Interim Results

Manpower Software PLC
28 January 2004


Manpower Software plc ("Manpower Software" or the "Company")

Interim results for the six months ended 30 November 2003

Manpower Software plc, the provider of manpower planning, staff scheduling and
resource optimisation software, today announces its interim results for the six
months ended 30 November 2003.

Highlights

   • Revenue up 184% to £2.46m (2002/3 1st half: £0.87m)

   • Pre tax profit for the period of £0.26m

   • Anticipated 12 month revenues under contact from existing customers of
     £3.1m

   • Gross margin increased to 36% (2002/3 year: 17%)

   • MAPS software now in use at HQ Land Command, British Army

   • First sale to a Tri-Service (Army, Navy, Air Force) defence organisation

   • First sale of MAPS Taskforce ward rostering software to the NHS

   • First significant sale to the shipping industry outside the cruise
     sector

   • First reseller agreement signed - Maersk Data AS, part of the AP Moller
     group of companies
   

Significant new contracts announced (shown with contract value)

   • 6 June 2003 AP Moller Group £1.3m

   • 15 September 2003 HQ Land Command £0.6m

   • 2 December 2003 Defence Medical Services £1.2m

   • 3 December 2003 Plymouth Hospitals NHS Trust £0.6m


Enquiries:

Manpower Software plc

Simon Thorne, Finance Director 020 7389 9500

Strand Partners Limited

Rory Murphy, Director 020 7409 3494

Shore Capital

Alex Borrelli, Director 020 7408 4090



Chairman's Statement

Introduction

I am pleased to report a successful start to trading in 2003/4 following our
return to profitability in the previous half year period. I am particularly
pleased that this has been achieved by successes in three markets without
dependence on any one contract. We now have an increased number of sales
opportunities, our software products are delivering significant benefits to
customers and recurring revenues, relating to software support, are increasing
as sites go live. In many cases, our customers have signed contracts extending
over periods greater than one year.

The Company's MAPS products are now used across three distinct markets.

   • In defence, the British Regular and Territorial Armies have acquired
    MAPS for force generation, force modelling, state of readiness and training
    management. The software was used to help manage the deployment of
    Territorial Army forces to Iraq and will form the foundation of Army force
    planning and mobilisation. MAPS will assist the Army to send rapid
    deployment units with the required balance of competences and qualifications
    wherever in the world they may be required.

   • In cruise and maritime, MAPS is used for crew manning, on-board duty
    rostering and access control services. We are particularly pleased that
    Cunard Line is using MAPS to recruit, train and schedule its 1,250 crew
    on-board the RMS Queen Mary 2, the largest ocean liner ever built.

   • In the NHS sector, MAPS provides workforce planning, workforce
    development, establishment control and ward rostering for nurses, doctors
    and ancillary staff. Scheduling staff efficiently is a crucial part of
    hospital workforce management. It is critical that shifts are assigned to
    staff who are appropriately skilled to perform them. Working with Plymouth
    Hospitals NHS Trust, we have understood the issues critical to hospital-wide
    rostering.

In all these markets, MAPS uses unique time-based functionality to allow both
long-term and short-term scheduling of staff. The same core MAPS software is
used in each market, where it is configured and rebranded to meet each sector's
specific requirements, whether this is for the Armed Forces, on board
ocean-going ships, or NHS ward rostering.

Results

Revenue in the first half of the financial year was £2.46m (2002: £0.87m),
resulting in a profit for the period of £0.26m (2002: £1.324m loss). Gross
margin increased to 36%, compared with 17% for the 2002/3 year as a whole.
Administrative costs have been maintained at just above £600,000, compared with
the second half of 2002/3.

Operational Review

Defence

Following the contract announced in May 2003 to supply the UK Territorial Army
with our Selection and Mobilisation Management Information System, now referred
to as FORGE ("Force Generation"), in September 2003 we announced the sale to HQ
Land Command of the British Regular Army as well. Since then, we have continued
our work with the UK Armed Forces, resulting recently in a contract to supply
the FORGE software to the UK Defence Medical Services ("DMS"). DMS is the
organisation responsible for providing medical capability to the UK Armed Forces
and is our first Tri-Service contract award. DMS will use FORGE to plan and
manage deployment and training of their medical staff throughout the Reserve
Forces and the Regular Forces within the Defence Medical Education and Training
Agency and the Defence Dental Agency. The value of the contract is approximately
£1.2 million over 41/2 years, none of which was recognised in the interim
period.

Since the end of the interim period, we have signed an additional contract with
Supreme Headquarters Allied Powers Europe at NATO. We are now receiving
enquiries for our products from NATO members and Commonwealth countries and are
in the early stages of discussion with a number of these.

Maritime

During the interim period, the Company delivered software to the following
companies: Carnival Cruise Lines, Cunard Line, Norwegian Cruise Line and
Princess Cruise Lines. This impressive list reflects the strength of the
Company's products in the cruise market. The Norwegian Cruise Line system went
live in December 2003. The systems at Carnival and Princess are scheduled to go
live later this year.

The Cunard system is currently in use on RMS Queen Mary 2, Cunard's new flagship
liner. MAPS gives Cunard a central database of crew information that can be
accessed from anywhere in the world, enabling it to share its records between
its offices in Southampton and Miami, as well as to synchronise data with the
fleet for on-board access. Travel costs and control will be improved through
integration with the crew scheduling operation and flight requests will be
tracked accurately.

The Company has commenced implementation of its software at AP Moller Group and
recently signed a reseller agreement with Maersk Data AS, a subsidiary, whereby
we will work together to promote each others' products and generate new customer
opportunities. With about 3,400 employees and offices in Europe, Asia and USA,
Maersk Data is one of Europe's leading software implementation and service
providers, specialising in the shipping, government and transport sectors.

National Health Service

Shortly after the end of the interim period, we announced a second contract with
Plymouth Hospitals NHS Trust for the sale of our MAPS Taskforce ward rostering
software. This is currently being implemented at Derriford Hospital. The value
of the contract is approximately £570,000 over three years. Derriford Hospital,
which has a total of 6,000 employees, will use MAPS Taskforce to control the
rostering of its complete staff of nurses, doctors and allied health
professionals. Ward rostering is currently a significant overhead for those
nurses and doctors performing it. Numerous factors such as skills, working
hours, working legislation and availability (including holidays, maternity
leave, sickness etc.) need to be examined. Staff must be utilised effectively
and Agency Staff used only when no alternative is available. MAPS handles the
end to end rostering process, ensuring a better allocation of staff, reducing
rostering overhead, giving visibility across the hospital and reducing agency
spend. The process, which can be automatic or manual, follows user-defined
business rules that take into account elements such as a staff member's mix of
skills or availability and ensures that legal requirements are properly
enforced.

Product Development

In response to market feedback, we have enhanced the capabilities of our MAPS
Taskforce short-term duty rostering product in order to broaden our offerings to
the cruise and healthcare sectors. The period under review has also seen the
launch of the latest version of MAPS. This new version includes a completely new
and innovative Payroll Administration module, a significant enhancement that
will benefit many of our current and prospective customers.

Outlook

In defence, as a consequence of the supply of FORGE to the British Army, there
is now a high level of interest in Manpower Software's products from many
defence organisations in the UK and overseas. We are currently seeking to
exploit the opportunities in overseas defence markets and are committed to
achieving our objective of being the leading provider of force deployment
software in Europe.

In maritime, we are focused upon achieving successful rollouts to our existing
customers and building upon the interest generated by the sale made to AP Moller
Group in order to achieve further orders and expand our prospect base among both
large and medium-sized fleets in the non-cruise maritime market.

In the UK NHS, our Establishment Control software is now operational at
Derriford Hospital and we are in the process of implementing our duty rostering
software. We intend to strengthen the breadth of knowledge and experience of our
health sales team and anticipate further sales of the Derriford solutions to
other NHS Trusts within the UK.

While it is the Company's belief that MAPS can be applied to resource planning
and optimisation for a variety of commercial businesses and the public sector,
our present intention is to focus on these three markets.

We are intent on developing partnerships with companies that will sell, install
and support the MAPS products in our existing markets and, in the medium term,
use their sector expertise to launch MAPS into new markets.

The figure for anticipated twelve-month revenues under contract from existing
customers currently amounts to £3.1m, the same figure reported for the end of
May 2003 and a significant result for the interim period. With the current
opportunities available to the Company in its chosen markets, the directors
believe there remains a solid platform for the Company to achieve a further
improvement in its annual results in 2004 and beyond.

Robert Drummond
Chairman
28 January 2004



CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 November 2003

                                  Note  (Unaudited) (Unaudited) (Unaudited)
                                           6 months    6 months    6 months
                                       ended 30 Nov    ended 31    ended 30
                                               2003    May 2003    Nov 2002
                                                  £           £           £

Turnover                                  2,463,669   2,694,375     866,166

Cost of sales:
Third party costs                          (56,245)    (57,586)     (9,772)
Selling and operational expenses        (1,525,318) (1,480,624) (1,414,455)

Gross profit/(loss)                         882,106   1,156,165   (558,061)

Administrative expenses                   (637,454)   (634,588)   (770,227)

Operating profit/(loss)                     244,652     521,577 (1,328,288)

Interest receivable                          17,643       4,041      13,036

Interest payable                            (2,370)     (3,386)     (9,368)

Profit/(loss) on ordinary                   259,925     522,232 (1,324,620)
activities before taxation

Taxation                                        900           -           -

Profit/(loss) on ordinary                   260,825     522,232 (1,324,620)
activities after taxation

Dividends                                         -           -           -

Profit/(loss) retained                      260,825     522,232 (1,324,620)

Earnings/(loss) per share

Basic                            3            0.59p       1.18p     (2.99)p
Diluted                          3            0.58p       1.18p     (2.99)p




CONSOLIDATED BALANCE SHEET AT 30 NOVEMBER 2003

                                  (Unaudited) (Unaudited) (Unaudited)
                                        As at       As at       As at
                                  30 Nov 2003 31 May 2003 30 Nov 2002
                                            £           £           £
Fixed assets
Tangible assets                       212,312     248,886     318,294

Current assets
Debtors                             1,726,438   1,561,137   1,304,160
Cash at bank and in hand            1,118,292   2,032,053     487,312
                                    2,844,730   3,593,190   1,791,472

Creditors: amounts falling due      (962,663) (1,993,169)   (737,863)
within one year

Net current assets                  1,882,067   1,600,021   1,053,609

Total assets less current           2,094,379   1,848,907   1,371,903
liabilities

Creditors: amounts falling due              -    (24,619)    (53,569)
after more than one year
Net assets                          2,094,379   1,824,288   1,318,334


Capital and reserves
Called up share capital             2,212,254   2,212,254   2,212,254
Share premium account               6,429,879   6,429,879   6,429,879
Profit and loss account           (6,547,754) (6,817,845) (7,323,799)
Equity shareholders' funds          2,094,379   1,824,288   1,318,334



CASHFLOW STATEMENT
For the 6 months ended 30 November 2003

                                     Note (Unaudited) (Unaudited) (Unaudited)
                                             6 months    6 months    6 months
                                             ended 30    ended 31    ended 30
                                             Nov 2003    May 2003    Nov 2002
                                                    £           £           £

Net cash (outflow)/inflow from       6      (857,531)   1,580,852   (818,265)
operating activities

Returns on investments and servicing
of finance
Interest received                              17,643       4,041      13,036
Interest paid                                 (1,293)     (4,164)     (5,000)
Finance lease interest paid                   (1,077)         778     (4,368)
Net cash inflow from returns on                15,273         655       3,668
investments and servicing of finance

Capital expenditure and financial
investment
Payments to acquire tangible fixed           (40,419)    (10,088)    (67,320)
assets
Sale of fixed assets                                -       3,351           -
Cash (outflow)/inflow before                (882,677)   1,574,770   (881,917)
financing and management of liquid
resources

Management of liquid resources
Sale/(purchase) of short term               1,000,000   (500,000)           -
deposits

Financing
Loan repayments                              (17,097)    (32,813)           -
Capital element of finance lease             (13,987)       2,785    (31,431)
rentals
Net cash outflow from financing              (31,084)    (30,028)    (31,431)

Increase/(decrease) in cash                    86,239   1,044,742   (913,348)


STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES

                                       (Unaudited) (Unaudited) (Unaudited)
                                          6 months    6 months    6 months
                                             ended       ended       ended
                                       30 Nov 2003 31 May 2003 30 Nov 2002
                                                 £           £           £

Profit/(loss) for the financial period     260,825     522,232 (1,324,620)
Currency differences on opening              9,266    (16,277)           -
reserves
                                           270,091     505,955 (1,324,620)

NOTES TO THE INTERIM RESULTS


1 BASIS OF PREPARATION

The interim financial statements have been prepared in accordance with
applicable accounting standards and under the historical cost convention. The
principal accounting policies of the Group have remained unchanged from those
set out in the Group's 31 May 2003 annual report and financial statements. The
interim financial statements have been reviewed by the Group's auditors. A copy
of the auditors' review report is attached to this interim report.

2 TAXATION

There are no tax charges for the interim period as there are sufficient tax
losses brought forward to extinguish any liability for the period.

3 EARNINGS PER SHARE

                               6 months ended 6 months ended  6 months ended
                                  30 November         31 May     30 November
                                         2003           2003            2002
                                            £              £               £


Profit/(loss) for the                 260,825        522,232     (1,324,620)
financial period

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

For basic earnings per share       44,245,086     44,245,086      44,245,086
For diluted earnings per           45,149,291     44,245,086      44,245,086
share

4 DIVIDENDS

No dividends have been paid or proposed for the period.

5 PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
figures for the period ended 31 May 2003 have been calculated from the statutory
financial statements which have been filed with the Registrar of Companies. The
auditors' report on those financial statements was unqualified and did not
contain a statement under Section 237(2) of the Companies Act 1985.

6 NET CASH OUTFLOW FROM OPERATING ACTIVITIES

                                       (Unaudited)  (Unaudited)  (Unaudited)
                                          6 months     6 months     6 months
                                      ended 30 Nov ended 31 May ended 30 Nov
                                              2003         2003         2002
                                                 £            £            £

Operating profit/(loss)                    244,652      521,577  (1,328,288)
Depreciation and amortisation               75,890       76,986       91,346
charges
Loss on sale of tangible fixed                   -      (3,144)        3,144
assets
Exchange differences written off             9,266     (16,277)            -
(Increase)/decrease in debtors           (165,301)    (256,977)      415,929
(Decrease)/increase in creditors       (1,022,038)    1,258,687        (396)
Net cash (outflow)/inflow from           (857,531)    1,580,852    (818,265)
operating activities


7 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                       (Unaudited)  (Unaudited) (Unaudited)
                                          6 months     6 months    6 months
                                      ended 30 Nov ended 31 May    ended 30
                                              2003         2003    Nov 2002
                                                 £            £           £

Increase/(decrease) in cash in the          86,239    1,044,742   (913,348)
period
Capital outflow from decrease in debt       31,084       30,028      31,431
and finance leases
Change in net debt resulting from          117,323    1,074,770   (881,917)
cash flows
(Decrease)/increase in liquid          (1,000,000)      500,000           -
resources
Movement in net debt in the year         (882,677)    1,574,770   (881,917)
Net funds at the beginning of the        1,941,644      366,874   1,248,791
period
Net funds at the end of the period       1,058,967    1,941,644     366,874


8 ANALYSIS OF CHANGES IN NET DEBT

                                        (Unaudited) (Unaudited) (Unaudited)
                                           6 months    6 months    6 months
                                       ended 30 Nov    ended 31    ended 30
                                               2003    May 2003    Nov 2002
                                                  £           £           £

Cash at bank and in hand                  1,118,292   2,032,053     487,312
Finance leases                             (26,505)    (40,492)   (120,438)
Bank loans                                 (32,820)    (49,917)           -
                                          1,058,967   1,941,644     366,874



INDEPENDENT REVIEW REPORT TO MANPOWER SOFTWARE PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 November 2003 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement and the related notes 1 to 8. We have read the other information
contained in the interim report which comprises only the Chairman's Statement
and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information. Our responsibilities do not
extend to any other information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the AIM Rules,
which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts except where any changes, and the reasons for them,
are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
"Review of Interim Financial Information" issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of management and applying analytical procedures to the financial information
and underlying financial data and, based thereon, assessing whether the
accounting policies and presentation have been consistently applied unless
otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom auditing standards and therefore provides a lower level of assurance
than an audit. Accordingly, we do not express an audit opinion on the financial
information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 November 2003.




GRANT THORNTON
CHARTERED ACCOUNTANTS
LONDON
28 January 2004




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