Final Results

Clarity Commerce Solutions PLC
29 June 2006

Clarity Commerce Solutions plc

Continued profitable growth across the Group - pre-tax profit increased by 86%
and earnings per share up 82%


Clarity Commerce Solutions plc, a leading supplier of management software
solutions for the entertainment, ticketing, hospitality, retail and leisure
sectors, announces its preliminary results for the year ended 31 March 2006.

•    Turnover increased by 16% to £18.9m (2005: £16.3m).

•    Recurring revenue increased by 22% to £8.3m (2005: £6.8m).

•    Sale of software licences grown by 31% to £3.4m (2005: £2.6m).

•    Pre-tax profit before goodwill increased 58% to £1.2m (2005: £763,000).

•    Pre-tax profit increased 86% to £953,000 (2005: £513,000).

•    Adjusted basic earnings per share increased 82% to 7.34p (2005: 4.03p).

•    Research and Development investment sustained at £1.6m.

•    Initiated the recommendation of a dividend for fiscal year 2006/07.

•    MATRA acquisition completed April 2006 - fund raising oversubscribed.

•    Client wins have included the £2.3 million contract with Sodexho, and new 
     contracts with Greenhalgh's Craft Bakery, Vinci plc, and William Grant and
     Sons.

•    Good start to 2006/07 with $1.4m contract with EuroPalaces in the ticketing 
     division.


Graham York, Clarity Commerce Solutions, Chief Executive, said:

'Clarity has developed a range of quality support service offerings to match its
leading software portfolio. This enhances our ability to win large contracts
from global players such as Sodexho. The acquisition of MATRA Systems has
strengthened Clarity's existing portfolio and enables us to offer a compelling
solution to retailers, whether that retailer runs a supermarket theme park,
leisure centre, cinema circuit, bar or restaurant.'

John O'Connell, Clarity Commerce Solutions, Chairman, said:

'There are tremendous opportunities ahead for Clarity as our strategy  positions
the business more strongly than ever to deliver accelerating financial
performance.'


Enquiries:

Clarity Commerce Solutions
    Graham York, Chief Executive Officer                          0870 44 44 234

College Hill
    Adrian Duffield/Ben Way                                        020 7457 2020



A FORMATTED VERSION OF THIS ANNOUNCEMENT WILL BE AVAILABLE ON THE COMPANY'S
WEBSITE IN DUE COURSE: WWW.CLARITYCOMMERCE.COM


Financial Highlights

We are pleased to report on another successful twelve months for Clarity
Commerce Solutions, the fifth successive year of profitability and growth.

Revenues increased by 16% to £18.9m (2005: £16.3m). Recurring revenues continue
to grow strongly, reaching £8.3m, an increase of 22% (2005: £6.8m).

Pre-tax profit before goodwill has accelerated 58% to £1.2m (2005: £763,000),
and pre-tax profit increased 86% to £953,000 (2005: £513,000).

We were also pleased with the performance of the second half of the year.
Revenues for the second half were £10.5m (H1/2006: £8.4m) and PBT increased to
£953,000 for the full year from £323,000 in H1/2006.

Adjusted basic earnings per ordinary share were 7.34p (2005: 4.03p) and earnings
per share increased by 146% to 5.81p from 2.36p.

Cash generation from operating activities has increased by 80% to £884,000
(2005: £490,000)

Overview

Clarity's improved financial performance shows that the Group's long-term
strategy is delivering growth, through acquisition as well as through greater
penetration of our core markets, and our global presence is expanding.

Additionally, the objectives that the Board set early in 2005 regarding new
product development and divisional integration, are also being delivered. The
Company is becoming leaner and more efficient by consolidating operations, and
is well positioned to achieve the next stage of development; becoming a fully
integrated software company that is recognised as the leader in its primary
markets.

Clarity continues to invest heavily in its chosen software platform, Microsoft
.NET, and has already delivered new products based on this. The £2.3m landmark
contract with Sodexho won in October 2005 is evidence that we are on track to
achieve our vision of highly integrated and flexible solutions, of value across
multiple market sectors.

In addition to intensive product development work in house, we have also
strengthened the Clarity portfolio by paving the way during the year for a major
acquisition. Acquiring MATRA Systems after the year end equips Clarity with
genuine expertise in transactional point of sale systems in the retail sector,
while extending our blue chip client base in North America, South Africa and
Northern Europe.

Over the last twelve months we have made other operational changes that
contribute to better product delivery and provide a source of efficiency
savings. Our ticketing division has been relocated, maximising the benefits of
cross-divisional synergies. Hospitality product support has also been
successfully integrated into our Services division at Sunbury. Development from
the US and UK has been consolidated into the Group's new R&D Centre in
Basingstoke, where the focus is on delivering leading edge, innovative solutions
based on the Microsoft .NET platform.

There are a series of key strands to our overall vision for the business and how
we can reinforce profit growth in the future, and we believe that we are
achieving real progress in each of these areas.

Leading products

As a high margin software business, delivering on our vision means achieving
product leadership right across the Clarity portfolio. We can already claim
expertise in head office systems with our Central product, as well as with our
transactional Electronic Point of Sale (EPOS) systems, across several markets.
We also offer several other component related products such as bookings and
membership, primarily for the leisure market, and ticketing software for cinemas
and entertainment venues.

Clarity is continuing to create synergies across these product sectors so that
we can offer comprehensive, flexible, component solutions to multi channel
retailers of any size, and in any location.

To achieve this, we have consolidated our R&D and quality assurance work at our
brand new development centre in Basingstoke, investing c£1.6m in these
activities (2005: c£1.6m). The development capabilities previously based at our
Denver, US, and Salisbury, UK, offices have been relocated to this facility, as
the first stage in a plan to centralise global development and attract quality
developers.

All development work is now focused on creating a single Microsoft .NET based
multi-market system platform, maximising ease of integration with other systems
and promoting customer retention by ensuring that our products fully satisfy
client requirements. Regular contact with Microsoft is now built-in to our
development programme, ensuring that we benefit from the expertise and resources
they offer.

Continuing geographical expansion

During the year Clarity has made further inroads across international markets.
An increasing number of international hotel chains are adopting our golf and spa
resort software, with new contracts signed throughout the year.

Clarity continues to be a leading force in the European ticketing market. During
the year we secured a major new maintenance contract with EuroPalaces (operator
of the Pathe and Gaumont cinema brands) that runs until the end of 2008, and
incorporated cross sales functionality at an innovative ticketing centre for the
MK2 cinema circuit in Paris.

In North America, Clarity successfully launched its new Microsoft .NET ticketing
product in SeaTurtle Entertainment's new 2,200 seat, 12 screen cinema complex.
The new web browser based cinema operation modules are integrated with Clarity's
Central management and business intelligence products, delivering unprecedented
flexibility, efficiency and profitability to SeaTurtle's business.

Additionally, our acquisition of MATRA Systems after the year end significantly
boosts our global presence. Around half of MATRA's business is generated in
North America from its Atlanta office, and it also gives Clarity a firm foothold
with major retail chains in South Africa and Northern Europe.

Expansion across new market sectors

Clarity has been actively seeking opportunities to deploy its products across
new market sectors, maximising the value we deliver with our existing assets.
New client wins demonstrate this thinking.

In October 2005 Clarity won a landmark contract with Sodexho, one of the world's
leading catering and support services contractors, worth an estimated £2.3m over
three years. This contract takes Clarity into several new market spaces and
positions us to achieve further penetration in these as well as our traditional
markets. Sodexho were seeking a software provider that was innovative and
flexible enough to adapt to their business, so that regardless of which
contracts they were managing, they had a control solution to match the
requirement.

Clarity's new Microsoft .NET based solution provided that level of flexibility,
and with Microsoft's weekly monitoring of all Clarity's .NET development work,
Sodexho were assured of a quality product. We are proud to have achieved a
smooth, low defect product rollout, supplying systems to Sodexho sites in high
profile commercial settings including large corporate centres, world famous
leisure venues, public sector hospitals and military barracks.

Greenhalgh's Craft Bakery is a privately owned company operating a wholesale and
retail bakery business in the Northwest of England, with a retail estate of 42
outlets. Clarity is providing the product suite for all 42 sites, with a Central
solution in place at its head office. Winning this business marks Clarity's
entry into the niche bakery market, and will enable an 'off-the-shelf' bakery
point of sale system to be marketed in this sector.

Clarity's acquisition of MATRA Systems also brings real opportunities for
further penetration into the retail sector. MATRA's client base offers major
cross-selling potential for Clarity's Central solution, while the complementary
nature of the MATRA and Clarity product and service sets represents a stronger
proposition to related markets.

Online and web-based software

Clarity recognises the growth and increasing importance of consumer access to
services via the internet, and is focused on maintaining leadership in this
field. Our resource management and internet bookings software continues to be
the preferred choice for numerous UK local authorities and trusts seeking to
drive the 'eGovernment' initiatives they have been tasked with. We expect the
requirement in this sector to grow for the foreseeable future, as local
authorities strive to achieve a series of government targets.

Warrington Borough Council is one organisation illustrating the potential of
this sector, deploying Clarity internet booking software to increase citizen
access to wide-ranging services. Warrington has radically improved customer
service by providing a comprehensive online facility and enabling remote
bookings and payments. Forty nine local authority, trust and theatre
organisations have now deployed Clarity internet bookings software across
approximately 350 sites. Fifty nine of these sites have been added during the
last 12 months, and we are very well placed to capitalise on the further
potential that exists.

In a move that demonstrates our continuing drive to optimise products across the
Group, the expertise of our Business Intelligence division has been used to
integrate powerful, web-based Cognos reporting software across our portfolio.
This has proved a significant factor in a series of leisure, ticketing and
hospitality sector contract wins.

Investment in business intelligence tools

In today's data rich world, Clarity understands the need to provide businesses
with easy access to meaningful information. This means making it easy for
clients to get the most from their data using alerts, simple reports, charts and
graphs, and for them to be able to do this wherever they happen to be, with
web-enabled tools.

The integration of world-renowned Cognos based tools into Clarity's broader
suite of applications has created added value solutions and delivered a telling
competitive differentiator. The deployment of these tools with our leisure
software in particular has contributed to several contract wins.

As well as helping to fuel Group sales in this way, Clarity's Business
Intelligence division has also won several major contracts in its own right.
William Grant and Sons Ltd, the makers of Glenfiddich Scotch Whisky, purchased
Cognos licenses to deliver a corporate performance management system in March
06. The new Cognos system will be used as the company standard reporting tool,
linking all of the client's current systems into one reporting database, and we
anticipate further license requirements over the next financial year.

Another significant new contract is with Vinci PLC, which commissioned a new
data warehouse. The system provides the building block for a highly robust
solution, allowing the client to report on every aspect of their business.

Development of support services

In tandem with our software product activities, Clarity's ambition is to further
develop its portfolio of services, and we have continued to invest in the
technology to do this. An example of this is our work on eLearning initiatives
to deliver ongoing and refresher training for clients.

With improved communications technology now installed in most retail outlets, we
are able to host and deliver a range of training programmes simply, consistently
and cost effectively, accelerating project implementations and improving
business performance. These solutions meet measurable due diligence requirements
for store staff, as well as fulfilling the training demand created by high staff
turnover.

Clarity's Services division has seen excellent revenue growth over the last
financial year, as we respond to growing demand for outsourced training and
helpdesk services. We have developed closer integration of service delivery
across the Group as a whole, and the fruits of this work were perhaps most
visible in the provision of training resources to our largest client, Sodexho.
The computer based training solutions we created for this contract have proved
essential to the rollout of systems at prestige sites.

The services business continues to grow, not only by providing helpdesk and
training support to Clarity Group software clients, but also by gaining retail
and hotel clients who are not users of our software. We have successfully
delivered training programmes for Travelodge, gained the contract for store
helpdesk services for WHSmith through BTExpedite, and at the end of 2005 we
commenced a two year project for Carpetright that incorporates a blend of
e-learning and classroom delivered training.

Expansion through complementary acquisitions

In addition to expanding the Group's business organically, Clarity has
consistently followed a strategy of acquiring businesses that add value to the
Group, not only through direct profit contribution, but via the new markets and
cross-selling opportunities they afford.

We have been actively engaged with a number of potential acquisitions over the
last twelve months; in particular with MATRA systems, a deal that was
subsequently completed in April of the new 2006/07 financial year. MATRA and
Clarity offer complementary technology, equipping the Group with a well-proven
Microsoft .NET based point of sale solution. This addition increases our ability
to compete effectively in the retail and leisure market spaces.

MATRA's existing client base includes numerous North American customers, as well
as major retail chains in South Africa and Northern Europe, strengthening the
Group's presence in these key global markets. This offers the potential for
significant cross-sales opportunities to MATRA clients, not only of our Central
head office management software, but also of our business intelligence and
support services solutions. The fact that Clarity and MATRA solutions are
developed on the common Microsoft .NET platform is a major advantage, making for
easy and rapid product integration.

MATRA Systems clients include:

Anglia Co-Op                                                 Co-Op (Denmark)
Focus DIY                                                    HMV
John Lewis Partnership                                       Longs Drugs (US)
London Drugs (US)                                            Six Flags (US)
Smart and Final (US)                                         Somerfield
Woolworths (South Africa)                                    Waterstones

Continuing organic growth

Clarity's expansion through acquisition is important, however we maintain a
parallel emphasis on achieving growth organically. The investment we have made
in product development has delivered significant progress towards a single,
multi-market system platform.

This, combined with closer organisational integration, positions Clarity more
strongly to capitalise on cross-selling opportunities and to compete in new
market sectors. A string of major client wins such as Sodexho underline the
success of this strategy, and are helping us to rapidly build credibility in a
series of new markets.

Dividend Policy

We have reviewed our policy on dividends and will initiate the recommendation of
a progressive dividend policy starting in respect of Clarity's fiscal year 2006/
07, the amount of which will be determined in the light of that year's results.

Outlook

The financial performance of the business reflects Clarity's continued success,
and there have been a number of positive strategic developments that position
the company strongly for the future. We believe the Sodexho contract will prove
to be a landmark deal that will open up a range of exciting opportunities.

This contract and other high profile client wins, the excellent progress made on
product development and integration via our new R&D centre, and the acquisition
of MATRA and the global opportunities it offers, all create confidence that
further growth and profitability can be anticipated in 2006/07.



CLARITY COMMERCE SOLUTIONS PLC.
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2006

                                                                                   Year ended                Year ended
                                                                                31 March 2006             31 March 2005
                                                                                       £' 000                    £' 000
Turnover
- continuing operations                                                                18,884                    16,310
                                                                                       18,884                    16,310
Cost of sales                                                                         (7,361)                   (6,155)
Gross Profit                                                                           11,523                    10,155

Operating costs                                                                      (10,414)                   (9,486)
Operating profit                                                                        1,109                       669
                                                                                        1,109                       669
Operating profit before impairment of goodwill                                          1,358                       919
Impairment of goodwill                                                                  (249)                     (250)
Operating profit after impairment of goodwill                                           1,109                       669

Interest receivable                                                                       506                       596
Interest payable                                                                        (662)                     (752)
                                                                                        (156)                     (156)
Profit on ordinary activities before taxation                                             953                       513
Taxation on profit on ordinary activities                                                 (3)                     (120)
Retained profit for the year                                                              950                       393

Profit on ordinary activities before impairment of goodwill and                         1,202                       763
taxation
Impairment of goodwill                                                                  (249)                     (250)
Profit on ordinary activities before taxation                                             953                       513

Profit per ordinary share
- basic                                                                                 5.81p                     2.46p
- diluted                                                                               5.80p                     2.36p

Dividends paid per share                                                                    -                         -




CLARITY COMMERCE SOLUTIONS PLC.
 
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2006 

                                                                                        As at                     As at
                                                                                31 March 2006             31 March 2005
                                                                                        £'000                     £'000
Fixed assets
Intangible assets                                                       11,352                      11,305
Tangible assets                                                            563                         530
                                                                                       11,915                    11,835
Current Assets
Stocks                                                                       600                       628
Debtors                                                                    6,778                     4,767
Cash at bank and in hand                                                     852                     1,334
                                                                           8,230                     6,729

Creditors: amounts falling due within one year                           (8,100)                   (6,745)

Net current assets / (liabilities)                                                        130                      (16)

Total assets less current liabilities                                                  12,045                    11,819

Creditors: amounts falling due after more than one year                               (1,691)                   (2,332)
Provisions for liabilities and charges                                                   (34)                         -
                                                                                       10,320                     9,487

Capital and reserves
Called up share capital                                                                 4,084                     4,084
Share premium account                                                                   5,974                     5,974
Profit and loss account                                                                   262                     (571)
Equity shareholders' funds                                                             10,320                     9,487





CLARITY COMMERCE SOLUTIONS PLC.
 
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2006

                                                                                   Year ended                Year ended
                                                                                31 March 2006             31 March 2005
                                                                                       £' 000                    £' 000
Net cash inflow from operating activities                                                 884                       490
Returns on investments and servicing of finance
Interest received                                                                         506                       596
Interest paid                                                                           (595)                     (683)
Interest element of hire purchase and finance leases                                      (2)                       (5)
Net cash outflow from returns on investments and servicing of                            (91)                      (92)
finance

Taxation                                                                                 (10)                         -
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                       (200)                     (105)
Sale of tangible fixed assets                                                               -                        12
Net cash outflow from capital expenditure and financial investment                      (200)                      (93)

Acquisitions
Purchase of subsidiary undertakings                                                     (110)                     (112)
Cash at bank acquired with subsidiaries                                                     -                      (24)
Net cash outflow from acquisitions                                                      (110)                     (136)
Net cash inflow before management of liquid resources and financing                       473                       169

Management of liquid resources
Movement in blocked cash collateral account                                                75                       248

Financing
Repayment of loan notes                                                                 (646)                     (622)
Capital element of finance leases                                                         (5)                      (32)
Bank loan repayments                                                                    (304)                     (303)
Net cash outflow from financing                                                         (955)                     (957)
Decrease in cash                                                                        (407)                     (540)


Notes to the Financial Statements:

1.   UK Corporation Tax has been provided on the results for the year at 30% and 
     overseas tax at applicable rates.

2.   The Directors do not recommend the payment of a dividend.

3.   Earnings per ordinary share:

     Basic profit per share for the year ended 31 March 2006 is calculated by
     dividing the profit for the year of £950,000 (2005: £393,000) by 16,338,086
     (2005: 15,956,500) being the weighted average number of shares in issue 
     during the year.

     The weighted average number of ordinary shares in issue has been adjusted 
     to assume conversion of those shares to be issued as well as all dilutive 
     potential ordinary shares. Diluted earnings per share is calculated by 
     dividing the profit for the year of £950,000 (2005: £393,000) by the 
     weighted diluted average number of shares being 16,381,088 (2005: 
     16,666,937).

     The adjusted basic earnings per share for the year ended 31 March 2006 is
     calculated by dividing the profit for the year before impairment of 
     goodwill of £1,199,000 (2005: £643,000) by 16,338,086 (2005: 15,956,500) 
     being the weighted average number of shares in issue during the year. The 
     profit for the year before impairment and amortisation is calculated by 
     adding back £249,000 (2005: £250,000) to the retained profit for the year 
     of £950,000 (2005: £393,000).

4.   The Annual General Meeting will be held on Wednesday 20th September 2006.

5.   The Annual Report and Accounts will be posted to shareholders shortly. 
     Further copies will be available on request from the Company's Registered
     Office: Clarity Commerce Solutions plc, No.1 Netherhampton Business Centre,
     Netherhampton, Salisbury, Wiltshire. SP2 8PU.

6.   The financial information set out above does not comprise the Company's
     full statutory accounts within the meaning of Section 240 of the Companies 
     Act 1985.


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