3rd Quarter Results

InterX PLC
22 May 2001

INTERX PLC

                                  INTERX PLC                                  
                         Third Quarter ('Q3') Results                         
                        Three months ended 4 May 2001                         
                       

HIGHLIGHTS

-Turnover for Q3 was £985,000 (Q2: £1.9 million) following the decision to    
 stop selling BladeRunner as an eCRM platform;

-Provision for restructuring as anticipated at £1.6 million;

-Operating loss, before amortisation of goodwill and exceptional items, for Q3
 was £4.7 million (Q2: £7.8 million);

-Amortisation of goodwill in Q3 was £10.2 million (Q2: £10.2 million);

-Loss before tax for Q3 was £17.2 million (Q2: £19.1 million);

-Loss per share in Q3, before amortisation of goodwill and exceptional items,
 was 24.57p (Q2: 25.67p); 

-Loss per share in Q3 was 49.20p (Q2: 54.62p);

-Cash at end of Q3 was £20.2 million (Q2: £26.0 million); and

-Share option arrangements approved by shareholders.



Simon Barker, Chief Executive, commented:

'Although these results are in line with expectations they do not do justice
to the considerable progress that has been made resulting from the work being
done by all our staff in pursuit of our new strategy.  We are on target.'



For further information, please contact:

InterX plc                                                     020 8817 4409  
    
Simon Barker       
Simon Miesegaes
                     


 
                                  INTERX PLC                                  
                                  Q3 Results                                  
                        Three months ended 4 May 2001                         


Chairman's Statement


The Board today announces the Group's results for the three months ended 4 May
2001 ('Q3'). 

During the quarter we have focused on establishing internal stability and
continuing the development of our new product, marketing and sales
propositions.

Our results are in line with our internal budgets, with operating costs for
March and April firmly under control and appropriate for this phase of our
strategy.

PROSPECTS

We shall be launching the first of our new products in June and expectations
for its success within the Company are high.

The Company is totally focused upon ensuring that these expectations are
exceeded and that by the end of this calendar year we will be able to report
concrete evidence to support the continued confidence of the Board in the
medium and long term future of the Company.

Richard Jewson                                                     22 May 2001

                                  INTERX PLC                                  
                         Third Quarter ('Q3') Results                         
                        Three months ended 4 May 2001                         

OPERATING REVIEW OF Q3

During the quarter, the Company has continued to focus on the actions required
to deliver its strategic redirection as announced to shareholders on 27 March
2001.

Accordingly, we can report the following:

- the cost reduction programme has delivered its anticipated cost savings,
including the previously announced 40% reduction in annualised staff related
costs, and we are continuing to pursue further efficiencies where appropriate;

- the new internal company structure has been fully implemented and the
benefits are clear to see, particularly in the way staff are working together;
staff attrition has been very low;

- the marketing of InterX BladeRunner as an eCRM solution has ceased while the
development of our new products, built on the BladeRunner platform, continues;
we remain on target to launch the first of these products in June;

- our sales and marketing teams have continued to validate the sales and
marketing propositions for the new product.  Initial responses received from
trade analysts, potential integrator and technology partners and corporate
customers are very encouraging; and

- revised share option arrangements, necessary to align the interest of
shareholders and employees more effectively, have been implemented.


FINANCIAL REVIEW OF Q3
Profit and Loss Account:

The Group's results to 5 August 2000 included the results of Ideal Hardware
Limited and are not appropriate for comparative purposes.  

Revenue and Gross Loss:

As expected, there were no product licence revenues (Q2: £463,000), reflecting
the decision to stop selling InterX BladeRunner as an eCRM solution.

The Gross Loss on services was £0.9 million (Q2: £2.8 million) and primarily
reflects the net underlying cost of our service department after accounting
for the release of part of the provision for losses on contracts made in Q2.

Operating expenses:

Operating expenses before exceptional items and amortisation of goodwill were
£3.7 million (Q2: £5.4 million).

The cash 'burn rate' for March and April was significantly reduced to
approximately £1.0 million per month.  Further efficiencies will continue to
be sought and cost reductions made.

Restructuring provisions:

As noted in the Q2 results, a charge of £1.6 million has been made in this
quarter in respect of the costs associated with the restructuring of the
Company, principally redundancy costs.  

National Insurance on Share Options:

No provision has been made in the quarter (Q2: credit of £89,000) in respect
of the Company's National Insurance liability on unrealised gains on options
issued under the Company's Share Option Scheme on the basis that those
options, which were issued under the exchange arrangements referred to in the
circular sent to shareholders in March 2001, were issued on the condition that
this liability passed to the employee.  In respect of those options that have
not been exchanged, no provision has been made since the exercise price was
above the market value as at 4 May 2001.

Amortisation of Goodwill:

The charge of £10.2 million in Q1, Q2 and Q3 is in respect of the amortisation
of goodwill, created upon the acquisition of Cromwell Media Limited by InterX
in April 2000.  The Board has considered the carrying value of goodwill at 4
May 2001 for impairment purposes and has concluded that no write down is
appropriate.

Interest Receivable:

Interest receivable on our cash deposits was £647,000 in the quarter compared
to £635,000 in Q2; on a like for like basis interest receivable was affected
by the reduction in UK interest rates seen in Q3.

Taxation:

No credit has been taken in respect of the tax losses currently being
generated.

Balance Sheet:

Goodwill reduced to £159.9 million at the end of the quarter from £170.1
million at the end of Q2, reflecting the charge of £3.4 million per month
calculated on the basis of the goodwill being amortised over 5 years.

Tangible assets reduced to £5.3 million at the end of the quarter from £5.5
million at the end of Q2, reflecting primarily depreciation and a reduced
level of capital expenditure. 

Investments decreased to £3.9 million at the end of the quarter from £5.1
million at the end of Q2 reflecting in part our share of losses of £1.4
million in respect of our associated companies. Where our share of losses
exceeds our cost of investment, the excess has been included within
provisions.  

Included within Current Assets at the end of the quarter was £13.3 million
(Q2: £13.3 million), in respect of funds provided to our associated company,
Diligenti Limited, in accordance with the loan facility agreement. Also
included is £5.4 million (Q2: £5.4 million) in respect of the deposit provided
in connection with the leases we have taken on our premises in Brentford.

Cash Flow:

At the end of the second and third quarters, cash amounted to £26.0 million
and £20.2 million respectively. The principal movements in the quarter were:

- a £6.3 million outflow in respect of operating activities ; and

- a £1.4 million inflow in respect of the receipt of the deferred
  consideration from the sale of Ideal Hardware Limited.

Gifting of shares to the InterX Onshore Employee Benefit Trust (the 'EBT'):

In the fourth quarter (two months only due to the change of the year end date
to 30 June), and as mentioned in the circular send to shareholders in March
2001, some 417,000 shares are to be gifted into the EBT by certain
shareholders; options over the shares are to be granted at nil value and are
subject to company, department and individual performance criteria.  Current
accounting practice requires a gifting of shares to a company to be reflected
as an asset at market value with a corresponding credit to reserves (i.e. no
credit to the profit and loss account).  Since, options granted at nil value
are required to be charged to the profit and loss account over the vesting
period of 3 years, a charge is expected of £200,000 per annum.  The effect on
net assets is nil.


                                  INTERX PLC                                  
                        Group Profit and Loss Account                         
                 for the three month period ended 4 May 2001                  
                                  
                       Notes          13 weeks 13 weeks            
                             13 weeks  ended 2   ended 5  39 weeks  Year ended
                              ended 4 February  November   ended 4    5 August
                             May 2001     2001      2000  May 2001        2000
                         (unaudited)(unaudited)(unaudited)(unaudited)(audited)
                               £'000     £'000     £'000     £'000       £'000
TURNOVER                                                                   
Product licences                  -        463      700      1,163         400
Services                        985      1,434    1,301      3,720       1,417
Other - discontinued operations   -          -        -          -     401,328

                        2       985      1,897    2,001      4,883     403,145

COST OF SALES                                          
Product licences                  -       (65)        -       (65)           -
Services                     (1,912)   (4,206)   (1,930)   (8,048)        (25)
Other - discontinued operations   -          -        -          -   (372,425)
         
                             (1,912)   (4,271)   (1,930)   (8,113)   (372,450)
GROSS (LOSS)/PROFIT                                          
Product licences                  -       398       700      1,098         400
Services                       (927)   (2,772)     (629)   (4,328)       1,392
Other - discontinued operations   -          -        -         -       28,903

                        2      (927)   (2,374)       71    (3,230)      30,695
                                         
Other operating income            -          -        -         -        1,430
                                         
Overheads                                          
Research and development       (642)     (873)     (647)   (2,162)           -
Sales and marketing            (940)   (1,401)   (1,197)   (3,538)           -
General, administrative 
and distribution costs       (2,159)   (3,175)   (3,566)   (8,900)    (36,188)
                                             
Exceptional items                                          
InterX restructuring    3    (1,596)        -         -    (1,596)           -
National Insurance 
on share options        3         -        89       (89)         -           -
Ideal restructuring     3         -         -         -          -       (467)
Purchase of domain name 3         -         -         -          -       (603)
IT Network write off 
of website              3         -         -         -          -     (1,359)
Amortisation of goodwill    (10,207)  (10,207)  (10,207)  (30,621)    (13,609)

                            (15,544)  (15,567)  (15,706)  (46,817)    (52,226)
Operating loss before 
amortisation of goodwill     (6,264)   (7,734)   (5,428)  (19,426)     (6,492)
Amortisation of goodwill    (10,207)  (10,207)  (10,207)  (30,621)    (13,609)
                                          
Operating loss          2   (16,471)  (17,941)  (15,635)  (50,047)    (20,101)
                                          
Share of  results of 
associated undertakings      (1,380)   (1,805)     (984)   (4,169)       (445)
                                          
Profit on sale of 
fixed assets            4          -        -     1,905     1,905            -
                     
Profit on sale of 
subsidiary undertaking  4          -        -         -         -          400
                                        
Loss on ordinary activities 
before interest            (17,851)   (19,746)  (14,714)  (52,311)    (20,146)
Interest receivable            647        653       485     1,785          759
Interest payable                (2)        (2)       (1)       (5)     (1,233)
                                          
Loss on ordinary activities 
before taxation            (17,206)   (19,095)  (14,230)  (50,531)    (20,620)
                                          
Tax on loss on ordinary 
activities              5        -         -         -         -          153 
                                          
Deficit for the period  7  (17,206)   (19,095)  (14,230)  (50,531)    (20,467)



                                  INTERX PLC                                  
                        Group Profit and Loss Account                         
                 for the three month period ended 4 May 2001                  

              
                                      13 weeks  13 weeks            
                             13 weeks  ended 2   ended 5  39 weeks  Year ended
                              ended 4 February  November   ended 4    5 August
                             May 2001     2001      2000  May 2001        2000
                         (unaudited)(unaudited)(unaudited)(unaudited)(audited)
   
Loss per share 
(basic and fully diluted)   (49.20p)  (54.62p)  (40.75p)  (144.57p)   (79.69p)
                                          
Less : exceptional items and 
amortisation of goodwill 
(net of taxation)                                   
                                          
Amortisation of goodwill     29.19p    29.20p    29.23p     87.62p      52.99p
InterX restructuring costs  (4.56p)         -         -     (4.56p)          -
National insurance on     
share options                    -     (0.25p)    0.25p          -           -
Ideal restructuring costs        -          -         -          -       1.82p
Purchase of domain name          -          -         -          -       2.35p
IT Network write off of website  -          -         -          -       5.29p
Profit on disposal of 
fixed assets                     -          -    (5.45p)    (5.45p)          -
Profit on sale of 
discontinued operations          -          -         -          -     (1.56p)
                                          
Loss per share before 
exceptional items and 
amortisation of goodwill   (24.57p)   (25.67p)  (16.72p)   (66.96p)   (18.80p)
                                          
                                          

                           Group Statement of Total                           
                         Recognised Gains and Losses                          
                 for the three month period ended 4 May 2001                  
                                              
                         £'000       £'000       £'000       £'000       £'000
                                          
Deficit for the period (17,206)    (19,095)    (14,230)    (50,531)   (20,467)
                                          
Deemed disposal of part of 
interest in 
associated undertaking       -       3,422           -       3,422          - 
                                          
Total recognised gains 
and losses during 
the period             (17,206)    (15,673)    (14,230)    (47,109)   (20,467)

The turnover and operating loss for the period arose from continuing
operations.

The results for the year ended 5 August 2000 include results from the
distribution business that was sold on 3 August 2000.

                                  INTERX PLC                                  
                             Group Balance Sheet                              
                                at 4 May 2001                                 
                                 
                        Notes   At 4 May    February    November   At 5 August
                                    2001        2001        2000         2000
                              (unaudited) (unaudited) (unaudited)    (audited)
                                   £'000       £'000       £'000        £'000 
            

Fixed Assets                                   
                                   
Goodwill                         159,905    170,112     180,319        190,526
Intangible assets                    106        126         183            212
Tangible assets                    5,320      5,471       3,854         15,965
Investments                        3,903      5,097       3,152          4,136

                                 169,234    180,806     187,508        210,839

Current Assets                                   
Trade debtors                      2,379     1,986        2,867          1,574
Loan to associated undertaking    13,256    13,256        9,856             - 
Other debtors                      8,045     9,783        8,941          7,772
Cash at bank, in hand 
and term deposits                  20,242    25,997       34,398        
34,504 
                                  43,922    51,022       56,062         43,850

                                   
Creditors: amounts falling 
due within one year             (11,728)   (13,075)     (11,050)       (8,323)
                                 
Net Current Assets               32,194     37,947       45,012        35,527 
                                   
Total assets less current  
liabilities                     201,428    218,753      232,520        246,366

Creditors: amounts falling 
due after more than one year        (39)      (48)         (152)          (68)
                                   
Provisions for liabilities 
and charges                      (1,820)   (1,930)            -              -

                                 199,569    216,775     232,368        246,298

Capital and Reserves                                   
                                   
Called up share capital            1,750      1,750       1,748          1,742
Share premium account             55,757     55,757      55,679         55,385
Capital redemption reserve            31         31          31             31
Other reserves                   198,066    198,066     198,066        198,066
Profit and loss account          (56,035)   (38,829)    (23,156)       (8,926)
                                   
Equity Shareholders' Funds 7     199,569    216,775     232,368        246,298  

                                  INTERX PLC                                  
                           Group Cashflow Statement                           
                 for the three month period ended 4 May 2001                  

                      Notes           13 weeks  13 weeks            
                            13 weeks   ended 2   ended 5  39 weeks  Year ended
                             ended 4  February  November   ended 4    5 August
                            May 2001      2001      2000  May 2001        2000
                         (unaudited)(unaudited)(unaudited)(unaudited)(audited)
                               £'000     £'000     £'000     £'000       £'000
                                          
Net cash outflow from 
operating activities     8    (6,292)   (4,364)   (5,467)  (16,123)   (34,742)
                                          
Returns on investments and servicing of finance                               
                                                    
Interest received                602       588       474     1,664         759
Interest paid                    (2)       (2)       (1)       (5)     (1,378)
                                          
Net cash inflow/(outflow) 
from returns on investments 
and servicing of finance         600       586       473    1,659        (619)

Taxation                           -         -         -        -        (468)
                                          
Capital expenditure and financial investment                                  
                                          
Purchase of intangible 
fixed assets                       -         -         -        -         (81)
Purchase of tangible 
fixed assets                  (1,481)   (1,534)   (1,551)  (4,566)     (3,668)
Sale of tangible fixed assets      1       245    16,000   16,246           39
Loan to associated undertaking     -    (3,400)   (9,856) (13,256)           -
Purchase of trade investment       -         -         -        -        (663)
Sale of trade investment           -         -         -        -          663

Net cash (outflow)/inflow from 
capital expenditure           (1,480)   (4,689)    4,593   (1,576)     (3,710)
                                          
Acquisitions and disposals                                          
                                          
Purchase of subsidiary 
undertaking                        -         -         -        -      (2,832)
Net cash acquired with 
subsidiary undertaking             -         -         -        -          384
Disposal of subsidiary 
undertaking                    1,427         -         -    1,427       11,597
Net overdraft sold with 
subsidiary undertaking             -         -         -        -       19,935
Investment in associated 
undertakings                       -         -         -        -      (6,634)
                                          
Net cash inflow from 
disposals and acquisitions     1,427         -         -    1,427       22,450

Equity dividends paid              -         -         -        -      (1,695)
                                          
Net cash outflow before 
management of liquid 
resources and financing       (5,745)   (8,467)     (401)  (14,613)   (18,784)
                                          
Management of liquid resources                                           
Cash placed on term deposits (34,000)  (20,008)        -   (54,008)          -
Term deposits matured         35,008         -         -    35,008           -
                               1,008   (20,008)        -   (19,000)          -
                                          
Financing                                          
Repayment of loans                 -         -         -        -      (7,861)
Issue of ordinary share capital    -        80       300      380       52,953
Capital element of finance 
lease rental payments           (10)       (14)       (5)      (29)       (45)
                                          
Net cash (outflow)/inflow 
from financing                  (10)        66       295      351       45,047
(Decrease)/increase in 
cash in the period           (4,747)   (28,409)     (106)  (33,262)     26,263


Reconciliation of net cash flow to movement in net funds                      
(Decrease)/increase in cash 
in the period                (4,747)   (28,409)     (106)  (33,262)     26,263

Net cash outflow from 
decrease in debt                 10         14         5        29       7,906
Net cash outflow from 
increase in liquid resources (1,008)    20,008         -    19,000           -
                                          
Change in net funds resulting 
from cash flows              (5,745)   (8,387)      (101)  (14,233)     34,169

                                          
New finance leases                -          -         -         -       (250)
Finance leases acquired 
with subsidiary undertaking       -          -         -         -       (136)
Finance leases sold with 
subsidiary undertaking            -          -         -         -         238
Arrangement fee amortisation      -          -         -         -        (67)
                                          
Movement in net funds 
in the period               (5,745)    (8,387)     (101)   (14,233)     33,954

                                          
Net funds at start of 
period                  9   25,913     34,300    34,401     34,401         447

                                          
Net funds at end of  
period                  9   20,168     25,913    34,300     20,168      34,401


                                  INTERX PLC                                  
                 For the three month period ended 4 May 2001                  
                                    Notes                                     

1.       Basis of preparation
The comparative figures for the year ended 5 August 2000 have been extracted
from the Group's statutory accounts to that date; these received an
unqualified audit report, did not contain a statement under section 237(2) or
237(3) of the Companies Act 1985 and have been filed with the Registrar of
Companies.  This preliminary statement, which is unaudited and does not
constitute statutory accounts, has been prepared on the basis of the
accounting policies laid down in those statutory accounts.

2.       Segmental information
The Group has no material operations other than those in the UK. Turnover,
gross and operating profit for the three month period ended 4 May 2001 related
to the Technology business of product licences and associated services, with
no material turnover to overseas customers. The turnover and operating loss
for InterX Technology Limited for the year ended 5 August 2000 were £3.2m
(1999:£2.2m) and £1.7m (1999; profit:£152,000) respectively. Turnover and
gross profit for the year ended 5 August 2000 were as follows:

                                    Year ended 5 August 2000 (audited)
                   Electronic    Parent    Technology    Distribution    Total
                      Product   Company        
                 Intelligence          
                        £'000     £'000         £'000          £'000     £'000

Turnover                1,280         -         1,817        400,048   403,145
                                   
Gross profit              720         -         1,792         28,183    30,695
                                   
Operating (loss)/profit 
before exceptional items 
and amortisation 
of goodwill            (4,494)   (2,737)       (1,132)         4,300   (4,063)

                                   
Operating (loss)/profit 
after exceptional items 
and amortisation 
of goodwill            (5,853)   (3,340)      (14,741)         3,833  (20,101)


Turnover and gross profit by destination were as follows:

                                     Year ended 5 August 2000 (audited)
                                        UK             Europe            Total
                                     £'000              £'000            £'000

Turnover                           356,673             46,472          403,145

Gross profit                        29,154              1,541           30,695
                  
Margin                                 8.2%               3.3%            7.6%

3.       Exceptional items reported before operating loss
The InterX restructuring charge in the quarter ended 4 May 2001 arose from the
redundancy programme implemented during the quarter.

The National Insurance credit on share options in the quarter ended 2 February
2001 reversed the provision required at 5 November 2000 to cover National
Insurance on the excess of the market value over the exercise price of share
options granted and this provision was released in the second quarter.

The Ideal Hardware Limited ('Ideal') restructuring charge in the year ended 5
August 2000 arose from redundancy programmes which were implemented during the
year. 

The purchase of the interx.com domain name in the year ended 5 August 2000 was
charged to the profit and loss account.

In the year ended 5 August 2000 the IT Network costs related to the impairment
of the website development, previously capitalised.

4.       Profit on sale of subsidiary undertaking/profit on disposal of fixed
assets
The profit on sale of subsidiary undertaking relates to the disposal of the
group's interest in the ordinary share capital of Ideal.

The profit on disposal of fixed assets relates to the disposal of two
properties occupied by Ideal  to the owners of Ideal. 

5.       Taxation
The taxation credit has been calculated at an estimated tax rate of 1%.

6.       Loss per share
The basic and fully diluted loss per share for the period is based on the loss
attributable to the weighted average of 34,972,709 (2 February 2001:
34,959,473; 5 November 2000: 34,924,226; 5 August 2000 : 25,682,338) ordinary
shares in issue during the period.  

7.       Share capital and reserves
Movements in share capital and reserves were as follows:

                      Share    Share     Capital     Other   Profit and  Total
                    capital  premium  redemption  reserves loss account
                      £'000    £'000       £'000     £'000       £'000   £'000
                                          
At 6 August 2000      1,742   55,385          31   198,066    (8,926)  246,298
                     
Issues of shares          6      294           -         -         -       300

Deficit for the period    -        -           -         -   (14,230) (14,230)
                                          
At 5 November 2000    1,748   55,679          31   198,066   (23,156)  232,368

                                          
Issues of shares          2       78           -         -         -        80

Deficit for the period    -        -           -         -   (19,095) (19,095)
Gain from deemed disposal 
of part of interest 
in associated undertaking -        -           -         -     3,422     3,422

                                          
At 2 February 2001    1,750   55,757          31   198,066   (38,829)  216,775

                                          
Deficit for the period    -        -           -         -   (17,206) (17,206)
                                           
At 4 May 2001         1,750   55,757          31   198,066   (56,035)  199,569


8.       Reconciliation of operating loss to net cash flow from operating
activities:

                                      13 weeks  13 weeks            
                             13 weeks  ended 2   ended 5  39 weeks  Year ended
                              ended 4 February  November   ended 4    5 August
                             May 2001     2001      2000  May 2001        2000
                         (unaudited)(unaudited)(unaudited)(unaudited)(audited)
                               £'000     £'000     £'000     £'000       £'000
    
Operating loss              (16,471)   (17,941)   (15,635)  (50,047)  (20,101)
Depreciation charges            326        318        420     1,064      3,063
Amortisation of goodwill     10,207     10,207     10,207    30,621     13,609

Amortisation of intangible 
fixed assets                     18         19         29        66         23
Amount written off
web development                   -          -          -         -      1,359
Elimination of share of 
sale to associated undertaking    -        102          -       102          -
(Profit)/loss on disposal 
of fixed assets                 (20)        90          -        70        163
Increase in stock                 -          -          -        -    (17,060)
(Increase)/decrease in debtors  (37)       107     (2,450)   (2,380)  (36,103)
(Decrease)/increase in creditors(315)    2,734      1,962     4,381     20,305

                                   
Net cash outflow from 
operating activities         (6,292)    (4,364)    (5,467)  (16,123)  (34,742)
                                   

 
9.       Analysis of net funds

                    At  Cash      At      Cash       At      Cash     At 4 May
              6 August  flow  5 November  flow  2 February   flow         2001
                  2000           2000               2001           (unaudited)
              (audited)      (unaudited)        (unaudited)        
                      
                 £'000  £'000    £'000   £'000     £'000    £'000       £'000
                                                 
Cash at bank 
and in hand     34,504  (106)   34,398 (28,409)    5,989   (4,747)       1,242
Term deposits        -     -         -   20,008   20,008   (1,008)      19,000
       
                34,504  (106)   34,398  (8,401)   25,997   (5,755)      20,242
                                                 
Finance leases   (103      5      (98)       14      (84)      10         (74)
                                                 
Total net funds 34,401  (101)   34,300  (8,387)   25,913   (5,745)      20,168
                                                 


A copy of this report is being sent to all shareholders. Copies are available
to the public on request from the Company's registered office, at  27 Great
West Road, Brentford, Middlesex TW8 9AS.