Preliminary Statement

Netcentric Systems PLC
31 January 2001


                            Netcentric Systems PLC

           Preliminary Results for the year ended 30 September 2000

                             Chairman's Statement


Results for the year ended 30 September 2000

For the year under review, the Group has recorded a loss before tax of £
4,160,000 (1999: Loss - £656,000). The significant increase in the losses are
primarily as a result of the transitionary nature of the Group's activities
during the year which are reviewed in more detail below, but which include
only two months activity of the current core business.


Review

The year ended 30th September, 2000 was a particularly significant year for
your Company. In July 2000, Netcentric Systems Limited, was acquired and the
Company's name changed to reflect the change of focus of the Company's
principal activities from property investment to the development and sales of
web content management systems. Prior to this event, the majority of the
distribution businesses, previously owned by the Company were sold and the
Company's Isle of Man base closed down. Following the acquisition of
Netcentric Systems Limited, the operational base was transferred from London
to Cambridge and the rationalisation of the Group's investment property
portfolio in anticipation of its disposal commenced. As a consequence of the
radical changes which have been implemented, the results reported today
include only two months trading of the Group's new business and include a
significant amount of exceptional expenditure which is not likely to be
incurred again.

The board, in conjunction with its professional advisers, has now completed an
appraisal of the Group's property portfolio in order to assess how best to
maximise the amount realisable on disposal . Accordingly, the directors have
made a provision of £1.4m against the book values of the investment properties
held by the Group in order to bring these in line with what is considered to
be realisable in the short term. Furthermore, an additional provision has been
made to cover the costs of early repayment of loans used to finance the
acquisition of the property portfolio. I am pleased to report that the
property disposal programme is now well under way with many of the properties
being under offer.

As mentioned earlier in my report, in July 2000 the Company acquired the
entire share capital of Netcentric Systems Limited, a company which has
developed a software product under the name of LYCHEE. LYCHEE enables a
company to take full control of its web publishing strategy. By simply using a
browser, it allows content owners to input and update their corporate websites
without the need for technical knowledge and understanding complex web mark-up
languages (e.g. HTML).

The market for web content management systems is expected to increase
considerably over the next few years. Market research shows the worldwide
content management systems market as growing from $400 million in 2000 to $2.5
billion in 2002.

B2B software spend grows 'in tandem' with the entire e-commerce market, but
big challenges exist in available resources, content update, obtaining content
from within an organisation, workflow and author controls to support the high
growth levels. In fact, when asked to describe the biggest challenges in
managing content, 44% of respondents cited insufficient resources and 38%
cited content update and timeliness problems. It is precisely these questions
that LYCHEE addresses and for which it provides definitive solutions.

I believe that this acquisition represents the beginning of an exciting future
for your Company although its full potential is not reflected in the financial
statements under review.


Current and future prospects

Since the acquisition of Netcentric Systems Limited there have been some
encouraging signs within the Company's new business with a sale of LYCHEE
being made to Workthing.com, part of the Guardian Media Group. The development
of the next version of the LYCHEE product which is expected to result in an
increase in sales as a result of its improved functionability has been delayed
until the second quarter of 2001 in order to ensure that LYCHEE 4 has all the
requirements that the market place is now demanding. The sales and marketing
capability had been considerably expanded in advance of the launch of the new
version and is currently targeting the current version of LYCHEE into the
intranet marketplace.

The intranet market sector was identified at the end of last year and has the
advantages of being ideally suited to the current product's capability and
represents a target market of both large and medium sized companies.
Furthermore, we have been able to take advantage of an opportunity to recruit
a dedicated team of consultants with specialised knowledge of the corporate
intranet market to implement the move without delay. It is the view of the
Company that the intranet marketplace is attractive both in terms of size and,
at least in the short term, its potential to provide a larger marketplace than
that of companies with external websites. The initial reaction to the
Company's new strategic thrust has been positive with an encouraging level of
interest being shown by potential customers. It is anticipated that the
Company will benefit from the ability to cross sell its products into related
internet, intranet or extranet environments once a customer relationship has
been established.


Outlook

The initial indications for the current year have been positive and a number
of exciting initiatives, which have only recently commenced, have yet to yield
their full potential. I therefore very much look forward to the year ahead and
would like to take this opportunity of thanking everyone involved with the
Group for all their efforts during the last year.


Robert Williams

Chairman


GROUP PROFIT AND LOSS ACCOUNT

For the year ended 30 September 2000

                                                            2000           1999

                                                          £'000           £'000
                                                         Audited        Audited
TURNOVER
Continuing operations                                       824             42
Acquisitions                                                 41              -

                                                            865             42
Discontinued operations                                   1,840         10,785

TOTAL TURNOVER                                            2,705         10,827

OPERATING LOSS
Continuing operations                                      (975)            36
Acquisitions                                               (362)             -

                                                         (1,337)            36
Discontinued operations                                      42           (161)

                                                         (1,295)          (125)
Exceptional operating costs                              (1,657)          (234)

TOTAL OPERATING LOSS                                     (2,952)          (359)

Loss on disposal of subsidiaries                           (661)          (118)
Profit on disposal of business                               35             29

LOSS ON ORDINARY ACTIVITIES BEFORE                       (3,578)          (448)
INTEREST

Interest income                                              35             10
Interest payable and similar charges                       (617)          (218)

LOSS ON ORDINARY ACTIVITIES BEFORE                       (4,160)          (656)
TAXATION

Taxation                                                    (25)            26

LOSS FOR THE YEAR                                        (4,185)          (630)


Loss per share           - basic                         (3.25)p         (0.8)p
                         - diluted                       (3.24)p         (0.8)p

A Statement of Total Recognised Gains or Losses has not been prepared as there
are no recognised gains or losses during the year other than as disclosed in
the profit and loss account above.


GROUP BALANCE SHEET

As at 30 September 2000

                                                             2000         1999
                                                            £'000        £'000
                                                           Audited      Audited
FIXED ASSETS
Intangible assets                                           5,133            -
Tangible assets                                             8,102       10,341
Investments                                                     -          541


                                                           13,235       10,882



CURRENT ASSETS
Stock                                                           -        1,581
Debtors: amounts falling due within one year                  483        1,324
Cash at bank                                                3,662           67


                                                            4,145        2,972
CREDITORS: Amounts falling due within one year             (1,742)      (2,451)


NET CURRENT ASSETS                                          2,403          521



TOTAL ASSETS LESS CURRENT LIABILITIES                      15,638       11,403

CREDITORS: Amounts falling due after more than             (3,947)      (4,919)
one year


                                                           11,691        6,484



CAPITAL AND RESERVES
Called up share capital                                    12,737        4,762
Reserves                                                   (1,046)       1,722


SHAREHOLDERS' FUNDS                                        11,691        6,484



The financial statement was approved by the board of directors on 30 January
2001.

Additional information to the preliminary announcement.



 1. SEGMENTAL ANALYSIS BY CLASS OF BUSINESS

                        -------------2000-------------   -----------1999--------

                          £'000     £'000     £'000     £'000     £'000    £'000

          Distribution     1,840       42         -    10,785       589    2,052

          Investment         824   (1,415)     3218        42      (215)   2,943
          properties

          IT Solutions        41     (362)     8473         -         -        -

          Common costs         -   (2,425)        -         -    (1,030)   1,489

                           2,705   (4,160)   11,691    10,827      (656)   6,484


    The Distribution businesses were discontinued during the year and the IT
    solutions business was acquired during the year.


 2. EXCEPTIONAL OPERATING COSTS

    Exceptional operating costs in connection with continuing activities
    comprise:
                                                                2000       1999
                                                               £'000      £'000

          Provision against carrying value of property         1,400        146
          Provision against carrying value of                      -         88
          investment
          Compensation for loss of office                        257          -


                                                               1,657        234


 3. RESERVES

                        Share            Capital                 Profit
                        to be    Share  redemption  Revaluation and loss
                       issued   premium  reserve      reserve    account  Total

                       £'000     £'000    £'000       £'000       £'000   £'000

      1 October 1999       -     1,210      279         516        (283)  1,722

      Arising in year  2,000        10        -           -           -   2,010

      Shares issue costs   -      (937)       -           -           -    (937)

      Loss for the year    -         -        -           -      (4,185) (4,185)

      Goodwill written
       back on disposals   -         -        -           -         344     344 



     30 September 2000  2,000      283      279         516      (4,124) (1,046)



 Notes to the accounts

 1  Financial Information

    The financial information set out above does not constitute statutory
    accounts within the meaning of Section 6 and Schedule 1 of the Isle of Man
    Companies Act 1982. Statutory financial statements for the financial year
    ended 30 September 2000 will be delivered to the Registrar of Companies and
    sent to the shareholders shortly. An unqualified auditors' report has been
    made in such financial statements, however, the report does contain a
    paragraph with regard to fundamental uncertainty - going concern in
    relation to the ability of the Group to raise sufficient funds to meet its
    working capital requirements through the sale of its investment properties
    and cashflows from operations. The financial statements have been prepared
    on a going concern basis which assumes that the Company and all of its
    subsidiary undertakings will continue in operational existence for the
    foreseeable future having adequate funds to meet their obligations as they
    fall due. The validity of the going concern basis is dependent upon the
    ability of the Group to raise sufficient funds to meet its working capital
    requirements through, inter alia, the sale of its investment properties and
    from its trading operations. The directors, having considered the adequacy
    of the Group's working capital requirements for the next twelve months,
    have concluded that it is appropriate for the financial statements to be
    prepared on a going concern basis.

    The results of the year ended 30 September 1999 were filed with the
    Registrar of Companies and contained an unqualified report from the
    auditors.


2.  Loss Per Ordinary Share

    The calculation of loss per ordinary share is based upon a loss after
    taxation of £4,185,000 (1999: Loss £630,000) and on 128,686,702 being the
    weighted number of ordinary shares in issue during the year (1999:
    79,515,440).

    Fully diluted loss per share is based on a loss after taxation of £
    4,185,000 (1999: Loss - £630,000) and on a weighted average of 129,133,187
    (1999: 79,515,440) shares in issue.
3.  The Company does not propose to pay a dividend at this time.
4.  Copies of the Annual Report will be sent to the shareholders in due course
    and additional copies will be available free of charge from the Company's
    registered office at 2nd Floor, Sixty Circular Road, Douglas, Isle of Man
    IM1 1SA or from the offices of the Company's Nominated Adviser, Noble &
    Company Limited, 1 Frederick's Place, London EC2R 8AB. The Annual General
    Meeting will be held at the Cambridge Masonic Hall, Bateman Street,
    Cambridge CB2 1NA on 13th March 2001 at 11am.



Press enquiries


Netcentric Systems PLC                        Tel: [phone]
Jane Garrett, Chief Executive Officer
Howard Freedman, Finance Director

Noble & Company Limited                       Tel: [phone]
Chris Barker

Biddicks                                      Tel: [phone]
Zoe Biddick