Interim Results

Comino Group PLC
26 November 2002


                       COMINO GROUP PLC: INTERIM RESULTS
                       Results in line with expectations

Comino Group plc ('Comino'), the provider of software solutions for the social
housing, local government and occupational pensions sectors, announces Interim
Results for the six months ended 30 September 2002. The Group's return to
profitability commenced in the second half of last year has continued in the
first six months of the current year, with results for the period under review
in line with expectations.

Comino is an established leader in each of its three sectors. It owns its own
Workflow and Electronic Document Management software, increasingly regarded as
essential to organisations that require solutions based upon modern Business
Process Reengineering.

Financial Highlights

•         Turnover of £11.8m (2001: £9.3m), up 27%
•         Profit before tax excluding amortisation of goodwill and new product
          development costs within Comino Techflow:  £810,000 (2001: £1.1m loss)
•         Profit before tax but after all other items: £420,000 (2001: £1.4m
          loss)
•         EPS excluding goodwill amortisation 3.4p (2001: 5.6p loss)
•         Gross profit margin of 80% (2001: 75%)
•         Cash of £5.2m (2001:  £4.2m)
•         Interim dividend of 1.9p (2001: 1.9p), to be paid on 29 January 2003

Operational Highights

•         Orders, excluding recurring revenues and long term contracts, up 78%.
•         Social Housing performed well over the period; contracts include wins
          from Airways, Bedfordshire Pilgrims, Flagship, Hereward, Nucleus, 
          Shaftesbury and Vale.
•         Local Government shows none of the uncertainty in the order pipeline
          experienced in the same period last year. Order intake is on budget; 
          contract wins include Norwich Connect, Kennet, Chelmsford, Luton, 
          Hackney, Nuneaton & Bedworth, Wigan and Wirral.
•         Occupational Pensions made a modest profit contribution. Contract wins
          include South Tyneside, the Scottish Pensions Agency, the West 
          Yorkshire Pensions Fund and the Pensions Advisory Service

Commenting on the interim period and prospects Chairman David Quysner said:

'This first half performance is significantly better than the comparable
difficult period last year and Comino is now in an improved position to achieve
further progress in the second half.'

'The outlook for Comino is one of continuing recovery and improvement, with all
three divisions in a good position to meet their overall targets. This outlook
will further improve with time as all operations achieve critical mass.'

Enquiries

Comino plc                                                                Binns & Co PR Ltd
Garth Selvey, Chief Executive        Tel: [phone] on the day        Peter Binns, Paul McManus
Paul Clifford, Finance Director      Thereafter: 01628 525433             Tel: [phone]

The interim accounts will be posted to shareholders and copies will be available
on 27 November 2002, free of charge from the registered office.

Editor's notes:

Comino's operating companies are based near Maidenhead and in Leeds, Croydon and
the West Midlands.

Comino provides systems based on workflow and electronic document management to
over 400 organisations in Occupational Pensions, Social Housing and Local
Government at both the departmental and corporate level.

Comino serves some 50 organisations looking after more than 1.2 million
pensioners. Three of these organisations manage more than 170,000 pension
accounts each.

Comino serves some 250 Registered Social Landlords looking after more than
800,000 homes and some two million occupants. The largest organisation that
Comino's systems handle has 55,000 homes; the smallest just a few hundred.

Comino serves over 70 Local Authority Revenue and Benefit departments who look
after more than four million council tax payers, business rate payers and
benefit recipients.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report that the return to profitability that commenced in the
second half of last year has continued in the six months ended 30 September
2002, with results for the period in line with expectations.

This first half performance is significantly better than in the comparable
difficult period last year and Comino is now in a good position to achieve
further progress in the second half.

Profits

Profit before tax for the half year to 30 September 2002 is £810,000 (2001: loss
of £1.1m) which is stated, for comparative purposes, before amortisation of
goodwill of £201,000 (2001: £148,000) and before charging costs of £189,000
(2001: £165,000) associated with new product development within Comino Techflow.

When goodwill and Comino Techflow are included, the profit before tax is
£420,000  compared to a loss in the same period last year of £1.4m. The business
of Comino Techflow is changing, as described later, and this is the last time
that it will be reported separately as in the previous paragraph.

Operational Review

Progress to the half year was largely as expected. The greater part of the
profit element in the first half has arisen from Social Housing which is
underpinned by more mature annual support revenues. However, Local Government
has met its target for order intake in the first half and has seen a good
recovery from the poor trading experienced during the same period last year. It
is therefore in a good position to meet its overall targets for the year.
Occupational Pensions returned a modest profit contribution and has managed its
development and installation load to the point where it will shortly be able to
address greater volumes of new business effectively.

All divisions have made commendable progress with both product and market
positioning. Orders received in the six months to September 2002, excluding
recurring revenues and long term contracts, are up 78% compared to the same
period last year.

Turnover and Overheads

Compared to the same period last year, turnover at £11.8m is up 27% from £9.3m
and gross profit margin remains firm at 80% (2001: 75%). Overheads in the
period, excluding amortisation of goodwill, are up by £500,000 from £8.3m to
£8.8m but £303,000 of this relates to the consolidation of Comino Connect for
the first time.

Cash and Dividend

At 30 September 2002 our cash balances stood at £5.2m compared to £4.2m at the
end of the same period last year. An  interim dividend of 1.9 (2001: 1.9) pence
per share will be paid on 29 January 2003.

Social Housing

The Social Housing Division has performed well over this period and secured a
number of wins for its Universal Housing product with customers such as Airways,
Bedfordshire Pilgrims, Flagship, Hereward, Nucleus, Shaftesbury and Vale.

These wins prove that Universal Housing, a strategy as well as a product, has
gained the all important confidence of our customers and the division has nearly
completed the transformation from legacy product maintainer to revitalised
market leader. The use of Workflow and Electronic Document Management is
producing the improvements required by these customers in their business process
management and customer service delivery.

Local Government

The Local Government Division continues to build its reputation as a leading
supplier of departmental and corporate-wide, e-Government compliant, Workflow &
Electronic Document Management solutions. Last year's uncertainty in the order
pipeline has not been repeated and the order intake is on budget.

Key corporate wins include Norwich Connect, Kennet, Chelmsford and Luton. Sales
of departmental solutions, including a new offering for Planning Departments,
remain strong with wins including Hackney, Nuneaton & Bedworth, Wigan and
Wirral. Customers already using departmental solutions, such as Cardiff, Woking
and Warrington are committing to 'rolling-out' this proven approach to other
departments. The division also works successfully with a number of partners who
provide facilities management and our products can bring significant value to
these contracts.

Work continues successfully on Norwich Connect. No revenues are contractually
due against this major project until next year and stock and work in progress
includes £236,000 relating to this contract.

Local Government is making significant progress as a division. Nevertheless, its
business ratios are not yet where they need to be. In particular, growth in
recurring revenue was damaged by poor orders last year and new recurring revenue
associated with the recent improvement in order levels has yet to come through.
All of these factors will improve and strengthen with time.

Occupational Pensions

Occupational Pensions won South Tyneside, the second Local Government contract,
at the end of the last financial year. Since that time, it has also won the
Scottish Pensions Agency, the West Yorkshire Pensions Fund and the Pensions
Advisory Service. It continues to make progress with version two of Universal
Pensions Management, the main aspects of this being greater ease of
implementation and further support for a huge range of pension scheme types as
the market shift from Defined Benefit to Defined Contribution continues. The
Pensioner Payroll product has also now been completed and sold to three
organisations.

Occupational Pensions is the smallest of the Comino Divisions. However, its
products have a sound reputation and the division should benefit from the
continuing changes in the Pensions industry.

Comino Techflow

Comino Techflow was originally established as a company to develop a new
Professional Services Automation ('PSA') product, and the costs attributable to
this activity have to date been reported separately. During the course of last
year, Techflow personnel also contributed to the development of the pensioner
payroll product. In the current year, in order to make best use of the skills
available in Techflow, the company has taken on additional responsibility for
sector-independent consultancy, primarily to the Group's existing customers.
This includes the development of high level management reporting ('OLAP').
Activity on PSA continues but with more emphasis on third party products and
their integration and less on pure internal development. As a result of these
changes, Techflow now has a range of business activity that should allow it to
produce a profit  next year. PSA will make up only a small proportion of its
total costs and it is therefore proposed that the costs of PSA will no longer be
recorded as a separate line item.

Comino Connect

On 8 May 2002, Comino acquired a further 23% of the equity of Comino Connect to
take its holding to 72%. This company is now consolidated within the results
including an increase in amortisation of goodwill.

Comino Connect continues to provide network infrastructure, network and server
management for the group, the group's customer base and third party customers.
Its present task is to continue building infrastructure whilst maintaining a
neutral profit and loss account. It has achieved this to the half year. This is
a small business which is developing its services effectively in a difficult
market and is an asset to the group.

Outlook

Any comment on outlook must be tempered by reference to present economic
conditions. Whilst Comino's markets have some insulation from these, no company
can be entirely immune from further changes in this climate.

Growth in pure technology has been curtailed but pressure for business
efficiency solutions will continue. Comino has skills in Business Process
Reengineering together with the Workflow and Electronic Document Management
which support its implementation. These assets, combined with sector expertise,
ensure that Comino remains well placed to service its target markets.

The outlook for Comino is one of continuing recovery and improvement, with all
three divisions in a good position to meet their overall targets. This outlook
will further improve with time as all operations achieve critical mass.

Staff & customers

I would like to thank all of our employees for their continuing efforts and all
our customers for their much appreciated business and support.

David Quysner

CHAIRMAN
26 November 2002


 Consolidated Profit and Loss Account

                                                                              6 months to     6 months to     Year to 
                                                                             30 September    30 September    31 March 
                                                                                     2002            2001        2002 
                                                                                     £000            £000        £000 
  Turnover                                                                                                            
  Continuing operations                                                           11,426           9,310      20,560  
  Acquisitions                                                                       377               -           -  
                                                                                  11,803           9,310      20,560  
  Cost of sales                                                                   (2,394)         (2,369)     (4,692) 
  Gross profit                                                                     9,409           6,941      15,868  
  Administrative expenses                                                         (9,044)         (8,487)    (16,566) 
  Operating profit/(loss)                                                                                             
  Continuing operations                                                              383          (1,546)       (698) 
  Acquisitions                                                                       (18)              -           -  
                                                                                     365          (1,546)       (698) 

  Share of (loss) from associate                                                       -             (24)        (34) 
  Net interest receivable                                                             55             129         156  
  Profit/(loss) on ordinary activities before taxation                               420          (1,441)       (576) 
                                                                                                                      
  Profit/(loss) on ordinary activities before taxation analysed between                                               
  Profit/(loss) on ordinary activities before taxation, amortisation of                 
  goodwill and costs of Comino Techflow                                              810          (1,128)         37    
  Amortisation of goodwill                                                          (201)           (148)       (299) 
  Development costs of Comino Techflow                                              (189)           (165)       (314) 
                                                                                     420          (1,441)       (576) 
                                                                                                                      
  Tax on profit on ordinary activities                                              (145)            521          55  

  Profit/(loss) on ordinary activities after taxation                                275            (920)       (521) 
  Minority interest - equity                                                          16              22          30  

  Profit/(loss) for the financial period                                             291            (898)       (491) 
  Dividends                                                                         (264)           (266)       (418) 

  Retained profit/(loss) for the period                                               27          (1,164)       (909) 

  Earnings per share                                                                 2.0p          (6.6p)      (3.8p) 
  Diluted earnings per share                                                         2.0p          (6.5p)      (3.8p) 
  Earnings per share excluding goodwill amortisation                                 3.4p          (5.6p)      (1.6p) 
                                                                                                                      
  Dividend per share                                                                1.90p           1.90p        3.0p 
                                                                                                                      
  The dividend of 1.90 pence per share will be paid on 29 January 2003. The 
  dividend record date is 6 January 2003.   
 

                                                                                                     
  Consolidated Balance Sheet                                                         
                                           30 September    30 September    31 March 
                                                   2002            2001        2002 
                                                   £000            £000        £000 
  Fixed assets                                                                       
  Tangible assets                                 3,199           2,556       3,077  
  Intangible assets - goodwill                    3,253           2,439       2,441  
  Investment in associate                             -             999         987  
                                                  6,452           5,994       6,505  
                                                                                                     
  Current assets                                                                     
  Stocks and work in progress                       485             121         130  
  Debtors & prepayments                           7,509           6,329       7,787  
  Cash at bank and in hand                        5,208           4,236       5,161  
                                                 13,202          10,686      13,078  

  Creditors falling due within one year          (4,980)         (3,343)     (4,424) 

  Net current assets                              8,222           7,343       8,654  

  Total assets less current liabilities          14,674          13,337      15,159  
  Deferred income                                (5,698)         (4,867)     (6,447) 

                                                  8,976           8,470       8,712  

  Capital and reserves                                                               
  Share capital                                     694             694         694  
  Share premium reserve                           4,796           4,773       4,773  
  Shares to be issued                               337             360         360  
  Profit and loss account                         2,942           2,660       2,915  

  Equity shareholders' funds                      8,769           8,487       8,742  
  Minority interest - equity                        207             (17)        (30) 

                                                  8,976           8,470       8,712  
 
 
                                                                                                             
  Consolidated Cash Flow Statement                                                                 
                                                          6 months to     6 months to     Year to 
                                                         30 September    30 September    31 March 
                                                                 2002            2001        2002 
                                                                 £000            £000        £000 
                                                                                                             
  Net cash inflow/(outflow) from operating activities             245          (2,006)        324  
                                                                                                             
  Net returns on investments and servicing                                                         
  of finance                                                                                       
  Net interest received                                            55             129         156  
                                                                   55             129         156  

  Tax paid                                                          7            (129)       (347) 
                                                                                                             
  Capital expenditure                                                                              
  Purchase of tangible fixed assets                              (282)         (1,414)     (2,325) 
  Sale of tangible fixed assets                                     -              48          43  
  Net cash outflow from capital expenditure                      (282)         (1,366)     (2,282) 
                                                                                                             
  Acquisitions & disposals                                                                         
  Purchase of subsidiary undertaking                             (131)               -        (29) 
  Cash and overdrafts acquired                                    305                -          -  
                                                                  174                -        (29) 
                                                                                                             
  Equity dividends paid                                          (152)           (528)       (791) 
                                                                                                             
  Financing                                                                                        
  Issue of shares                                                    -               -          -  
  Repayment of borrowings                                            -               -         (6) 
  Net cash (outflow)/inflow from financing                           -               -         (6) 
                                                                                                             
  Increase/(decrease) in cash                                      47          (3,900)     (2,975) 
                                                                                                             
  Net cash inflow/(outflow) from operating activities                                              
  Operating profit/(loss)                                         365          (1,546)       (698) 
  Depreciation                                                    387             246         652  
  Amortisation of goodwill                                        201             148         299  
  Profit on sale of fixed assets                                    -             (15)        (27) 
  (Increase) in stocks                                           (352)            (54)        (63) 
  Decrease in debtors                                             699           3,206       1,748  
  Increase/(decrease) in creditors                                106          (2,095)     (1,271) 
  (Decrease) in deferred income                                (1,161)         (1,896)       (316) 
  Net cash inflow/(outflow) from operating activities             245          (2,006)        324  


Notes to the Interim Accounts

1.       The charge for taxation is based on the expected rate for the financial
year.

2.       The calculation of earnings per share for the six months ended 30
September 2002 is based on the profit for the financial period of £275,000 (2001
- loss £920,000) and on 13,875,802 (2001 - 13,855,802) ordinary shares being the
average number of shares in issue during the period.

3.       The interim statement has been prepared on the same accounting basis as
set out in the financial statements for the year ended 31 March 2002 and was
approved by the board on 25 November 2002. The foregoing financial information
does not represent full accounts within S240 of the Companies Act 1985 and has
not been reported on by the auditors or delivered to the Registrar of Companies.

4.       Following the adoption of FRS 10 (Goodwill and intangible fixed
assets), goodwill arising on acquisitions has been capitalised and will be
depreciated over its estimated useful economic life. Goodwill previously
eliminated against reserves has not been reinstated.

5.       The above results for the year ended 31 March 2002 have been abridged
from the full Group accounts for that year, which received an unqualified
auditors' report and which have been delivered to the Registrar of Companies.

Independent Review Report to Comino Group plc

Introduction

We have been instructed by the company to review the interim financial
information set out on pages 4 to 7 and we have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applies in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance in Bulletin 1999/4 'Review
of Interim Financial Information' issued by the Auditing Practices Board. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether accounting policies and presentation have
been consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of control and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than audit. Accordingly, we do not express an opinion on the financial
information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the interim financial information as presented for the six
months ended 30 September 2002.

Grant Thornton
Registered Auditors
Chartered Accountants

London
26 November 2002




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