Interim Results

Cheerful Scout PLC
28 March 2003



                               CHEERFUL SCOUT PLC

                      'Cheerful Scout' or ('the Company')

                           INTERIM REPORT (UNAUDITED)

                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

CHAIRMAN'S STATEMENT

We consider the interim results for Cheerful Scout to be very satisfactory given
the difficult and challenging conditions experienced throughout the period.

For the half year ended 31 December 2002 there is a profit on ordinary
activities before depreciation, goodwill amortisation and taxation amounting to
£18,677. There are no comparative figures as effective trading commenced on 1st
May 2002 following the acquisition of Centralfix Limited and simultaneous
admission to the Alternative Investment Market.

In December 2002 the Company successfully relocated to new leasehold premises
and this has enabled 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.

In current market circumstances, the Directors have decided to focus on our core
business (Corporate Communications, DVD Home Entertainment, and Post Production)
and are in the process of investing in executive talent to enable us to grow our
core business. Although we recognise that the current year will continue to 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.

Stuart Appleton

Chairman

27 March 2003





CONSOLIDATED PROFIT & LOSS ACCOUNT (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
                                                                     Unaudited
                                                                   6 months to
                                                                   31 December
                                                                          2002
                                                                             £

Turnover                                                               329,601
Cost of Sales                                                         (181,858)

Gross Profit                                                           147,743
Administrative Expenses                                               (142,317)

                                                                         5,426

Interest Received                                                       13,251

PROFIT ON ORDINARY ACTIVITIES BEFORE
DEPRECIATION, GOODWILL AMORTISATION
AND TAXATION                                                            18,677

Depreciation and Goodwill Amortisation                                (116,536)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                            (97,859)

Taxation                                                                     -

LOSS FOR THE FINANCIAL PERIOD                                          (97,859)

Earnings per ordinary shares - Basic                                    (0.225)p
- Diluted                                                               (0.183)p


CONSOLIDATED BALANCE SHEET (UNAUDITED)

AS AT 31 DECEMBER 2002
                                                                     Unaudited
                                                                   31 December
                                                                          2002
                                                                             £

Fixed assets
Intangible assets                                                    2,637,349
Tangible assets                                                        373,190

                                                                     3,010,539

Current assets
Debtors                                                                221,238
Deposits and cash at bank & in hand                                    798,374

                                                                     1,019,612

Creditors:
Amounts falling due within one year                                   (265,009)

Net current assets                                                     754,603

Provision for liabilities and charges                                  (18,766)

Total assets less current liabilities                                3,746,376

Capital & reserves

Share capital                                                          870,000
Share premium                                                        2,923,600
Profit & loss account                                                  (47,224)

Shareholders' funds                                                  3,746,376


The accounts were approved by the board on 27 March 2003 and signed on its
behalf:-


P Litten N J Newman

Director Director


CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
                                                                     Unaudited
                                                                   6 months to
                                                                   31 December
                                                                          2002
                                                                             £

Net cash inflow from operating activities                              107,146

Returns on investments and servicing of finance                         13,251

Interest received
Interest paid                                                                -

Capital expenditure
Payments to acquire tangible assets                                   (169,916)

Net cash outflow before management of
liquid resources and financing                                         (49,519)

Management of liquid resources

Bank deposits                                                           (7,322)

Decrease in cash in the period                                         (56,841)


NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

1.      FINANCIAL INFORMATION

The interim results for the six months ended 31 December 2002 are unaudited and
do not constitute accounts within the meaning of section 240 of the Companies
Act 1985. The interim results have been drawn up using accounting policies and
presentation consistent with those applied in the audited accounts for the
period ended 30 June 2002. Accounts were not prepared for the comparative period
to 31 December 2001.

2.      RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
        ACTIVITIES
                                                                     Unaudited
                                                                   6 months to
                                                                   31 December
                                                                          2002
                                                                             £

Operating loss                                                        (111,110)
Depreciation of tangible assets                                         48,329
Amortisation of goodwill                                                68,207
Decrease in debtors                                                     36,788
Increase in creditors                                                   64,932

Net cash (outflow) from operating activities                           107,146


3.      ANALYSIS OF NET FUNDS
                                                        At
                                               31 December           Cash flow
                                                      2002
                                                         £                   £

Cash                                               212,893             (56,841)
Current asset investments                          635,000               7,322

                                                   847,893             (49,519)


NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

4.      EARNINGS PER ORDINARY SHARES

Basic earnings per share are calculated using the 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.

5.      RESPONSIBILITY

The directors of the company accept responsibility for the information contained
in this announcement and to the best of their knowledge and belief (having taken
all reasonable care to ensure that such is the case) the information contained
is in accordance with the facts and does not omit anything to affect the import
of such information.

Copies of this report are available to the public at the registered office at 65
New Cavendish Street, London W1G 7LS.

6. No interim dividend is declared on the ordinary shares.




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