Interim Results

Auxinet PLC
28 September 2001



On behalf of:     auxinet plc.

Date:             28th September 2001

Interim Statement

For the six months ended 30 June 2001



Bullet points to Press.

  * DataCash became cash flow positive and profitable (before Group
    overheads) during the period.
  * 225% transaction growth in the first half (1)
  * Platima, world's first B2B e-commerce payments solution, launched and
    endorsed by BT Ignite.
  * Company raises £2 million net of expenses in July to fund further
    development.
  * The group exited the recruitment businesses in July.
  * Board remains confident of moving into profitability during 2002.

(1) compared to previous year.

Chairman's Statement.

The first half of the year saw exceptional achievements within the DataCash
payments business, which included becoming both cash flow positive and
profitable (before Group overheads) during the period. In March 2001 we
reported the launch of the world's first Business-to-Business (B2B) e-commerce
payments solution, Platima.

It was disappointing that these achievements were offset by a very poor
performance by the Group's recruitment businesses. We disposed of these in
July. Corporate Executive Search was sold, for a nominal sum, to Renoir
Partners, and boldly-go was sold to its management. The division had a
particularly difficult time in 2001, with revenues of £1.1 million (2000: £1.7
million) in the first six months that generated an operating loss of £785,000
(2000: £378,000). Within these figures, the second quarter saw revenues of
only £265,000, as the demand for senior level executives in the IT and
Telecommunications markets declined substantially. Despite severe cost
reductions, and endeavouring to find a suitable buyer of the businesses for
some months, the Board decided that the investment of management time and
drain on capital resource that would be required to stabilise this activity
and return it to a meaningfully saleable position could jeopardise the future
success and investment needs of the payments business. The sale to Renoir
Partners and the boldly-go management mitigated the cost of withdrawal and we
wish our former colleagues well for the future.

The Company raised £2 million, net of expenses, through a placing of shares in
July 2001 to fund further development of the payments businesses and ensure
sufficient working capital to reach profitability for the Group. The Company
has also taken significant steps to reduce the overall cost base so that it
can move into profitability earlier. The Board is confident that it has the
necessary business model, business opportunity, management and capital
resources to generate significant returns for our shareholders. Although, as
forecast, the Group loss before amortisation of £1.7 million in the first half
is disappointing, the Board remains confident of moving into profitability in
2002.

Although only included within the Group since 22 March 2000, making
comparatives obscure, DataCash, the leading Payment Service Provider (PSP) for
Business-to-Consumer (B2C) e-commerce in the UK, generated revenue of £1
million in the six months to 30 June 2001, compared to £295,000 in the
corresponding period last year. On these revenues DataCash produced an
operating loss of £647,000 for the first half of 2001 which has narrowed
significantly when compared to the loss of £564,000 recorded in the 14 weeks
to 30 June 2000.

DataCash, processed some 3.6 million transactions in the first half of 2001,
compared with 1.6 million in the first half of 2000, representing 225% growth.
A number of initiatives that are expected to add substantially to transaction
volumes in the future are currently under negotiation and we look forward to
reporting these to you in the near future. The recent introduction by DataCash
of value added products such as fraud-screening have been well received by our
customers and are beginning to generate incremental revenue streams. The Board
is confident that DataCash will continue to show substantial underlying growth
in the second half DataCash, the Board believes, will continue its steady
underlying growth and we will continue to enhance its market-leading position
by remaining at the forefront of B2C e-commerce payments processing.

The Platima payments solution, focussed on the B2B market-place, made progress
during the period, generating its first revenues. We announced last month an
agreement with BT Ignite whereby Platima is the only recommended B2B payments
solution for their e-commerce systems integrations projects. We are still of
the belief that Platima remains unique in the World as the only operational
B2B e-commerce payments solution and, although it is always hard for a company
of our size to obtain the recognition and awareness of such product
positioning, we are confident that our agreement with BT Ignite and the
profile and endorsement this has given us will fully justify our investment
into Platima. Large organisations continue to look for ways to reduce cost
from their back-office procurement functions. Platima is perfectly placed to
deliver value in payment automation and we believe the opportunities that we
are exploring will lead to very significant annuity revenues.



Marc Wood became Chief Executive in August 2001.

Our objective is to be a highly profitable, innovative leader in the provision
of global electronic payments solutions. The Company now has a clear focus on
this objective and, we believe, the first half demonstrates that we are on
track.

The impact on our business of the recent terrorist attack in New York in terms
of economic slowdown and possible recessions is impossible, at present, to
predict. However, there has been no discernible effect to date.

David Bailey

Chairman

28th September 2001



For further information, please contact:

David Bailey/ Marc Wood

auxinet plc                                   0870-72 74 760

John Coyle

Clerkenwell Communications                     020 7713 0900
                                 
                                                0370 687 370

                                        07699 727 796 (pager)







Notes


        (1)     Basis of preparation

        The results for the six months ended 30 June 2001 and the comparative
        figures for the six months ended 30 June 2000 are unaudited. They have
        been prepared on accounting bases and policies that are consistent
        with those used in the preparation of the financial statements of the
        Group for the period ended 31 December 2000.

        The financial information contained in this report does not constitute
        statutory accounts within the meaning of Section 240 of the Companies
        Act 1985 (as amended). The results for the period ended 31 December
        2000 were reported on by the auditors and received an unqualified
        report and contained no statement under Section 237(2) or (3) of the
        Companies Act 1985 (as amended). Full accounts have been delivered to
        the Registrar of Companies.

        Basis of consolidation

        The unaudited consolidated accounts for auxinet plc incorporate the
        results of auxinet plc and its subsidiary undertakings using the
        acquisition accounting method. The results of subsidiary undertakings
        are included from the date of acquisition.

        Goodwill

        Goodwill arising on the acquisition of a subsidiary undertaking by the
        Group is the difference between the fair value of the consideration
        paid and the fair value of the assets and liabilities acquired. It is
        capitalised and amortised through the profit and loss account over 10
        years which is a period considered by the directors to be appropriate.

        In accordance with Financial Reporting Standard 10 the directors will
        review the carrying value and period of amortisation annually.

        Impairment tests on the carrying value of goodwill are undertaken at
        the end of the first full financial year and in other periods if
        events or changes in circumstances indicate that a carrying value may
        not be recoverable.


 2. The exceptional item in 2001 relates to the following:

    A reduction of £139,000 in a provision held representing a potential
    liability for national insurance contributions on 1,486,093 outstanding
    share options issued in the period 6 April 1999 to 30 June 2001. The
    provision is calculated at the current national insurance rate of 12.2%
    applied to the difference between the exercise price and the market price
    of 42p at 30 June 2001.

 3. Basic earnings per share for the six months ended 30 June 2001 have been
    calculated on the basis of the loss after taxation for the period of £
    2,700,000 and the average number of shares in issue during the period of
    37,788,882.

    The directors believe that the adjusted loss per share figure assists in
    the presentation of the Group's underlying performance.

    The effect of all potential ordinary shares is antidilutive.

 4. Reconciliation of operating loss to operating cash flows

                                      Six months ended 30   Six months ended 30
                                                June 2001             June 2000

                                                     £000                  £000

Operating loss                                    (2,731)                 (942)
Amortisation                                          988                     -
Depreciation                                          176                    74
Loss on sale of fixed assets                            -                     2
Decrease/(increase) in debtors                        836                 (552)
(Decrease)/increase in creditors                    (750)                   371
Provision for national insurance on                 (139)                   114
share option gains
Outflow from operating activities                 (1,620)                 (933)


auxinet plc
Consolidated profit and
loss account (unaudited)
For the 6 months ended 30 June 2001
                                 Continuing   Discontinued
                                 operations     operations
                                    6 months 6 months ended  6 months  6 months
                                       ended                    ended     ended
                           Note      30 June   30 June 2001   30 June   30 June
                                        2001                     2001      2000
                                    £000        £000           £000      £000
Turnover                           1,029       1,081          2,110     2,043
Administrative expenses
Amortisation of goodwill           (988)           -          (988)         -
Reduction in provision      2          -                          -
for national insurance on
share option gains                               139            139     (114)

Other                            (2,126)     (1,866)        (3,992)   (2,871)
Total administrative             (3,114)     (1,727)        (4,841)   (2,985)
expenses
Operating loss                   (2,085)       (646)        (2,731)     (942)
Interest receivable and                                          34        89
similar income
Interest payable and                                            (3)      (11)
similar charges
Loss on ordinary                                            (2,700)     (864)
activities before
taxation
Tax on loss on ordinary                                           -         -
activities
Loss on ordinary                                            (2,700)     (864)
activities after taxation
Dividends                                                         -         -
Retained loss for the                                       (2,700)     (864)
period
Basic and diluted loss      3                                (0.71) p  (0.31) p
per share
Adjusted basic and          3                                (0.49) p  (0.27) p
diluted loss per share

There were no recognised gains or losses other than those shown in the profit
and loss account.

There are no differences between historical cost profits and losses and those
shown above.

auxinet plc

Consolidated balance sheet (unaudited)
As at 30 June 2001
                                                             As at        As at
                                                           30 June      30 June
                                                              2001         2000
                                                              £000         £000
Fixed assets
Intangible assets                                           17,225       19,791
Tangible assets                                              3,149          324
Investments                                                    520            -
                                                            20,894       20,115
Current assets
Debtors                                                      1,069        1,903
Cash at bank and in hand                                       453        6,006
                                                             1,522        7,909
Creditors
Amounts falling due within one year                        (2,081)      (2,170)
Net current (liabilities)/assets                             (559)        5,739
Total assets less current liabilities                       20,335       25,854
Creditors
Amounts falling due after more than one year                     -         (21)
Provisions for liabilities and charges                        (33)        (247)
Net assets                                                  20,302       25,586
Capital and reserves
Called up share capital                                        379          378
Share premium account                                        7,452        7,530
Share scheme reserve                                            19           19
Merger reserve                                               (124)        (124)
Other reserve                                               18,889       18,889
Profit and loss account                                    (6,313)      (1,106)
Equity shareholders' funds                                  20,302       25,586


auxinet plc
Consolidated cash flow statement (unaudited)
For the 6 months ended 30 June 2001
                                                            6 months  6 months
                                                            ended 30  ended 30
                                                                June      June
                                                                2001      2000
                                                                £000      £000
Net cash (outflow)/inflow from operating activities          (1,620)     (933)
Returns on investments and servicing of finance
Interest received                                                 34        89
Overdraft interest and similar charges                           (3)       (1)
Interest element of finance lease rental payments                (4)      (10)
Net cash inflow from returns on investments
and servicing of finance                                          27        78
Taxation
Corporation tax paid (including ACT)                               -         -
Tax Paid                                                           -         -
Capital expenditure
Purchase of tangible fixed assets                              (988)     (137)
Net cash outflow from capital expenditure                      (988)     (137)
Acquisitions and disposals
Investments in subsidiary undertakings                             -     (204)
Loans                                                           (50)         -
Net cash outflow from acquisitions and disposals                (50)     (204)
Net cash outflow before management of liquid resources and   (2,631)   (1,196)
financing

Management of liquid resources
Increase in short term bank deposits                           2,526   (5,077)
Net cash inflow/(outflow) from management of liquid            2,526   (5,077)
resources
Financing
Capital element of finance lease rental payments                (13)      (80)
Issue of Ordinary Share Capital including premium net of           -     6,755
expenses
Exercise of share options                                         17         6
Net cash inflow from financing                                     4     6,681
Increase in cash in the period                                 (101)       408