Interim Results

Prime People PLC
5 September 2001





                               Prime People Plc

           Interim results for the six months ended 30th June 2001

   (Prime People Plc provides a range of support services to a client base
          principally focused in the leisure and hospitality sector)

 Chairman's and Chief Executive's Statements

Chairman's statement

It is disappointing that after a number of years of steady growth the results
for the 6 months to 30th June indicate a fall in profits. The recruitment
sector has undoubtedly entered a more testing period and significant
differences have occurred within different areas of the recruitment market.

Group operating profit was only marginally down on last year recording an 8%
fall to £172,946 (2000: £189,116).

Portfolio International, our principal subsidiary operating in the hotel and
leisure sector started the year well but slowed towards the end of the second
quarter.

The financial sector in which our associate Cameron Kennedy operates has been
harder hit by a sharper slowdown in recruitment in their sector following
falls in world stock markets and its profits have fallen substantially with
our share of their pre tax profit being £63,143 (2000: £185,852).

Our results for the period show a profit on ordinary activities before
taxation of £240,792 (2000: £400,379). Earnings per share after goodwill
written off were 0.48p (2000: 0.78p).

While our cash reserves are still substantial notwithstanding the large
dividend we paid to shareholders last year, we believe that the significant
slowdown we are now experiencing should lead us to pursue a prudent dividend
policy and we will not therefore be paying an interim dividend.

We will be very cautious in looking at any possible acquisitions, which arise
during this uncertain period, but will remain receptive to the concept of
developing the company should opportunities occur.

In the circumstances our core business has performed creditably, and we do not
believe we have lost market share, but the outlook for the recruitment
industry in the short term means that the trend of reduced profit indicated by
these figures will continue into the second half of the year.

Chief Executive's Review

The first three months of the year continued the investment programme of
recent years, primarily with the continued development of both our recruitment
and design businesses. We experienced a slow down in activity in the second
three months of the year and we now expect this trend to continue through to
the end of the year. Consequently we are focussing attention on the cost base
of these businesses and appropriate savings have been made and will continue
to be made where appropriate.

With regard to our training business, sales in the second quarter were flat
compared to last year. The main recruitment subsidiary (Portfolio
International) has shown resilience but is likely to remain affected by
external factors which have been encountered by the tourist industry this
year.

RICHARD E M LEE                       DAVID C COUBROUGH
Chairman                              Chief Executive


Press enquiries
David Coubrough, Chief executive, Prime People Plc             020 7520 5000
Shane Dolan, Biddicks                                          020 7448 1000



Consolidated Profit and Loss Account

for the six months ended 30 June 2001

                                          Notes      Six       Six        Year
                                                  months    months       Ended
                                                   Ended     Ended          31
                                                 30 June   30 June    December
                                                    2001      2000        2000
                                               Unaudited Unaudited     Audited
                                                   £          £           £

Turnover                                       2,606,789  2,227,368   4,722,198
Cost of sales                                   (118,134)  (135,169)   (281,660)
Gross Profit                                   2,488,655  2,092,199   4,440,538
Administrative expenses                       (2,315,709)(1,903,083) (3,842,781)
Group operating profit                           172,946    189,116     597,757
Share of operating profit in associate            63,143    185,852     443,281
Amortisation of goodwill                          (6,000)    (6,000)    (12,000)
Total operating profit                           230,089    368,968   1,029,038
Interest receivable and similar income            12,029     32,541      79,037
Interest payable and similar charges              (1,326)    (1,130)     (2,800)
Profit on ordinary activities before             240,792    400,379   1,105,275
taxation
Tax on profit on ordinary activities             (66,443)  (115,381)   (330,859)
Profit on ordinary activities after              174,349    284,998     774,416
taxation
Dividends                                              - (1,453,884) (1,453,884)
Retained profit / (loss) for the period          174,349 (1,168,886)   (679,468)
transferred to reserves
Earnings per ordinary share                  2

- Basic                                            0.48p      0.78p        2.1p

- Diluted                                          0.48p      0.78p        2.1p




Consolidated Balance Sheet

for the six months ended 30 June 2001
                                         Notes    30 June    30 June         31
                                                                       December
                                                     2001       2000       2000
                                                Unaudited  Unaudited    Audited
                                                        £          £          £
Fixed assets
Tangible assets                                   390,549    316,106    291,668
Investment in associate                           607,992    553,690    727,891
                                                  998,541    869,796  1,019,559
Current assets
Debtors                                         1,806,438  1,651,379  1,560,617
Cash at bank and in hand                          781,215  1,624,891    495,154
                                                2,587,653  3,276,270  2,055,771
Creditors: Amounts falling due within          (1,248,040)(2,458,151)  (904,762)
one year
Net current assets                              1,339,613    818,119  1,151,009
Total assets less current liabilities           2,338,154  1,687,915  2,170,568
Creditors: Amounts falling due after one           (5,928)   (19,456)   (12,691)
year
Net assets                                      2,332,226  1,668,459  2,157,877
Capital and reserves
Called up share capital                           363,467    363,467    363,467
Share premium account                             864,925    864,925    864,925
Merger reserve                                    173,077    173,077    173,077
Profit and loss account                           930,757    266,990    756,408
Shareholders' funds                          3  2,332,226  1,668,459  2,157,877



Consolidated Cash Flow Statement

for the six months ended 30 June 2001
                                                       Six       Six       Year
                                                    months    months
                                                     ended     ended      ended
                                                   30 June   30 June         31
                                                                       December
                                                      2001      2000       2000
                                                 Unaudited Unaudited    Audited
                                                         £         £          £

Net cash (outflow) inflow from operating           178,305   (91,208)   356,862
activities
Dividend from associate                            158,100   223,200    223,200
Return on investments and servicing of
finance
Interest received                                   12,029    32,541     79,037
Interest element of finance lease rental            (1,326)   (1,130)    (2,800)
payments
                                                    10,703    31,411     76,237
Taxation                                                 -         -   (106,576)
Capital expenditure and financial investment
Purchase of tangible fixed assets                 (212,460)  (93,923)  (161,351)
Sale of tangible fixed assets                       33,086         -     15,186
                                                  (179,374)  (93,923)  (146,165)
Dividends paid                                           -         - (1,453,884)

Net cash inflow before management of liquid        167,734    69,480 (1,050,326)
resources and financing
Management of liquid resources
(Purchase) / sale of treasury deposits            (125,000) (200,000)   900,000
Financing
Capital element of finance lease payments           (6,763)   (6,764)   (13,529)

Increase / (Decrease) in cash                       35,971  (137,284)  (163,855)




Notes To The Interim Financial Statements

 1.      Accounting Policies


        The interim results have been prepared on the same basis and using the
        same accounting policies as those used in the preparation of the
        accounts for the year ended 31 December 2000.



2.     Earnings per share


        The earnings per share is calculated based on a weighted average
        number of shares of 36,346,692 (2000: 36,346,692) and the profit of £
        174,349 (2000 - £284,998) giving earnings per share of 0.48p (2000 -
        0.78p).

        Diluted earnings per share is based on the above earnings and adjusts
        the basic weighted average number of shares to 36,701,764 (2000:
        36,705,914) as a result of dilutive share options, giving earnings per
        share of 0.48p (2000 - 0.78p).

        The weighted average number of shares in issue calculated under the     
        different methods reconcile as follow:-

                                               30th June  30th June        31st
                                                                       December
                                                    2001       2000        2000
                                               Unaudited  Unaudited     Audited
                                                       £          £           £

Basic                                         36,346,692 36,346,692  36,346,692

Number of shares under option                    996,055    500,000     500,000
                                                                        

Number of shares which would have been issued   (640,983)  (140,778)   (142,993)
at fair value

                                              36,701,764 36,705,914  36,703,699




        3.     Reconciliation of movement in shareholders' funds

                             30 June 2001    30 June 2000      31 December 2000
                                Unaudited       Unaudited               Audited
                                        £               £                     £

Profit for the period             174,349         284,998               774,416

Dividend                                -      (1,453,884)           (1,453,884)

                                  174,349      (1,168,886)             (679,468)

Opening shareholders' funds     2,157,877       2,837,345             2,837,345

Closing shareholders' funds     2,332,226       1,668,459             2,157,877




        4.     Nature of the financial information

        The interim financial information for the six months ended 30 June
        2001, was approved by the board on 4th September 2001.

        The financial information set out above does not constitute full
        accounts within the meaning of Section 254 of the Companies Act 1985.
        The results for the year to 31 December 2000 are extracts from the
        published accounts for that year which have received an unqualified
        audit report and have been filed with the Registrar of Companies.

        Copies of the interim results are being sent to shareholders. Further
        copies can be obtained from the company's registered office at: 5
        Bream's Buildings, Chancery Lane, London EC4A 1DY.