for Pilat Media. 

Revenues in Q1 were only 4% lower than those for the corresponding quarter last year. However, in Q1 2008, within General and administrative costs there was a significant exchange gain of £108,000 compared to only a small gain of £25,000 in Q1 2009.   In addition we incurred one-off legal and professional fees of £140,000 in the quarter relating to the Sintec offer which has caused an operating loss in the quarter. Amortisation costs are also higher as we started to amortise the technology upgrade from Q3 last year.  

We continue to make progress on a number of our implementation projects and during the quarter there were a number of 'go-lives' at strategic clients such as Media General and Fox in the USA and Net Med Hellas in Greece.  For Media General and Fox these go-lives are part of a planned roll out across all their stations and are important milestones as they will trigger additional licence fee payments.

In our year end report we reported that there was £2.1 million (March 2009 £2.7m) outstanding from a customer in the US and we are pleased to report that this customer has now made the first payment of £1.2 million of this debt and we expect the debt to be recovered in full shortly. This has obviously improved our cash position after the quarter end and we expect cash balances to continue to increase as older debts are collected and accrued income is converted to cash as various project milestones are reached.

Results

Q1 revenues of £4,103,000 (Q1 2008: £4,255,000) were slightly lower than the equivalent period last year and in line with our expectations.  These Q1 revenues included £2,540,000 (Q1 2008: £2,608,000) for implementation services (customisation, integration, training and consulting fees), £387,000 (Q1 2008: £767,000) for the proportion of IBMS licences recognised during the Quarter and £1,176,000 (Q1 2008: £880,000) of recurring maintenance and support fees from 'live' clients. The 33% growth in maintenance revenue is a reflection of the increased number of channels and stations that are using our software in live production environment and fully compensates for the decrease in license revenues. Maintenance revenue will continue to increase as existing projects progress and new clients join.    

Gross profit in Q1 was £1,995,000 (Q1 2008: £1,621,000), which represents a margin of 48.6% compared to 38% in the equivalent period last year, which was exceptionally low. The margins in Q1 this year remain in line with those achieved for the twelve months of 2008.  

The Company continues to focus substantial efforts on research and development in response to customer and market needs. Most of the new features we add leverage the .Net technology we upgraded IBMS to.  For example, we have recently incorporated an improved work flow management engine into our product and enhanced tools to make future customisation work easier.  The level of research and development expenditure in Q1 this year was higher than the corresponding quarter last year but in line with the figure for the twelve months of 2008.  No research and development expenditure was capitalised in Q1 (2008 Q1: £956,000).

The small increase in sales and marketing costs in Q1 2009 at £360,000 (Q1: 2008 £323,000) reflected the increased sales effort as well as the impact of a weaker sterling (compared to Q1 2008) for those marketing costs denominated in foreign currencies.  

General and administrative costs at £1,029,000 (Q1: 2008 £821,000) include an exchange gain of £25,000 compared to an exchange gain of £118,000 in the corresponding quarter last year. In addition the company has incurred one-off legal costs totalling approximately £140,000 relating to the Sintec offer.  If an adjustment is made for the exchange rate differences and the exceptional legal costs then the general and administrative costs are in line with Q1 2008.

The amortisation for Q1 2009 includes an additional £210,000 for the amortisation of the technology upgrade that was completed in Q3 last year.  

In 2006 the Company entered into foreign exchange hedges to protect against the possible devaluation in sterling terms of our future US Dollar receipts. These hedges continue to show losses due to the weakness of sterling.

The exchange loss and additional amortisation in the quarter has resulted in loss in the quarter otherwise the result for the quarter would have been similar to the corresponding quarter last year.

Balance Sheet

As mentioned earlier there was no further capitalisation of development costs in Q1 2009 and amortisation of intangibles has increased from Q1 2008 as a result of the completion of the development work on the technology upgrade in Q3 2008.

Overall receivables at the end of Q1 2009 remain at the same level as the 2008 year end at £15.2 m however there has been a small decrease in trade receivables and a small increase in accrued income as work starts to intensify on the contract signed at the end of last year for Showtime Australia and the new contract signed with the USA cable network. Trade receivables at the end of the quarter included £2.7 million due from a customer in the United States and we are pleased to report that this customer has recently paid £1.2 million of this debt. We expect to receive further payments from the customer over the next few weeks.

The liability for derivative financial instruments fell as a result of the expiry of some hedges and a strengthening of sterling compared to the 2008 year end position. Trade and other payables increased against 31 December 2008 as the level of invoicing of future maintenance revenue was higher and these will be taken to revenue in the periods the maintenance relates to.

Cash flow

The cash at the end of Q1 2009 was similar to that at the end of 2008 and since the quarter end has continued to increase as payments are made by our customers of their older debts, particularly the US customer referred to above.

Outlook

The potential merger with Sintec is now behind us and we are satisfied that we have not suffered any erosion in our market position as a result of the discontinued transaction. We are encouraged by the loyalty of our customers and the expression of trust in us as an independent provider. 

We are still in challenging times and the pipeline of new contracts is still relatively low although we are starting to see some new opportunities arising.  Nevertheless, our existing contracts, which include the three new contracts already signed this year, and over fifty older ones, should bring revenues for this year to slightly exceed last year's. Based on the current pipeline, we hope to win one more contract  later in the year to achieve even higher revenue growth by the year end. 

We will continue to control and reduce costs to also show improved operating profitability.  Cash flow should continue to be positive as the older implementation projects are completed and milestone payments made.  Given these challenges and opportunities, we look to the future with confidence.  

Michael Rosenberg Chairman 1 June 2009

Avi Engel Chief Executive Officer 1 June 2009

  CONSOLIDATED INCOME STATEMENT

	Note	Unaudited 3 months to  31 March	Unaudited 3 months to 31 March	Audited Year ended 31 December
		2009	2008	2008
		£	£	£
REVENUE	4	4,103,116	4,255,088	17,830,884
Cost of sales		(2,108,108)	(2,633,772)	(9,162,092)
GROSS PROFIT		1,995,008	1,621,316	8,668,792
Other operating expenses:
Research and development		(750,817)	(594,590)	(2,974,049)
Selling and marketing		(360,450)	(322,793)	(1,656,084)
General and administrative		(1,028,723)	(821,229)	(2,637,245)
Operating (loss)/profit before amortisation and impairment of intangible assets		(144,982)	(117,296)	1,401,414
Amortisation of intangible assets		(280,535)	(79,269)	(666,510)
Impairment of intangible assets		-	-	(691,119)
(LOSS) / PROFIT FROM OPERATIONS		(425,517)	(196,565)	43,785
Fair value adjustment - financial instruments		23,420	200,307	(2,011,431)
Foreign exchange (loss) / gain on hedging instruments		(387,946)	10,745	(290,259)
Finance Income		2,753	18,177	50,854
Finance costs		(18,561)	(23,195)	(149,048)
(LOSS)/PROFIT BEFORE TAX		(805,851)	9,469	(2,356,099)
Income tax credit/(expense)		182,474	(2,758)	606,516
(LOSS)/PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		(623,377)	6,711	(1,749,583)
(LOSS) / EARNINGS PER SHARE
Basic	3	(1.05p)	0.02p	(2.95p)
Diluted	3	(1.05p)	0.02p	(2.95p)

Note:  The profit from operations for the period arises from the Group's continuing operations

  CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Unaudited 3 months to  31 March	Unaudited 3 months to 31 March	Audited Year ended 31 December
		2009	2008	2008
		£	£	£
(LOSS)/PROFIT FOR THE PERIOD		(623,377)	6,711	(1,749,583)
OTHER COMPREHENSIVE INCOME:
Gains / (losses) recognised directly to equity:
Fair value movements on cash flow hedges		226,000	(112,374)	(1,563,553)
Exchange translation differences on foreign operations		6,818	9,593	283,413
Deferred tax on fair value movements on cash flow hedges		(53,507)	31,465	437,794
Other comprehensive income for the year, net of tax		179,311	(71,316)	(842,346)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		(444,066)	(64,605)	(2,591,929)

. 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
	Share Capital	Share Premium Account	Capital  Redemption  Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation  Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2009	2,960,517	9,046,892	50,000	(853,955)	960,483	3,108,000	400,063	(2,181,000)	2,203,143	15,694,143
Loss after tax									(623,377)	(623,377)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	226,000	-	226,000
Exchange translation differences on foreign operations	-	-	-	-	-	-	6,818	-	-	6,818
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	(53,507)	(53,507)
Total comprehensive income for the period	-	-	-	-	-	-	6,818	226,000	(676,884)	(444,066)
Share option charge for the period	-	-	-	-	909	-	-	-	-	909
Total changes in equity	-	-	-	-	909	-	6,818	226,000	(676,884)	(443,157)
Balance at 31 March 2009	2,960,517	9,046,892	50,000	(853,955)	961,392	3,108,000	406,881	(1,955,000)	1,526,259	15,250,986

  

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (AUDITED)
	Share Capital	Share Premium Account	Capital Redemption Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2008	2,960,117	9,045,412	50,000	(853,955)	639,916	3,108,000	116,650	(444,562)	3,772,042	18,393,620
Loss after tax	-	-	-	-	-	-	-	-	(1,749,583)	(1,749,583)
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	(1,563,553)		(1,563,553)
Exchange translation differences on foreign operations	-	-	-	-	-	-	283,413	-		283,413
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	437,794	437,794
Total comprehensive income for the period	-	-	-	-	-	-	283,413	(1,563,553)	(1,311,789)	(2,591,929)
Current tax adjustment re share options	-	-	-	-	-	-	-	-	250	250
Deferred tax movement	-	-	-	-	-	-	-	-	(145,664)	(145,664)
Re-categorisation of deferred tax	-	-	-	-	445,639	-	-	(172,885)	(272,754)	-
Transfer on share options lapsed					(161,058)				161,058	-
Share option charge for the period	-	-	-	-	35,986	-	-	-	-	35,986
Proceeds of issue of shares	400	1,480	-	-	-	-	-	-	-	1,880
Total changes in equity	400	1,480	-	-	320,567	-	283,413	(1,736,438)	(1,568,899)	(2,699,477)
Balance at 31 December 2008	2,960,517	9,046,892	50,000	(853,955)	960,483	3,108,000	400,063	(2,181,000)	2,203,143	15,694,143

  

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
	Share Capital	Share Premium Account	Capital Redemption Reserve	Merger Reserve	Share Option Reserve	Other Reserve	Cumulative Translation Reserve	Cash Flow Hedge Reserve	Retained Earnings	Total
	£	£	£	£	£	£	£	£	£	£
Attributable to equity holders of the company:
Balance at 1 January 2008	2,960,117	9,045,412	50,000	(853,955)	639,916	3,108,000	116,650	(444,562)	3,772,042	18,393,620
Profit after tax	-	-	-	-	-	-	-	-	6,711	6,711
Fair value movements on cash flow hedges	-	-	-	-	-	-	-	(112,374)		(112,374)
Exchange translation differences on foreign operations	-	-	-	-	-	-	9,593	-	-	9,593
Deferred tax on fair value movements on cash flow hedges	-	-	-	-	-	-	-	-	31,465	31,465
Total comprehensive income for the period	-	-	-	-	-	-	9,593	(112,374)	38,176	(64,605)
Re-categorisation of deferred tax	-	-	-	-	445,639	-	-	(172,885)	(272,754)	-
Share option charge for the period	-	-	-	-	15,721	-	-	-	-	15,721
Total changes in equity	-	-	-	-	461,360	-	9,593	(285,259)	(234,578)	(48,884)
Balance at 31 March 2008	2,960,117	9,045,412	50,000	(853,955)	1,101,276	3,108,000	126,243	(729,821)	3,537,464	18,344,736

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Unaudited 31 March	Unaudited 31 March	Audited   31 December
ASSETS	Note	2009 £	2008  £	2008 £
NON-CURRENT ASSETS
Intangible assets	6	6,824,021	7,956,795	7,104,556
Property, plant and equipment		690,556	719,482	739,578
		7,514,577	8,676,277	7,844,134
CURRENT ASSETS
Trade receivables	7	6,338,821	5,397,994	6,703,936
Other receivables	7	8,907,894	10,581,621	8,531,554
Taxation		509,411	77,705	337,525
Cash and cash equivalents		33,675	-	53,882
		15,789,801	16,057,320	15,626,897
TOTAL ASSETS		23,304,378	24,733,597	23,471,031
CAPITAL AND RESERVES
Called up share capital	9	2,960,517	2,960,117	2,960,517
Share premium account	9	9,046,892	9,045,412	9,046,892
Capital redemption reserve		50,000	50,000	50,000
Merger reserve		(853,955)	(853,955)	(853,955)
Share option reserve		961,392	1,101,276	960,483
Other reserve		3,108,000	3,108,000	3,108,000
Cumulative translation reserve		406,881	126,243	400,063
Cash flow hedge reserve		(1,955,000)	(729,821)	(2,181,000)
Retained earnings		1,526,259	3,537,464	2,203,143
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY		15,250,986	18,344,736	15,694,143
LIABILITIES
NON-CURRENT LIABILITIES
Deferred taxation		158,334	948,446	102,365
Derivative financial instruments	8	4,286,136	872,637	4,535,557
		4,444,470	1,821,083	4,637,922
CURRENT LIABILITIES
Cash and cash equivalents		-	533,448	-
Trade and other payables		3,608,922	4,034,330	3,138,966
		3,608,922	4,567,778	3,138,966
TOTAL LIABILITIES		8,053,392	6,388,861	7,776,888
SHAREHOLDERS' EQUITY AND LIABILITIES		23,304,378	24,733,597	23,471,031

CONSOLIDATED STATEMENT OF CASH FLOWS

		Unaudited 3 months to  31 March	Unaudited 3 months to 31 March	Audited Year ended 31 December
	Notes	2009 £	2008 £	2008 £
Net cash inflow / (outflow) from operations	a	70,971	(493,556)	(67,847)
Income taxes (paid) / received		(13,128)	(12,821)	147,116
Interest paid		(18,561)	(23,195)	(149,048)
Interest received		2,753	18,177	50,854
Net cash from operating activities		42,035	(511,395)	(18,925)
Cash flow from investing activities	b	(52,861)	(768,029)	(1,525,377)
Cash flow from financing activities	c	-	-	1,880
Net change in cash and cash equivalents		(10,826)	(1,279,424)	(1,542,422)
Cash and cash equivalents at beginning of period		53,882	720,534	720,534
Exchange gains on cash and bank overdraft		(9,381)	25,442	875,770
Cash and cash equivalents at end of period		33,675	(533,448)	53,882

  

APPENDICES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

			Unaudited 3 months to  31 March	Unaudited 3 months to 31 March	Audited Year ended 31 December
			2009 £	2008 £	2008 £
		Reconciliation of (loss)/profit before tax to net cash (outflow) / inflow from operating activities
a		(Loss) / Profit before tax	(805,851)	9,469	(2,356,099)
		Finance income	(2,753)	(18,177)	(50,854)
		Interest paid	18,561	23,195	149,048
		Depreciation and amortisation	366,398	171,970	1,072,797
		Impairment of intangible asset	-	-	691,119
		Share option expense	908	15,721	35,986
		(Gains)/Losses on derivative instruments	(23,420)	(200,307)	2,011,431
		Increase in trade and other receivables	(11,225)	(224,437)	(648,379)
		Increase/(Decrease) in trade and other payables	528,353	(270,990)	(972,896)
		Net cash inflow/(outflow) from operating activities	70,971	(493,556)	(67,847)
		Cash flow from investing activities
b	Purchase of property, plant and equipment		(52,861)	(240,472)	(571,702)
	Capitalised software development costs		-	(530,008)	(956,127)
	Sale of property, plant and equipment		-	2,451	2,452
	Net cash outflow from investing activities		(52,861)	(768,029)	(1,525,377)

	Cash flow from financing activities
C	Proceeds from the issue of share capital	-	-	1,880
	Net cash generated from financing activities	-	-	1,880

  1. General Information

    The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of its registered office is 19th Floor, Wembley Point, 1 Harrow Road, Wembley Point, London HA9 6DE. Copies of this statement are available from this address and from the Company's website www.pilatmedia.com.

    The Company is quoted on the AIM (Alternative Investment Market) of the London Stock Exchange and is co-listed on the Tel Aviv Stock Exchange.

    This condensed consolidated interim financial information was approved for issue on 31 May 2009.

2. Basis of preparation

This condensed consolidated interim financial information for the three months ended 31 March 2009 has been prepared in accordance with IAS 34, 'interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU (IFRS).

    Except as described below, the current and comparative periods to March have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2008 and are also consistent with those which will be adopted in the 2009 financial statements. Comparative figures for the year ended 31 December 2008 have been extracted from the statutory financial statements for that period which carried an unqualified audit report, contained an emphasis of matter relating to trade receivables as discussed in Note 7, did not contain a statement under section 237(2) or (3) of the Companies Act and have yet to be filed with the Registrar of Companies.

    The Financial Information contained in this Report does not constitute statutory accounts as defined by section 240 of the Companies Act 1985.

BASIS OF NEW AND REVISED STANDARDS

At the date of authorisation of these financial statements, the following Standards and interpretations that have been applied in these financial statements. 

IFRS 2	Share based Payment - Amendments relating to vesting conditions and cancellations (endorsed)
IFRS 8	Operating Segments (endorsed)
IAS 1	Presentation of Financial Statements - Revised (endorsed)
IAS 1	Presentation of Financial Statements - Amendments relating to Puttable Financial Instruments and obligations arising on liquidation (endorsed)
IAS 32	Financial Instruments Presentation - Amendments relating to Puttable Financial Instruments and obligations arising on liquidation (endorsed)
IAS 34	Embedded Derivatives
IFRIC 9	Embedded Derivatives
IFRIC 13	Customer Loyalty Programmes (endorsed)
IFRIC 15	Agreements for the construction of Real Estate Assets
IFRIC 16	Hedges of Net Investment in a Foreign Operation

The directors consider that the adoption of these Standards and Interpretations as appropriate has had no material impact on the financial statements of the Group, except relating to segment disclosures, as discussed in note 4.

3. Loss / earnings per share

Basic and diluted loss earnings per share is based on the (loss) /profit after tax and on the following weighted average number of shares in issue.

	Shares in Issue
	31 March 2009	31 March 2008	31 December 2008
Basic	59,210,331	59,202,331	59,208,052
Adjustments:
Issue of outstanding share options	-	968,409	-
Diluted	59,210,331	60,170,740	59,208,052

4. Segmental Analysis - Primary Sector

During the year the Company has adopted IFRS 8 which is effective for annual reporting periods beginning on or after 1 January 2009 and requires the Company should disclose segmental information based on financial data used by Chief Operating Officers whom are responsible for making financial decisions. 

The Directors consider there to be only one segment under IFRS 8, and have disclosed the additional information to be consistent with prior periods 

a) Analysis of group results:

3 Months to March 2009 (unaudited)

3 months to March 2008 (unaudited)

12 months to December2008 (audited)

		IBMS	Media Pro	Total	IBMS	Media Pro	Total	IBMS	Media Pro	Total
		£	£	£	£	£	£	£	£	£
	Revenue	3,876,984	226,132	4,103,116	4,031,215	223,873	4,255,088	16,713,517	1,117,367	17,830,884
	Segment result	(372,458)	(53,059)	(425,517)	(178,637)	(17,928)	(196,565)	45,300	(1,515)	43,785)
	Fair value adjustments on  Financial instruments	23,420	-	23,420	200,307	-	200,307	(2,011,431)	-	(2,011,431)
	(Loss)/Gain on hedging instrument			(387,946)			10,745			(290,259)
	Finance income			2,753			18,177			50,854
	Finance costs			(18,561)			(23,195)			(149,048)
	(Loss) /Profit before tax			(805,851)			9,469			(2,356,099)
	Income tax expense			182,474			(2,758)			606,516
	(Loss)/Profit after tax			(623,377)			6,711			(1,749,583)
	Other Information
	Capital expenditure - tangible	46,985	5,876	52,861	235,923	4,549	240,472	564,871	6,831	571,702
	Capital expenditure - intangible	-	-	-	530,007	-	530,007	956,127	-	956,127
	Depreciation and amortisation	363,969	2,429	366,398	167,152	4,818	171,970	1,001,656	71,141	1,072,797
	Segment Balance Sheet
	Segment Asset	22,606,447	185,520	22,794,967	24,023,288	632,604	24,655,892	22,787,150	346,356	23,133,506
	Tax Assets			509,411			221,489			337,525
	Total Assets			23,304,378			24,733,597			23,471,031
	Segment Liabilities	7,562,863	332,195	7,895,058	5,077,124	363,291	5,440,415	7,632,067	42,456	7,674,523
	Tax Liabilities			158,334			948,446			102,365
	Total Liabilities			8,053,392			6,388,861			7,776,888

b) The Group's revenue and (loss) / profit before tax were all derived from its principal activities.  Revenue and profit from operations were made in the following geographical markets:

		Revenue			Segment result
	3 Months to 31 March  2009 £		3 months to 31 March  2008 £	12 Months to 31 December  2008 £	3 Months to 31 March   2009 £	3 Months to 31 March   2008 £	12 Months to 31  December  2008 £
Europe, Middle East and Africa 'EMEA'	986,315		1,982,941	6,763,584	(41,591)	337,718	444,562
Americas	2,590,906		1,541,881	8,162,962	(23,477)	(119,108)	(311,091)
Australasia	525,895		730,266	2,904,338	(360,449)	(22,045)	(89,686)
	4,103,116		4,255,088	17,830,884	(425,517)	(196,565)	43,785

The above geographical location has been provided based on the destination of services provided.

More than 90% of the assets of the Group are located in the EMEA region. The Group derives the majority of its revenue outside of the EMEA region.

5.  Seasonality

Whilst revenue is not seasonal there has been an historic trend of the second half of the year being stronger than the first half of the year.  For the year ended 31 December 2008, the 2nd half revenue represented 54% (2007: 54%) of the annual revenue.

  

6.  Intangibles

	Trade Mark £	Customer Contracts £	Intellectual Property £	Development  Costs £	Total £
Cost
1 January 2008	2,210	2,701,366	469,404	4,914,386	8,087,366
Additions during the year - internal development	-	-	-	956,127	956,127
At 31 December 2008	2,210	2,701,366	469,404	5,870,513	9,043,493
At 31 March 2009	2,210	2,701,366	469,404	5,870,513	9,043,493
Amortisation
1 January 2008	-	474,651	106,657	-	581,308
Amortisation for the year	-	258,904	58,170	349,436	666,510
Impairment of Customer Contracts and Intellectual Property	-	541,963	149,156	-	691,119
At 31 December 2008	-	1,275,518	313,983	349,436	1,938,937
Amortisation for the period	-	63,908	6,966	209,661	280,535
At 31 March 2009	-	1,339,426	320,949	559,097	2,219,472
Carrying Amount
At 31 March 2009	2,210	1,361,940	148,455	5,311,416	6,824,021
At 31 December 2008	2,210	1,425,848	155,421	5,521,077	7,104,556

7. Trade and Other Receivables

Trade and other receivables include an overdue trade receivable amount of £2.7 million (December 08 £2.1 million, March 08 £813,000) due from a customer in the United States. A further amount of £3.2 million (December 08 £3.1 million, March 08 £2.7 million) in respect of the same contract with the same customer is included in accrued income. Since the end of the period £1.2m has been received from this customer and the directors are actively pursuing the remaining amounts outstanding and have concluded that no provision is appropriate at present. The directors are of the opinion that substantially all of the amounts due from the customer are recoverable although there remains currently uncertainty over the timing of settlement of the remaining outstanding receivable.

8. Derivative Financial Instruments

		31 March 2009 £	31 March 2008 £	31 December 2008 £
	Forward foreign exchange contracts  - classified as held for trading - Canadian Dollar	173,816	142,816	293,248
	Forward foreign exchange contracts - classified as held for trading - US Dollar	2,157,320	568,821	2,061,309
	Forward foreign exchange contracts - classified as effective cash flow hedge	1,955,000	161,000	2,181,000
	Total	4,286,136	872,637	4,535,557

As at 31 March 2009, the Group held forward foreign currency contracts in US Dollar and Canadian Dollar of £16,786,269 and £1,352,189 (31 December 2008: £16,446,241 and £2,028,283; 31 March 2008 £7,931,347 and £3,350,744 ) respectively to hedge expected settlements of foreign currency receivable balances. £8,393,135 of the US Dollar forward contract relates to a written option held for trading. 

9. Share Capital and Share Premium

	Allotted, issued and fully paid
	Number of Shares	Ordinary Shares £	Share Premium £	Total £
Opening balance as at 1 January 2008	59,202,331	2,960,117	9,045,412	12,005,529
Proceeds from shares issued - employee share option scheme	8,000	400	1,480	1,880
At 31 December 2008 and 31 March 2009	59,210,331	2,960,517	9,046,892	12,007,409

10. Post Balance Sheet Event

On March 19th 2009 the Company received an offer to purchase all of the outstanding shares for 26.5 per share. The Directors of the Company have recommended shareholders to accept this offer and agreed to sell the shares they own to SintecMedia as part of this offer. At the final closing date of May 18th 2009 there were 56% acceptances for the offer and as the level of acceptances did not reach the 75% required in the offer document and consequently the offer failed.

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