Report & Accounts

Mondas PLC
01 September 2004


Mondas plc

FOLLOWING THE BOARD CHANGES ANNOUNCED ON 5 AUGUST 2004, THE CHAIRMAN'S STATEMENT
AND CHIEF EXECUTIVE'S REVIEW INCLUDED IN THE REPORT AND ACCOUNTS FOR THE YEAR
ENDED 30 APRIL 2004, WHICH WILL BE SENT TO SHAREHOLDERS TODAY, HAVE BEEN UPDATED
TO REFLECT THESE EVENTS.

WHILST THE TEXT HAS BEEN AMENDED THE FINANCIAL STATEMENTS ANNOUNCED ON 23 JUNE
ARE UNCHANGED.

COPIES OF THE 2004 REPORT AND ACCOUNTS MAY BE OBTAINED FROM MONDAS PLC, 17 - 29
SUN STREET, LONDON, EC2M 2PT OR JOHN EAST AND PARTNERS LIMITED, CRYSTAL GATE, 28
- 30 WORSHIP STREET, LONDON, EC2A 2AH.

THE TEXT OF THE AMENDED STATEMENTS IS AS FOLLOWS:

CHAIRMAN'S STATEMENT

The year under review has been one of further progress for the Company, but we
underachieved against our potential.  Following the announcement of Mondas'
preliminary results for the year ended 30 April 2004 on 23 June 2004 your Board
concluded that a top-level reorganisation was essential. This led to the
appointment of Jarlath McGee, the chief operating officer of our operating
subsidiary, Mondas Information Technology Limited ('MITL'), as chief executive
of the Company and my appointment as your chairman. We were not able to agree an
appropriate solution with Tim Simon and, therefore, it was necessary to remove
him from the Board and to give him notice of termination of his contract of
employment.

Since joining the board of Mondas in October 2000 as a non-executive director, I
have seen major changes in the Company's business.  At the time of its listing
on the Alternative Investment Market, in October 1996, the Company's primary
focus was the development of its Radica software. Radica was designed as a
workflow-based toolkit for automating the creation of business applications.
Concerns as to its suitability for key business applications led, in 2002, to an
independent review of the product. This review concluded that Radica was not
suitable for use in the Company's core banking and securities markets. The
decision was therefore taken to use industry-standard software in the
development of its Corporate Actions Processing product ('CAPS'), though the
Radica brand name was retained. Mondas has now ceased all development of
Radica-based software.

Jarlath McGee joined Mondas in December 2000 as sales director of MITL. He
quickly demonstrated impressive leadership skills and was appointed chief
operating officer of that company in 2001. Jarlath has successfully taken the
Company into the investment banking market and helped with the continuing growth
in our education market.

I believe that Mondas now has the right products and the right people for future
success. A key focus for the Company now is to build long-term, productive
relationships with clients and shareholders based upon trust and a delivery that
exceeds expectations.

I would like to thank all our staff who have been very supportive during this
difficult period. Throughout the year they have worked enormously hard
developing and installing our products. I look forward to working with Jarlath
and his team to fulfil the Company's considerable potential.

Colin Peters
CHAIRMAN


CHIEF EXECUTIVE'S REVIEW

I am very much looking forward to serving as your chief executive. After nearly
four years with Mondas I know that it is a company with dedicated staff,
superior products and world-class customers. Together they offer Mondas the best
opportunity it has ever had. I am currently reviewing all aspects of the
business and will be reporting my full findings to the Board in September.
However, we have already begun to address a number of aspects of our business
that have had a negative impact in the past.

Mondas has accomplished much by securing top tier clients such as HSBC, Credit
Suisse First Boston (Europe) ('CSFB') and Credit Suisse Asset Management.  As we
announced in April, the timing of contracts and projects has been slower than
hoped, but despite this we have achieved turnover growth in this reporting
period.  Sales negotiations have extended into the current financial year,
which, combined with increasing revenues from existing clients, instils
confidence for the short-term.

CSFB has recently confirmed that it is now successfully running live our Radica
CAPS product.  The implementation process involved satisfying many complex
requirements and much rigorous testing.   This is a significant achievement for
Mondas of which we can feel proud.  I believe that this will lead to significant
revenue streams for the current 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, and was split approximately
evenly across the two business units.  Licence and support revenues grew by 27
per cent and 21 per cent respectively, while services revenues decreased by 15
per cent due to project delays outside of our control. This had a compounding
effect on the second half of this reporting period, as we had hired additional
staff to service these delayed 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).  The loss per share was 6.6p
(2003 10.1p).  Deferred revenue increased to £947,000 (2003: £ 856,000).

Research & Development charged to the profit and loss account was down to
£57,000, (2003: £616,000) as we largely completed product development and these
products were launched.  Resources are now redeployed to support customer
deliveries.

Cash balances as at 30 April 2004 amounted to £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 (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 actively
reviewing a number of options intended to address this issue.

BANKING & SECURITIES

Mondas has firmly established its position as a market leader in UK Corporate
Actions 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.

Industry recognition came when we won the 'Best New Development' award at the  '
Awards for Systems in the Securities Industry 2004' sponsored by the London
Stock Exchange.

The Radica CAPS project at HSBC has gained momentum and is on track for a
successful implementation with a projected live date within the current half
year.

RESOURCE

Our Resource 32000 accounting solution has maintained its strong position within
the Further Education sector.  Adjacent applications were demanded by our
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'.

In June this year we announced a new relationship with Pearson Phoenix, a
subsidiary of Pearson plc. Mondas will exclusively provide Pearson Phoenix with
an accounting solution to be embedded in their newly launched 'e1' education
management system for schools.  This will allow the distribution of our products
into a large market that we have not previously addressed

OUTLOOK

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 up to €8.7 billion globally.
I believe that the uptake of Corporate Action systems will accelerate with
recovery in financial services market, and there is increased confidence in
vendor ability to deliver successful solutions.

As well as interest from large financial institutions, we are beginning to see
the return of interest from private client stockbrokers and hedge funds.  Whilst
these systems tend to be smaller, the sales cycles are usually shorter.

Since the end of our financial year we have received further business from a
major banking client.  This involved adding additional functionality to Radica
CAPS, thereby increasing its appeal to other Tier1 investment banking prospects.

I strongly believe that a company's key assets are its customers, its staff and
the intellectual property locked into its products. I intend to focus on these
three areas to drive the huge potential of this company and to turn Mondas into
a customer-centric and market driven organisation that is a pleasure to work
with.

The commercial landscape in which we operate has changed dramatically over the
past 20 years and we must change with it. Our customers demand it and our staff
expect it. Speed of reaction, flexibility of approach and most of all a hunger
for business, coupled with an obsession with customer service, will be the keys
to our success.

Jarlath McGee
Chief Executive

                                                                1 September 2004

Enquiries:

  Mondas PLC                                           Tel: [phone]
  Jarlath McGee, Chief Executive
  Ian Selby, Finance Director

  College Hill                                         Tel: [phone]
  Matthew Smallwood



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