Interim Results

Clarity Commerce Solutions PLC
24 November 2005


Clarity Commerce Solutions plc

Interim Results

Clarity Commerce Solutions plc, a leading supplier of software management
solutions for the entertainment, ticketing, hospitality and leisure sectors,
announces its Interim Results for the six months to 30 September 2005.

•           Turnover maintained at £8,415,000 (2004 H1: £8,236,000)

•           Operating profit up 24% to £395,000 (2004 H1: £318,000)

•           Research and Development investment £680,000 (2004 H1:£650,000)

•           Adjusted earnings per share 1.48p (2001 H1: 1.44p)

•           Finalisation of £2.3 million, three year contract with Sodexho
                 -   Implementation of software solutions to over 100 major UK 
                     locations marks entry into  new market sectors including 
                     business and industry, defence, healthcare and leisure

•           New contracts signed include Greenhalgh's Craft Bakery, Warrington
            Borough Council, Travelodge and Crown Theatres (USA)



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

'We remain confident that the second half of the year will demonstrate further
growth in underlying profits when compared to our first half.

The significant investment in the first half with the recently signed contract
with Sodexho has demonstrated the Group's capability to deploy software across
multiple sectors.'



                                                                24 November 2005



Enquiries:


Clarity Commerce Solutions
    Graham York, Chief Executive Officer                          01722 744 946

College Hill
    Adrian Duffield/Clare Warren                                  020 7457 2020





Financial Review

The Board is pleased to report that the Group's operating profits for the half
year ended 30 September 2005 increased by 24% to £395,000 (2004: £318,000).

Last year we reported significant increases in revenue which have been
maintained at £8,415,000 (2004: £8,236,000).

Earnings per share have increased to 1.48p (2004: 1.44p).

Net assets have increased to £9,728,000 (2004: £9,250,000).

The Group has continued its strategy of investment in both new product and
product integration and remains focused on Research and Development, with an
expenditure this half year of £680,000 (2004: £650,000).

Operating Review

Software Division

The first part of this financial year involved substantial work leading towards
the finalisation of the recently announced contract with Sodexho, one of the
world's largest providers of catering and business support services.

This agreement is expected to be worth in excess of £2.3 million over three
years, and will contribute to revenues and profits in the second half of this
year.

Clarity will be implementing software solutions to over 100 major UK locations
serviced by Sodexho, initially focused around four of its key market streams:
business and industry, defence, healthcare, and leisure.

The contract is strategically significant for the Group, as it marks Clarity's
entry into several new market sectors.

In this period, we also announced a contract with Greenhalgh's Craft Bakery, a
wholesale and retail bakery business based in the northwest of England. The
Clarity solution will support Greenhalgh's moves to automate order processing,
increase efficiency and improve speed of service across its retail estate.
Implementation of this is expected to be completed by year end.

Our Leisure division has had another period of strong trading. The recently
awarded Peepul Centre project, located in Leicester, integrates a broad range of
services including community support services, eating and meeting places, health
and fitness facilities, leisure and learning facilities, and more - backed by
our Leisure and Hospitality software to help them manage and operate the EPOS,
membership, course bookings, box office and bar and catering requirements.

In the leisure market there has also been strong growth in e-bookings orders
from local authority customers. Clarity has been selected by Warrington Borough
Council, a leading player in local authorities' e-government modernisation
agenda, to provide an online bookings and payment solution to enhance its online
services for their customers. Clarity's LeisureFlex product has provided a
secure, browser-based solution with the flexibility to book and/or pay for
various resources the council offers.

Virgin Active has recently added another 7 sites to their expanding portfolio of
25 clubs which operate using leisure software provided and supported by Clarity.

In the Golf and Spa market, UK sales continue with installations at a number of
prestigious sites. In other markets, we have provided further installations for
Orient Express Hotels, Jumeirah International have continued their roll out with
the installation of our software at Emirates Towers, and the Taj Hotel Group
have installed Clarity in the luxury Mumbai Spa Resort.

The UK Ticketing marketplace has been marked by consolidation between the major
cinema players, and these customers have been awaiting the delivery of our new
.NET based ticketing solution.

Following the amalgamation of two of our key customers, Cineworld and UGC, into
the new Cineworld group, a program of hardware and software upgrades commenced
in the early summer, and was successfully completed by the end of September.

Our European office has commenced the planned installation of automated
ticketing machines with Europalaces, and work on this project is expected to
continue throughout 2005 and 2006. This development provides Europalaces with
significant advantages in terms of speed of service in their Pathe and Gaumont
cinemas.

Ongoing sales and marketing efforts continue in Europe, aimed at broadening both
our geographical reach and the number of market sectors we operate in.

In the USA, Crown Theatres have signed contracts with Clarity for provision of
site and head office solutions for the 18 Theatre circuit, based around
Clarity's new .NET ticketing product.

Business Intelligence Division

Our Business Intelligence division has been developing expertise and
accreditation in the Cognos 8 and Cognos Enterprise Planning products. We expect
these new products to have a positive impact on revenues going forwards.

Our project with Robert Wiseman Dairies plc to implement Cognos Enterprise
Planning project was successfully completed. The Wiseman EP Forecasting Model
has been developed to assist the company in establishing future requirements for
raw milk, and calculate the company's external supply requirements.

During this period, we also signed an OEM contract with Cognos, enabling us to
embed their BI solution into the group's software products. This is already
delivering revenues within our Leisure marketplace.

Services Division

Clarity's services division has seen significant growth, especially in its
training revenues. Travelodge has awarded a major six month contract for
training in 150 sites, and staying in the hotel sector, a new system was also
trained in DeVere Village hotels.

Clarity's expanding helpdesk operation won a long term contract from BTExpedite,
for providing 24/7 support for one of their clients, a 550 site high street
retail chain.

Outlook

The board remain confident that the second half of the year will demonstrate
growth in underlying profits when compared to the first half, delivering a
strongly improved result over last year.

Integration within our acquired divisions is continuing, supported by a new UK
based R&D centre for our software. The significant medium term investment in
Microsoft's .NET platform will put the company in an increasingly strong
competitive position with new products across several market sectors.

We retain confidence that we have the product set, the people and the market
opportunities to continue to grow both the bottom line and the underlying value
of the business.

Consolidated Profit and Loss Account
for the period ended 30 September 2005

                                                      1 April 2005 to          1 April 2004 to          1 April 2004 to
                                                    30 September 2005        30 September 2004            31 March 2005
                                                            Unaudited                Unaudited                  Audited
                                                                £'000                    £'000                    £'000
Turnover                                                       8,415                    8,236                   16,310
Cost of sales                                                 (2,928)                  (3,556)                  (6,155)
Gross Profit                                                   5,487                    4,680                   10,155
Operating costs                                               (5,092)                  (4,362)                  (9,486)
Operating profit                                                 395                      318                      669

Operating profit before impairment of                            395                      318                      919
goodwill
Impairment of goodwill                                              -                        -                    (250)
Operating profit after impairment of                             395                      318                      669
goodwill

Interest receivable                                              331                      312                      596
Interest payable                                                (403)                    (324)                    (752)
                                                                 (72)                     (12)                    (156)
Profit on ordinary activities before                             323                      306                      513
taxation
Taxation on profit on ordinary activities                        (82)                     (77)                    (120)
Retained profit for the year                                     241                      229                      393

Profit per ordinary share
- basic                                                         1.48p                    1.44p                    2.46p
- diluted                                                       1.47p                    1.41p                    2.36p
- adjusted basic                                                1.48p                    1.44p                    4.03p
Dividends per share                                                 -                        -                        -



Consolidated Balance Sheet
as at 30 September 2005

                                                                   At                       At                       At
                                                    30 September 2005        30 September 2004            31 March 2005
                                                            Unaudited                Unaudited                  Audited
                                                                £'000                    £'000                    £'000
Fixed assets
Intangible assets                                             11,277                   10,300                   11,305
Tangible assets                                                  560                      501                      530
                                                              11,837                   10,801                   11,835
Current assets
Stock and work in progress                                     1,027                      463                      628
Debtors                                                        4,093                    4,229                    4,767
Cash at bank and in hand                                         990                    1,360                    1,334
                                                               6,110                    6,052                    6,729

Creditors: amounts falling due within one                     (5,996)                  (5,227)                  (6,745)
year
Net current assets / (liabilities)                               114                      825                      (16)
Total assets less current liabilities                         11,951                   11,626                   11,819
Creditors: amounts falling due after more                     (2,223)                  (2,376)                  (2,332)
than one year
Net assets                                                     9,728                    9,250                    9,487

Capital and reserves
Called up share capital                                        4,084                    3,985                    4,084
Share premium account                                          5,974                    5,833                    5,974
Shares to be issued                                                 -                     125                         -
Profit and loss account                                         (330)                    (693)                    (571)
Equity shareholders' funds                                     9,728                    9,250                    9,487



Consolidated Cashflow Statement
for the period ended 30 September 2005


                                                     1 April 2005 to         1 April 2004 to          1 April 2004 to
                                                   30 September 2005       30 September 2004            31 March 2005
                                                           Unaudited               Unaudited                  Audited
                                                               £'000                   £'000                    £'000
Net cash (outflow) / inflow from operating                       (1)                   (192)                     490
activities

Returns on investments and servicing of
finance
Interest received                                               331                     312                      596
Interest paid                                                  (402)                   (324)                    (683)
Interest element of hire purchase and                            (1)                       -                      (5)
finance leases
Net cash outflow from returns on                                (72)                    (12)                     (92)
investments and servicing of finance

Taxation                                                           -                       -                        -
Capital expenditure and financial                                  
investment
Purchase of tangible fixed assets                              (115)                    (45)                    (105)
Sale of tangible fixed assets                                     4                        -                      12
Net cash outflow from capital expenditure                      (111)                    (45)                     (93)
and financial investment

Acquisitions
Purchase of subsidiary undertakings                                -                       -                    (112)
Cash at bank acquired with subsidiary                              -                       -                     (24)
Net cash outflow from acquisitions                                 -                       -                    (136)
Net cash (outflow) / inflow before                             (184)                   (249)                     169
management of liquid resources and
financing

Management of liquid resources
Movement in blocked cash collateral account                    (331)                    282                      248

Financing
Repayment of loan notes                                            -                   (352)                    (622)
Capital element of finance leases                                (8)                     (9)                     (32)
Bank loan repayments                                           (152)                   (152)                    (303)
Net cash outflow from financing                                (160)                   (513)                    (957)
Decrease in cash                                               (675)                   (480)                    (540)

NOTE: Analysis of cash movements
Movement in total Group cash                                   (344)                   (762)                    (788)
Movement in blocked cash collateral account                    (331)                    282                      248
Movement in total cash availability                            (675)                   (480)                    (540)

Notes to the Financial Statements

1.        Nature of the financial information

The Company prepares statutory accounts annually to 31 March. These are the
interim accounts covering the six months ended 30 September 2005.

The results for the period from 1 April 2004 to 30 September 2004 and year to 31
March 2005 are extracted from the previous year's interim and final accounts
respectively.

The results for the six months ended 30 September 2005 and the period from 1
April 2004 to 30 September 2004 are unaudited, and have been prepared in
accordance with the accounting policies set out in the Company's annual report.

The financial information set out above does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The results for the
year ended 31 March 2005 are an abridged version of the full statutory accounts
that have an unqualified audit report and have been delivered to the Registrar
of Companies.

2.        Taxation

The taxation charge for the six months ended 30 September 2005 and 2004 is based
on the anticipated tax position for the full year.

3.        Earnings per share

Basic earnings per share for the period ended 30 September 2005 is calculated by
dividing the profit for the period of £241,000 (period ended 30 September 2004
profit of £229,000, year ended 31 March 2005 profit of £393,000) by 16,338,086
(period ended 30 September 2004: 15,944,642, year ended 31 March 2005:
15,956,500) being the weighted average number of shares in issue during the
period.

The adjusted basic earnings per share for the period ended 30 September 2005 is
calculated by dividing the profit for the period before impairment of goodwill
of £241,000 (period ended 30 September 2004: profit of £229,000, year ended 31
March 2005: profit of £643,000) by 16,338,086 (period ended 30 September 2004:
15,944,642, year ended 31 March 2005: 15,956,500) being the weighted average
number of shares during the period.

The diluted earnings per share has been calculated by dividing the profit for
the period to 30 September 2005 of £241,000 (period ended 30 September 2004:
£229,000, year ended 31 March 2005: £393,000) by the weighted diluted average
number of shares being 16,398,791 (period ended 30 September 2004: 16,233,239,
year ended 31 March 2005: 16,666,937).

4.        Dividend

The Company does not propose the payment of a dividend.

The Interim Report will be posted to Shareholders shortly. Copies will be
available free of charge from the Company's registered office: Clarity Commerce
Solutions plc. 1 Netherhampton Business Centre, Salisbury, Wiltshire SP2 8PU.


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