Interim Results

Magnum Power PLC
13 March 2003




                                                                MAGNUM POWER PLC

                                          Registered in Scotland Number SC147230

                         Interim Report for the Half Year ended 30 November 2002









The Directors report revenues of £1.11m (2001 - £0.71m) and a loss of £0.37m
(2001 - £0.51m) for the six months ended 30 November 2002.



The results for the 6 months ended 30 November 2002 show substantial growth of
turnover over the prior year - an increase of over 50%.  Gross profit fell
sharply against the prior year, but a significant proportion of that reduction
was attributable to a write down of certain stocks. Whilst losses were reduced,
the Group failed to break through to profitability.



As highlighted in the statement of 25 February 2003 covering the results for the
year ended 31 May 2002, the Group received notification in August 2002 from two
major customers of significant rescheduling of their requirements.  This had a
major impact on the business plan projections indicating that the Group would
move into breach of its banking facilities for a considerable period.  Following
discussions with our bankers, the Board requested suspension of trading in the
shares.  This culminated in a transaction in late January 2003 in which the
Company disposed of its operating subsidiaries and premises to the Pentranic
Group.



The Board are actively reviewing opportunities for the continuation of Magnum
Power PLC, with a view to being able to revert to shareholders with an
appropriate proposal.



                                                                    Brian McGhee
                                                                        Chairman
                                                                   07 March 2003



MAGNUM POWER

CONSOLIDATED PROFIT AND LOSS ACCOUNT



                                                                                                             
                                                         Half year to       Half year to          Year to    
                                                          30 November        30 November           31 May    
                                                                 2002               2001             2002    
                                                                    £                  £                £    
          Turnover                                          1,111,643            705,984        1,609,398    
          Cost of sales                                      (897,623)          (474,439)      (1,102,419)
          Gross profit                                        214,020            231,545          506,979    
          Other operating expenses (net)                     (561,397)          (727,827)      (1,359,428)
          Operating loss                                     (347,377)          (496,282)        (852,449)
          Interest received                                       545              3,817            3,988   
          Interest payable and similar charges                (20,930)           (18,532)         (40,313)
          Loss on ordinary activities before taxation        (367,762)          (510,997)        (888,774)
          Tax on loss on ordinary activities                        -                  -          187,312  
          Loss for the financial year                        (367,762)          (510,997)        (701,462)
          Loss per ordinary share                              (0.37p)            (0.51p)          (0.70p)
          Basic and diluted loss per share                                                                   

There were no recognised gains or losses other than the loss for each financial year.





MAGNUM POWER

CONSOLIDATED BALANCE SHEET



                                                                                                                
                                                                30 November       30 November            31 May    
                                                                       2002              2001              2002    
                                                                          £                 £                 £    
     Fixed Assets                                                                                                  
     Intangible Assets - patents                                          -             7,550                 -    
     Tangible Assets                                                941,542         1,244,661           976,087    
                                                                    941,542         1,252,211           976,087    
     Current Assets                                                                                                
     Stocks                                                         104,108           408,865           236,065    
     Debtors                                                        393,799           272,136           588,924    
     Cash at bank and in hand                                             -                 -                 -    
                                                                    497,907           681,001           824,989    
     Creditors: Amounts falling due within one year                (730,156)         (386,839)         (703,325)
     Net current assets (liabilities)                              (232,249)          294,162           121,664    
     Total assets less current liabilities                          709,293         1,546,373         1,097,751    
     Creditors: Amounts falling due after more than one year       (374,809)         (422,252)         (395,505)
     Net assets                                                     334,484         1,124,121           702,246    

     Capital and reserves                                                                                          
     Ordinary share capital                                       9,993,440         9,993,440         9,993,440    
     Share premium account                                       10,793,236        10,793,236        10,793,236    
     Revaluation Reserve                                            213,529           444,939           213,529    
     Merger reserve                                              (1,702,470)       (1,702,470)       (1,702,470)
     Profit and loss account                                    (18,963,251)      (18,405,024)      (18,595,489)
     Equity shareholders' funds                                     334,484         1,124,121           702,246    
 



                                                                                                                    
                                                   Half Year to 30 November 2002       Half year to     Year to    
                                                                                        30 November      31 May    
                                                                                               2001        2002    
                                                                                                       Restated    
                                                                               £                  £            £        
   
  Net cash inflow (outflow) from operating                                34,621           (481,021)   (540,989)
  activities                                                                                                          

  Returns on investments and servicing of                                                                             
  finance                                                                                                             
  Interest received                                                          545              3,817       3,988    
  Interest paid                                                          (20,930)           (18,532)    (40,313)
  Net cash (outflow)/inflow from returns on                              (20,385)           (14,715)    (36,325)
  investments and servicing of finance                                                                                
  Capital expenditure and financial investment                                                                       
  Purchase of tangible fixed assets                                            -             (1,166)     (1,166)
  Net cash outflow from capital expenditure and                                -             (1,166)     (1,166)
  financial investment                                                                                                
  Cash inflow (outflow) before financing                                  14,236           (496,902)   (578,480)
  Financing                                                                                                           
  Issue of ordinary share capital                                              -                  -            -    
  Repayment of loans                                                     (20,863)           (20,645)    (43,164)
  Capital element of finance lease payments                                    -             (2,954)     (2,954)
  Net cash (outflow)/inflow from financing                               (20,863)           (23,599)    (46,118)
  (Decrease)/increase in cash                                             (6,627)          (520,501)   (624,598)




1.     Basis of Preparation



The financial information for the six months ended 30 November 2002 and 30
November 2001 is not audited but has been prepared in accordance with generally
accepted accounting principles in the UK.  The accounting policies adopted are
consistent with those set out in the audited financial statements for the year
ended 31 May 2002.  The financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985.  Figures for the
year to 31 May 2002 included within this report are an abridged version of the
full accounts (as restated) which carry an adverse auditors' report and will be
filed with the Registrar of Companies.



2.     Going Concern

The Group continued to trade in the year commencing 01 June 2002 and incurred
further losses.  In January 2003 the Company disposed of its subsidiary
companies and premises.  The disposal was such that the Company made no recovery
in respect of its investments in, and amounts due from subsidiaries.



Following the disposal, the Company is now a stand alone company, with minimal
net assets and substantial tax losses.



The directors are currently reviewing opportunities for the Company to continue
as a going concern.





3.   Approval



The interim report for the six months ended 30 November 2002 was approved by the
directors on 7 March 2003.



4.   Segment Information



Turnover and loss on ordinary activities before taxation were derived entirely
from the Group's principal activity of designing, developing and selling
Built-In Uninterruptible Power Supplies (BI-UPS(R)).

Turnover was achieved in the following geographical areas:



                                                                                            
                                                      Half year to   Half year to     Year to
                                                  30 November 2002    30 November      31 May
                                                                             2001        2002
                                                                                £           £
                                United Kingdom              85,277        342,729     666,602
                                Rest of Europe             158,912         71,258     231,727
                                Rest of World              867,454        291,997     711,069
                                                         1,111,643        705,984   1,609,398
5.     Called-Up Share Capital 

                                                                                                       
                                                               Half year to   Half year to      Year to
                                                                30 November    30 November       31 May
                                                                       2002           2001         2002
                                                                          £              £            £
                      Authorised                                                                       
                      113,000,000 (2001 -  113,000,000)          11,300,000     11,300,000   11,300,000
                      Ordinary Shares of £0.10 each                                                    
                      Allotted, called-up and fully paid:                                              
                      99,934,398 (2000 - 99,934,398)              9,993,440      9,993,440    9,993,440
                      Ordinary Shares of £0.10 each                                                    
 



6.   Loss per Ordinary Share



Loss per Ordinary Share is based on the Group loss on ordinary activities after
tax of £367,762 (2001 - £510,999).  The weighted average number of Ordinary
Shares used in the calculations has been calculated in accordance with FRS 14 '
Earnings per Share'.

The number of Ordinary Shares used in the calculation and comparatives are
outlined below:

                                                                                                     
                                                               Half year to   Half year to      Year to
                                                                30 November    30 November       31 May
                                                                       2002           2001         2002
                                                                          £              £            £
                 Weighted average number of Ordinary Shares      99,934,398     99,934,398   99,934,398
                 - basic                                                                               
                 Potentially dilutive share options                       -              -            -
                 Average number of Ordinary Shares               99,934,398     99,934,398   99,934,398
                 - fully-diluted                                                                       



7.   Notes to the Consolidated Cash Flow Statement



a)    Reconciliation of operating loss to net cash outflow from operating
activities.


                                                     Half year to         Half year to              Year to
                                                      30 November          30 November               31 May
                                                             2002                 2001                 2002
                                                                £                    £                    £
Operating loss                                           (347,377)            (496,282)            (852,449)
Depreciation charges                                       34,545               37,585               74,749
Amortisation of intangible assets - patent                      -                7,550               15,100
Decrease/(increase) in stock                              131,957               86,315              259,115
Decrease/(increase) in debtors                            195,125               57,577              (71,899)
Increase (Decrease) in creditors                           20,371             (173,766)              34,395

Net Cash Outflow From Operating Activities                 34,621             (481,021)            (540,989)



b)    Analysis of net debt
                                       31 May                            Other non -     30 November 2002
                                         2002        Cashflow            cash changes
                                            £               £                       £               £
Bank Overdraft                       (251,617)         (6,627)                      -        (258,244)
Debt due within one year              (42,658 )        20,863                 (20,696)        (42,491)
Debt due after one year              (395,505 )                                20,696        (374,809)
Net debt                             (689,780 )        14,236                       -        (675,544)






c)  Reconciliation of net cash flow to movement in net debt


                                                             Half year to       Half year to        Year to    
                                                                 30 November        30 November      31 May    
                                                                        2002               2001        2002    
                                                                           £                  £           £    
      Increase in bank overdraft                                       (6627)          (520,501)   (624,598)
      Cash outflow from decrease in debt and lease financing          20,863             23,599      46,118    
      Movement in net debt in the period                              14,236           (496,902)   (578,480)
      Net debt at beginning of the period                           (689,780)          (111,300)   (111,300)
      Net debts at end of period                                    (675,544)          (608,202)   (689,780)
 


                      This information is provided by RNS
            The company news service from the London Stock Exchange