Final Results

Manpower Software PLC
04 August 2006

MANPOWER SOFTWARE PLC ("THE COMPANY")

RESULTS FOR THE YEAR ENDED 31 MAY 2006

CHAIRMAN'S STATEMENT


Results

Manpower Software plc, the provider of workforce planning, staff scheduling and
resource optimisation software, today announces its results for the year ended
31 May 2006.

Revenue in the second half of the financial year was £2.19m (first half:
£2.14m), making £4.33m for the year as a whole (2005: £5.91m).  Selling and
operational expenses increased from £4.15m to £4.67m, as the Company grew its
sales and delivery capabilities to drive demand for its products.  Office and
administrative costs increased slightly from £1.37m to £1.39m.  As a result, the
Company made a loss for the year of £1.75m (2005: £0.33m profit).

The shortfall in turnover and the extent of the loss compared to both budget and
stock market expectations reflect delays in signing key contracts, each
containing a significant licence fee component.  The background to these delays
was explained in the interim results announcement on 28 February 2006.  At that
time the Directors drew attention to the fact that the Company is highly
dependent on a small number of large contracts in its Defence and Healthcare
sectors where forecasting the precise timing of closure is difficult.

Since the year-end, I am pleased to report that the Company has completed two
key sales.  The first to Alphawest Services Pty Ltd in Australia, to enable our
software to be used by the Royal Australian Navy.  This is the first sale of our
software to a national military force overseas and, as such, it is a key
milestone for the Company.  The second is another sale of our MAPS Healthroster
software to the NHS Trusts.  With more sales to NHS Trusts expected to follow,
the Directors anticipate the Healthcare sector will provide a significant
opportunity for new business in the years to come.

Our Managing Director, Richard Morgan-Evans, continues to make a good recovery
from the injury he sustained earlier this year.  In his absence, Allen Swann,
recently retired President of Chordiant Inc. and a former director of Oracle UK,
is continuing to assist in the sales process, with particular emphasis on the
opportunity for our products in the Healthcare market.

Operational Review

Defence

Management has focused on working with our existing defence customers in the UK
and NATO to increase their use of our products, developing our sales and
delivery capabilities and expanding the pipeline of opportunities overseas.
During the year, we signed two new contracts with NATO, which has extended the
use of MAPS throughout its peacetime establishment and enabled us to support
Supreme Headquarters Allied Powers Europe (SHAPE) with their requirements for
global force generation.  Our MAPS system was used by NATO at its Global Force
Generation conference in November 2005.  We are now providing NATO with a
permanent solution that addresses its challenges and those of its member
nations.

Healthcare

In Healthcare, we signed significant new contracts for the sale of MAPS
Healthroster with two NHS Trusts and a third shortly after the year-end.  Our
software was selected because of the size of potential savings identified, our
track record of achievement at other Trusts and the unique functionality offered
by our products.  We also signed partnership agreements with NHS membership
associations including HFMA (NHS Finance Directors), HPMA (NHS HR Directors) and
NDA (NHS Nursing Directors), and work is underway with them to develop joint
branding for the NHS market.  We have now several installations of our MAPS
Healthroster software, generating strong referenceable results.  Our software is
also being evaluated under contract by further Trusts and there is increasing
demand for our products across the NHS to fulfil their staffing requirements
more efficiently, provide cost transparency, enable compliance with clinical
governance requirements and improve patient care.  The Company is focused on
expanding the direct and indirect sales capabilities into this market, enhancing
the product proposition and shortening product procurement timescales.

Maritime

In the Maritime sector, we signed a contract with a new customer in Germany for
the delivery of MAPS Quickstart and sold additional software licences to each of
our major cruise customers.  It is our intention to continue to focus on our
existing installed client base, while extending our sales pipeline into the
broader shipping market.

Client Services

During the year, the Client Services team delivered major projects to HQ Land
Command (British Army), NATO, the Royal Australian Navy and A.P. Moller-Maersk.
Our cruise customers continue to work with us to extend the use of MAPS Crew
Manning within their organisations.  In Healthcare, the MAPS implementations are
delivering tangible benefits to our customers.  Pilot projects are scheduled to
be completed in several NHS trusts in the near future, leading to a significant
pipeline of services revenue for the new financial year.

Outlook

Our strategy remains to become the leading provider of workforce planning, staff
scheduling and resource optimisation software products to our chosen markets and
management continues to establish the foundations for profitable growth.  During
the year we invested in our direct sales organisation and in a services business
capable of fulfilling the increasing demands of our target markets.  This has
resulted in a stronger sales pipeline and the capability to deliver profitable
services growth.  We also intend to seek new partnerships to assist with sales
and delivery in our  markets.

In Defence, the new financial year has begun well with the sale of our software
to Alphawest Services Pty Ltd for the use by the Royal Australian Navy.  As a
result of this sale, there is now a high level of interest in our products from
government organisations in the Asia Pacific region.

In Healthcare, we continue to work with our industry partner, Specialist
Computer Centres.  We anticipate that the increasing focus throughout the NHS on
improving productivity, controlling agency spend and improving patient care,
combined with the increase in our sales team and the completion of current
pilots, will lead to continuing expansion of the sales pipeline and further
sales of the MAPS Healthroster product to other NHS Trusts.

In Cruise and Maritime, while we remain primarily focused upon the needs of our
existing customers, we are targeting further penetration into the broader
shipping market.

The Directors believe the strategic direction of the Company is clear and it
will produce long term profit growth.  In the short term, though, while the
Company is bearing the cost of its investments in sales and services capability,
it remains highly dependent on a small number of large contracts in markets
where considerable change is occurring, where the sales cycles are often long
and complex, and where forecasting precise timing of closure has become more
difficult.  Deferral or acceleration of only a few of these can have a
significant impact on the Company's results.  While every effort is being
expended to bring these contracts to closure, the precise level of profits for
the current year will depend critically on their timing.  The Directors are
confident that the foundations put in place in 2005/6, coupled with the
significant opportunities in the three vertical markets addressed by the
Company, will result in a satisfactory outcome in 2006/7.


Terry Osborne
CHAIRMAN
4 August 2006



MANPOWER SOFTWARE PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 MAY 2006


                                                 Note        2006          2005
                                                                £             £


Turnover                                                4,333,238     5,909,466

Cost of sales                                          (4,665,363)   (4,148,844)

Gross profit                                             (332,125)    1,760,622

Administrative expenses                                (1,423,515)   (1,431,885)

Operating profit                                       (1,755,640)      328,737

Net interest                                               10,407         7,402

Profit on ordinary activities before taxation          (1,745,233)      336,139

Tax on profit on ordinary activities              2        (3,905)       (7,483)

Profit retained and transferred to reserves            (1,749,138)      328,656

Earnings per share
Basic                                                       (3.9p)         0.7p

Diluted                                                     (3.9p)         0.7p




MANPOWER SOFTWARE PLC

CONSOLIDATED BALANCE SHEET

AS AT 31 MAY 2006


                                                 Note       2006           2005
                                                               £              £
Fixed assets
Tangible assets                                           89,124        119,182

Current assets
Debtors                                                2,219,493      2,985,472
Cash at bank and in hand                                 355,394      1,465,837
                                                       2,574,887      4,451,309

Creditors: amounts falling due within one year        (1,743,224)    (1,919,976)

Net current assets                                       831,663      2,531,333

Total assets less current liabilities                    920,787      2,650,515



Capital and reserves
Called up share capital                                2,223,154      2,223,154
Share premium account                                  6,456,299      6,456,299
Profit and loss account                               (7,758,666)    (6,028,938)
Shareholders' funds                                      920,787      2,650,515




MANPOWER SOFTWARE PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MAY 2006


                                                                      Note           2006            2005
                                                                                        £               £

Net cash (outflow)/inflow from operating activities                            (1,067,569)         81,813

Returns on investments and servicing of finance
Interest received                                                                  10,407           7,734
Finance lease interest paid                                                             -            (332)
Net cash inflow from returns on investments and servicing of finance               10,407           7,402

Taxation                                                                           (3,905)         (7,483)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                 (49,376)        (69,958)
Cash (outflow)/inflow before financing and management of liquid                (1,110,443)         11,774
resources

Management of liquid resources
Sale of short term deposits                                                             -       1,267,840

Financing
Issue of ordinary shares                                                                -          37,320
Loan repayments                                                                         -         (15,160)
Capital element of finance leases                                                       -         (12,985)
Net cash inflow from financing                                                          -           9,175

(Decrease)/increase in cash                                                    (1,110,443)      1,288,789




MANPOWER SOFTWARE PLC

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MAY 2006


RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES

                                                             2006          2005
                                                                £             £

Operating (loss)/profit                                (1,755,640)      328,737
Depreciation charges                                       80,205       148,578
Foreign exchange movement                                  18,639        16,040
Decrease/(increase) in debtors                            765,979    (1,348,631)
(Decrease)/increase in creditors                         (176,752)      937,089
Net cash (outflow)/inflow from operating activities    (1,067,569)       81,813





RECONCILiaTION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                                              2006         2005
                                                                 £            £

(Decrease)/increase in cash in the year                 (1,110,443)   1,288,789
Cash outflow from decrease in debt                               -       28,145
Change in net debt resulting from cash flows            (1,110,443)   1,316,934
Decrease in liquid resources                                     -   (1,267,840)
(Decrease)/increase in net funds in the year            (1,110,443)      49,094
Net funds at beginning of the year                       1,465,837    1,416,743
Net funds at end of the year                               355,394    1,465,837





ANALYSIS OF CHANGE IN NET FUNDS

                                                          At 1 June   At 31 May
                                                 2005     Cash flow        2006
                                                    £             £           £

Cash at bank and in hand                    1,465,837    (1,110,443)    355,394







MANPOWER SOFTWARE PLC

OTHER PRIMARY STATEMENTS

FOR THE YEAR ENDED 31 MAY 2006



Statement of Total Recognised Gains and Losses

                                                             2006          2005
                                                                £             £

(Loss)/profit for the financial year                   (1,749,138)      328,656
Currency differences on opening reserves                   19,410        13,900
Total recognised gains and losses for the year         (1,729,728)      342,556





1    BASIS OF PREPARATION

The financial information set out above does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985.

The results for the year ended 31 May 2006 and the balance sheet at that date
have been extracted from the statutory accounts of the group for that year, upon
which the Company's auditors, Grant Thornton UK LLP, have issued an unqualified
audit report under Section 235 of the Companies Act 1985.  The accounts for the
year ended 31 May 2006 will be filed with the Registrar of Companies following
the Annual General Meeting.  The financial information for the year ended 31 May
2006  has been prepared on the basis of the accounting policies set out in the
accounts for the year ended 31 May 2005.

The comparative figures for the year ended 31 May 2005 have been extracted from
the statutory accounts of the group for that year, filed with the Registrar of
Companies, which carried an unqualified audit report.


2    TAXATION

The tax charge for the year was £3,905 (2005: £7,483).


3    DIVIDENDS

No dividends were paid or proposed during either 2006 or 2005.


4    EARNINGS PER SHARE

The calculations of earnings per share are based on the following results and
numbers of shares:


                                                             2006          2005
                                                                £             £

(Loss)/profit for the financial year                   (1,749,138)      328,656


Weighted average number of shares
                                                         Number of    Number of
                                                            shares       shares
                                                                 £            £

For basic earnings per share                            44,463,086   44,383,053

For diluted earnings per share                          44,463,086   45,702,541



A copy of the Annual Report and accounts will be sent to all shareholders.  A
copy of this preliminary announcement is available from the Company's registered
office: The Communications Building, 1st Floor, 48 Leicester Square, London WC2H
7LU.





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