Final Results

Cheerful Scout PLC
03 December 2002

                               Cheerful Scout plc

                      ('Cheerful Scout' or 'the Company')

          Final Results for the period 31 October 2001 to 30 June 2002

Chairman's Statement

This statement is my first opportunity to report to shareholders following
completion on 1 May 2002 of the acquisition of Centralfix Limited ('Centralfix')
and the admission to trading on the same date of the Company's shares and
warrants on the Alternative Investment Market of the London Stock Exchange.

We shall be presenting to shareholders for their approval at our first Annual
General Meeting, the audited report and accounts for the period ended 30 June
2002. Our accounts consolidate the profits before taxation of Centralfix which
amount to £84,797, before goodwill amortisation, for the two months of May and
June 2002. This brief period does, of course, reflect the time in which
Centralfix has been wholly owned. For the full 12 month period ended 30 June
2002 Centralfix made profits before taxation of £248,395.

The prospectus issued on 18 April 2002 outlined the activities of Cheerful Scout
and set out the intention of your directors to develop a one-stop development
communications solution which would be offered to a selective range of
non-competitive clients. We also referred to the difficulties being experienced
in the media industry due to the dual impact of both the economic downturn and
the effects of September 11.

In all the circumstances, the results for Centralfix for the 12 months to 30
June 2002 and the achievement of profits before taxation of £248,395 is, we
believe, a highly commendable result.

Conditions throughout last year were difficult but we managed to deliver to our
customer base the type of service and quality that has become the hallmark of
Cheerful Scout. In the first quarter of this year the economic downturn in the
media industry has continued. This has evidenced itself in a material impact on
the number and scale of projects we have received from our largest client. Weak
demand in the service sector caused your directors to selectively reduce
capacity. As the first signs of recovery appear the directors are now starting
to increase headcount, most notably to take advantage of programme opportunities
in the broadcast market.

The corporate video market has been the hardest hit during the continuing market
downturn and the directors do not expect this area of activity to improve
significantly in the short term. The Company's DVD activities continue to
develop well and further growth is anticipated in this market area. In addition,
the Company's other key area of activity, special effects, animation and
graphics, continues to grow and develop.

We will be relocating to new leasehold premises in December 2002 and this will
enable us to expand our range of facilities for clients and provide an enhanced
level of client support. The new premises will ensure that the employees of the
Company will be able to further improve on the efficiency and quality of service
they already provide.

The directors continue to plan for expansion through the introduction of a
'one-stop communications solution' to a selective range of non-competitive
clients and they are in the process of investing in a combination of executive
talent and technology that will enable us, in due course, to take advantage of
the market recovery. Although we recognise that the current year will be
difficult and challenging, we are confident that the strength of our product
offer coupled with the financial strength we enjoy will ensure that we emerge
from the economic downturn in good shape.



S Appleton

Chairman

2 December 2002

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE PERIOD 31 OCTOBER 2001 TO 30 JUNE 2002
                                                             Pre Goodwill                         Goodwill         2002
                                                             Amortisation                     Amortisation
                                                                                                                  Total
                                                                        £                                £            £

Turnover
Continuing operations                                                   -                                             -
Acquisitions                                                      194,672                                       194,672

                                                                  194,672                                       194,672

Cost of sales                                                    (69,353)                                      (69,353)

Gross profit                                                      125,319                                       125,319

Administrative expenses                                          (42,506)                         (22,736)     (65,242)

Operating profit

Continuing operations                         (4,188)                          (22,736)

Acquisitions                                   87,001                                -
                                                                   82,813                         (22,736)       60,077
Other interest receivable
and similar charges                                                 2,083                               -         2,083

Interest payable and
similar charges                                                      (99)                               -          (99)

Profit on ordinary
activities before taxation                                         84,797                         (22,736)       62,061

Tax on profit on
ordinary activities                                              (11,426)                               -      (11,426)

Retained profit for
the period                                                         73,371                         (22,736)       50,635

Earnings per ordinary share
- basic                                                                                                          0.116p
- diluted                                                                                                        0.095p

There are no recognised gains and losses other than those passing through the
profit and loss account.

BALANCE SHEETS

AS AT 30 JUNE 2002
                                                                                     Group           Company

                                                                                      2002              2002
                                                                                         £                 £

Fixed assets
Intangible assets                                                                2,705,556                 -
Tangible assets                                                                    251,603                 -
Investments                                                                              -         3,144,212

                                                                                 2,957,159         3,144,212

Current assets
Debtors                                                                            258,026            15,652
Cash at bank and in hand                                                           847,893           635,100

                                                                                 1,105,919           650,752

Creditors: amounts falling due within one year                                   (196,190)                 -

Net current assets                                                                 909,729           650,752

Total assets less current liabilities                                            3,866,888         3,794,964

Provisions for liabilities and charges                                            (18,766)                 -

                                                                                 3,848,122         3,794,964

Capital and reserves
Called up share capital                                                            870,000           870,000
Share premium account                                                            2,927,487         2,927,487
Profit and loss account                                                             50,635           (2,523)

Shareholders' fund - equity interests                                            3,848,122         3,794,964



CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2002
                                                                                             Period ended 30
                                                                                                   June 2002
                                                                                       £                   £

Net cash inflow from operating activities                                                             60,299

Returns on investments and servicing of finance
Interest received                                                                  2,083
Interest paid                                                                       (99)

Net cash inflow for returns on investments and
servicing of finance                                                                                   1,984

Capital expenditure and acquisitions
Payments to acquire tangible assets                                             (57,837)
Costs associated with acquisition of subsidiary                                (144,212)

Net cash outflow for capital expenditure                                                           (202,049)

Net cash outflow before management of liquid
resources and financing                                                                            (139,766)

Management of liquid resources
Bank deposits                                                                  (635,000)
                                                                                                   (635,000)

Financing
Net proceeds from issue of ordinary share capital                                797,487
Cash acquired from subsidiary undertaking                                        190,172

Net cash inflow from financing                                                                       987,659

Increase in cash in the period                                                                       212,893

Notes


 1. Profit per share

    Basic earnings per share are calculated using a weighted average of
    43,500,000 Ordinary Shares in issue during the period. Diluted earnings per
    share are calculated assuming conversion of all outstanding dilutive share
    options and warrants. These adjustments give rise to an increase in weighted
    average ordinary shares of 10,025,000.

 2. Statutory accounts

    The financial information presented does not constitute statutory accounts
    as defined in Section 240 of the Companies Act 1985. The results have been
    extracted from the accounts of the Company for the period ended 30 June
    2002. The audited accounts will be sent to shareholders and delivered to the
    Registrar of Companies in due course.

 3. Dividends

    The Directors are not proposing that a dividend payment be made.

 4. As permitted by section 230 of the Companies Act 1985, the holding company's
    profit and loss account has not been included in these financial statements.
    The loss for the financial period is made up as follows:


                                                                                                             2002
                                                                                                                £
    Holding company's loss for the financial period                                                       (2,523)



 5. The Company was incorporated on 31 October 2001 but did not commence trading
    until 1 May 2002.

 6. Annual General Meeting


        Notice is hereby given that the Annual General Meeting of Cheerful Scout
        plc will be held at 25-27 Riding House Street, London W1 on 16 January
        2003 at 2.00 p.m.





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