Interim Results

First Derivatives PLC
25 November 2002

                             FIRST DERIVATIVES PLC

                          INTERIM FINANCIAL STATEMENTS
                    FOR THE SIX MONTHS ENDED 31 AUGUST 2002

                              CHAIRMAN'S STATEMENT

The Company announces an interim pre-tax profit of  £125,000 for the six months
ended 31st August 2002 on revenues of £689,000.  In the six months ended 31st
August 2001 the Company had a pre-tax profit of £284,000 on revenues of
£740,000.

Earnings per share for the six months was 0.8p against 1.6p for the
corresponding period in the previous year.  The Board has not recommended an
interim dividend as the funds generated during the period are required to
finance future growth.

As I indicated in my statement accompanying the annual accounts sent to
shareholders in July there was a lower level of activity in consulting contracts
in the first quarter of the current financial year and this continued through
the rest of the period.  This and the expenditure incurred in the development of
the Kx Systems Inc. business relationship contributed to the low level of
profitability.

The benefits of the Kx Systems Inc. investment are starting to show through. We
have made an encouraging start to the second six months, despite difficult
market conditions and the Board expects to see a marked improvement in
profitability for the six months to 28th February 2003.

David Anderson
Non-Executive Chairman
25th November 2002.


Profit and Loss Account
For the period ended 31 August 2002
                                                      6 months ended          6 months ended        12 months ended 
                                                      31 August 2002          31 August 2001       28 February 2002
                                                         (unaudited)               (audited)               (audited)
                                                               £'000                   £'000                   £'000

Turnover                                                         689                     740                   1,778

Cost of sales                                                  (630)                   (465)                 (1,152)

Gross profit/(loss)                                               59                     275                     626

Administrative expenses                                         (69)                    (18)                    (85)

Other income - grant received                                    135                      34                      92

Operating profit - continuing operations                         125                     291                     633

Interest receivable                                                4                       3                       -

Interest payable and other similar charges                       (4)                    (10)                    (21)

Profit on ordinary activities before taxation                    125                     284                     612

Tax on profit on ordinary activities                            (31)                   (123)                   (182)

Profit on ordinary activities after taxation                      94                     161                     430

Retained profit brought forward                                  307                     492                     492

                                                                 401                     653                     922

Dividends paid                                                     -                   (575)                   (575)

Transfer from reserves                                             -                       -                    (40)

Retained profit carried forward                                  401                      78                     307

                                                               Pence                   Pence                   Pence
Earnings per Share
Basic                                                            0.8                     1.6                     4.3





Balance Sheet
As at 31 August 2002
                                                             31 August              31 August            28 February
                                                                  2002                   2001                  2002
                                                           (unaudited)             (audited)             (audited)
                                                                 £'000                 £'000                 £'000

Fixed Assets
Tangible assets                                                     28                    33                    37
                                                                    28                    33                    37
Current Assets
Debtors                                                          1,095                 1,565                 1,514
Cash at bank and in hand                                           412                     -                     -
                                                                 1,507                 1,565                 1,514
Creditors
Amounts falling due within one year                              (348)               (1,383)               (1,184)

Net current assets                                               1,159                   182                   330

Total assets less current liabilities                            1,187                   215                   367

Creditors
Amounts falling due after more than one year                         -                 (119)                     -

Provision for liabilities and charges                             (10)                   (8)                  (10)

Net assets                                                       1,177                    88                   357

Share capital and reserves
Called up share capital                                             61                    10                    50
Share premium                                                      715                     -                     -
Profit and loss account                                            401                    78                   307

Equity Shareholders' funds                                       1,177                    88                   357




Cash Flow Statement
For the period ended 31 August 2002
                                                     6 months ended 31     6 months ended 31    12 months ended 28
                                                           August 2002           August 2001         February 2002
                                                           (unaudited)             (audited)             (audited)
                                                                 £'000                 £'000                 £'000

Cash inflow from operating activities                               83                   179                   844

Return on investment and servicing of finance                        -                   (6)                  (22)
Taxation                                                         (178)                  (98)                 (130)
Capital expenditure                                                  -                     -                  (15)
Equity dividend                                                      -                     -                 (575)

Cash inflow/(outflow) before financing                            (95)                    75                   102

Financing                                                            -                  (10)                  (15)
Issue of Ordinary Share Capital                                    774                     -                     -


Increase/(decrease) in cash in the period                          679                    65                    87





Reconciliation of net cash flow to movement in net debt
For the period ended 31 August 2002
                                                    6 months ended 31     6 months ended 31       12 months ended 28
                                                          August 2002           August 2001            February 2002
                                                          (unaudited)             (audited)            (audited)
                                                                £'000                 £'000                    £'000

Increase/(decrease) in cash in the period                         679                    65                       87
Decrease in debt                                                    -                    10                       16

Change in net debt resulting from cash flows                      679                    75                      103

Movement in net funds/(debt) in the period                        679                    75                      103
Net debt at start of the period                                 (271)                 (374)                    (374)


Net debt at end of the period                                     408                 (299)                    (271)


Notes to the Interim Results

1.         Basis of Preparation

            The results for the six months ended 31st August 2002 are unaudited
and have not been reviewed by the auditors. They have been prepared on
accounting bases and policies that are consistent with those used in the
preparation of the financial statements of the company for the period ended 28th
February 2002.

            The financial statements contained in this report do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The results for the period ended 28th February 2002 were reported on by the
auditors and received an unqualified audit report. Full accounts for the period
ended 28th February 2002 have been delivered to the Registrar of Companies.



2.         Dividends



            No dividend is proposed for the period ended 31st August 2002.



3.         Earnings per Share



The earnings per share for the six months ended 31 August 2002 has been
calculated on the basis of the profit after taxation.  The calculation of
earnings per share is based on the profit on ordinary activities and before
deduction of dividend appropriations in respect of ordinary shares, namely
£94,000.  Earnings per share has been calculated based on 12,296,158 shares
outstanding.



4.         Reconciliation of operating profit to net cash inflow from operating
activities


                                                        6 months ended     6 months ended 31      12 months ended
                                                        31 August 2002           August 2001     28 February 2002
                                                                 £'000                 £'000                £'000

Operating profit                                                   125                   291                  633
Depreciation on tangible fixed assets                                9                     8                   20
Decrease/(increase) in debtors                                     419                    71                  275
(Decrease)/increase in creditors                                 (470)                 (156)                 (84)

Net cash inflow/(outflow) from operating activities                 83                   214                  844



6.         Analysis of net changes in debt during the period


                                                    28 February 2002    Cash flow movement        31 August 2002
                                                               £'000                 £'000                 £'000

            Cash in hand and bank                                  -                   412                   412
             Bank overdraft                                    (267)                   267                     -
             Debt due within one year                            (4)                     -                   (4)


                                                               (271)                   679                   408




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