Half-yearly Report

1 June 2012

                               Talent Group plc

                  ("Talent" or the "Company" or the "Group)

      Unaudited interim results for the six month period ended 31 March
                                     2012

CHAIRMAN'S STATEMENT

I am pleased to present the Group's results for the six months
ended 31 March 2012.

Against a period of continuing economic uncertainty, Group turnover
for the period increased to £706,000 (2011 - £472,000), on which gross profit
was £257,000 (2011 - £287,000). The increase in turnover, and the decrease in
profit margin, reflects greater production activity in the period (of which I
shall say more below) which generates lower, but steadier, margins than
development work. Profit both before and after tax for the period was £9,000
(2011 - profit before tax £5,000; profit after tax £16,000). Earnings per
share were 0.041p (2011 - 0.09p).

Both our trading companies were engaged in production activity
during the six months under review. Talent Television was completing
production of My Phone Genie, a 26 part children's series. As previously
reported, this is an international co-production with Moonscoop of France,
Telegael in Ireland, and ZDF of Germany. The first 13 episodes were
successfully aired on ITV from January to March and the remaining episodes are
expected to be broadcast later in the year. ZDF is also expected to start
transmitting the show from October, whereupon we expect to start generating
further revenues from overseas broadcast sales and merchandising and licensing
activities.

Talent South completed its second eight-part series on notorious
murders for the Crime and Investigation channel, which were delivered in March
for anticipated transmission in September. It also completed a documentary on
The Richardsons, for the same channel, and produced a further two
instructional DVDs. Further such commissions are anticipated, whilst a range
of new programme ideas has been developed and is currently being pitched to
potential broadcasters.

The Group's first ever feature film, Outside Bet, was finalised
during the half year and went on general release at the end of April. Whilst
it is fair to say it received mixed reviews, we remain confident that it will
produce a return for investors, and hence further income for the Group. Whilst
producing Outside Bet has been a steep learning curve, involvement in feature
films gives us another string to our bow, and we have already been approached
regarding other feature film projects. Certain of these are under active
consideration although, as with Outside Bet, our involvement will be as a
producer, not investor, in the films.

In addition to the feature films, both Talent Television and Talent
South have a number of new television programmes in development, and remain
optimistic that current projects will be re-commissioned.

Terry Bate

Chairman

1 June 2012

FURTHER ENQUIRIES

Talent Group plc
Tony Humphreys (Managing Director)                  020 7415 7114
 
Merchant Securities Limited
Simon Clements/Virginia Bull                        020 7628 2200


CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2012

                                        Six months  Six months
                                             ended       ended Year ended
                                            31-Mar      31-Mar     30-Sep
                                              2012        2011       2011
                                       (Unaudited) (Unaudited)  (Audited)
                                             £'000       £'000      £'000
 
Revenue                                        706         472        874
Cost of sales                                (449)       (185)      (358)
 
Gross profit                                   257         287        516
 
Administrative expenses                      (221)       (255)      (441)
Finance income                                   -           -          -
Finance costs                                 (27)        (27)       (55)
 
Profit before taxation                           9           5         20
 
Income tax expense - prior year refund           -          11         11
- current year                                   -           -          -
Profit for the period                            9          16         31
 
Basic earnings per share (pence)            0.041p       0.09p     0.165p
Diluted earnings per share (pence)          0.039p       0.08p     0.156p


CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2011

                                  31-Mar          31-Mar          30-Sep
                                    2012            2011            2011
                             (Unaudited)     (Unaudited)       (Audited)
                          £'000    £'000  £'000    £'000  £'000    £'000
 
Assets
 
Non-current Assets
Goodwill                           1,082           1,082           1,082
Other intangible assets                -              22               -
Property, plant &
equipment                             18              27              21
 
                                   1,100           1,131           1,103
 
Current assets
 
Inventories                  78              60              55
Trade receivables           505             120             248
Cash & cash equivalents      34               5              29
 
                                     617             185             332
 
Total assets                       1,717           1,316           1,435
 
Equity and liabilities
 
Equity
Share capital                      6,368           6,342           6,368
Share premium                     11,822          11,759          11,822
Share option reserve                 144             136             141
Retained earnings               (18,322)        (18,346)        (18,331)
 
Total equity                          12           (109)               -
 
Current liabilities
Bank overdraft                -              30               -
Borrowings                  862             862             862
Trade & other payables      843             533             573
 
Total liabilities                  1,705           1,425           1,435
 
Total equity &
liabilities                        1,717           1,316           1,435


CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2012

                                         Six months  Six months
                                              ended       ended Year ended
                                             31-Mar      31-Mar     30-Sep
                                               2012        2011       2011
                                        (Unaudited) (Unaudited)  (Audited)
                                              £'000       £'000      £'000
Cash flows from operating
activities
 
Profit before taxation                            9           5         20
Adjustments for:
Depreciation of tangible assets                   4           4         12
Amortisation of intangible assets                 -           3         25
Share option reserve                              3           3          8
Interest received                                 -           -          -
Interest paid                                    27          27         55
 
                                                 43          42        120
 
(Increase) in trade and other
receivables                                   (257)        (78)      (257)
(Increase) in inventories                      (23)        (54)       (49)
Increase in trade and other
payables                                        270          36        127
 
                                                 33        (54)       (59)
 
Tax refund received                               -          11         11
Tax paid                                          -           -          -
 
Net cash flows from operating
activities                                       33        (43)       (48)
 
Cash flows from investing
activities
Purchase of property, plant and
equipment                                       (1)           -        (2)
Interest received                                 -           -          -
 
Net cash used in investing
activities                                      (1)           -        (2)
 
Cash flows from financing
activities
Proceeds from issue of shares                     -          41        130
Proceeds from borrowings                          -           -          -
Interest paid                                  (27)        (27)       (55)
 
Net cash from financing activities             (27)          14         75
 
Net cash decrease in cash and cash
equivalents                                       5        (29)         25
Cash and cash equivalents at
beginning of
period                                           29           4          4
Cash and cash equivalent at end of
period                                           34        (25)         29


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH
2012

                                      Share
                       Share   Share   Option Retained
                     Capital Premium  Reserve Earnings    Total
                       £'000   £'000    £'000    £'000    £'000
 
At 30 September
2011                   6,368   11,822      141 (18,331)        -
New shares issued          -        -        -        -        -
Profit for period          -        -        -        9        9
Equity share option
recognised                 -        -        3        -        3
 
At 31 March 2012       6,368   11,822      144 (18,322)       12
                                      Share
                       Share Share    Option   Retained
                     Capital Premium  Reserve  Earnings Total
                       £'000 £'000    £'000    £'000    £'000
 
At 30 September
2010                   6,329   11,731      133 (18,362)    (169)
New shares issued         13       28                         41
Profit for period          -        -        -       16       16
Equity share option
recognised                 -        -        3        -        3
 
At 31 March 2011       6,342   11,759      136 (18,346)    (109)


NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2012

1. BASIS OF PREPARATION

The interim report is unaudited and does not constitute statutory
accounts within the meaning of s498 of the Companies Act 2006. The statutory
accounts for 2011, which were prepared under IFRS, have been delivered to the
Registrar of Companies. The auditor's opinion on these accounts was unmodified
and did not contain a statement under s498 of the Companies Act 2006.

The interim financial information has been prepared on a basis
which is consistent with the accounting policies adopted by the Company for
the last financial statements and in compliance with IAS 34.

Comparative figures are given for the six months ended 31 March
2011 and the year ended 30 September 2011.

2. REVENUE and loss on ordinary activities before taxation

The results for the six months ended 31 March 2012 and 31 March
2011 are unaudited. The audited results for the year ended 30 September 2011
have also been shown.

By geographical                2012                  2011
location
                                      Profit                  Loss
                                      Before                Before
                          Revenue   Taxation    Revenue   Taxation
                            £'000      £'000      £'000      £'000
 
United Kingdom                650          9        452          5
Europe                         56          -         20          -
 
                              706          9        472          5

3. EARNINGSPER ORDINARY SHARE

The earnings per share is based on a profit for the period of
£9,000 (six months ended 31 March 2011: a profit of £16,000; year ended 30
September 2011: a profit of £31,000), being the profit or loss attributable to
ordinary shareholders, and a weighted average of 21,960,284 (31 March 2011:
18,144,460; 30 September 2011: 18,794,777) ordinary shares.

The diluted earnings /(loss) per share is based on a time weighting
of the options granted by the current Talent Group employee share option plan.

4. Reconciliation of net cash flow to movement IN Cash and cash eqivalents

                                             31-Mar      31-Mar    30-Sep
                                               2012        2011      2011
                                        (Unaudited) (Unaudited) (Audited)
                                              £'000       £'000     £'000
 
Decrease in cash and cash equivalents
in the
period                                           29        (29)        25
 
Cash and cash equivalents at beginning
of period                                         5           4         4
 
Cash and cash equivalents at end of
period                                           34        (25)        29
5. COPIES OF THE INTERIM RESULTS

Copies of the half-yearly results will be available from the
Company's registered office Lion House, Red Lion Street, London WC1R 4GB and
will be available from the Company's website www.talenttv.com.