RNS Number:8300K
M.M.T. Computing PLC
08 May 2003


8th May 2003



                               MMT COMPUTING PLC


           Interims Results for the Six Months ended 28 February 2003



SUMMARY:


   *Turnover: #12.5 million (2002: #14.6 million)


   *Loss before taxation, exceptional items, minority interests and
    amortisation of goodwill: #0.11 million (2002 profit: #0.47 million)


   *Loss per share 0.6p (2002 EPS: 2.8p)


   *Interim dividend of 0.5p per share


   *Strong balance sheet position with #6.1 million cash


   *Board strengthened with the appointment of Peter Bevis, Head of the
    Packaged Solutions Divison


   *Strong pipeline of potential prospects for PowerQuote Universal


Commenting, Tom Hall, Chairman, said:


"The board remains confident about the outlook for the year, however, it is
dependent upon sales of PowerQuote Universal being achieved in the second half
of our financial year. There is a strong pipeline of current key prospects and
we are confident that the product will become the international market leader
within the field of utility pricing.


The continuing control and on-going review of costs remains an immediate
priority, as does the maintenance of our strong balance sheet. We remain
committed to achieve higher returns for shareholders as soon as the market shows
a tangible sign of recovery."


                                     -Ends-

Enquiries:

Peter Onslow/Dee McFarlane
MMT Computing plc                                      020 7278 6211

David Simonson / Nicola Davidson
Merlin Financial                                       020 7606 1244

Chairman's Statement


Introduction

Having been the senior non-executive Board member since 1997, it is my pleasure
to present my first statement as Chairman of M.M.T. Computing plc, following my
appointment earlier this year after Mike Tilbrook's retirement.


In our report and accounts for the year ended 31 August 2002, Mike referred to
tough trading conditions but expressed a confidence in a return to
profitability. The on-going tough economic climate, which has particularly hit
the IT sector, accompanied by the current international political scene, has
created a far more difficult economic environment than originally envisaged.
This has caused further delays in major IT expenditure upon which M.M.T. is so
dependent.


Whilst we have returned a small operating loss for this interim period, our
performance is still heartening despite the difficult trading conditions that
have prevailed over the last six months.


Results, Dividends and Finance

The results for the first half of our financial year were a turnover of #12.5m
(2002: #14.6m) and a loss on ordinary activities before taxation, exceptional
items, minority interests and amortisation of goodwill of #0.11m (2002: profit
of #0.47m before taxation, exceptional items, minority interests and
amortisation of goodwill). Basic losses per share before exceptional items and
amortisation of goodwill were 0.6p (2002: earnings per share before exceptional
items and amortisation of goodwill 2.8p). Amortisation of goodwill was #0.2m
(2002: #0.3m).


Given our continued optimism for the future growth of the Group, the Board is
pleased to recommend an interim dividend of 0.5p per share to be paid on 13 June
2003 to members on the register on 16 May 2003.


M.M.T.'s balance sheet shows a strong net cash position of #6.1m (2002: #6.0m)
and remains healthy.


Operations - Systems Solutions Division

Despite the significantly reduced levels of sales opportunities, coupled with
the continued pressure on fee rates, it is a tribute to our sales team that
turnover has only been reduced by 6% against the corresponding period last year,
yielding an operating profit that has doubled to #0.28m before taxation,
exceptional items, minority interests and amortisation of goodwill (2002:
operating profit of #0.15m before taxation, exceptional items, minority
interests and amortisation of goodwill) from a turnover of #8.88m (2002:
#9.44m).


On a positive note, MMT has made further progress in sales to the Public Sector,
which is a relatively new area for the company.


Notably, following its rationalisation during 2002, Hypnosis, our new media
company, has returned a small profit for the period.


Operations - Packaged Solutions Division

Due to the combination of continued high development spend on our new leading
edge range of pricing products (PowerQuote Universal) and a general reduction in
demand for enhancement work, I have to report a disappointing return to an
operating loss of #0.37m before taxation, exceptional items, minority interests
and amortisation of goodwill (2002: operating profit of #0.08m before taxation,
exceptional items, minority interests and amortisation of goodwill) from a
turnover of #2.83m (2002: #3.91m).


However, due to the dedication of our sales force in this area, we have a strong
and sizeable prospect pipeline which should result in some key sales in the near
future.


Operations - Management Consultancy Division

A small operating loss of #0.02m before taxation, exceptional items, minority
interests and amortisation of goodwill (2002: operating profit of #0.24m before
taxation, exceptional items, minority interests and amortisation of goodwill)
from a turnover of #0.79m (2002: #1.25m) was incurred in this period. There are
a number of sales prospects that we hope will lead to a return to profitability
in the near future.


The insurance market is very important to the division and recent problems in
the industry have had a negative effect. It is hoped that the more recent
recovery and sentiment in investment markets will produce more business
opportunities particularly given the new regulatory demands.


Outlook

The board remains optimistic about the outlook for the year, however, it is
dependent upon sales of PowerQuote Universal, being achieved within the second
half of our financial year. There is a strong pipeline of current key prospects
and we are confident that the product will become the international market
leader within the field of utility pricing.


In the short to medium term, there does not appear to be any major recovery
within the IT services sector, although I remain confident that, given our loyal
and professional staff, we will continue the recovery when more normal business
conditions resume.


The continuing control and on-going review of costs remain an immediate
priority, as does the maintenance of our strong balance sheet.


During the interim period we have appointed Peter Bevis, Head of our Packaged
Solutions Division, to our Board. Peter's experience with the product side of
our business will further strengthen the existing skills of the Board as we
position ourselves to meet the current market needs.


Finally I would like to pay tribute to Mike Tilbrook, under whose leadership the
company produced substantial returns to shareholders until the recent
difficulties within the IT sector.


The Board remains committed to achieve higher returns for shareholders in the
immediate future as soon as the market shows a tangible sign of recovery.





Tom Hall, Chairman

8 May 2003




CONSOLIDATED PROFIT AND LOSS ACCOUNT 
for the six months ended 28 February 2003


                                                  Six months ended 28 February

               Notes       2003            2003            2003      2002            2002            2002
                           #000            #000            #000      #000            #000            #000
                          Total     Exceptional          Before     Total     Exceptional          Before
                                      items and     exceptional                 items and     exceptional
                                       goodwill       items and                  goodwill       items and
                                   amortisation        goodwill              amortisation        goodwill
                                                   amortisation                              amortisation
                           #000            #000            #000      #000            #000            #000


Turnover
Continuing               12,495               -          12,495    14,575               -          14,575
operations

Discontinued                  -               -               -         -               -               -
operations                  -----         -------         -------    ------         -------         -------
                         12,495               -          12,495    14,575               -          14,575

Operating
(loss)/profit

Continuing          2      (391)           (155)           (236)      (62)           (377)            315
operations

Discontinued                  -               -               -         -                               -
operations                  -----         -------         -------    ------         -------         -------
                           (391)           (155)           (236)      (62)           (377)            315

Profit on sale                7               -               7        24               -              24
of tangible
fixed assets

Profit on sale                -               -               -        26               -              26
of fixed asset
investments

Profit on sale                -               -               -         -               -               -
of current
asset
investments

Net Interest                118               -             118       104               -             104
receivable

Investment                    -               -               -         1               -               1
income                      -----         -------         -------    ------         -------         -------

(Loss)/Profit              (266)           (155)           (111)       93            (377)            470
on ordinary
activities
before
taxation

Tax on (loss)/               25               -              25       (67)              -             (67)
(profit) on                 -----         -------         -------    ------         -------         -------
ordinary
activities

(Loss)/Profit/             (241)           (155)            (86)       26            (377)            403
on ordinary
activities
after
taxation

Equity                        5               -               5       (65)              -             (65)
minority                    -----         -------         -------    ------         -------         -------
interests

(Loss)/profit              (236)           (155)            (81)      (39)           (377)            338
for the
financial
year

Dividends                   (61)              -             (61)      (61)              -             (61)

                            -----         -------         -------    ------         -------         -------
Transfer                   (297)           (155)           (142)     (100)           (377)            277
(from)/to                   -----         -------         -------    ------         -------         -------
reserves

Basic earnings             (1.9p)          (1.3p)          (0.6p)    (0.3p)          (3.1p)           2.8p
per share

Diluted                    (1.9p)          (1.3p)          (0.6p)    (0.3p)          (3.1p)           2.8p
earnings per
share





CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 28 February 2003 continued


                                                 Year ended 31 August

                             Notes        2002            2002            2002
                                          #000            #000            #000
                                         Total     Exceptional          Before
                                                     items and     exceptional
                                                      goodwill       items and
                                                  amortisation        goodwill
                                                                  amortisation
                                          #000            #000            #000
Turnover
Continuing operations                   24,472               -          24,472

Discontinued operations                      -               -               -
                                           -----         -------         -------
                                        24,472               -          24,472
Operating (loss)/profit
Continuing operations             2       (885)         (1,189)            304

Discontinued operations                      -               -               -
                                           -----         -------         -------
                                          (885)         (1,189)            304

Profit on sale of tangible                   -               -               -
fixed assets

Profit on sale of fixed                      -               -               -
asset investments

Profit on sale of current                   26              26               -
asset investments

Net Interest receivable                    201               -             201

Investment income                            -               -               -
                                           -----         -------         -------

(Loss)/Profit on ordinary                 (658)         (1,163)            505
activities before taxation

Tax on (loss)/(profit) on                  (77)            166            (243)
ordinary activities                        -----         -------         -------

(Loss)/Profit/ on ordinary                (735)           (997)            262
activities after taxation

Equity minority interests                  (42)              -             (42)
                                           -----         -------         -------
(Loss)/profit for the                     (777)           (997)            220
financial year
Dividends                                 (183)              -            (183)
                                           -----         -------         -------
Transfer (from)/to                        (960)           (997)             37
reserves                                   -----         -------         -------

Basic earnings per share                  (6.4p)          (8.2p)           1.8p

Diluted earnings per share                (6.4p)          (8.2p)           1.8p




Consolidated Statement of Total Recognised Gains and Losses

There are no gains or losses in the six month period ending 28 February 2003
other than those shown in the Consolidated Profit and Loss Account



Consolidated Balance Sheet at 28 February 2003


                                               Six months ended 28 February    Year Ended
                                                                              31st August
                                                      2003            2002           2002
                                                      #000            #000           #000
Fixed Assets
Intangible Assets                                    2,533           2,993          2,687
Tangible Assets                                      2,692           3,095          2,845
Investments                                             27              27             27
                                                  ----------      ----------      ---------
                                                     5,252           6,115          5,559
Current Assets
Work in Progress                                         -               5              -
Debtors                                              8,908           8,777          7,839
Cash at bank and in hand                             6,103           6,019          6,439
                                                  ----------      ----------      ---------
                                                    15,011          14,801         14,278

Current liabilities
Creditors: amounts falling due within one            4,684           4,092          3,862
year
                                                  ----------      ----------      ---------
Net Current Assets                                  10,327          10,709         10,416
Provisions for liabilities and                           -               -             94
charges                                           ----------      ----------      ---------
Total Assets Less Current Liabilities               15,579          16,824         15,881
                                                  ----------      ----------      ---------

Capital and Reserves

Called up share capital                                609             609            609
Share premium account                                3,045           3,045          3,045
Other reserves                                         297             297            297
Profit and loss account                             11,465          12,622         11,762
                                                  ----------      ----------      ---------
Equity shareholders' funds                          15,416          16,573         15,713
Equity minority interests                              163             251            168
                                                  ----------      ----------      ---------
                                                    15,579          16,824         15,881
                                                  ----------      ----------      ---------



Group Cash Flow Statementfor the six months ended 28 February 2003

                                   Six months ended 28 February        Year ended                                     
                                                                      31st August
                                      2003             2002                  2002
                                      #000             #000                  #000

Net cash flow from operating          (301)            (562)                   18
activities

Returns on investment and              117              105                   201
servicing of finance

Taxation                                 6              590                   487

Capital Expenditure and financial      (38)              15                   (77)
investment

Acquisitions and disposals               -                -                     -

Equity dividends paid                 (122)             (61)                 (122)
                                    --------  -----  --------  -----       --------
Cash (outflow)/inflow before use      (338)              88                   507
of liquid resources
and financing

Management of liquid resources        (552)            (230)                 (494)

Financing                                -                -                     -
                                    --------         --------              --------
Increase/(decrease) in cash           (890)            (143)                   13
                                    ========         ========              ========


Reconciliation of Net Cash Flow to Movement in Net Funds

Increase/(Decrease) in cash           (890)            (143)                   13
Increase/(Decrease) in liquid          552              230                   494
resources

Change in net debt resulting from     (338)              88                   507
cashflows
Translation difference                   2               (1)                    -
                                    --------         --------              --------
Movement in net funds                 (336)              87                   507

Net Funds at 1st September 2002      6,439            5,932                 5,932
                                    --------         --------              --------
Net Funds at 28th February 2003      6,103            6,019                 6,439
                                    ========         ========              ========



Reconciliation of operating (loss)/profit to net cash
(outflow)/inflow from operating activities

Operating loss                                  (391)         (62)        (885)
Depreciation of tangible fixed assets            204          335          635
Amortisation of goodwill                         155          304          610
Profit on sale of tangible fixed assets            -            -           23
(Increase)/decrease in debtors                (1,153)          22          587
Increase/(decrease) in creditors                 884       (1,162)      (1,052)
Increase in provisions                             -            -           94
Decrease in stocks                                 -            1            6
                                               -------      -------     --------
Net cash (outflow)/inflow from operating        (301)        (562)          18
activities                                     =======      =======     ========




Notes

 1.  The financial information on pages 1 to 7 and the notes, for the six months
     ended 28th February 2003 have not been audited, but have been reviewed by
     Ernst and Young LLP and their report is set out on page 9. The financial
     information has been prepared on the basis of the accounting policies set
     out in the Group's statutory accounts for the year ended 31st August 2002,
     which have been delivered to the Registrar of Companies. The auditor's
     report in respect of these accounts was unqualified.

     The financial information set out in this report does not constitute
     statutory accounts within the meaning of the Companies Act 1985.

 2.  Operating exceptional items and amortisation of goodwill


                                             Six months ended 28      Year ended
                                                   February            31 August
                                                 2003      2002          2002
                                                 #000      #000          #000
      --------  -------  -------  -------    ----------  --------     ---------
     Operating exceptional items:

     Costs relating to restructure of               -        72           579
     operations                              ----------  --------     ---------
     ------------------------
                                                    -        72           579
     Amortisation of goodwill (not                155       305           610
     exceptional)                            ----------  --------     ---------
     ------------------------
                                                  155       377         1,189

 3.  Taxation has been provided on the basis of estimated rates for the
     financial year as a whole.

 4.  The calculation of loss per Ordinary share is based on a loss after
     taxation and goodwill amortisation of #236,971 (February 2002 a loss of
     #39,945, August 2002 a loss of #777,000 and on 12,178,192 Ordinary shares
     (February 2002 - 12,178,192 Ordinary shares, August 2002 - 12,178,192
     Ordinary shares), being the weighted average number of Ordinary shares in
     issue during the year.

     There are no dilutative potential shares in February 2003.

     The additional earnings per share figures shown on the profit and loss
     account are calculated based on earnings before exceptional items and
     goodwill amortisation. They are included as they provide a better
     understanding of the underlying trading performance of the Group.

 5.  Copies of the interim results are being sent to shareholders. Further
     copies can be obtained from the Company's registered office at 14 Angel
     Gate, City Road, London, EC1V 2PT.





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