Interim Results

Cheerful Scout PLC
22 March 2004


                               CHEERFUL SCOUT PLC

                                ('the Company')

                                INTERIM RESULTS

                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2003

CHAIRMAN'S STATEMENT

During the period under review we have continued to remain prudent and focused
on areas that have the potential to improve the performance of your Company
going forward. To this end we have concentrated on our core business and
invested in developing new products and building a team that can effectively
deliver them to the market.

Although market conditions continued to be difficult these are now beginning to
change, with more interest being shown in the future communication needs of
existing and new clients. This is highlighted by the win of a major new
corporate communication client during the last few months.

For the half year ended 31 December 2003 there is a loss on ordinary activities
before depreciation, goodwill amortisation and taxation amounting to £81,323
(2002: profit £18,677).

As stated, with more positive developments in the market, we are focussing on
the development and growth of our core business of corporate communications. We
have invested in executive talent to enable us to grow this area, and recently
appointed Peter Wrigglesworth, a highly experienced individual within the
corporate communications sector, to lead our business development activities. We
have also and will continue to invest in further talent to enable us to develop
and sell our core corporate communication offering as the market continues to
improve.

The Company's DVD activities continue to develop well and further growth is
anticipated in this area. The Directors have decided to combine the post
production facilities with this arm of the business to offer enhanced services
to clients and reduce running costs.

In addition, we developed new advanced presentation software for the corporate
presentation market and believe that this will start to show a return in the
next financial year. The Company is beta testing this product for an existing
client and is expecting its research and development activities in advanced
presentation software to produce a marketable product very soon.

Although the market continues to be challenging, we are confident that the
strength and new breadth of our services coupled with the financial strength we
enjoy will ensure that we can benefit from the anticipated upturn in the market
for our communication services.

Stuart Appleton
Chairman
22 March 2004

                                INTERIM RESULTS
                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2003

                                        Unaudited     Unaudited        Audited
                                      6 months to   6 months to        Year to
                                      31 December   31 December   30 June 2003
                                             2003          2002
                                                £             £              £

Turnover                                  252,142       329,601        733,347
Cost of Sales                            (132,437)     (181,858)      (288,738)

Gross Profit                              119,705       147,743        444,609
Administrative Expenses                  (209,389)     (142,317)      (410,144)
                                        -----------   -----------     ---------
                                          (89,683)        5,426         34,465

Interest Received                           8,360        13,251         22,598
PROFIT/(LOSS) ON ORDINARY
ACTIVITIES
BEFORE DEPRECIATION, GOODWILL
AMORTISATION AND TAXATION                 (81,323)       18,677         57,063
Depreciation and Goodwill
Amortisation                             (147,947)     (116,536)      (262,720)

LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION                          (229,270)      (97,859)      (205,657)
Taxation                                        -             -         19,164

LOSS FOR THE FINANCIAL
PERIOD                                   (229,270)      (97,859)      (186,493)

Earnings per ordinary
shares - Basic                             (1.284)p      (0.225)p       (0.107)p
       - Diluted                           (1.076)p      (0.183)p       (0.107)p



                           CONSOLIDATED BALANCE SHEET
                             AS AT 31 DECEMBER 2003

                                          Unaudited      Unaudited     Audited
                                        31 December    31 December     30 June
                                               2003           2002        2003
                                                  £              £           £

Fixed assets
Intangible assets                         2,500,935      2,637,349   2,569,141
Tangible assets                             398,387        373,190     402,684
                                            ---------     ---------    -------
                                          2,899,322      3,010,539   2,971,825

Current assets
Debtors                                     181,126        221,238     244,818
Stock                                           957              -       1,338
Deposits and cash at bank & in hand         754,766        798,374     557,552
                                            ---------     ---------    -------
                                            936,849      1,019,612     803,708

Creditors:
Amounts falling due within one year         (97,934)      (265,009)   (100,845)

Net current assets                          838,915        754,603     702,863

Provision for liabilities and charges       (16,946)       (18,766)    (16,946)
Total assets less current liabilities     3,721,291      3,746,376   3,657,742

Capital & reserves
Share capital                               975,000        870,000     870,000
Share premium                             3,111,419      2,923,600   2,923,600
Profit & loss account                      (365,128)       (47,224)   (135,858)

Shareholders' funds                       3,721,291      3,746,376   3,657,742

The accounts were approved by the board on 22 March 2004 and signed on its
behalf:-



P Litten N J Newman
Director Director


                       NOTES TO THE FINANCIAL STATEMENTS
                   FOR THE SIX MONTHS ENDED 31 DECEMBER 2003


1  FINANCIAL INFORMATION

The interim results for the six months ended 31 December 2003 are un-audited and
do not constitute accounts within the meaning of section 240 of the Companies
Act 1985. They have been drawn up using accounting policies and presentation
consistent with those applied in the audited accounts for the year ended 30 June
2003. A copy of the 2003 Accounts have been filed with the Registrar of
Companies. The Auditors opinion on these Accounts was unqualified.

2  SHARE CAPITAL

During the period, 21,000,000 new ordinary shares of .05 pence each at a
subscription price of 1.4375 pence per share were allotted.

3  EARNINGS PER ORDINARY SHARES

Basic earnings per share are calculated using the weighted average of
178,596,000 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 34,500,000.

4  RESPONSIBILITY

The directors of the company accept responsibility for the information contained
in this document 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.

5   DIVIDEND
No interim dividend is declared on the ordinary shares.



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