Final Results

Manpower Software PLC
30 July 2007



MANPOWER SOFTWARE PLC (THE "COMPANY")

RESULTS FOR THE YEAR ENDED 31 MAY 2007

CHAIRMAN'S STATEMENT


Results

Manpower Software plc, the leading provider of workforce management solutions,
today announces its results for the year ended 31 May 2007.
          
•    Revenue in the second half of the financial year was £4.25m (first half: 
     £4.05m), making £8.3m for the year as a whole, an increase over last year
     of 92%.  This represents the highest revenue achievement in the Company's
     history.

•    Trading profit in the second half, before adjustments for share-based
     payments and interest, was £595k (first half: £476k).  For the year as a 
     whole, trading profit was £1.07m, also the highest in the Company's 
     history, (2006 re-stated: a loss of £1.76m).

•    A resulting net operating margin of 13%.

•    Cash balances at the year-end increased to £2.4m (2006: £0.36m).

This success stems from decisions taken eighteen months ago.  Then, while it was
evident that Manpower Software had superior products, an impressive customer
base and outstanding people, it was also clear that greater focus needed to be
placed on the basic tenets of a successful software company:
     
•    linearity of licence revenue growth through consecutive periods;
•    strong margins in services and support revenues;
•    investments directed only in high productivity activities;
•    diligent expense management.

I am pleased to report significant progress in each of these areas.

Linearity of licence revenue

In addition to its traditional Defence and Maritime markets, Manpower Software
invested to capitalise on its early successes with NHS Trusts.  This resulted in
the achievement during the year of a further 10 contracts with NHS Trusts for
the Company's powerful rostering solutions and one with a private healthcare
company, thus providing a steady flow of licence revenue.  In addition, Manpower
Software entered the current financial year (ending 31 May 2008) with a strong
pipeline of further opportunities within the NHS.

Strong margins in service and support revenues

In the year ended 31 May 2007, revenues from services and support were a
substantial part of our business and grew by 59%, delivering operating margins
consistent with the best industry standards.

Investments in high productivity activities

Use of improved performance metrics and a new incentive structure throughout the
Company to drive increased revenues and margins together resulted in the
necessary focus on improved productivity throughout the Company.  Manpower
Software was therefore able to achieve the combination of rapid growth and
improved margins.

Diligent expense management

The Company used a comprehensive range of revenue and expense metrics to ensure
G&A expense was kept to a minimum and investments in sales and marketing,
services and support, and R&D were carefully managed.  All measured ratios
showed considerable improvement over the prior year.  This complemented our
efforts to grow revenues and enabled us to deliver improved operating margins
across the business.

Achievements with each of these important structural aspects of our business has
ensured the Company's profitability across all parts of its business, while also
achieving exceptionally high levels of customer satisfaction.

In addition to the Company's best ever financial results, a number of
significant milestones were also achieved during the year.
     
     •    First Asia-Pacific military contract - Royal Australian Navy;

     •    First significant contract with the UK Royal Air Force;
          
     •    Significant and consistent growth in the UK NHS, up from 5 to 15
          customers - additionally, since the year-end a further 7 contracts 
          have been closed;
          
     •    First contract in the Private Healthcare sector - HCA International;
          
     •    Two contracts in new markets: Construction and Off-Shore Engineering.

Operational Review

Defence

Defence represented the largest sector of our business.  We continue to provide
software and services to the existing customer base and are expanding to other
customers in the UK and overseas.  We announced earlier in the year our first
sale to an Asia-Pacific military customer, the Royal Australian Navy, and
discussions are now under way with other potential Defence customers in the
region.  The British Army further extended its use of MAPS, to enable the Army's
Land Headquarters to plan and deliver future operational commitments, against a
background of competing operational, training, resource and financial demands.
This is a significant achievement for the Company and it places our products at
the centre of the Army's planning process. The Royal Air Force selected MAPS to
manage force planning, intelligent force selection and training for the RAF
Reserves.  The Royal Fleet Auxiliary ("RFA") procured an enterprise-wide
licence, increasing their use of MAPS throughout its Fleet and demonstrating
their continued commitment to MAPS that stretches over 10 years.  Therefore our
MAPS system is now used by all three UK Armed Services.  It was also used by
NATO for the second year in succession at the annual Global Force Generation
conference in November 2006.  We are now providing NATO with a permanent
solution to address the complexities of force generation and support the member
nations.

Healthcare

Healthcare is the fastest growing part of our business.  During the year the
customer base of NHS Trusts increased from 5 to 15.  Since the year-end, we have
signed contracts with a further 7 Trusts, making a current total of 22 across
Acute and Mental Health Trusts.  In all cases MAPS Healthroster was selected
because of its unique functionality, the size of potential time and cost savings
identified, its intuitive nature and our growing track record at existing
Trusts.  Two of our customers were selected by the National Audit Office as
examples of good practice in managing the use of temporary nursing staff.

We have successfully integrated MAPS Healthroster with the National Human
Resources and Payroll System - NHS Electronic Staff Records ("ESR").  This means
Trusts using Healthroster can pay staff electronically without the need for
paper timesheets, representing a significant time saving and increasing the
accuracy of pay.

In the private sector, we are now supplying MAPS Healthroster to the Hospital
Corporation of America ("HCA"), London's largest private hospital group and one
of the largest providers of healthcare in the USA.  Before deciding to use MAPS
Healthroster for their UK based hospitals, HCA undertook an extensive evaluation
of alternative rostering solutions, including US based competitors.  HCA's
decision to purchase MAPS Healthroster supports our view that the Company has a
significant opportunity to extend the use of MAPS Healthroster further into the
private sector, both in the UK and overseas.

The 22 NHS installations of our MAPS Healthroster software are generating strong
referenceable results and further Trusts are continuing to evaluate our
rostering solutions under contract.  These successes are resulting in an
increased momentum that is building further demand across the NHS.  The Company
is focused on expanding the direct and indirect sales capabilities into this
market, enhancing the product proposition and shortening product procurement
timescales.

Maritime

The Company continued to strengthen its dominant position for crew planning in
the global Cruise and Maritime sector.  During the year, the Shoreside system at
Princess Cruises was enhanced by the progressive roll-out to the ships, which
should be in full operation using MAPS during the current financial year, and AP
Moller Group further extended its use of MAPS to Maersk Ship Management.  A
major milestone was achieved with the completion of a complex implementation and
subsequent live operation at Carnival Cruise Lines.  Shortly after the year-end,
the Company won its first French customer when CMA CGM, the largest French
shipping company, decided to use MAPS for fleet management.

Other Sectors

During the year, the Company achieved its first sales outside its core vertical
markets.  First, through our partner, Alphawest Services, Leighton Contractors,
the Australian mining and engineering company, purchased the MAPS system to
manage staff in their Construction Projects throughout Australia and their mines
in Western Australia.  Second, Acergy, the global Off-Shore Engineering group,
purchased MAPS for global personnel planning of their marine staff and project
engineers.

It is our view that these successes, together with our existing success stories
achieved in areas as diverse as Defence, Maritime and Healthcare, are
illustrative of the power of the MAPS solution for workforce management in large
to medium sized organisations.  Further, we believe it can be replicated into
other sectors that have similar workforce characteristics.  Management is
currently assessing the optimum potential areas to address.

Client Services

As mentioned above, Client Services is now a fast growing and profitable part of
our business.  Key to this are the high levels of customer satisfaction being
delivered across all three sectors.  During the year, we appointed our first
services partner for the UK Healthcare sector and established an Education
function for internal and partner training to accelerate the use of MAPS
Healthroster.  There is a strong pipeline of work going into the new financial
year.

Research & Development

The products for our market sectors are based upon a common MAPS platform, which
is customised and branded by industry.  During the year we have built upon the
successful launch of MAPS Defence Suite and the established MAPS Healthroster
products in accordance with their planned industry sector roadmaps; the new MAPS
Maritime Suite has also provided an entry-level product for the Shipping and
Off-Shore Engineering sectors.  Increasingly, traditional means of delivering
functionality to users is being supplemented by web-enabled applications in each
of our vertical markets.  Thus, management dashboards for NHS executives and
managers in Healthcare, operational and training event management in Defence,
and (shortly) ship-side vessel management in Maritime.  As well as the existing
programme of product development to support our chosen markets, we are also
executing a technology roadmap, which will provide a technical platform for
future product development and enhance capability to deliver high performance,
large-scale international applications.

Board Changes

As announced on 22 May 2007, we are delighted that Ian Bowles has joined us as
our new CEO.  His background in enterprise software, considerable experience in
building application software companies on a global basis and proven ability to
successfully execute against an ambitious operating plan will be vital as the
Company gears up for future growth in existing and new markets.

Share-based payments

The adoption of FRS 20, Share-Based Payments, which is effective for accounting
periods beginning after 1 January 2006, requires a prior year adjustment to be
made.  This has created a share-based payment reserve at 31 May 2007 of £210,166
and increased retained losses by the same amount.

The charge for the year is £75,225 (2006: £69,835).  This is an accounting
adjustment, which has no impact on the Company's trading position and is shown
separately on the face of the Profit and Loss Account.

Outlook

Our strategy remains to be the leading provider of workforce management
solutions to our chosen markets.

Across all sectors, the following essential elements are in place to drive
continued expansion:
     
•    Strategic vision.  Our vision remains fixed upon being the world's foremost 
     supplier of workforce optimisation systems in our chosen markets, thereby 
     enabling our customers to achieve effective and efficient use of their
     most important resource, their people.

•    Customer satisfaction.  The strongest sales multiplier we have is
     referenceable customers.  We will not deviate from maintaining a high level 
     of customer satisfaction in each of our chosen markets in order to achieve 
     further referenceable sites and a high level of individual customer 
     satisfaction.

•    Integrated solution.  We offer our customers a product portfolio that
     meets the full range of their business needs across our core strength areas 
     of workforce planning, staff scheduling and resource management.

•    Multiple growth drivers.  Our MAPS products lend themselves to other 
     vertical markets and, based upon our assessment of their potential, we plan 
     to add these to our portfolio.  In addition to growing our direct sales and
     services teams, we intend to expand our capacity by the increasing use of
     strategic partnerships.  These will enable us to extend our penetration of
     existing geographical markets and reach new territories.

•    Profitability.  We are focused on achieving profitable growth and positive 
     cash flow, which will enable us to invest in new products and resources
     that advance our strategic vision.

•    A committed team.  From product development to sales and marketing, and 
     through to customer service, we are committed to delivering the highest
     quality product solutions to our customers.  Recruiting and retaining
     world-class team members is key to our success.

Management has established firm foundations for continuing profitable growth.
We have invested in our direct sales organisation and in a services business
capable of fulfilling the increasing demands of our target markets.  There is
now a strong sales pipeline and the capability to deliver profitable services
growth.  We are also actively seeking new partnerships to assist with sales and
delivery in our worldwide markets.

In Defence, we have opportunities to supply further products and support
services to the UK Armed Forces and NATO.  There is also wider interest in our
products from government and commercial organisations in the Asia Pacific
region.  The latest version of MAPS Defence Suite has been released to focus on
Capability Management, enabling commanders to assess the true impact of
different courses of action, in terms of both capability and cost.  It has been
enthusiastically received by those organisations that have viewed it and we
anticipate most of our customers migrating to it over the medium term.

In Healthcare, there are now 22 NHS Trusts which are committed to using our MAPS
Healthroster product.  This represents less than 10% of the Acute and Mental
Health market.  We anticipate that the increasing focus throughout the NHS on
improving productivity, controlling temporary staff spend and improving patient
care, allied with the Company's increased geographical expansion throughout the
UK and the completion of current pilots, will lead to continued growth in sales.
  We will continue to expand into the sector, both in the UK and overseas.

In Cruise and Maritime, while we remain primarily focused upon the needs of our
existing customers, we are targeting further penetration into the broader
shipping market.  Presently, we have opportunities to sell additional MAPS
licences and services to our established customers as well as the mid-range
cruise fleets and in shipping, where the successful implementations of our
software at AP Moller-Maersk is generating interest.

Regarding other sectors, it is our view that the successes achieved in the
Construction and Off-Shore Engineering markets are illustrative of the power of
the MAPS solution for workforce management in large to medium sized
organisations.  As mentioned above, Management is currently assessing the
optimum potential areas to address in other sectors that have similar workforce
characteristics.

In Services, there is now a strong pipeline of work to be delivered which
stretches throughout the current financial year.

We have reported previously that the Company is highly dependent on a small
number of large contracts in markets where considerable change is occurring,
where the sales cycles are often long and complex, and where forecasting the
precise timing of closure has become more difficult.  Deferral or acceleration
of only a few of these can have a significant impact on the Company's results.
While this remains true, the combination of the profitable Group service and
support operations, and the sales of MAPS Healthroster to the NHS Trusts, are
together having a smoothing effect on the Company's ability to achieve
consistent and improving profits.  The directors are confident of another
successful year and of meeting current stock market expectations.

I would like to thank our customers for their business, enthusiastic use of our
workforce optimisation solutions and unstinting support for our growth
strategies. And finally, I would like to recognise and thank all of Manpower
Software's people for their unbounded commitment, energy and enthusiasm for the
Company's success.

Terry Osborne
CHAIRMAN
30 July 2007


MANPOWER SOFTWARE PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 MAY 2007


                                                                       Note              2007          2006
                                                                                                As restated
                                                                                            £             £


Turnover                                                                  1         8,305,628     4,333,238

Cost of sales                                                                     (5,679,649)   (4,665,363)

Gross profit/(loss)                                                                 2,625,979     (332,125)

Administrative expenses                                                           (1,555,529)   (1,423,515)

Profit/(loss) before share-based payment, interest and tax                          1,070,450   (1,755,640)

Share-based payment                                                                  (75,225)      (69,835)

Total administrative expenses including share-based payments                      (1,630,754)   (1,493,350)

Operating profit/(loss)                                                               995,225   (1,825,475)

Net interest                                                                           14,405        10,407

Profit/(loss) on ordinary activities before taxation                                1,009,630   (1,815,068)

Tax on profit/(loss) on ordinary activities                               2                 -       (3,905)

Profit/(loss) retained and transferred to reserves                                  1,009,630   (1,818,973)

Earnings/(loss) per share
Basic                                                                     4             2.27p       (4.12p)

Diluted                                                                   4             2.20p       (4.12p)


All transactions arose from continuing operations.

CONSOLIdATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                                          Note           2007          2006
                                                                                                As restated
                                                                                            £             £

Profit/(loss) for the financial year                                                1,009,630   (1,818,973)
Currency differences on opening reserves                                               75,120        19,410
Total recognised gains and losses for the year                                      1,084,750   (1,799,563)


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


MANPOWER SOFTWARE PLC

CONSOLIDATED BALANCE SHEET AT 31 MAY 2007


                                                                          Note           2007          2006
                                                                                                As restated
                                                                                            £             £
Fixed assets
Tangible assets                                                                       153,413        89,124

Current assets
Debtors                                                                             1,738,455     2,219,493
Cash at bank and in hand                                                            2,409,409       355,394
                                                                                    4,147,864     2,574,887

Creditors: amounts falling due within one year                                    (2,207,696)   (1,743,224)

Net current assets                                                                  1,940,168       831,663

Total assets less current liabilities                                               2,093,581       920,787



Capital and reserves
Called up share capital                                                             2,226,991     2,223,154
Share premium account                                                               6,465,281     6,456,299
Share-based payment reserve                                                           210,166       134,941
Profit and loss account                                                           (6,808,857)   (7,893,607)
Shareholders' funds                                                                 2,093,581       920,787



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


MANPOWER SOFTWARE PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 MAY 2007




                                                                          Note           2007          2006
                                                                                                As restated
                                                                                            £             £

Net cash inflow/(outflow) from operating activities                       5         2,175,720   (1,067,569)

Returns on investments and servicing of finance
Interest received                                                                      18,573        10,407
Interest paid                                                                         (4,168)             -
Net cash inflow from returns on investments and servicing of finance                   14,405        10,407

Taxation                                                                                    -       (3,905)

Capital expenditure
Purchase of tangible fixed assets                                                   (148,929)      (49,376)
Cash inflow/(outflow) before financing and management of liquid resources           2,041,196   (1,110,443)

Financing
Issue of ordinary shares                                                               12,819             -
Net cash inflow from financing                                            7            12,819             -

Increase/(decrease) in cash                                               6         2,054,015   (1,110,443)


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

          
1    BASIS OF PREPARATION

The Group has applied the requirements of Financial Reporting Standard 20 ("FRS
20"), Share-Based Payments, in accordance with the transitional provisions, to
all equity instruments granted after 7 November 2002 that had not vested as of 1
June 2006.  As a result, the loss for the year to 31 May 2006 has been restated
by £69,835, but there is no impact on net assets or cash flow.

The financial information set out in this announcement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985.

This announcement includes extracts from the audited statutory accounts for the
year ended 31 May 2007.  The comparative figures relating to the year ended 31
May 2006 are taken from the audited statutory accounts for that year, except as
noted above in relation to the FRS 20 restatement.
          
2    TAX ON PROFIT/(LOSS) ON ORDINARY ACTIVITIES

The tax charge for the year was £nil (2006: £3,905).
     
3    DIVIDENDS

No dividends were paid or proposed during either 2007 or 2006.

4    EARNINGS PER ORDINARY SHARE
                                                                       31 May 2007           31 May 2006
                                                                                             As restated
                                                                                 £                     £

Profit/(loss) for the year                                               1,009,630           (1,818,973)

Weighted average number of shares                                            Number              Number
                                                                          of shares           of shares

For basic earnings per share                                             44,539,813          44,463,086
For diluted earnings per share                                           45,844,185          44,463,086


In 2006, as the result is a loss for the period, there is no difference between
the diluted loss per share and the loss per share presented.

In view of the significant impact of the FRS 20 share-based payment charge on
earnings per share calculated in accordance with FRS 22 (Earnings Per Share), an
adjusted earnings per share figure has been provided based on profit on ordinary
activities after taxation before the share-based payment charge of £75,225
(2006: £69,835).
                                                                         31 May 2007       31 May 2006

Basic adjusted earnings per share                                              2.44p           (3.93)p
Diluted adjusted earnings per share                                            2.37p           (3.93)p
          
5    NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
                                                                                        2007            2006
                                                                                                 As restated
                                                                                           £               £

Operating profit/(loss)                                                              995,225     (1,825,475)
Share-based payment                                                                   75,225          69,835
Depreciation charges                                                                  81,711          80,205
Currency movements                                                                    76,541          18,639
Decrease in debtors                                                                  481,038         765,979
Increase/(decrease) in creditors                                                     465,980       (176,752)
Net cash inflow/(outflow) from operating activities                                2,175,720     (1,067,569)
     
     
6    RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
                                                                                        2007            2006
                                                                                           £               £

Increase/(decrease) in cash in the year                                            2,054,015     (1,110,443)
Net funds at beginning of the year                                                   355,394       1,465,837
Net funds at end of the year                                                       2,409,409         355,394
     
7    ANALYSIS OF CHANGES IN NET FUNDS

                                                                    At 1 June     Cash flow       At 31 May 
                                                                         2006                          2007
                                                                            £             £               £

Cash at bank and in hand                                              355,394     2,054,015       2,409,409


A copy of the annual report and accounts will be sent to all shareholders.  A
copy of this preliminary announcement is available from the company's registered
office: The Communications Building, 1st Floor, 48 Leicester Square, London WC2H
7LU.


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