Interim Results

Canisp PLC
20 December 2005

20 December 2005


Canisp plc ('Canisp' or 'the Company')
Interim results for the six-month period ended 30 September 2005

Chairman's statement

I present the Company's unaudited interim results for the six month period from
1st April to 30th September 2005.  In the period under review the Company
recorded a loss before taxation of £244,000 (September 2004: £512,000, March
2005: £3,537,000) and a loss per share of 1.27p (September 2004: 3.56p, March
2005: 21.85p).  No dividend is proposed.

In my statement in our Annual Report and Accounts, I reported on the
disappointing performance of the Company's first acquisition, that of The
Airtime Group Limited (TAG), and explained the decision to dispose of the global
calling card customer base which had become a significant drain on cash
resources and management time.  Our acquisitions of fixed line customer bases
and non-geographic number services have also proved disappointing, with monthly
billings derived from the three acquisitions having been below our original
expectation, such that group revenues have yet to reach a level capable of
sustaining net cash generation.  This problem has been exacerbated by our need
also to manage significant non-trading liabilities inherited with the
acquisition of TAG.

Our determination to drive down our cost base has resulted in a very  lean head
office operation, and we continue to work hard to grow our customer base.  While
this is not expected to be easy, and the sector within which we operate remains
a difficult and increasingly competitive one, we are confident that we are
approaching the task in the right way.  A quick result is unlikely and the
management team is therefore also investigating alternative approaches to
recovering shareholder value.


John Leat
Chairman



20 December 2005
Consolidated summarised Profit and Loss Account
for the six-month period ended 30 September 2005



                                                                  Six month        Six month             Year
                                                               period ended     period ended            ended
                                                               30 September     30 September         31 March
                                                                       2005             2004             2005
                                                                (Unaudited)      (Unaudited)        (Audited)
                                                                       £000             £000             £000
Turnover
Continuing operations                                                 1,904              664              352
Acquisitions                                                              -              754            2,946
                                                                      1,904            1,418            3,298
Discontinued operations                                                   -                -              783
                                                                      1,904            1,418            4,081

Operating loss
Continuing operations - excluding goodwill amortisation                (50)            (561)            (356)
Goodwill amortisation                                                 (123)             (84)            (388)
                                                                      (173)            (645)            (744)
Acquisitions                                                              -              145              188
                                                                      (173)            (500)            (556)
Discontinued operations                                                   -                -            (329)
                                                                      (173)            (500)            (885)

Loss on sale of discontinued operations                                   -                -          (2,542)
Interest and similar items                                             (71)             (12)            (110)

Loss on ordinary activities before taxation                           (244)            (512)          (3,537)
Taxation (note 2)                                                         -                -                -
Profit loss on ordinary activities after taxation                     (244)            (512)          (3,537)
     and retained loss


Loss per share (note 3)                                             (1.27)p          (3.56)p         (21.85)p


Consolidated Balance Sheet
as at 30 September 2005






                                                               30 September     30 September         31 March
                                                                       2005             2004             2005
                                                                (Unaudited)      (Unaudited)        (Audited)
                                                                       £000             £000             £000

Fixed assets
Intangible fixed assets                                               3,142            4,837            3,267
Tangible fixed assets                                                     -               33               19
                                                                      3,142            4,870            3,286

Current assets
Debtors                                                                 841              686            1,348
Cash at bank and in hand                                                  -              353               43
                                                                        841            1,039            1,391

Creditors: amounts falling due within one year                      (2,713)          (2,910)          (3,624)

Net current liabilities                                             (1,872)          (1,871)          (2,233)

Total assets less current liabilities                                 1,270            2,999            1,053

Creditors: amounts falling due after more than one year             (1,450)             (32)          (1,051)

Net assets                                                            (180)            2,967                2

Capital and reserves
Called up share capital                                                 185              180              182
Share premium account                                                 3,825            3,708            3,766
Profit and loss account                                             (4,190)            (921)          (3,946)
Equity shareholders' funds                                            (180)            2,967                2


Consolidated Cash Flow Statement
for the six-month period ended 30 September 2005



                                                                  Six month        Six month             Year
                                                               period ended     period ended            ended
                                                               30 September     30 September         31 March
                                                                       2005             2004             2005
                                                                (Unaudited)      (Unaudited)        (Audited)
                                                                       £000             £000             £000

Net cash outflow from operating activities                            (251)            (207)            (246)

Returns on investments and servicing of finance
Interest received                                                         1                2                8
Interest paid                                                          (72)             (14)            (108)
                                                                       (71)             (12)            (100)

Capital expenditure and financial investment
Sale of tangible fixed assets                                            25                0                4


Acquisitions
Purchase of subsidiary undertakings                                       -                -             (60)
Purchase of businesses                                                    -          (1,394)          (2,912)
Sale of customer base                                                     -                -              120
                                                                          0          (1,394)          (2,852)

Net cash outflow before financing                                     (297)          (1,613)          (3,194)

Financing
Issue of shares                                                          62            1,912            1,972
Share issue costs                                                         -             (17)             (17)
New long term loans                                                       -                -            1,250
Capital element of hire purchase contracts                             (57)             (66)            (105)

Increase in cash                                                      (292)              216             (94)






Notes to the Cash Flow Statement
for the six-month period ended 30 September 2005



                                                                  Six month        Six month             Year
                                                               period ended     period ended            ended
                                                               30 September     30 September         31 March
                                                                       2005             2004             2005
                                                                (Unaudited)      (Unaudited)        (Audited)
                                                                       £000             £000             £000

Reconciliation of net cash flow to movement in net debt
Increase in cash                                                      (292)              216             (94)
Cashflow from capital element of hire purchase contracts                 57               66              105
Change in net debt resulting from cash flows                          (235)              282               11

New long term loans                                                       -                -          (1,250)
Opening net debt                                                    (1,270)             (31)             (31)
Closing net funds / (debt)                                          (1,505)              251          (1,270)


                                                                  Six month        Six month             Year
                                                               period ended     period ended            ended
                                                               30 September     30 September         31 March
                                                                       2005             2004             2005
                                                                (Unaudited)      (Unaudited)        (Audited)
                                                                       £000             £000             £000
Reconciliation of operating loss to net cash flows
     from operating activities
Operating loss                                                        (173)            (500)            (885)
Cashflows in respect of disposal of discontinued operation                -                -            (145)
Depreciation                                                            (4)               49               55
Amortisation of goodwill                                                123               84              388
Movement in debtors                                                     506            (319)            (826)
Movement in creditors                                                 (703)              479            1,163
Loss on disposal of fixed asset                                           -                -                4

Net cash flow from operating activities                               (251)            (207)            (246)



Notes to the interim statement



1.      The interim financial information has been prepared on the basis of the
accounting policies set out in the Report and Accounts for the Group for the
year ended 31 March 2005.  The interim financial information does not constitute
statutory accounts and has been neither audited nor reviewed by the Company's
Auditors.  A copy of the Group's 2005 statutory accounts has been filed with the
Registrar of Companies; the auditors' opinion on those accounts was unqualified.



2.      No charge to taxation arises in view of the loss for the period.



3.      The calculation of earnings per share is based on the result after
taxation and 19,169,988 ordinary shares (period ended 30 September 2004:
14,391,484, year ended 31 March 2005: 16,189,629) being the weighted average
number of shares in issue during the half year.  The impact of share options on
the loss per share is anti-dilutive.



4.      The Directors do not propose an interim dividend.


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