Final Results

IS Solutions PLC
05 April 2004

I S SOLUTIONS PLC

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003

Statement by the Chairman

The 2003 results were in line with expectations with turnover for the full year
at £5.985 million (2002: £7.426 million) and pre-tax, pre-goodwill profit of
£265,000 (2002: loss £932,000).  Earnings per share (excluding goodwill
amortisation) were 0.94 pence (2002: loss 3.3 pence) with net assets at 31
December 2003 standing at £2.954 million (2002: £3.190 million). Net cash
increased in the year to £1.551 million as at 31 December 2003 (2002: £1.094
million).

Although costs remain in line with the level of turnover, the board feels it is
prudent not to pay any dividend until greater signs of an upturn are in
evidence.

As stated at the half year, the market for the IT industry in the U.K. remained
weak but with the cost controls implemented previously the Group has moved back
towards break even.

2003 was the third year running that we experienced restricted investment in IT
projects however, the serious decline does appear to have flattened out and our
research and investment in new areas (Mobility Services and Analytics) for
business opportunity is expected to bear fruit in the near future.

The second half of the year was disappointing for Outsourcing as, although no
contracts were lost, pressure on pricing dropped the overall level of revenue.
Despite this however it still remained a net contributor to the Group and still
covers a substantial proportion of the total overheads.

The Financial Products area continued to do well with a number of new customers
being signed up in the year for our share data feeds including tonycraze.com,
computing.co.uk and The Forsythe Group.

Personnel

Headcount remained flat throughout the year with a zero attrition rate
reflecting the general condition of the IT employment market. As we proceed
through 2004 we would expect competition for skilled personnel to toughen
slightly as the general market improves. The Board would like to express its
thanks to all our employees for their mature and professional approach in what
has been a difficult three years for our industry.

Outlook

During the first quarter of 2004 we have seen a significant increase in the
number of requests for quotes and although this has yet to turn into real
business, it is an indication of an improving economic climate in the IT sector.
This, coupled with the exploration of new areas of business, leads the Board to
be more optimistic about prospects.


Barrie Clark, Chairman




Consolidated Profit and Loss Account for the year ended 31 December 2003

                                                                     Notes               2003           2002
                                                                                         Total          Total
                                                                                         £'000          £'000

Turnover                                                                1                5,985          7,426

Cost of sales                                                                          (3,412)        (4,563)
                                                                                  ------------   ------------

Gross profit                                                                             2,573          2,863

Distribution costs                                                                     (1,977)        (2,578)
Administration expenses (including amortisation of goodwill
   of £453,000 (2002: £436,000)                                                        (1,272)        (1,662)
                                                                                  ------------   ------------

Operating loss                                                                           (676)        (1,377)

   Profit on sale of discontinued operation                                                  3              -
   Profit on sale of investments                                                           455              -
                                                                                  ------------   ------------

Loss on ordinary activities before interest                                              (218)        (1,377)


Investment income                                                                           30              9
   Profit/(loss) before goodwill amortisation                                              265          (932)
   Amortisation of goodwill                                                              (453)          (436)
                                                                                  ------------   ------------

Loss on ordinary activities before taxation                                              (188)        (1,368)

Tax on loss on ordinary activities                                                        (42)             47
                                                                                  ------------   ------------

Loss on ordinary activities after taxation                                               (230)        (1,321)

Equity minority interests                                                                    9             67
                                                                                  ------------   ------------
Loss for the financial year                                                              (221)        (1,254)

Dividends                                                                                    -              -
                                                                                  ------------   ------------
Transferred to reserves                                                                  (221)        (1,254)
                                                                                  ------------   ------------

Earnings per ordinary share                                             2


   Basic                                                                               (0.89)p        (5.06)p
   Before goodwill amortisation                                                          0.94p        (3.30)p
   Diluted                                                                             (0.89)p        (5.06)p
                                                                                  ------------   ------------

There are no material differences between reported profits and losses and
historical costs profits and losses on ordinary activities before tax.




Statement of total recognised gains and losses
                                                                                          2003           2002
                                                                                         £'000          £'000

Loss for the year                                                                        (221)        (1,254)

Currency translation differences                                                          (15)           (18)
                                                                                  ------------   ------------

Total recognised gains and losses                                                        (236)        (1,272)

                                                                                  ------------   ------------

Consolidated Balance Sheet as at 31 December 2003
                                                               2003                        2002
                                                            £'000         £'000         £'000         £'000
Fixed assets

Intangible assets                                             591                       1,099
Tangible assets                                               319                         428
Investments                                                     4                          29
                                                     ------------                ------------
                                                                            914                       1,556
Currents assets

Debtors                                                     1,505                       1,888
Cash at bank and in hand                                    1,551                       1,094
                                                     ------------                ------------
                                                            3,056                       2,982

Creditors
Amounts falling due within one year                       (1,069)                     (1,311)
                                                     ------------                ------------

Net current assets                                                        1,987                       1,671

                                                                   ------------                ------------
Total assets less current liabilities                                     2,901                       3,227

Provisions for liabilities and charges                                        -                        (82)
Equity minority interests                                                    53                          45
                                                                   ------------                ------------
Net assets                                                                2,954                       3,190
                                                                   ------------                ------------
Capital and reserves
Called up share capital                                                     496                         496
Share premium account                                                     2,133                       2,133
Profit and loss account                                                     325                         561
                                                                   ------------                ------------
Equity shareholders' funds                                                2,954                       3,190
                                                                   ------------                ------------



Consolidated cash flow statement for the year ended 31 December 2003

                                                                      Notes               2003           2002
                                                                                         £'000          £'000

Net cash flow from operating activities                                 3                   16            469

                                                                                  ------------   ------------
Returns on investments and servicing of finance
Interest received                                                                           30              9
                                                                                  ------------   ------------
Net cash flow from returns on investments and
   servicing of Finance                                                                     30              9

Taxation                                                                                    48           (20)

Capital expenditure and financial investments

Purchase of tangible fixed assets                                                        (125)          (128)
Sale of tangible fixed assets                                                               20             59
Sale of investments                                                                        480              -
                                                                                  ------------   ------------

Net capital expenditure and financial investment                                           375           (69)


Acquisition and disposals

Purchase of subsidiary                                                                       -            (3)

Sale of subsidiary                                                                           3              -

Cash acquired with subsidiaries                                                              -              8
                                                                                  ------------   ------------
Net income from acquisitions and disposals                                                   3              5


Equity dividends paid                                                                        -           (40)

                                                                                  ------------   ------------
Change in cash on the year                                                                 472            354

                                                                                  ------------   ------------



Reconciliation of net cash flow to movement in net funds
                                                                                          2003           2002
                                                                                         £'000          £'000

Change in cash in the year                                                                 472            354
Translation differences                                                                   (15)           (18)
                                                                                  ------------   ------------
Movement in net funds in the year                                                          457            336

Net funds at 1 January                                                                   1,094            758
                                                                                  ------------   ------------
Net funds at 31 December                                                                 1,551          1,094

                                                                                  ------------   ------------

1.       Segmental information
                                                                                          2003           2002
                                                                                         £'000          £'000
Turnover

UK                                                                                       5,964          7,155

USA                                                                                         21            271
                                                                                  ------------   ------------
                                                                                         5,985          7,426
                                                                                  ------------   ------------

Losses before taxation

UK                                                                                       (221)          (878)

USA                                                                                         33          (490)
                                                                                  ------------   ------------
                                                                                         (188)        (1,368)
                                                                                  ------------   ------------

Net assets/(liabilities)

UK                                                                                       2,954          3,426

USA                                                                                          -          (236)
                                                                                  ------------   ------------
                                                                                         2,954          3,190
                                                                                  ------------   ------------


2.       Earnings per ordinary share
                                                                                          2003          2002
                                                                                         £'000         £'000

Loss for the financial year (£'000)                                                      (221)       (1,254)

Total issued shares (000s)                                                              24,793        24,793

Weighted average number of ordinary shares (000s)                                       24,793        24,793

Dilutive share options (000s)                                                                -             -

Basic earnings per share                                                               (0.89)p       (5.06)p

Dilutive earnings per share                                                            (0.89)p       (5.06)p




3.       Reconciliation of operating loss to net cash flow from operating activities
                                                                                          2003           2002
                                                                                         £'000          £'000

Operating loss                                                                           (676)        (1,377)

Net depreciation charge                                                                    258            400

Amortisation of goodwill                                                                   453            436

Decrease in debtors                                                                        329          1,109

Decrease in creditors                                                                    (266)          (181)

(Decrease)/increase in provisions                                                         (82)             82
                                                                                  ------------   ------------
Net cash flow from operating activities                                                     16            469
                                                                                  ------------   ------------



4.   The financial information set out above does not constitute the
     company's statutory accounts for the years ended 31 December 2003 and 31
     December 2002, but is derived from those accounts.  Statutory accounts for 
     2002 have been delivered to the registrar of companies, and those for 2003 
     will be delivered following the company's annual general meeting.  The 
     auditors have reported on those accounts; their reports were unqualified 
     and did not contain statements under section 237(2) or (3) of the Companies 
     Act 1985.


5.   It is anticipated that the report and accounts will be posted to
     shareholders on 3 May 2004.  Further copies of the report and accounts will 
     be available after that date from the company's registered office: Windmill 
     House, 91-93 Windmill Road, Sunbury-on-Thames, Middlesex TW17 7EF.


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