Final Results

Thomson Intermedia PLC
12 April 2002


Thomson Intermedia plc ('Thomson Intermedia' or the 'Company')

Preliminary Results for the year ending 31st January 2002

Thomson Intermedia has continued to develop new media monitoring tools
throughout 2001. With the addition of radio in 2002 Thomson Intermedia will be
able to offer accurate, linked creative and expenditure data across all media
channels, which will place the company as the key provider of media monitoring
information and analysis delivered at speed and via the internet.

  • Turnover increased 5% to £2.25m

  • Operating loss of £3.28m (2001: £3.14m), reflecting the continued
    development of products

  • Cash Balance of £1.23m at year end

  • Cost control implemented during the year which will result in savings in
    excess of £1m in the next financial year.

  • During the year Outdoor, TV and Cinema products were launched. Thomson
    Intermedia will cover all media channels with the launch of Radio in the
    first half of the current year.

  • Launch of new website and Ad Hoc product in 2002

  • Launch of NNI (formerly Newsmetrics) for all business sectors in 2001.

  • The total value of contracts signed in the first two months of the new
    financial year has more than doubled compared to the previous period, with
    annualised new business contracts signed representing 66% of the total value
    signed in 2001/02.




    Sarah Jane Thomson, Joint Chief executive commented

    'Whilst 2001/02 was a disappointing year from a revenue perspective, the
    product development work carried out has led to a strong sales performance
    in the first two months of this financial year. Our current focus is to show
    continued growth for the foreseeable future in order to generate positive
    cash flow at the earliest opportunity.'



    Enquiries:

    Thomson Intermedia                              Tel: [phone]

    Sarah Jane Thomson, Joint Chief Executive

    David Trendle, Finance Director


    Williams de Broe

    John Mumford                                    Tel: [phone]





CHAIRMAN'S STATEMENT

The year ended 31st January 2002 has proved to be a difficult year. Whilst we
believe the strategy of expanding the portfolio of media monitoring products was
correct, the level of contracts secured, particularly in the second half of the
year, fell short of our expectations. The economic downturn in the media
industry, particularly in the second half of the year, was a major contributing
factor to this shortfall. Early indications for the new financial year are
positive with a high level of sales as a result of our enhanced product offering
and economic improvement.

Results

Whilst the value of contracts signed during the year fell short of expectations
and 2001 levels, amortised revenue increased by 5% compared to the previous
year.

The operating loss amounted to £3.28m (2001: Loss £3.14m) and after crediting
interest received the loss retained amounted to £3.16m (2001: Loss £2.73m).

Media Monitoring

We are in the process of completing our monitoring product for radio at which
point we will have completed the portfolio. The enhanced range has been well
received in the market but budget constraints within the media industry
generally have mitigated against contracts being signed.

Operating Costs

Strict control has been imposed on operating costs by making savings
commensurate with the shortfall in anticipated sales revenue. At the year end
the head count was some 39% below the peak level reached during the year.
Substantial savings are being achieved in production costs. Our budgets for the
financial period just started indicate that through a combination of reduced
production costs and overhead savings we intend to implement savings of over one
million pounds in costs compared to last year.

Cash

The cash outflow for the year amounted to £3.33m and the balance of cash at the
end of the period was £1.23m. The management of the Company is primarily
directed towards cash management with the intention of being able to move
towards consistent cash inflow on a monthly basis. At the present time we are
achieving a positive cash flow in some months but we have not yet achieved this
on a consistent basis.

Prospects

There are some signs that activity in the media industry is showing modest but
noticeable improvement. We have achieved a good start to the current financial
period. Total contracts signed in the first two months more than doubled at 127
% ahead of the comparable period for the previous year. Rather more importantly
new business, as against renewals of existing contracts, were equivalent to 66%
of the total achieved in the previous twelve months. The current level of
enquiries under discussion lead your Board to have confidence that this
increased level of activity can be maintained and further increased.

The next objective is to achieve positive cash flow on a consistent basis. The
current cash burn on a monthly basis has been reduced to very modest levels.



John Napier

Chairman



Joint Chief Executive's Review



OPERATING REVIEW

Over the last year we have continued to focus on the development of our product
range to cover all media channels. This process will be complete with the
addition of Radio in the first half of the current year. We are convinced that
our strategy of linking expenditure data and creative images across these media
provides a unique offering to both Corporate and Agency customers.

Sales performance has fallen short of our expectations, especially in the second
half of the reported year. The media industry, as has been well documented in
the press, has suffered during the economic downturn, which has led to an
increase in the time taken to convert prospects into revenue. This situation is
showing improvements in 2002, which has resulted in a 127% year on year increase
in contracts signed in the first two months.

These conditions have necessitated a concentration on our core business of media
monitoring and, therefore, expenditure on the Free2look and Research divisions
has ceased until significant commercial opportunities can be realised. A review
of our value chain has resulted in further efficiency gains and as a result
savings in excess of one million pounds will be realised over the next twelve
months. The combined effects of revenue growth and margin improvement will
significantly reduce the cash utilisation for the next financial year.



PRODUCT DEVELOPMENT

The significant developments during the year are summarised below.

  • ART TV

We have developed a unique system to identify adverts from a TV stream with real
time image and sound processing, linked to expenditure data estimated from BARB
audience figures. Subscribers are provided with unlimited access to digital
streaming of adverts and storyboards across national, regional and satellite
channels to enable competitive monitoring of spend, advertiser, TV region and
brand. TV was launched in October 2001.

  • NNI (formerly newsmetrics)

NNI monitors all business stories in the National Press by 8am each day
providing competitive comparisons by FTSE industry sector, company, product and
journalist. This enables subscribers to access the latest headlines, chart their
media performance against their competitors, as well as providing summaries of
each article. The relaunch of Newsmetrics to cover all business sectors and to
include improved functionality was finalised in January 2002.

  • Outdoor

We have worked in conjunction with the key industry players over the last year
to develop our monitor of outdoor expenditure data. Data from the IPA Outdoor
members covers virtually all Outdoor Advertising, and can be analysed via the
website in a multitude of ways.





  • Launch of ad hoc product

In March 2002 we launched an ad hoc service providing access to our database of
adverts across all media. This can be provided to existing subscribers with
notifiers for media they are not subscribed to and to new customers with
internet access to our database. Functionality includes a personal library,
personal alerts by advertiser, brand, competitive set or industry and a
thumbnail preview facility. Images can be accessed and downloaded via the
internet or delivered on video or CD.



  • Door Drop monitor

Thomson's DART product has now been complemented with the launch of the UK's
first Door Drop monitor, developed in partnership with Consignia. This will
monitor Door Drop receipts from our nationally representative panel of
approximately 6,000 individuals and enable subscribers to analyse demographic,
socio-demographic and lifestyle data as well as provide the subscriber with the
Door Drop creative.



LAUNCH OF NEW WEBSITE

In March 2002, we relaunched our complete product range after six months of
rigorous design and product development. The objective of the redesign was to
improve the effectiveness and intuitiveness of all the systems, enhance the look
and functionality of the products, to aid sales and to position Thomson
Intermedia as the leading provider of Media Intelligence online.

Combining intuitive design with cutting-edge development, we have brought to the
market a suite of products that have met our high expectations, as well as those
of our clients. New features include:

      • One-screen search solution
      • Cross media creative searching
      • Cross media notifier functionality
      • Thumbnailed images for all products
      • Detailed help functionality



HEADCOUNT

The continued product development resulted in an increase in staff numbers (full
time equivalents) from 157 in January 2001 to 212 in July 2001. Our focus on
efficiency and drive to increase automation within processes in the second half
of this year has reduced headcount to 130 in January 2002.

Sarah Jane Thomson                              Stephen Thomson

Joint Chief Executive                           Joint Chief Executive



Thomson Intermedia Plc

Consolidated Profit and Loss Account

for the year ended 31st January 2002
                                                                                 2002                      2001
                                                                                £'000                     £'000

Turnover                                                                        2,245                     2,141

Cost of sales                                                                   (489)                     (582)

Gross Profit                                                                    1,756                     1,559

Administrative Expenses                                                       (5,040)                   (4,695)

Operating loss                                                                (3,284)                   (3,136)

Interest receivable                                                               125                       280
Interest payable                                                                  (2)                       (2)

Loss on ordinary activities before taxation                                   (3,161)                   (2,858)

Taxation on loss on ordinary activities                                             -                       128

Loss on ordinary activities after taxation                                    (3,161)                   (2,730)

Dividends                                                                           -                         -

Loss for the financial year                                                   (3,161)                   (2,730)


Earnings per share
Loss per share, pence - basic and diluted                                      (11.0)                    (10.2)



All amounts relate to continuing activities.

All recognised gains and losses are included in the profit and loss account.



There are no material differences between the loss shown above and their
historical cost equivalents.




Thomson Intermedia Plc

Consolidated Balance Sheet

as at 31st January 2002
                                                            2002              2002              2001              2001
                                                           £'000             £'000             £'000             £'000

Fixed Assets
Tangible fixed assets                                                          486                                 483

Current Assets
Debtors                                                      989                               1,281
Cash at bank and in hand                                   1,233                               4,564
                                                           2,222                               5,845

Creditors:
Amounts falling due within one year                      (1,497)                             (1,953)

Net current assets                                                             725                               3,892

Total assets less current liabilities                                        1,211                               4,375

Creditors:
Amount falling due after more than one year                                    (6)                                 (9)

Provision for liabilities and charges                                            -                                   -
                                                                             1,205                               4,366


Capital and Reserves
Share capital                                                                7,155                               7,155
Share premium                                                                5,064                               5,064
Share scheme reserve                                                            13                                  13
Merger reserve                                                             (5,250)                             (5,250)
Profit and loss account                                                    (5,777)                             (2,616)

Equity shareholders' Funds                                                   1,205                               4,366




Consolidated Cash Flow Statement

for the year ended 31st January 2002
                                                                       2002           2002           2001           2001
                                                                      £'000          £'000          £'000          £'000

Net cash (outflow) from operating activities                                       (3,266)                       (2,537)

Returns on investments and servicing of finance
Interest received                                                       119                            74
Interest element of finance lease rental repayments                     (1)                           (1)

Net cash inflow from returns on investments and servicing                              118                            73
of finance

Capital expenditure
Purchase of tangible fixed assets                                     (183)                         (485)
Sale of tangible fixed assets                                             4                            45
                                                                                     (179)                         (440)

Equity dividends paid                                                                    -                          (75)

Net cash (outflow) before financing                                                (3,327)                       (2,979)

Financing
Gross proceeds from the issue of shares                                   -                         8,000
Flotation costs offset against share premium                              -                       (1,031)
Capital element of finance lease payments                               (4)                          (29)
Cash (outflow)/inflow from financing                                                   (4)                         6,940

(Decrease)/increase in cash in the year                                            (3,331)                         3,961




Notes to the Financial Statements

for the year ended 31st January 2002


1. Basis of consolidation


The consolidated financial statements incorporate the results of Thomson
Intermedia plc and its subsidiary undertaking as at 31st January 2002 using the
merger method of accounting.

2. Merger accounting


Where merger accounting is used, the investment is recorded in the company's
balance sheet at the nominal value of the shares issued together with the fair
value of any additional consideration paid.


In the group financial statements, merged subsidiary undertakings are treated as
if they had always been a member of the group. The results of such subsidiary
are included for the whole period in the year it joins the group. The
corresponding figures for the previous year include its results for that period,
the assets and liabilities at the previous balance sheet date and the shares
issued by the company as consideration as if they had always been in issue. Any
difference between the nominal value of the share capital acquired and those
issued by the company to acquire them is taken to reserves.


3. Earnings per share


Basic earnings (loss) per share, calculated in accordance with FRS14 (Earnings
per share), is based upon the loss on ordinary activities after tax of
£3,160,827 (2000: Loss £2,729,693) apportioned over the weighted average number
of ordinary shares that were in issue for the period of 28,619,247 (2000:
26,657,081). The calculation of diluted loss per share is the same as basic loss
per share as the impact of any potential ordinary shares is antidilutive.



4. Net cash (outflow)/ inflow from operating activities                                        2002               2001
                                                                                              £'000              £'000

Operating loss                                                                              (3,284)            (3,136)
          Depreciation                                                                          177                104
      Decrease/(Increase) in debtors                                                            426              (238)
      (Decrease)/Increase in creditors                                                        (585)                733
Net cash outflow from operating activities                                                  (3,266)            (2,537)



Copies of the full annual report and accounts will be dispatched to shareholders
in due course. Further copies of this announcement can be obtained from the
companies registered office at Kingfisher house, 21-23 Elmfield Road, Bromley,
Kent BR1 1LT



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