Interim Results - Amendment

Cheerful Scout PLC
07 March 2007


                               CHEERFUL SCOUT PLC
                         ('Cheerful' or 'the Company')

       Amendments to Interim Accounts for 6 months ended 31 December 2006

The Company wishes to have it noted that incorrect figures for the Company's
basic and diluted earnings per share ('EPS') were included in the Company's
interim results to December 31 2006, which were released to the market on the
6th March 2007.

The interim results released 6 March 2007 stated that the Company's basic and
diluted EPS figures were as follows:

                     Unaudited 6 months    Unaudited 6 months   Audited year to
                                     to                    to           30 June
                       31 December 2006      31 December 2005              2006
Earnings Per
Share
- Basic                       0.053566p             0.037870p         0.079188p
-Diluted                      0.053555p             0.037862p         0.079171p

The above figures were incorrectly calculated, as the basic and diluted EPS
figures were calculated using the weighted average of 195,147,826 (2005:
195,147,826) Ordinary Shares in issue during the period.

The Company wishes to have it noted that the correct basic and diluted EPS
figures for the period are as follows:

                     Unaudited 6 months    Unaudited 6 months   Audited year to
                                     to                    to           30 June
                       31 December 2006      31 December 2005              2006
Earnings Per
Share
- Basic                         1.0667p               0.7541p           1.5769p
-Diluted                        1.0623p               0.7510p           1.5704p

The above figures were correctly calculated, as the basic and diluted EPS
figures were calculated using the figure of 9,800,000 (2005: 9,800,000) Ordinary
Shares in issue during the period after the share consolidation.

A full corrected version of the Company's interim accounts to 31 December 2006
is outlined below



                              CHEERFUL SCOUT PLC
                             CHAIRMAN'S STATEMENT
                       FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

Cheerful Scout Plc, the AIM-traded multi media specialist, is pleased to
announce its results for the six months ended 31 December 2006.

Overview

   •Pre-tax profit up 57% to £116,281 (2005: £73,903)
   •Cash at bank £1,020,866 (2005:£852,030)
   •New contracts with existing and new clients
   •nVision and Events division gaining momentum
   •Team strengthened with appointment of new head of events
   •Several prestigious awards recognising creative excellence, technology
    and innovation

Chairman Statement

It gives me great pleasure to report another set of positive results as Cheerful
Scout continues to deliver creative corporate communication solutions to its
expanding list of blue-chip clients. Following maiden profits for 31 June year
end results, trading and turnover has continued to develop satisfactorily.

The corporate communications market in which the Company principally operates
has seen an improved level of spend and Cheerful Scout is positioned to take
advantage of this and is building its reputation as a provider of choice to many
leading organisations. In line with this the Company has won a number of new con
tracts with blue-chip companies within its three main areas of business - Film &
Video, nVision/Events and DVD - and it has been recognised through the winning
of a number of significant industry awards.

Financial Results

Targeting of higher margined projects led to a reduction in turnover for the six
months ended 31 December 2006 to £1,038,285 (2005: 1,120,320) and a 57% increase
in pre-tax profit of £116,281 (2005: £73,903). Cash balances at 31 December 2006
were £1,020,866 (2005: £852,030).

The Company will not be declaring a dividend, but as a result of the continuing
growth in profits and following the share consolidation in November 2006, we
will continue to review our dividend policy.

Consolidation of Share Capital

During the period every 25 issued and unissued ordinary shares of .05 pence each
in the capital of the Company were consolidated into 1 ordinary share of 12.5
pence in the capital of the Company.

Operations

Cheerful Scout has had a good start to 2007 with all three business divisions
performing well. The Company has secured new pivotal contracts and continued to
establish and build upon existing agreements across its business divisions.
Recognition for its creative excellence, technology and innovation has been
demonstrated by winning four prestigious awards. The Film & Video team won an
award for Audio-Visual Communication at The Federation of European Business
Communicators Association Grand Prix 2006 in Austria, as well as gold and silver
medals at the International Film & Video Competition at the New York Festivals.
The DVD team won an award for its creative excellence in Televisual magazine's
'Best of 2006' DVD showcase for the fourth consecutive year, while the nVision
and Events team won the Award for Innovation for its new presentation software,
nVision Presenter, at the International Visual Communication Association's
LiveCom Awards 2006.

The Film & Video division has also been performing strongly. It recently secured
a contract to produce an internal video for the Royal Bank of Scotland, designed
to present the work of the bank's Electronic Payments Department. A contract
with UK insurance giant Allianz Cornhill to produce an internal film to
communicate the new FSA compliance regulations has been won - this is still in
production.

Since first securing a contract with the Directorate of Optometric Continuing
Education & Training 'DOCET' in August 2006, Cheerful Scout has continued to
build upon this relationship and has recently been awarded a contract by DOCET
to produce two further videos.

The DVD division maintains its strong performance. As recently announced, our
relationship with Contender Entertainment Group has been strengthened following
a new contract to provide DVD authoring services to its entire medium to
high-end film and TV titles, such as BBC's Spooks, for two years.

The nVision and Events division is gaining momentum, recently producing two
major events. In December 2006 it produced an awards ceremony for an audience of
corporate communications directors (potential buyers for our products) in
partnership with CorpComms magazine at the Royal Horticultural Halls in central
London. Additionally, our production team was responsible for the Allen & Overy
week long event entitled 'A World of Difference at Allen & Overy' to launch the
legal firm's new state-of-the-art global headquarters in Bishops Square, London.

People

We always maintain that our continued success can be attributed to the excellent
team that Cheerful Scout has behind it. We are pleased to announce that this has
been further strengthened with the appointment of a new head of events.
Furthermore, I intend to take a more active role as Chairman as from May 2007 as
I finish my full time executive duties as a Member of the Board of Management of
Getronics NV.

Additionally, congratulations to our Managing Director, Gary Fitzpatrick, who
has been named one of the top 100 audio visual people in the UK by Audio Visual
magazine.

Outlook

Throughout our 10 year history we have focused on producing unique, creative and
high-quality work. We are now a recognised leader in our field, with the
business gaining upward momentum and our blue-chip client base growing rapidly.
The strength of our client base and the strong foundations that we have built
gives us confidence of continued growth and that profits for the year will be in
line with market expectations.


S Appleton
Chairman
5 March 2007



CHEERFUL SCOUT PLC
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

                    Unaudited                                Unaudited                              Audited
           6 months to 31 December 2006            6 months to 31 December 2005              Year to 30 June 2006
      Pre goodwill       Goodwill     Total   Pre goodwill       Goodwill     Total  Pre goodwill       Goodwill   Total
      amortisation   amortisation             amortisation   amortisation            amortisation   amortisation
               and            and                      and            and                     and            and
     eorganisation reorganisation           reorganisation reorganisation          reorganisation reorganisation
             costs          costs                    costs          costs                   costs          costs
                 £              £         £              £              £         £             £          £           £
Turnover 1,038,285                1,038,285      1,120,320              - 1,120,320     2,173,163          -   2,173,163

Cost of   (554,797)                (554,797)      (739,820)             -  (739,820)   (1,308,612)         - (1,308,612)
sales

Gross Profit 483,488                483,488        380,500              -   380,500       864,551          -     864,551

Administrative
expenses    (369,467)     (12,738) (382,205)      (310,526)       (12,738) (323,264)     (635,581)   (50,499)  (686,080)

Operating
Profit/(Loss)114,021      (12,738)  101,283         69,974        (12,738)   57,236       228,970    (50,499)    178,471

Interest
received    15,546              -    15,546         16,667              -    16,667        30,104          -      30,104

Interest
payable         (8)             -        (8)             -              -         -           (42)         -        (42)

Profit/(Loss)
on         129,559        (12,738)  116,281         86,641        (12,738)   73,903       259,032    (50,499)    208,533
ordinary
activities
before
taxation
      
Tax on Profit
on                                 (12,288)              -              -         -             -          -    (54,000)
Ordinary
Activities         

Retained
Profit                             104,533                                   73,903                              154,533
for the
Period

Earnings per
ordinary                            
Shares
- Basic                             1.0667p                                  0.7541p                             1.5769p
- Diluted                           1.0623p                                  0.7510p                             1.5704p



CHEERFUL SCOUT PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2006

                           Unaudited          Unaudited          Audited
                           31 December 2006   31 December 2005   30 June 2006
                                          £                  £              £
Fixed assets
Intangible assets                   806,506            741,726        793,194
Tangible assets                     100,017            174,549        129,678
                                    906,523            916,275        922,872
Current assets
Stock                                 2,757              2,094          2,268
Debtors                             443,530            379,287        615,914
Deposits and cash at bank
& in hand                         1,020,866            852,030        885,559
                                  1,467,153          1,233,411      1,503,741
Creditors:
Amounts falling due
within one year                    (204,151)          (165,324)      (361,621)
Net current assets                1,263,002          1,068,087      1,142,120
Total assets less current
liabilities                       2,169,525          1,984,362      2,064,992
Capital & reserves
Share capital                     1,225,000          1,225,000      1,225,000
Share premium                             -          3,360,169              -
Special reserves                  1,747,416                  -      1,747,416
Profit & loss account              (802,891)        (2,600,807)      (907,424)
Shareholders' funds               2,169,525          1,984,362      2,064,992

The accounts were approved by the board on 5 March 2007 and signed on its
behalf:-



P Litten N J Newman
Director Director



CHEERFUL SCOUT PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2006

                                          Unaudited      Unaudited     Audited
                                        6 months to    6 months to     Year to
                                        31 December    31 December     30 June
                                               2006           2005        2006
                                                  £              £           £
Net cash inflow/(outflow)
from operating activities                   179,994        133,615     231,209

Returns on investments and servicing
of finance
Interest received                            15,546         16,667      30,104
Interest paid                                    (8)             -         (42)

Net cash inflow for
returns on investments
and servicing of finance                     15,538         16,667      30,062

Taxation                                          -              -           -

Capital expenditure and financial
investment
Payments to acquire
intangible assets                           (49,308)             -     (66,052)
Payments to acquire
tangible assets                             (10,917)       (20,009)    (31,417)
Net cash outflow for
capital expenditure                         (60,225)       (20,009)    (97,469)

Net cash inflow/(outflow)
before management of
liquid resources and
financing                                   135,307        130,273     163,802

Increase in cash in the
year                                        135,307        130,273     163,802




                                  CHEERFUL SCOUT PLC
                           NOTES TO THE FINANCIAL STATEMENTS
                        FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

1   FINANCIAL INFORMATION

The interim results for the six months ended 31 December 2006 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
2006. A copy of the 2006 Accounts have been filed with the Registrar of
Companies. The Auditors opinion on these Accounts was unqualified.

2   EARNINGS PER ORDINARY SHARES

Basic earnings per share are calculated using the figure of 9,800,000 (2005:
9,800,000) Ordinary Shares in issue during the period after the share
consolidation.
Diluted earnings per share are adjusted for warrants and share options granted
to employees where the exercise price is less than the price of the Company's
ordinary shares during the period. These adjustments give rise to an increase of
40,632 ordinary shares.

3   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.

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


                                    CHEERFUL SCOUT PLC
                             CONSOLIDATED CASH FLOW STATEMENT
                            FOR THE PERIOD ENDED 31 DECEMBER 2006

                                           Unaudited     Unaudited     Audited
                                         6 months to   6 months to     Year to
                                         31 December   31 December     30 June
                                                2006          2005        2006
                                                   £             £           £

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

    Operating profit/(loss)                  101,283        57,236     178,471
    Depreciation of tangible assets           40,578        55,766     113,891
    Amortisation of intangible assets         35,996        59,255      71,993
    Decrease/(Increase) in debtors           172,384       (83,341)   (373,968)
    (Increase)/decrease in creditors        (169,758)       45,582     241,879
    within one year
    Decrease/(increase) in stock                (489)         (883)     (1,057)

    Net cash inflow/(outflow) from
    operating activities                     179,994       133,615     231,209

6   Analysis of net funds                  At 1 July     Cash Flow       At 31
                                                2006                  December
                                                                          2006
                                                   £             £           £
    Net cash:
    Cash at bank and in hand                 158,916       108,736     267,652

    Liquid resources:
    Bank deposits                            726,643        26,571     753,214

    Net funds                                885,559       135,307   1,020,866

                                           Unaudited     Unaudited     Audited
                                         6 months to   6 months to     Year to
                                         31 December   31 December     30 June
                                                              2005        2006
                                                              
                                                   £             £           £    
 7  Reconciliation of net cash flow to
    movement in net funds

    Increase/(decrease) in cash in the       108,736         5,727     158,916
    year
    Cash (outflow)/inflow from
    movement
    in liquid resources                       26,571       124,546       4,886

    Change in net funds resulting from
    cash flows                               135,307       130,273     163,802

    Movement in net fund in the year         135,307       130,273     163,802

    Opening net funds                        885,559       721,757     721,757

    Closing net funds                      1,020,866       852,030     885,559




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