Final Results

County Contact Centres PLC
09 August 2006


COUNTY CONTACT CENTRES PLC


PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2006


CHAIRMAN'S STATEMENT


Highlights


  • Turnover increased by 11% to £2,921,879

  • Profit of £171,417 compared with a previous year loss of £114,757
  • Increase in cash of £179,551 compared with a previous year decrease of
    £144,886

  • Closing cash balance of £299,892

  • New record billable minutes in May 2006

  • EasyScripter available from June 2006



Statement



The year has seen significant progress with continued growth in sales, our first
full year's profit and a positive cash flow on the back of an improving
operational base.



The Board decided that it was now appropriate to reinstate the share price
listing in the Financial Times, which appears as "CCC" under the AIM Companies -
Industrials Category.



The Market



There is a growing recognition by corporate clients of UK based call centres and
we are well positioned to take advantage of that trend.



NatWest have recently publicly stated that they only have UK call centres as
customers continued to berate the poor quality provided by some off shore
services providers, and more recently there has been the case of a Powergen
decision to repatriate certain elements of their work resulting in 1,000 jobs
returning to the UK.



We will continue to promote our strategy of providing a bespoke service to
discerning clients needing a bureau facility that is able to respond quickly to
changing circumstances.



Our CallScripter software has broadened its channels to market and has raised
its profile by being consistently at the forefront of demonstrations and trials.
The lead-time on buying decisions remains fickle, with larger companies wanting
to run trial projects to determine a realistic return on investment before
making their investment in the product.



EasyScripter, the Interactive Intelligence branded offering of CallScripter, was
released on worldwide general availability in June 2006. We anticipate a
promising year ahead for the division.



People



In October Philip Dayer joined the board as a non-executive Director. Philip is
a qualified Chartered Accountant with a wealth of experience in the city
previously working as an advisory director for Barclays De Zoete Wedd Limited
and more latterly for Hoare Govett. Currently Chairman of Baltic Oil Terminals
PLC and a non-executive Director of Dana Petroleum PLC and Arden Partners PLC he
will add valuable experience to the board.



As we now have two non-executive directors, the Board has strengthened the
Remuneration Committee on which we both now sit.  This committee is responsible
for approving all reviews and changes to executive directors' remuneration
packages, options or other benefits.



During the year Valerie Riley was appointed Client Services Director of the
Ansaback subsidiary business, a post that is increasingly active in managing the
client's objectives, while on 1st July 2006 Kevin Ellis and Kenneth Tracy were
appointed as Directors of the CallScripter subsidiary business. This emphasises
the positive management practice of promoting from within.



The group has passed a significant profitability milestone and with this in mind
I plan to step down as Chairman after the AGM, handing the reins to Philip Dayer
but at my colleague's invitation will continue to serve as a non-executive
Director through this exciting period.



Prospects



Our two lines of business are in markets that are real and growing. Both are
subject to continuous technical development and share an infrastructure that
provides efficiencies and synergies. With our profitability and ongoing
sustainable cash balance we are alert to opportunities to enhance shareholder
value in each of these areas through organic growth, acquisition and
partnerships.



The group will, as before, be holding its AGM at the Ipswich offices and I look
forward to seeing you then.


Peter M Brown

Chairman

8 August 2006



BUSINESS REVIEW


Ansaback



Steady progress has seen turnover rise and costs diligently controlled.


With key account wins, billable minutes have risen and 15 other call centres now
use Ansaback for overflow, weekend, business continuity and disaster recovery
plans. We have confidentiality agreements with these clients and, with our
integrity to act on their behalf, they can rest easy at night secure in the
knowledge that their calls are being handled professionally and effectively.



The ability of modern telephone technology to switch calls seamlessly within the
network provides both our and other call centres' clients with the option of
having more than one call centre working for them. This process of maximising
the returns and responsiveness to media advertising remains a strong driving
force, as a client advertising on a television shopping channel will be looking
for an answering response rate as near to 100% as possible. This high level can
only be achieved by using modern systems, as well as multiple call centres,
hence the reason why other call centres use Ansaback to augment their capacity
and cope with the spikes created by advertising.



This "call centres' call centre" business is likely to grow as other call
centres seek to maximise profits by cutting operational expense on shifts which
are simply not cost effective or by overflowing during spikes rather than having
to run inefficient staffing rotas.



We provide detailed data to the clients regarding call duration and call
outcome, and whilst some clients are anxious not to have long calls, which
obviously cost them money, our prime concern is the quality of the call and the
accuracy of the data collected. We use our in-house developed CallScripter
software package, which enables our agents to handle the vast array of calls
presented. Scripts have a client graphic or picture on the front screen
providing an auto-cognitive focus helping to put the agent into the client's
business activity mindset. Ansaback is monitored and controlled on the actual
and predicted billable minutes and this Key Performance Indicator is reviewed on
a daily basis to ensure the correct levels of staff and efficiencies within the
call centre. We also scrutinise our Grade of Service and Percentage of Calls
Answered to maintain our contracted Service Level Agreements of answering 80% of
calls presented within 20 seconds.



During the year we won some significant fixed seat contract work for two clients
and for these contracts temporary staff were trained on a bespoke script, which
ran both in Ipswich and in the client's offices. This may become a more regular
item although, due to seasonality, may be limited to a short time frame.



We were able to manage this additional business within the Ipswich office
although we required the use of 10 seats of one of our call centre partners in
another office. This work was outside of the normal bureau environment and did
not affect the standard call centre operation. This helped boost the gross
profit to 26% above the 2005 level.



Looking at risks, over and above the normal client churn, that may adversely
affect our billable minutes in the year ahead, by supplying our services to
other call centres we provide them with the flexibility to build their own
business on the back of ours, allowing them to take on extra shifts as these
become commercially viable for them. However this is currently a useful
additional business stream, which utilises available assets, and a similar issue
can arise with larger clients who can also decide to set up their own in-house
operation if they perceive they can operate effectively their own facility.



CallScripter



This division sells our award winning software to other call centres, and whilst
as its name suggests it provides a scripting tool 'par excellence' it is a far
more comprehensive Customer Interaction Management package; the trade vernacular
for the service that the software encompasses.



In September 2005 we attended our 5th Call Centre Expo, the principal showcase
for suppliers to the call centre trade, which attracts both a domestic and
international audience looking for the latest offerings. The time lapse from an
initial meeting to placing an order is not easy to gauge, and has been anything
from weeks to some which are still ongoing several years later, whilst a recent
order concluded a contract that had been simmering for some 2 years.



As previously reported, in March 2005 we concluded a commercial contract with
Interactive Intelligence Inc (ININ), a NASDAQ quoted US telephone switch
manufacturer. This deal offers CallScripter, under the brand of EasyScripter,
access to over 1,000 existing ININ clients as well as all new prospective
clients, and under the terms of the deal, ININ's Customer Interaction Center (R)
(CIC) contact centre software is now available with a connector to the
EasyScripter scripting software tool.



We were invited as guests to the ININ EMEA conference held in Prague and
presented the latest EasyScripter version to the delegates who came from as far
a field as South Africa and Sweden.  This was a very successful event and
allowed the presentation to an audience that would have been difficult to
address without the partnership.



Whilst a prototype version of EasyScripter has been available for some time, it
was only in June 2006 that General Availability (GA) of the EasyScripter module
was announced. This delay is due to detailed work undertaken to ensure that the
system was simple to install with little or no disruption to the call centres.
To coincide with this launch we have created an EasyScripter website
(www.easyscripter.com) allowing prospective clients to view the module features.



The effect of ININ giving General Availability in June has meant that little
benefit has been gained this financial year, although one EasyScripter contract
was issued in June and we anticipate reporting a much stronger performance in
the coming six months.



We continue to place emphasis on sales via our channel partners and a second
contract has recently been won in Australia. The main website
(www.callscripter.com) has now been overhauled, has a comprehensive introduction
in five European languages and includes a large selection of example scripts in
video format available for download to prospective clients.



CallScripter is often part of a bigger package presented to a client, which may
include a new telephony switch, call recording, monitoring software, telephony
scripting and headset. At the time of writing several exciting prestigious
projects, which we are a component part of, are close to being finalised.



While the risks to the division revolve around the ability of our resellers and
internal sales team to achieve penetration and turnover within the new markets,
the outlook for our call centre software remains very positive.



Looking ahead



The prospects for further rapid development of our existing businesses are
evident and we have strengthened the Ansaback sales team to capitalise on this
position. We continue to develop the software and our next software release,
CallScripter V4, will contain a variety of new and innovative features to keep
it at the forefront of the scripting market. The outlook is positive and, having
set realistic targets, we expect to perform well in the coming year.


William A Catchpole

8 August 2006


CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2006

                                                             2006          2005
                                                                £             £

Turnover                                                2,921,879     2,619,343
Cost of sales                                          (1,682,012)   (1,635,366)
                                                           -----           -----
Gross profit                                            1,239,867       983,977

Administrative expenses                                (1,066,953)   (1,098,070)
                                                           -----           -----
Operating profit/(loss)                                   172,914      (114,093)

Other interest receivable and similar income                8,951        12,090
Interest payable and similar charges                      (10,448)      (12,754)
                                                           -----           -----
Profit/(loss) on ordinary activities before
taxation                                                  171,417      (114,757)

Tax on profit/(loss) on ordinary activities                     -             -
                                                           -----           -----
Profit/(loss) on ordinary activities after
taxation deducted from reserves                           171,417      (114,757)
                                                         ========      ========= 
Basic profit/(loss) per share                               0.6 p        (0.4) p



All of the activities of the group are classed as continuing.


There were no recognised gains or losses for the year other than the profit/
(loss) disclosed above.


The accompanying accounting policies and notes form an integral part of these
financial statements.



CONSOLIDATED BALANCE SHEET


AS AT 30 JUNE 2006

                                                             2006          2005
                                                                £             £
Fixed assets
Tangible assets                                            40,317        23,756
                                                          -------       -------
                                                           40,317        23,756
Current assets
Debtors                                                   490,444       482,955
Cash at bank and in hand                                  299,892       120,341
                                                          -------       -------
                                                          790,336       603,296

Creditors: amounts falling due within one year           (492,958)     (427,685)
                                                          -------       -------
Net current assets                                        297,378       175,611

Total assets less current liabilities                     337,695       199,367

Creditors: amounts falling due after more than one
year                                                      (78,578)     (111,667)
                                                          -------       -------
                                                          259,117        87,700
                                                          =======       =======
Capital and reserves
Share capital                                             297,908       297,908
Share premium account                                   6,045,563     6,045,563
Merger reserve                                             18,396        18,396
Profit and loss account                                (6,102,750)   (6,274,167)
                                                          -------       -------
Shareholders' funds                                       259,117        87,700
                                                          =======       =======


CONSOLIDATED CASH FLOW STATEMENT


FOR THE YEAR ENDED 30 JUNE 2006


                                                             2006          2005
                                                                £             £
Net cash inflow/(outflow)
from operating activities                                 249,915       (35,646)

Returns on investments and servicing of finance
Interest received                                           8,951        12,090
Interest paid                                              (9,831)      (12,754)
Interest element of finance leases                           (617)            -
                                                          -------       -------
Net cash outflow from returns on
investments and servicing of finance                       (1,497)         (664)
                                                          -------       -------

Taxation                                                        -             -

Capital expenditure and financial investment
Purchase of fixed assets                                  (21,681)      (63,166)
Proceeds from sale of tangible fixed assets                 5,350         4,590
                                                          -------       -------
Net cash outflow from capital expenditure
and financial investment                                  (16,331)      (58,576)
                                                          -------       -------

Financing
Repayment of borrowings                                   (50,000)      (50,000)
Capital element of finance leases                          (2,536)            -
                                                          -------       -------
Net cash (outflow) from financing                         (52,536)      (50,000)
                                                          -------       -------

Increase/(decrease) in cash                               179,551      (144,886)
                                                          =======       ========


NOTES TO THE FINANCIAL STATEMENTS


FOR THE YEAR ENDED 30 JUNE 2006


1. BASIC PROFIT/(LOSS) PER SHARE



The calculation of the basic profit/(loss) per share is based on the profit of
£171,417 (2005: loss of £114,757) attributable to ordinary shareholders divided
by the weighted average number of shares in issue during the year of 29,790,743
(2005: 29,790,743). No diluted loss per share is shown because all options are
anti-dilutive.


2.                    RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


Group

                                                    2006            2005
                                                       £               £
Shareholders' funds at 1 July 2005                87,700         202,457
Profit/(loss) for the financial year             171,417        (114,757)
                                                 -------         -------
Shareholders' funds at 30 June 2006              259,117          87,700
                                                 -------         -------


3. NET CASH INFLOW FROM OPERATING ACTIVITIES

                                                    2006            2005
                                                       £               £
Operating profit/(loss)                          172,914        (114,093)
Depreciation                                      33,527          86,116
Profit on disposal of fixed assets                (5,350)         (2,149)
Increase in debtors                               (7,489)        (27,429)
Increase in creditors                             56,313          21,909
                                                 -------         -------
Net cash inflow/(outflow) from operating         249,915         (35,646)
activities
                                                 =======         =======

4. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)

                                                    2006            2005
                                                       £               £

Increase/(decrease) in cash in the year          179,551        (144,886)
Cash outflow from financing                       50,000          50,000
Cash outflow from finance leases                   2,536               -
                                                 -------         --------
Change in net funds resulting from cash          232,087         (94,886)
flows
New finance leases                               (28,407)              -
                                                 -------         --------
Movement in net debt in the period               203,680         (94,886)
                                                 -------         --------
Net (debt)/funds at 1 July 2005                  (41,326)         53,560
Movement in net funds in the year                203,680         (94,886)
                                                 -------         --------
Net funds/(debt) at 30 June 2006                 162,354         (41,326)
                                                 =======         ========


5. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

                                      At 1                    Other        At 30
                                 July 2005     Movement     Changes    June 2006
£                                        £            £           £            £     

Cash at bank and in hand           120,341      179,551          -     299,892
Debt                              (161,667)      50,000          -    (111,667)
Finance leases                           -        2,536    (28,407)    (25,871)
                                   -------     --------    --------   ---------
                                   (41,326)     232,087    (28,407)    162,354
                                   =======     ========    ========   =========


6.          INFORMATION



The financial information above for the years ended 30 June 2005 and 2006 in
respect of which the accounting policies are consistent, does not constitute the
statutory financial statements for those years. It is anticipated that the
annual report and accounts for the year ended 30 June 2006 will be posted to
shareholders on or around 11 August 2006. Copies will be available from the
company's registered office, Melford Court, The Havens, Ransomes Europark,
Ipswich, Suffolk IP3 9SJ.



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