Interim Results

Ingenta PLC
09 June 2003





Date:        Embargoed until 07.00am,              Monday 9 June 2003


Contacts:    Ingenta                               Website:  www.ingenta.com
             Mark Rowse, Chief Executive           Tel: [phone] (9/06/03)
                                                   Tel: [phone] (thereafter)
             Martyn Rose, Non-Executive Chairman   Tel: [phone] (9/06/03)
                                                   Tel: [phone] (thereafter)


             Hudson Sandler
             Alistair Mackinnon-Musson             Tel: [phone]
             Philip Dennis                         email: [e-mail]





Meetings:     A presentation for analysts and a separate briefing for
press will be held today. For further information regarding these briefings,
please contact Hudson Sandler, as above, on 020 7796 4133.





                                  Ingenta plc

                                Interim Results


The Board of Ingenta plc, the global market leader in creating Internet versions
of professional and academic research publications, announces its interim
results for the 6 months to 31 March 2003. This research content - 14.5 million
articles from over 5,700 online publications and over 20,000 fax delivered
publications - is accessed by over six million researchers a month via
www.ingenta.com and the group's Specialist Websites.



Highlights



•         Sales increase 7% to £4.6m (2002: £4.3m)

•         24% reduction in overheads to £4.7m (2002: £6.2m)

•         EBITDA losses reduced by £1.5m to £(1.3)m (2002: £(2.8)m)

•         Loss before tax reduced by £4.8m to £(1.8)m from £(6.6)m

•         Board confident of continued substantial progress in the current year



Commenting on the results, Martyn Rose, Non-Executive Chairman, said:



'Ingenta continues to make progress towards profitability. As we indicated
following our reorganisation of the business last year, the combination of
increased sales and sharply lower costs has already provided substantial
improvements in financial performance.  Overheads are still declining and,
together with the benefit of recurring and deferred revenue to be recognised in
the second half, and continuing new business wins, the Board is confident that
further progress will be made.'



Mark Rowse, Chief Executive, added:



'Ingenta has been successful in retaining customers and attracting significant
new business in its core markets despite difficult trading conditions. A strong
forward order book, and lower overhead base, provides confidence that the group
can make further progress towards profitability.'






                                Notes to Editors



Ingenta is the global market leader in creating the Internet versions of
professional and academic research publications. As well as managing and
distributing published scientific, professional and academic research via the
Internet, it also develops and maintains Specialist Websites for publishers,
self-publishing societies and libraries.



For publishers of scientific, professional and academic periodicals, journals
and reference works, Ingenta provides a suite of Publisher Services including
data conversion, secure online hosting, access control and distribution
services.  This research content - 14.5 million articles from over 5,700 online
publications and over 20,000 fax delivered publications - is accessed by over
six million researchers a month via ingenta.com and its Specialist Websites.



Ingenta's revenue streams derive from:

•         Fees paid by customers for Publisher Services.

•         Fees paid by customers for Specialist Website build and maintenance.

•         A share of Pay-Per-View article purchases and website subscription
revenues.



For more information, see www.ingenta.com.






              Interim results for the six months to 31 March 2003



Financial Review



Ingenta continued to make progress towards profitability in the 6 months to 31
March 2003.  Following the changes in the application of the group's accounting
policies announced in December 2002, the interim results for the 6 months to 31
March 2002 have been restated  to an equivalent basis of preparation.



On the revised accounting basis, sales increased by 7% in the period compared
with the first half of the 2002 fiscal year to £4.6m (2002: £4.3m). Despite
slightly reduced gross margins at 74% (2002: 79%) gross profit was maintained at
£3.4m (2002: £3.4m).  In addition, the group benefited from a substantially
lower cost base following the reorganisation undertaken in September 2002.
Overheads fell by £1.5m, or some 24%, to £4.7m in the 6 months to 31 March 2003
(2002: £6.2m).



The reduction in goodwill amortisation resulting from the Board's decision to
write off all outstanding goodwill at 30 September 2002 assisted in reducing
retained losses after tax by £4.8m or 73% to £(1.8)m (2002: £(6.6)m).



The balance sheet was strengthened by the successful Placing and Open Offer
undertaken in February 2003 and the group had cash resources of £1.6m at 31
March 2003 (30 September 2002: £1.3m).



As a result of the changes described above, revenue on long term contracts is
now recognised over the life of the contract even where a substantial proportion
of the work has been completed and the customer has been invoiced.  As a result,
turnover for the comparative period has been reduced and this is offset by an
increased amount of deferred revenue on the balance sheet, representing invoiced
work which has been completed but not yet recognised in the profit and loss
account.



Further work on new contracts won, but not yet recognised as turnover, has
continued to be generated during the period and as a result the deferred revenue
balance has remained broadly stable at £4.1m (30 September 2002: £4.2m).  An
estimated £3.0m of this will be recognised as turnover over the next 12 months,
and in addition to this the group will benefit from recurring contracts and
repeat business not yet invoiced.



A summary of the activities in each of the group's main business areas is set
out below.



Operational Review



Ingenta's revenue is derived from three core areas, namely:



1)      contractual fees from scientific, professional and academic publishers
and self-publishing societies for the ongoing conversion of their journals and
other publications into a suitable format and for hosting and managing access to
that content over the Internet - Publisher Services;



2)      contractual fees from scientific, professional and academic publishers,
self-publishing societies and libraries for the development, long term
operation, hosting and maintenance of custom-developed websites and related
online services, and a share of subscription revenue paid by third party
end-users to access those websites - Specialist Websites; and



3)      revenue from libraries and end-users on a per-article basis for
downloading material to which they do not currently have free access -
Pay-Per-View.





Publisher Services

The number of publishers working with Ingenta increased again from around 230 to
almost 260, including seven of the world's top eight scholarly publishers.
Overall, some 60 new contracts were concluded with existing and new customers
during the period.



Renewal rates were encouraging, with 98% of customers whose contracts expired
during the period choosing to renew. Although in some cases renewals were
achieved for a lower level of service, and hence lower revenues, this was more
than offset by higher revenues gained from increasing service levels for other
customers, together with new business acquired during the period. As a result,
revenues from Publisher Services grew by 6% to £2.0m (2002: 1.9m), representing
44% of turnover. New customers in the period included substantial and
prestigious national bodies such as the American Society of Investigative
Pathologists, the National Association of Social Workers and the American
Sociological Association.



Specialist Websites

The number of Specialist Websites being operated on behalf of publishers,
self-publishing societies and libraries rose during the period from 220 to 238.
Revenues from Specialist Websites were flat overall at £1.8m (2002: £1.8m),
representing 40% of turnover, despite a lower number of new sites launched in
this period. The quality of earnings in this area improved as a reduction in
revenue recognised from one-off build fees on the 18 site launches was more than
offset by an increase in annual recurring income from ongoing service provision
for the 220 sites already live.



In accordance with the group's revenue recognition policies, work undertaken on
a number of new contract wins during the period has not yet been recognised as
turnover in these results but will contribute to the substantial amount of
pre-contracted sales and revenue to be recognised in the second half of the
financial year and beyond. Highlights of the period included major new sites
being constructed for customers including the World Bank and Oxford University
Press.



Pay-Per-View

Demand for Ingenta's online document purchasing services continued to rise with
turnover from this activity up by 32% to £0.8m in the six months to 31 March
2003, representing some 16% of turnover (2002: £0.6m). This result has benefited
both from underlying growth and from a contribution from the HERON course pack
business acquired in May 2002.



Overall cost of sales is reducing as users choose to switch from low margin fax
delivery of articles to higher margin online delivery, thereby increasing the
average gross margin contribution to the group.



Operations and Staff



Significant progress was made in consolidating and streamlining operations at
the group's UK and US locations following the reorganisation announced in
September 2002. Overall this resulted in overheads being reduced by £1.5m when
compared with the same period the previous year.  The reorganisation was focused
on improving the efficiency of the group's operations and through this
delivering higher levels of service at a lower overall cost. In particular, a
dedicated client management team has been established to service the needs of
the group's substantial and growing base of publisher customers. Elsewhere, the
benefits of past investment have begun to flow through in lower costs of
technology support functions. This includes improved efficiency of processing
and loading content received from publishers, and ensuring that new Specialist
Websites can be created for clients more efficiently.



Overall staff numbers reduced from 166 at 30 September 2002 to 146 at 31 March
2003, in line with the cost reduction plans outlined above. The delivery of
increasing turnover from a smaller staff indicates not only the benefit of the
reorganisation undertaken, and the effects of continuing investment in R&D, but
also the dedication of our staff, whom the Board would like to thank for their
continuing hard work in delivering high levels of service to our customers in a
period of substantial change.



William Finlay has notified the Board of his decision to step down from the role
of Finance Director for personal reasons.  The Board would like to express their
appreciation for all his hard work in recent months.  To effect an orderly
handover, the post of Finance Director is being filled on an interim basis by a
finance director experienced in our industry and AIM listed companies until the
Board secures a permanent replacement.



Current Trading and Prospects



The group enters the second half of the 2003 fiscal year with the benefit of a
substantial amount of revenue which is contracted, or already invoiced, but not
yet recognised as turnover. This will be recognised as turnover in the second
half of the year and beyond. In addition, continuing downward pressure on
operating costs has resulted in further savings which will also benefit the
second half of the year.



As a result of these factors, together with a contribution from ongoing new
business wins, the Board is confident the group will make continued substantial
progress towards profitability in the second half of the current year.



Martyn Rose                                         Mark Rowse
Non-Executive Chairman                              Chief Executive



9 June 2003




Ingenta plc
Consolidated Profit and Loss Account
for the 6 months ended 31 March 2003                                              Restated
                                                            6 months ended  6 months ended      Year ended
                                                             31 March 2003   31 March 2002    30 September
                                                                                                      2002
                                                               (unaudited)     (unaudited)       (audited)
                                                                       £'m             £'m             £'m

Turnover                                                               4.6             4.3             9.3
Cost of sales                                                        (1.2)           (0.9)           (1.9)

Gross profit                                                           3.4             3.4             7.4


Overheads                                                            (4.7)           (6.2)          (13.6)

EBITDA                                                               (1.3)           (2.8)           (6.2)

Depreciation                                                         (0.5)           (0.6)           (1.1)



Loss before tax and goodwill amortisation                            (1.8)           (3.4)           (7.3)
Other income                                                             -             0.2             0.3
Goodwill amortisation                                                    -           (3.4)          (19.4)

Loss before tax                                                      (1.8)           (6.6)          (26.4)
Tax                                                                      -               -             0.6

Loss for the financial period                                        (1.8)           (6.6)          (25.8)

Loss and diluted loss per share                                       (3)p           (12)p           (45)p

Loss and diluted loss per share before goodwill                       (3)p            (6)p           (11)p
amortisation







Ingenta plc
Consolidated Balance Sheet
as at 31 March 2003                                                               Restated
                                                            As at 31 March  As at 31 March        As at 30
                                                                                                 September
                                                                      2003            2002            2002
                                                               (unaudited)     (unaudited)       (audited)
                                                                       £'m             £'m             £'m

Fixed Assets
Intangible assets                                                        -            16.0               -
Tangible assets                                                        1.3             2.2             1.7
Investments                                                            0.2             0.2             0.3
                                                                       1.5            18.4             2.0

Current assets
Stocks and work in progress                                              -             0.3               -
Debtors                                                                2.4             2.1             2.5
Cash at bank and in hand                                               1.6             2.9             1.3
                                                                       4.0             5.3             3.8
Creditors: amounts falling due within one year                       (7.6)           (9.0)           (7.5)
Net current liabilities                                              (3.6)           (3.7)           (3.7)

Total assets less current liabilities                                (2.1)            14.7           (1.7)

Creditors: amounts falling due after more than one year              (0.8)           (0.2)           (1.1)
Provisions for liabilities and charges                               (0.6)               -           (0.7)
Net (liabilities)/assets                                             (3.5)            14.5           (3.5)

Capital and reserves
Called up share capital                                                5.2             3.0             3.1
Share premium account                                                 17.8            17.0            18.1
Merger reserve                                                        11.0            11.0            11.0
Reverse acquisition reserve                                           12.7            12.7            12.7
Profit and loss account                                             (50.2)          (29.2)          (48.4)

Equity shareholders' (deficit)/funds                                 (3.5)            14.5           (3.5)




Ingenta plc
Consolidated Cash Flow
6 months ended 31 March 2003                                                   Restated
                                                        6 months ended   6 months ended       Year ended
                                                         31 March 2003    31 March 2002     30 September
                                                                                                    2002
                                                           (unaudited)      (unaudited)        (audited)
                                                                   £'m              £'m              £'m

Cash flow from continuing operating activities
Operating loss                                                   (1.8)            (6.6)           (26.4)
Depreciation charge                                                0.5              0.6              1.1
Amortisation of goodwill                                             -              3.4             19.4
Profit on disposal of fixed assets                                   -                -            (0.2)
Foreign exchange adjustment                                          -            (0.5)            (0.2)
Decrease in stocks and work in progress                              -                -              0.2
(Increase) / decrease in debtors                                   0.1            (0.1)            (0.5)
Increase in creditors                                                -              1.5              1.5
Increase/(decrease) in provisions                                (0.1)                -              0.6

Net cash outflow from operating activities                       (1.3)            (1.7)            (4.5)

Tax received                                                         -              0.1              0.7
Capital expenditure and financial investments
Purchase of tangible fixed assets                                    -            (0.2)            (0.2)
Net cash (outflow)/inflow from acquisitions                          -            (0.2)              0.1

Net cash outflow before financing                                (1.3)            (2.0)            (3.9)

Financing
Issue of shares net of expenses                                    1.8              2.8              3.2
Repayment of principal under finance leases                      (0.2)            (0.1)            (0.3)
Net cash inflow from financing                                     1.6              2.7              2.9

Increase / (decrease) in cash in the period                        0.3              0.7            (1.0)




Statement of group total recognised gains and losses
for the six months ended 31 March 2003                                         Restated
                                                        6 months ended   6 months ended       Year ended
                                                         31 March 2003    31 March 2002     30 September
                                                                                                    2002
                                                           (unaudited)      (unaudited)        (audited)
                                                                   £'m              £'m              £'m

Loss for the financial period                                    (1.8)            (6.6)           (25.8)
Currency translation differences on foreign currency                 -            (0.4)            (0.3)
net investments
Total recognised losses for the period                           (1.8)            (7.0)           (26.1)






Ingenta plc
Notes to the Unaudited Interim Report
for the six months ended 31 March 2003



1     Basis of preparation



The Interim Financial Information has been prepared on the basis of the
accounting policies set out in the Group's Annual Report and Accounts for the
year ended 30 September 2002.



2     Reconciliation of reported share capital in the consolidated balance sheet



                                                                                             £'000
Allotted, called up and fully paid share capital of Ingenta plc at 1 October 2002           3,091,469
Issue of 41,314,981 ordinary shares for cash on 24 March 2003                               2,065,749
Shares issued on exercise of share options during the period                                    7,155

Allotted, called up and fully paid share capital of Ingenta plc at 31 March 2003            5,164,373





3       Publication of Non-Statutory Accounts



The financial information contained in this interim report is unaudited and has
not been reviewed by the auditors.  It does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.  The restated comparative
financial information for the six months ended 31 March 2002 was neither audited
nor reviewed by the auditors.  Statutory accounts for the year ended 30
September 2002 incorporating an unqualified audit report have been filed with
the Registrar of Companies.



4       Basis of EPS Calculation



The basic loss per share has been calculated by dividing the loss for the period
by the weighted number of ordinary shares of 63,764,927 (6 months ended 31 March
2002: 55,164,498; year ended 30th September 2002: 57,749,565) in issue during
the six month period to 31 March 2003.  The Company had no dilutive ordinary
shares in any of the periods and there is therefore no difference between the
loss per ordinary share and the diluted loss per ordinary share.






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