Interim Results - 6 Months to 30 November 1999

MSW Technology PLC
1 February 2000

MSW TECHNOLOGY PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 1999

Chairman's Statement


RESULTS

As anticipated, I regret to have to report a very substantial loss of £1.77m
in the first six months of the trading year.  Significant changes to the cost
structure of the Company have consequently now been implemented.

DIVIDEND

The Directors have declared that there will be no interim dividend.

REVIEW

The Board has been restructured.  Robert Drummond, formerly Chairman, has been
appointed Managing Director.  I have assumed the role of non-Executive
Chairman and Jack Debnam has joined the Board as a non-Executive Director. 
Chris Satterthwaite has stepped down from the Board to concentrate on running
the successful consultancy division and Ross McBeath, Ray Ride and Mrs Jayne
McBeath have resigned from the Board and the Company.

Following these management changes, which were completed in early October
1999, the Directors have undertaken a substantial re-appraisal of the
business, resulting in the following actions.

Costs have been significantly reduced. The Directors estimate that of the
£2.5m costs of the Company during the first half of the year, £1.1m represents
expenditure that has been discontinued and will not be repeated in the second
half.  These savings include the completion of a redundancy programme,
amounting to 26% of the staff.  Despite the reduced headcount, the Board is
confident that the Company remains able to exploit all growth opportunities.

Turnover in the period was a disappointing £0.75m.  Although we continued to
make sales into the military market, our efforts have been temporarily
frustrated by a continuing reappraisal of human resource software suppliers
being conducted by the MoD.  We received a substantial order from P&O Cruise
Lines towards the end of the period, not all of which was included in the
half-year turnover figure.  We have also highlighted a number of key markets
in which our products have distinct advantages and have developed and
commenced the implementation of changes in our sales organisation to reflect
this change in approach.  This has resulted in some initial success.  The
consultancy business continues to perform well.


The MAPS software is in the process of continuing development to enhance its
use in the key markets that the Company has identified and also to enable its
use over the internet.



RIGHTS ISSUE

Subsequent to the half-year end, the Company has raised £1.64m gross through a
rights issue in which 94.8% of the rights were taken up or placed.  The
remaining 5.2% of shares were sold in the market.

CURRENT TRADING

Sales in the first two months of the current half-year have been somewhat slow
due to the usual pre-Christmas slowdown, compounded by the Y2K distraction,
the long Millennium break and the hiatus caused by the MoD review.  We have,
however, received further orders from P&O Cruise Lines and the MoD, and the
consultancy division continues to perform strongly.

OUTLOOK

Costs are now under control and our challenge is to increase revenue.

We can see many sales opportunities in our key markets and we are hopeful for
a positive outcome soon from the MoD review of HR software suppliers.  This
should release a number of potential contracts currently in the pipeline.

We are actively pursuing further opportunities with cruise companies and shall
be exhibiting the capability of our products to the world cruise industry at
the Seatrade Exhibition in Florida.

The Board are also developing and strengthening partnerships with several
systems integrators and solution providers as an additional sales channel.

The US office closed in November.  Despite this, our sales prospects there
remain good.  The Company's presence in the US is now through local partners
and we are pleased to announce that we have been chosen to run a pilot study
for a substantial government agency.

We have also introduced a new commission scheme to improve sales performance
and we plan to use share options to motivate key managers to rapidly grow the
value of the Company.

The Directors remain confident that the business will be trading profitably by
the end of the second half.

Finally I would like to thank all those whose efforts and goodwill has ensured
the well being of the Company through this troubled period.



Ian Lang
CHAIRMAN
31 January 2000








MSW TECHNOLOGY PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 MONTHS TO 30 NOVEMBER 1999



                           (Unaudited)         (Unaudited)          (Audited)
                        6 months ended       6 months ended    12months ended
                           30 November          30 November            31 May
               Note               1999                 1998              1999
                                     £                    £                 £



Turnover                       747,363            1,356,666          1,896,518

Cost of sales               (1,764,104)            (899,139)       (2,286,751)


Gross (loss)/profit         (1,016,741)             457,527          (390,233)


Net operating expenses
Administrative expenses       (719,687)            (588,560)       (1,230,666)

Operating loss              (1,736,428)            (131,033)       (1,620,899)

Interest receivable                874                4,871            14,015
Interest payable               (34,722)             (14,147)          (34,638)

Loss on ordinary activities
before taxation              (1,770,276)           (140,309)       (1,641,522)

Taxation                  2           -              32,409            140,927

Loss for the financial
period                       (1,770,276)           (107,900)       (1,500,595)

Dividends                             -             (61,508)          (61,508)

Loss retained                (1,770,276)           (169,408)       (1,562,103)


Loss per share            3      (21.59)p             (1.82)p         (21.27)p
Fully diluted loss
per share                 3      (20.96)p             (1.81)p         (20.86)p

Dividends per share       4           -                0.75p             0.75p
Fully diluted dividends
per share                 4           -                0.73p             0.73p







MSW TECHNOLOGY PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 1999



                              (Unaudited)          (Unaudited)       (Audited)
                                   As at                As at           As at
                             30 November          30 November          31 May
                                    1999                 1998            1999
                                       £                    £               £

Fixed assets

Tangible assets                  193,367              111,588          182,930

Current assets

Stocks                            99,520              130,207          119,920
Trade and other debtors          968,829            2,020,441        1,322,750
Cash at bank and in hand           7,246              980,127           16,659

                               1,075,595            3,130,775        1,459,329

Creditors: amounts falling
Due within one year           (1,960,229)            (787,434)       (548,014)

Net current assets              (884,634)           2,343,341          911,315

Total assets less
current liabilities             (691,267)           2,454,929        1,094,245

Creditors: amounts falling due
after more than one year         (45,603)             (28,828)        (60,839)

Net (liabilities)/assets        (736,870)           2,426,101        1,033,406

Capital and reserves

Called up share capital          410,050              410,050          410,050
Share premium account          1,836,122            1,836,122        1,836,122
Profit and loss account       (2,983,042)             179,929      (1,212,766)

Equity shareholders' funds      (736,870)           2,426,101        1,033,406

Notes:

1. Basis of preparation: The financial information in these statements does
not constitute statutory accounts within the meaning of Section 240 of The
Companies Act 1985.  The results for the periods of six months ended 30
November 1999 and 30 November 1998 and the balance sheets at those dates have
not been audited, but have been reviewed by the Group's auditors, HLB Kidsons
(formerly Kidsons Impey).  The comparative figures for the year ended 31 May
1999 do not constitute the Company's statutory accounts for that year, but
have been extracted from the statutory accounts of the Group, filed with the
Registrar of Companies, and carried an unqualified audit report under Section
235 of The Companies Act 1985.  The financial information for the six months
ended 30 November 1999 has been prepared on the basis of the accounting
policies set out in the accounts for the year ended 31 May 1999.

2. Taxation: There is no tax charge for the half-year as there are sufficient
tax losses to extinguish any liability for the period.

3.    Earnings per share:


                       6 months ended      6 months ended     12 months ended
                     30 November 1999    30 November 1998         31 May 1999


Loss for the financial
Period                     £1,770,276            £107,900           £1,500,595

Weighted average number
of ordinary shares          8,201,000           5,913,374            7,054,053

Fully diluted number of
ordinary shares             8,445,650           5,946,796            7,192,800



4.   Dividends per share:


                       6 months ended       6 months ended     12 months ended
                     30 November 1999     30 November 1998         31 May 1999

Dividend payable                    -              £61,508             £61,508

Number of ordinary shares   8,201,000            8,201,000           8,201,000

Fully diluted number of
ordinary shares             8,445,650            8,445,650           8,445,650


A copy of this Interim Report will be sent to all shareholders and is
available from the Company's registered office, 33 Bedford Place, London WC1B
5JH.




MSW TECHNOLOGY PLC
CONSOLIDATED CASHFLOW STATEMENT
FOR THE 6 MONTHS ENDED 30 NOVEMBER 1999



                            (Unaudited)         (Unaudited)          (Audited)
                        6 months ended      6 months ended      12months ended
                           30 November         30 November              31 May
                                  1999                1998                1999
                                     £                   £                   £

Cash outflow from operating   (837,308)           (189,387)          (951,324)
            

Returns on investment and
servicing of finance

Interest received                  874               4,871              14,015
Interest paid                  (29,054)            (12,605)           (28,750)
Interest element of finance
lease payments                  (5,668)             (1,542)            (5,888)

                               (33,848)             (9,276)           (20,623)


Taxation
UK corporation tax paid              -                   -            (41,500)


Capital expenditure and
Financial investment
Payments to acquire tangible
fixed assets                    (3,808)            (19,858)           (55,650)


Equity dividends paid                -            (166,000)          (227,508)

Cash outflow before
Financing                     (874,964)           (384,521)        (1,296,605)

Financing

Issue of ordinary share
Capital                              -           2,510,996           2,510,996
Expenses of share issue              -            (497,136)          (542,136)
Redemption of preference
Shares                               -            (100,000)          (100,000)
Capital element of finance
lease rentals                  (25,503)             (5,048)           (21,362)

                               (25,503)          1,908,812           1,847,498


(Decrease)/increase in cash
in the financial period       (900,467)          1,524,291             550,893


Note 1:
Reconciliation of operating
Profit to net cash flow from
operating activities

Operating loss              (1,736,428)           (131,033)        (1,620,899)
Depreciation and amortisation
Charges                         23,950              14,482              40,344
Decrease/(increase) in work
in progress                     20,400              (1,804)              8,483
Decrease/(increase) in
Debtors                        353,921            (105,714)            585,579
Increase in creditors          500,849              34,682              35,169

Net cash outflow from
operating activities          (837,308)           (189,387)          (951,324)



                            (Unaudited)         (Unaudited)          (Audited)
                        6 months ended      6 months ended     12 months ended
                           30 November         30 November              31 May
                                  1999                1998                1999
                                     £                   £                   £

Note 2:
Reconciliation of net cash
Flow to movement in net
(debt)/funds

(Decrease)/increase in cash
in the period                 (900,467)           1,524,291            550,893
Cash outflow from decrease
in debt and finance leases      25,503                5,048             21,362

Change in net debt resulting
from cash flows               (874,964)           1,529,339            572,255
New finance leases             (30,580)             (50,811)         (117,036)

Movement in net (debt)/funds
in the period                 (905,544)           1,478,528            455,219
Net (debt)/funds at beginning
of the period                  (88,945)            (544,164)         (544,164)

Net (debt)/funds at end of
the period                    (994,489)             934,364           (88,945)



Note 3:
 Analysis of net (debt)/funds

Cash at bank and in hand         7,246              980,127             16,659
Overdrafts                    (900,985)                   -            (9,930)
Finance leases                (100,750)             (45,763)          (95,674)

Net (debt)/funds at end of
the period                    (994,489)             934,364           (88,945)