Final Results

Mondas PLC
23 June 2004


Mondas PLC

Preliminary Results for the year ended 30 April 2004

Mondas PLC, specialist providers of software solutions for the banking &
securities sector and the education sector, today announces preliminary results
for the year ended 30 April 2004.

                                   Highlights

Financial

•   Turnover increased by 7% to £3,974,000 (2003: £3,713,000)

•   Operating loss before interest goodwill amortisation and depreciation
    reduced to £501,000 (2003: £679,000)

•   Deferred revenues increased to £947,000 (2003: £856,000)

•   Loss per share 6.6p (2003: 10.1p)

•   Cash balances of £1,493,000, enough for operations for the forseeable future



Operational

Banking and Securities Unit

•   GNI contract marks entry into the CFD and equity hedge fund markets

•   CSFB has taken RADICA CAPS into production

•   Awarded 'Best New Development' from the London Stock Exchange
    sponsored '2004 Awards for systems in the securities industry'


Resource Business Unit

•   Learning management system 'Resource LMS' - now live with 16 clients

•   First integrated LMS and accounting solution live at Richmond Adult
    Community College

•   Entering schools market with Pearson Phoenix, by providing accounting
    solutions that will be embedded into their education management system

Tim Simon, Chairman & Chief Executive of Mondas said:

'Mondas has made considerable progress in the period with very influential
customers.  We have consolidated our position as a leading provider of corporate
actions processing software in the UK.  Although orders continue to be
frustratingly slow we believe the uptake of CA systems will accelerate as the
economy recovers.  Across our business we continue to increase the functionality
of our products enabling the Group to exploit new market opportunities.  We have
unwavering confidence in the future.'


23 June 2004
ENQUIRIES:

Mondas PLC                                           Tel: [phone]
Tim Simon, Chairman

College Hill                                         Tel: [phone]
Matthew Smallwood
Clare Warren



Chairman's Statement

Mondas has accomplished much by securing top tier clients like HSBC, Credit
Suisse First Boston and Credit Suisse Asset Management.  As we announced
recently, timing of contracts and projects continue to be frustratingly slow,
but despite this we have achieved turnover growth in this reporting period.
Sales negotiations have extended into the current period, which combined with
increasing revenues from clients, instils continued confidence for the
short-term.

Credit Suisse First Boston (Europe) Limited ('CSFB') has confirmed that it has
successfully taken Mondas PLC's Radica CAPS into production.  Mondas has
provided CSFB with a customised STP corporate actions ('CA') processing solution
for their UK London based international corporate actions operation.

The Directors' believe this is a significant achievement for Mondas.  With such
complex requirements, the go-live process has many stages of rigorous testing
and we are delighted that we have reached full deployment.  We further believe
that this should lead to significant revenue streams for this year and beyond.

RESULTS

Turnover for the twelve months to 30 April 2004 was £3,974,000 (2003:
£3,713,000) representing a growth of 7 per cent. split approximately evenly
across the two business units.  Licence and support revenues grew by 27 per
cent. and 21 per cent. respectively, whilst services revenues decreased by 15
per cent. due to project delays outside our control. This had a compounding
effect on the second half of this reporting period, as we had hired new staff to
service some larger contracts.  Significant licence sales were derived from
deliveries to CSFB and HSBC, and also from the Learning Management Solution for
colleges.

Our operating loss for the year under review, before interest, goodwill
amortisation and depreciation was £501,000 (2003: £679,000) and the group loss
before taxation was £1,779,000 (2003 £2,224,000).  No exceptional costs were
recorded during the year (2003: £154,000).   The depreciation charge increased
to £97,000 (2003: £42,000) as a result of increased capital expenditure and a
change in depreciation policy, which has accelerated the write-off of computer
equipment, so that this now takes place over two years.  The loss per share was
6.6p (2003 10.1p).  Deferred revenues increased to £947,000 (2003: £ 856,000).

Research & Development charged to the profit and loss account was £57,000 (2003:
£616,000).  The decrease compared to the prior year was due to our major
developments being completed and the products duly launched in the previous
period.  Resources are now redeployed to support customer deliveries.

Cash balances as at 30 April 2004 were £1,493,000 (2003: £977,000), which the
Directors believe is sufficient for operations for the foreseeable future.

Trade debtors were £756,000 (2003: £570,000), which represented the last 28 days
of sales based on billings in April 2004 (2003: 19).  This increase reflects
increased revenues and certain significant receivables that were collected
shortly after the year-end.

The Company has in issue £3,000,000 8% convertible unsecured loan stock, with a
redemption date of 31 October 2005 and which is convertible on the basis of 2
ordinary shares for every £1 of loan stock.  Your Directors are currently
evaluating alternative arrangements.


BANKING & SECURITIES

Mondas has established its position as a market leader in terms of UK CA
implementations and a number of new projects are now well underway.
Consequently, revenue from our professional services team is increasing as is
recurring maintenance income.

Whilst the CA market generally has proved slower to adopt technology for
processing than envisaged, the level of interest in evaluating corporate actions
solutions has continued to increase.  We have been breaking new ground with our
Radica CAPS clients over the last few years and believe these successful
implementations will give the market more confidence to automate this important
area.

We were also pleased to have been recognised by our industry again, this time
with the 'Best New Development' Award from the London Stock Exchange sponsored '
2004 Awards for Systems in the Securities Industry' organised by Summerson
Goodacre.

Important progress in the CA area in the period include the latest order from
GNI, part of the Man Group plc, which allows the processing of both Contracts
for Difference ('CFD') client side and Equity hedge sides of the CFD business.
Initially, this new functionality will receive CFD positions from GNI's Rolfe &
Nolan system but, in due course, will be customisable to accept feeds from any
back office system.  This development is significant for Mondas and the Radica
CAPS solution because it addresses the needs of the fast growing Derivatives and
CFD markets.

Our sales pipeline is strong and the Directors continue to believe that this
market will bring substantial rewards.


RESOURCE

The Resource business unit ('RBU') has maintained a strong position within the
Further Education ('FE') arena with our Resource 32000 accounting solution.
Adjacent applications were demanded by our FE clients resulting in the
development of our successful new Learning Management System, Resource LMS, now
operational at sixteen clients.

The first fully integrated Resource 32000 and Resource LMS system went live
successfully at Richmond Adult Community College in February 2004 giving them,
in their words, 'a step change in business processing'.

Another area of focus for the RBU was e-Procurement within FE.  Together with
the Crescent Purchasing Consortium, we have enabled Hopwood Hall College in
Manchester to become the first FE institution in the UK to implement an
e-Procurement system accessing the award-winning HEeP (Higher Education
e-Procurement) marketplace.

In the commercial sector, Resource 32000 has been deployed at heating, spare
parts and controls specialists, Progress Group, as the 'back office' system to
its innovative new trade counter and supply chain management software,
Pro-Vision.  The combination of these products provides a fully integrated
trading, financial and business management system, covering all areas of
operation from the trade counter, through inventory, procurement and accounts,
to payroll and HR, creating what we believe to be a valuable opportunity within
a niche market.  Negotiations are already underway for the first sales of the
new Resource Pro-Vision solution.

As an example of our efforts to differentiate further from others, we have built
a new relationship with Pearson Phoenix Ltd, a subsidiary of Pearson plc, the
international media and education company. Under a memorandum of understanding
(prior to full contract), Mondas will exclusively provide Pearson Phoenix (one
of the leading providers of systems to schools in the UK and overseas) with an
accounting solution that will be embedded into their newly launched 'e1'
education management system for schools.  This will allow the distribution of
RBU products into a large market that we have not previously addressed.  Your
Directors believe that, whilst it may require some initial investment, it could
generate substantial long term recurring revenues and enhance our position in
the wider educational sector.

Our web application developments such as timesheet, expenses and budget holder
enquiries have increased opportunities within our customer base and our account
management strategy continues to bear fruit.


DIVIDEND

The Directors are not recommending the payment of a dividend in respect of the
period under review (2003: nil).


OUTLOOK

The traditional accounting market for the Resource Business Unit is becoming
increasingly competitive with large ERP vendors using price as a blunt
instrument.  Furthermore there is significant sector consolidation.  To
differentiate ourselves we are concentrating on non-financial applications (such
as Resource LMS) that integrate with our standard accounting package, and by
working with partners who can leverage sales within specific niche markets, two
prime examples are Pearson Phoenix and the Progress Group.

Existing projects within the Banking & Securities Business Unit are benefiting
the current period, adding function to Radica CAPS and building revenue streams,
as predicted, from our CA customer base.  A recent report sponsored by The
Depository Trust and Clearing Corporation ('DTCC') entitled 'Corporate Actions
Processing: what are the risks?' estimates the risks and actual losses incurred
by firms through sub-optimal trading decisions and processing failures in this
area, at anything up to I8.7 billion globally.  The Directors believe that the
uptake of CA systems will accelerate as the economy recovers and there is
increased confidence in vendor ability to deliver appropriate solutions to
mitigate the risks of CA processing.

As well as interest from large financial institutions, we are seeing the return
of interest from private client stockbrokers and hedge funds.  Whilst these
systems tend to be smaller, the sales cycles are usually shorter.  To reflect
changes in the buying patterns in the market, we will be offering Radica CAPS
with different payment methods, to meet individual customer's capital and/or
operating budget requirements.

Until the recovery in spending becomes fully established, however, Mondas will
keep its cost base flat and will make use of offshore development partners where
appropriate to reduce its development spend whilst maintaining its higher value
consulting expertise.

Setting expectations in an emerging market place is always challenging, but the
Directors' have an unwavering confidence in the future of the Company.


Tim Simon
Chairman



23 June 2004
Consolidated Profit and Loss Account for the year ended 30 April 2004


                                                                             2004          2003
                                                          Note                  £             £
Turnover                                                                3,974,732     3,713,353

Cost of sales                                                           (156,384)     (170,628)

Gross Profit                                                            3,818,348     3,542,725

Administrative expenses excluding restructuring
charge                                                                  (5,362,889)   (5,501,682)
Restructuring Charge                                                                  (154,149)
                                                                                -
                                                                        (5,362,889)   (5,655,831)

Analysis of Group operating losses

Operating loss before goodwill, amortisation and                        (501,206)     (679,973)
depreciation (LBITDA)
Amortisation of goodwill                                                (945,396)     (1,391,392)
Depreciation of tangible fixed assets                                   (97,939)      (41,741)

Operating loss                                           1              (1,544,541)   (2,113,106)

Net interest                                             2              (235,013)     (246,364)
Other operating income                                   3                      -       134,825

Loss on ordinary activities before Taxation                             (1,779,554)   (2,224,645)

Tax on loss on ordinary activities                       4                147,748       162,496
Loss for the financial year                                             (1,631,806)   (2,062,149)
Basic and diluted loss per share                         5              (6.6p)       (10.1p)

Profit and loss account

At 1 May 2003                                                           (7,880,966)   (5,818,817)
Loss for the financial year                                             (1,631,806)   (2,062,149)
At 30 April 2004                                                        (9,512,772)   (7,880,966)



All of the above operations are continuing.


Total recognised gains and losses

The Group had no recognised gains and losses other than the loss for the above
financial years.


Consolidated Balance Sheet as at 30 April 2004


                                                           2004             2004          2003          2003
                                             Note             £                £             £             £
Fixed assets                                                           1,418,087                   2,363,483
Intangible assets                                                        229,294                     193,845
Tangible assets                                                        1,647,381                   2,557,328
Current assets
Debtors                                                 934,331                        749,272
Cash at bank and in hand                              1,492,744                        977,943
                                                      2,427,075                      1,727,215

Creditors: Amounts falling due within one           (1,728,072)                    (1,769,407)
year

Net current assets/(liabilities)                                         699,003                    (42,192)
Total assets less current liabilities                                  2,346,384                   2,515,136

Creditors: amounts due falling after more
than one year
Convertible 8% Unsecured Loan Stock 2005                             (2,964,285)                 (2,936,485)
Net liabilities                                                        (617,901)                   (421,349)

Capital and Reserves

Called up share capital                                                2,614,164                   2,109,976
Share Premium account                                                  6,280,707                   5,349,641
Profit and loss account                                              (9,512,772)                 (7,880,966)
Equity shareholders' deficit                 6                         (617,901)                   (421,349)





Consolidated Cash Flow Statement for the year ended 30 April 2004

                                                                                       2004          2003
                                                                                          £             £
Net cash outflow from operating activities                                        (727,600)     (438,343)

Returns on investments and servicing of finance                                   (207,213)     (218,564)
Taxation                                                                            147,748       162,496
Capital expenditure                                                               (133,388)     (157,434)

Cash outflow before use of liquid resources and financing                         (920,453)     (651,845)

Management of liquid resources                                                    (848,852)       556,212

Financing
Issue of ordinary capital including premium net of costs                          1,435,254       209,036

Cash inflow from financing                                                        1,435,254       209,036

(Decrease)/increase in cash                                                       (334,051)       113,403



Reconciliation of operating loss to net cash outflow from operating activities.

                                                                                       2004           2003
                                                                                          £              £
Operating loss                                                                  (1,544,541)    (2,113,106)
Depreciation                                                                         97,939         41,741
Amortisation of goodwill                                                            945,396      1,170,433
Impairment of goodwill                                                                    -        220,959
Other income                                                                              -        134,825
Decrease in stocks                                                                        -            236
(Increase)/Decrease in debtors                                                    (185,059)        100,467
(Decrease)/Increase in creditors                                                   (41,335)          6,102

Net cash outflow from operating activities                                        (727,600)      (438,343)




Notes to the preliminary results

These financial statements have been prepared under the historical cost
convention, and in accordance with applicable accounting standards, using the
following accounting policies.  The accounts have been prepared on a going
concern basis as the Directors believe that current sales prospects combined
with existing working capital resources will ensure that Mondas has adequate
working capital to service its existing business. In addition the Company has
£3million of 8% convertible unsecured loan stock with redemption date of 31
October 2005, which is convertible on the basis of 2 ordinary shares for £1 of
loan stock. The directors are currently evaluating alternative financing
arrangements including all potential options under the terms of the CULs to
ensure the company can continue in operation and meet its liabilities as they
fall due for the foreseeable future.


1. Operating Loss

Operating loss is stated after charging:                                               2004          2003
                                                                                          £             £
Operating lease rentals in respect of buildings                                     119,293        87,198
Operating lease rentals in respect of equipment                                      40,647        57,191
Directors' remuneration                                                             312,895       242,760
Research and development expenditure                                                 57,244       615,617
Restructuring charge                                                                      -       154,149
Contributions to Director's pension fund                                             16,875        16,500
Amortisation of goodwill                                                            945,396     1,170,433
Impairment of goodwill against Reality Communications Scandinavia AS                      -       220,959
Depreciation                                                                         97,939        41,741
Auditors' fees:
    Audit                                                                            21,000        19,425
    Other fees                                                                        6,530        15,460



2. Net interest


                                                                                       2004          2003
                                                                                          £             £
Bank interest receivable                                                             34,314        22,681
Bank interest payable                                                               (1,527)       (1,245)
Amortisation of convertible unsecured loan stock costs                             (27,800)      (27,800)
Interest payable on convertible unsecured loan stock                              (240,000)     (240,000)


                                                                                  (235,013)     (246,364)



3. Other Income

                                                                                       2004          2003
                                                                                          £             £
Proceeds of placing of warranty claim shares                                              -       134,825
                                                                                          -       134,825


4. Tax on loss on ordinary activities


                                                                                       2004          2003
                                                                                          £             £
UK Corporation Tax

Current tax for the current year                                                          -             -

Adjustments in respect of Prior Years                                             (147,748)     (162,496)

Tax on loss on ordinary activities                                                (147,748)     (162,496)



The 2003 and 2004 values represents Research and Development tax credits received


5. Loss per share

Basic loss per share is based on a weighted average number of shares outstanding
of 24,572,155 (2003: 20,348,810) and loss after taxation of £1,631,806 (2003:
2,062,149).  The CULS and share options were non-dilutive for both years.


6. Reconciliation of movements in shareholders' funds


                                                                                       2004             2003
                                                                                          £                £
Loss for the financial year                                                     (1,631,806)      (2,062,149)

Issue of ordinary shares at par                                                     504,188          100,475
Premium on new share issued (net of expenses )                                      931,066          108,563
Net reduction to shareholders' funds                                              (196,552)      (1,853,111)
Opening shareholders' funds                                                       (421,349)        1,431,762
Closing shareholders' deficit                                                     (617,901)        (421,349)


Sundry Information

This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 23 June 2004.  It is not the Company's statutory
accounts.  Copies of the 2004 Annual Report and Accounts will be posted to
shareholders shortly and may be obtained from John East & Partners Limited,
Crystal Gate, 28-30 Worship Street, London EC2A 2AH.

The statutory accounts for the  year ended 30 April 2003 received an audit
report which was unqualified and did not contain a statement under s237 (2) or
(3) of the Companies Act 1985.  The statutory accounts for the year to 30 April
2003 have been delivered to the Registrar of Companies but the 30 April 2004
accounts have not yet been approved, audited or filed.


                      This information is provided by RNS
            The company news service from the London Stock Exchange