Final Results

IS Solutions PLC
07 April 2005

                               IS Solutions Plc.
                              Preliminary Results

                     For the year ending 31st December 2004


Statement by the Chairman, Barrie Clark

The 2004 results were in line with expectations with turnover for the full year
at £5.514 million (2003: £5.985  million) and profit (pre-tax, pre-goodwill and
before profit from sale of investments) of £97k (2003:loss £190k).  Earnings per
share (excluding goodwill amortisation and sale of investments) were 0.54 pence
(2003: loss 0.90 pence) with net assets at 31st December 2004 standing at £2.500
million (2003: £2.954 million). Net cash increased in the year to £1.910 million
as at 31st December 2004 (2003: £1.551 million).



At the half year the Board was pleased to announce the reinstatement of a
dividend payment of  0.1 pence per share reflecting both the improving trading
conditions and the strong balance sheet and cash position of the Company. The
second half trading has continued in the same vein and the cash has again
improved; the Board therefore is recommending a final dividend of 0.2 pence per
share giving 0.3 pence per share for the full year. Subject to shareholders'
approval at the AGM, to be held on the 26th May 2005, this dividend will be paid
on the 2nd June to shareholders on the register at close of business on the 13th
May 2005.



The market for project work showed signs of recovery through 2004. Although the
average value of new projects remained low the number of projects started
increased slightly over 2003. Throughout the year we continued to focus on
product led sales around our analytics offering (our 'EyeSite' brand) and
through this have opened up a number of new client accounts , some of which have
led to project work.



The recurring revenue streams from Outsourced services and Financial feeds
continue to cover a substantial proportion of overheads, allowing the company to
invest in other areas of growth for the future.

Personnel


Over the last four years we have built up a very experienced and stable
workforce which has allowed us to improve the efficiency of delivery of projects
and services. The Board would like to express its appreciation and thanks to all
employees for their support through the whole of 2004.


Outlook


In the light of the recent history of our industry and the advent of  'off
shore' competition for project work, it is our intention to return to growth by
continuing to broaden our product and software portfolio (either by license or
acquisition) leading to a broader customer base into which to sell our services.
In particular we are focused on identifying software and services that cannot be
put off shore for implementation and are in the process of signing an agreement
with one such company.



7th April 2005


Consolidated Profit and Loss Account for the year ended 31st December 2004




                                                                  Notes         2004                    2003
                                                                               Total                   Total
                                                                               £'000                   £'000

Turnover                                                            1          5,514                   5,985
Cost of sales                                                                (3,038)                 (3,412)
Gross profit                                                                   2,476                   2,573
Distribution costs                                                           (1,709)                 (1,977)
Administration expenses (including amortisation of goodwill                  (1,160)                 (1,272)
£429,000 (2003: £453,000))
Operating loss                                                                 (393)                   (676)
            Profit on sale of discontinued operation                              -                        3
            Profit on sale of investments                                         15                     455
Loss on ordinary activities before interest                                    (378)                   (218)
Interest receivable and other similar income                                      61                      30
            Profit before goodwill amortisation                                  112                     265
            Amortisation of goodwill                                           (429)                   (453)
Loss on ordinary activities before taxation                                    (317)                   (188)
Tax on loss on ordinary activities                                                72                    (42)
Loss on ordinary activities after taxation                                     (245)                   (230)
Equity minority interests                                                       (34)                       9
Loss for the financial year                                                    (279)                   (221)
Equity dividends                                                                (73)                      -
Transferred from reserves                                                      (352)                   (221)

Earnings per ordinary share                                         2
            Basic                                                            (1.13)p                 (0.89)p
            Before goodwill amortisation                                       0.61p                   0.94p
            Diluted                                                          (1.13)p                 (0.89)p
            Proposed dividend                                                  0.30p                      -



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



Statement of total recognised gains and losses

                                                                    2004                    2003
                                                                   £'000                   £'000
Loss for the year                                                  (279)                   (221)
Currency translation differences                                      -                     (15)
Total recognised gains and losses                                  (279)                   (236)



Consolidated Balance Sheet as at 31st December 2004


                                                                     2004                   2003
                                                                  £'000    £'000         £'000         £'000
Fixed assets
Intangible assets                                                   107                    591
Tangible assets                                                     299                    319
Investments                                                          -                       4
                                                                             406                         914
Current assets
Debtors                                                           1,437                  1,505
Cash at bank and in hand                                          1,910                  1,551
                                                                  3,347                  3,056
Creditors
Amounts falling due within one year                             (1,272)                (1,069)
Net current assets                                                         2,075                       1,987
Total assets less current liabilities                                      2,481                       2,901
Equity minority interests                                                     19                          53
Net assets                                                                 2,500                       2,954

Capital and reserves
Called up share capital                                                      496                         496
Share premium account                                                      1,783                       2,133
Profit and loss account                                                      323                         325
Treasury share reserve                                                     (102)                          -
Equity shareholders' funds                                                 2,500                       2,954




Consolidated cash flow statement for the year ended 31st December 2004


                                                                  Notes         2004                    2003
                                                                               £'000                   £'000

Net cash flow from operating activities                             3            523                      16
Returns on investments and servicing of finance
Interest received                                                                 61                      30
Net cash flow from returns on investments
and servicing of finance                                                          61                      30
Taxation                                                                          -                       48
Capital expenditure and financial investment
Purchase of tangible fixed assets                                              (129)                   (125)
Sale of tangible fixed assets                                                     12                      20
Purchase of treasury shares                                                    (102)                      -
Sale of investments                                                               19                     480
Net capital expenditure and financial investment                               (200)                     375
Acquisitions and disposals
Sale of subsidiary                                                                -                        3
Net income from acquisitions and disposals                                        -                        3
Equity dividends paid                                                           (25)                      -
Change in cash in the year                                                       359                     472



Reconciliation of net cash flow to movement in net funds


                                                                                 2004                    2003
                                                                                £'000                   £'000
Change in cash in the year                                                        359                     472
Translation differences                                                            -                     (15)
Movement in net funds in the year                                                 359                     457
Net funds at 1st January                                                        1,551                   1,094
Net funds at 31st December                                                      1,910                   1,551





1     Segmental information


                                                                                 2004                    2003
                                                                                £'000                   £'000
Turnover by origin and destination
UK                                                                              5,514                   5,964
USA                                                                                -                       21
                                                                                5,514                   5,985
Loss before taxation
UK                                                                              (317)                   (221)
USA                                                                                -                       33
                                                                                (317)                   (188)
Net assets
UK                                                                              2,500                   3,426
USA                                                                                -                       -
                                                                                2,500                   2,954



2     Earnings per ordinary share


                                                                    2004                    2003
Loss for the financial year (£'000s)                               (279)                   (221)
Total issued shares excluding treasury shares (000s)              23,993                  24,793
Weighted average number of ordinary shares (000s)                 24,723                  24,793
Basic earnings per share                                         (1.13)p                 (0.89)p
Diluted earnings per share                                       (1.13)p                 (0.89)p



Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial periods. The weighted
average number of equity shares in issue, excluding treasury shares, is
24,723,244 (2003: 24,793,190) and the earnings, being loss after tax and
minority interests are £(279,000) (2003: £(221,000)).
                                                                   2004                     2003
                                                                  £'000                    £'000
Earnings used for calculation of basic and diluted                (279)                    (221)
EPS
Goodwill amortisation                                              429                       453
Earnings used for calculation of EPS before goodwill                150                      232
amortisation





3     Reconciliation of operating loss to net cash flow from operating
activities


                                                                   2004                    2003
                                                                  £'000                   £'000
Operating loss                                                    (393)                   (676)
Net depreciation charge                                             192                     258
Amortisation of goodwill                                            429                     453
Decrease in debtors                                                 101                     329
Increase/(decrease) in creditors                                    194                   (266)
Decrease in provisions                                               -                     (82)
Net cash flow from operating activities                             523                      16






4     The financial information set out above does not constitute the
company's statutory accounts for the years ended 31st December 2003 and 2004,
but is derived from those accounts. Statutory accounts for 2003 have been
delivered to the registrar of companies, and those for 2004 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 3rd May 2005. Further copies will be available after that date
from the company's registered office: Windmill House, 91-93 Windmill Road,
Sunbury-on-Thames, Middlesex, TW16 7EF.








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