Preliminary Results

Prime People PLC
02 March 2005


                               PRIME PEOPLE PLC

          PRELIMINARY RESULTS FOR THE YEAR ENDED DECEMBER 31, 2004

                                  KEY POINTS

     
•    Profit on ordinary activities before taxation of £0.67m compared to a loss 
     of £0.53m in 2003

•    Sale of principle subsidiary, Portfolio International, realised a profit on 
     disposal of £1.25m before writing off goodwill of £641,006 which had 
     previously been deducted from reserves

•    Sales from continuing operations £0.71m (2003 £0.71m)

•    Diluted earnings per share has increased from a loss per share of 1.21p to 
     earnings per share of 1.82p

•    Our share of the profit of our associate business for the year is £87k 
     against a loss of £205k in 2003

•    The balance sheet remains strong with net funds of £2.8m, equivalent to 
     7.6p per share

•    No dividend payment as the company wish to conserve cash for any potential 
     acquisition

•    The company has implemented the move from the Official List to AIM


Commenting on the results, chairman Richard Lee said, 'Following the successful
disposal of Portfolio International and the move from the Official List to AIM,
we will now be broadening the base of the group's operations through acquisition
when a suitable opportunity arises.'



Press enquiries:

Richard Lee, chairman                      0161 832 6644
Chris Heayberd, finance director           020 7831 5297




PRIME PEOPLE Plc

Chairman's statement
________________________________________________________________________________


Introduction

I am pleased to report on the results of Prime People Plc for the year to 31
December 2004.

Results

Turnover from continuing operations during the year remained very similar to the
previous year showing a slight improvement to £708,653 (2003 - £705,220),
although the resulting operating loss from continuing operations was £283,243,
as they now bear the group operating costs, compared to a profit of £62,800 in
the previous year.

Harper Craven Associates

Our training business, having had a strong first quarter, closed with
disappointing results reporting a fall in profit before tax from £39,940 to
£17,101.  Whilst sales have remained flat, costs have increased.

The future for the business remains difficult to predict, and whilst we will
monitor costs closely the main focus centres on the need to improve sales.

Cameron Kennedy Resources

Our associate business, Cameron Kennedy, reported a return to profit and our
share of their operating profit for the year of £87,133 is a significant
improvement on the previous year's operating loss of £205,343.

Disposal of Portfolio International Limited

On 4 August 2004 we sold the entire share capital of our recruitment business
Portfolio International Limited to PSD Group Plc.  This sale has realised a
profit on disposal of £1,250,850 before writing off goodwill of £641,006 which
had previously been deducted from reserves and which we are now required to
deduct from the profit on disposal. The overall effect on the net asset position
of the company as a consequence of the accounting entries relating to goodwill
is nil.

Head Office Costs

Following the disposal of Portfolio International we have undertaken a review of
our head office cost base and we have taken the necessary steps to reduce head
count.

We will continue to monitor costs closely.

Earnings per share

Diluted earnings per share has increased from a loss per share of 1.21p to
earnings per share of 1.82p.

Alternative Investment Market

As advised in our Interim Announcement the company has implemented the move from
the official list of the London Stock Exchange to AIM.  As a consequence, our
shares are no longer eligible to be held in PEPs or ISAs and shareholders with
such arrangements are again advised to consult their financial advisors.

Prospects

We do not anticipate any significant changes to the performance of the training
business in the coming year.  Our associate business continues to report
improved sales activities and we are reasonably optimistic that the business
will continue its positive performance.

We continue to look at  new businesses and our ambition is to broaden the
business base of the company, through acquisition, in the short to medium term.

We will not be making a dividend payment this year as we wish to conserve cash
for any potential acquisition.

Net cash at the year end was £2.8m , equivalent to 7.6p per share.


Richard E M Lee
Non Executive Chairman

1 March 2005



PRIME PEOPLE Plc

Consolidated profit and loss account for the year ended 31 December 2004
________________________________________________________________________________

                            Continuing operations            Discontinued operations                Total 
               Note      2004                2003            2004               2003           2004          2003 
                            £                   £               £                  £              £             £ 
 
Turnover              708,653             705,220       1,585,895          2,384,662      2,294,548     3,089,882

Cost of sales        (179,571)           (149,174)         (7,240)           (11,305)      (186,811)     (160,479)
                     ________            ________         ________          ________        ________     ________
                                                                          
Gross profit          529,082             556,046       1,578,655          2,373,357      2,107,737     2,929,403

Administrative
expenses             (812,325)           (493,246)     (1,384,934)        (2,773,940)    (2,197,259)   (3,267,186)
                      ________           ________        ________           ________        ________     ________

Group operating  
(loss)/profit        (283,243)             62,800         193,721           (400,583)       (89,522)     (337,783)

Share of operating 
profit/(loss) in                                                             
associates             87,133            (205,343)              -                  -         87,133      (205,343)      
Amortisation of 
goodwill              (12,000)            (12,000)              -                  -        (12,000)      (12,000) 
                                                                                                                      
                       75,133            (217,343)              -                  -         75,133      (217,343)
                     ________             ________       ________           ________       ________      ________

(Loss)/profit 
on ordinary  
activities 
before interest      (208,110)            (154,543)      193,721            (400,583)       (14,389)     (555,126)

Profit on disposal 
of subsidiary                                                                               609,844             -
Interest receivable and
similar income (group)                                                                       79,530        29,382
Interest payable and
similar charges                                                                                (487)            -
                                                                                            ________     ________
(Loss)/profit 
on ordinary  
activities before 
taxation                                                                                   674,498      (525,744)
Taxation on 
(loss)/profit
on ordinary activities                                                                      (2,112)       82,576
                                                                                           ________     ________
(Loss)/profit 
on ordinary  
activities after 
taxation  
and transferred 
to reserves                                                                                 672,386     (443,168)
                                                                                           ________     ________ 

Earnings (loss) per share
- Basic     2                                                                                 1.82p      (1.21)p
- Diluted   2                                                                                 1.82p      (1.21)p
                                                                                            ________    ________ 

All recognised gains and losses are included in the profit and loss account.




PRIME PEOPLE Plc

Consolidated balance sheet at 31 December 2004
________________________________________________________________________________

                               Note          2004                2004            2003                2003
                                                £                   £               £                   £

Fixed assets
  Tangible assets                                             44,028                               61,656
  Investments:
  Investment in associate                                    411,676                              336,544
                                                            ________                             ________
   
                                                             455,704                              398,200

Current assets
  Debtors                               262,052                            1,122,697
  Cash at bank and in hand            2,835,981                              996,494
                                       ________                             ________

                                      3,098,033                            2,119,191

Creditors: amounts falling due
within one year                         200,903                              490,446
                                       ________                             ________


Total assets less current assets                           2,897,130                            1,628,745

Creditors: amounts falling due
after more than one year                                      12,497                                    -
                                                            ________                             ________


Net assets                                                3,340,337                             2,026,945
                                                           ________                              ________

Capital and reserves

 Called up share capital                                   368,467                                368,467
 Share premium account                                     909,925                                909,925
 Merger reserve                                            173,077                                173,077
 Profit and loss account                                 1,888,868                                575,476
                                                          ________                               ________

Equity shareholders' funds                               3,340,337                              2,026,945
                                                          ________                               ________





PRIME PEOPLE Plc

Consolidated cash flow statement for the year ended 31 December 2004
________________________________________________________________________________

                                      Note   2004                2004            2003                2003
                                                £                   £               £                   £

Net cash outflow from operating
activities                             3                     (93,986)                            (233,078)

Dividend from associated undertaking                               -                               83,700

Returns on investment and
servicing of finance
  Interest received                        79,530                              29,382
  Interest paid                              (487)                                  -
                                          ________                           ________
 
                                                              79,043                               29,382

Taxation                                                      74,350                             (107,873)

Capital expenditure and financial
investment
  Purchase of tangible fixed assets       (37,592)                            (28,375)
  Sale of tangible fixed assets             1,800                              17,388
                                          ________                            ________
                                                             (35,792)                             (10,987)

Acquisitions and disposals
  Sale of subsidiary undertaking        1,905,284                                   -
  Net cash disposed with subsidiary       (53,986)                                  -
                                         ________                               ________
                                                           1,851,298                                    -
                                                            ________                             ________

Net cash inflow/(outflow) before
management of liquid resources
and financing                                              1,874,913                             (238,856)

Management of liquid resources
  (Purchase)/sale of deposits                             (1,647,000)                             104,000

Financing
  Issue of ordinary share capital                                  -                               30,000
  Capital element of finance leases                           (2,501)                                   -
                                                            ________                             ________

Increase/(decrease) in cash        4                         225,412                             (104,856)
                                                            ________                             ________





PRIME PEOPLE Plc

Notes to the preliminary announcement for the year ended 31 December 2004
________________________________________________________________________________

     
1    Accounting Policies

     The final 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 2003.

2    Earnings per share

     The earnings per share is calculated based on a weighted average number of
     shares of 36,846,692 (2003 - 36,680,025) and the profit of £672,386  (2003-
     loss £443,168), giving a profit per share of 1.82p (2003 - loss per share
     1.21p).

     The effect of all potential ordinary shares in anti-dilutive.

3    Reconciliation of operating profit to net cash outflow from operating
     activities
                                                    2004                2003
                                                       £                   £  

Group operating loss                             (89,522)           (337,783)
Depreciation                                      33,784              83,709
Loss/(profit) on sale of 
tangible fixed assets                             (1,800)              8,071
Decrease in debtors                             (155,561)            187,274
Decrease in creditors                            119,113            (174,349)
                                                 ________            ________

Net cash outflow from operating activities      (93,986)            (233,078)
                                                 ________            ________



PRIME PEOPLE Plc

Notes to the preliminary announcement for the year ended 31 December 2004
________________________________________________________________________________

     
4    Reconciliation of net cash outflow to movement in net funds

                                             2004                2004                2003                2003
                                                £                   £                   £                   £

Increase/(decrease) in cash in the year   225,412                                (104,856)
Cash outflow from decrease in debt
and lease financing                         2,501                                       -
Cash outflow/(inflow) from
(increase)/decrease in 
liquid resources                        1,647,000                                (104,000)
                                         ________                                 ________

Increase/(decrease) in net funds 
resulting from cash flows in 
the year                               1,874,913                                 (208,856)
New finance leases                       (22,496)                                       -
                                        ________                                  ________

Increase/(decrease) in net 
funds in the year                                         1,852,417                                 (208,856)

Opening net funds                                           947,770                                1,156,626
                                                           ________                                 ________

Closing net funds                                         2,800,187                                  947,770
                                                           ________                                  ________

     
5    Nature of the financial information

     The financial information does not constitute statutory accounts as defined 
     in section 240 of the Companies Act 1985.  The financial information for 
     the year ended 31 December 2004 is extracted from the group's financial 
     statements to that date which received an unqualified auditors' report and 
     will be filed with the Registrar of Companies.   The financial information 
     for the year ended 31 December 2003 is extracted from the financial 
     statements to that date which received an unqualified auditors' report and 
     have been filed with the Registrar of Companies.


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