Interim Results

Clarity Commerce Solutions PLC
11 December 2000



CLARITY COMMERCE SOLUTIONS PLC


Chairman's Statement


Financial Review


I am pleased to present the Company's first report as a public company for the
interim period to 30 September 2000.


The Company was successfully introduced to AIM on 26 July 2000 raising £2.0
million after expenses, for the Company, by the placing of 2,000,000 shares at
125p per share.


The Company acquired its two principal trading subsidiaries Clarity Retail
Systems plc and Microtrain Limited on 31 March 2000 and Formative Systems
Limited on 26 July 2000. Turnover for the period ended 30 September 2000
amounted to £1,448,000 resulting in an operating loss, before goodwill
amortisation, of £370,000. Goodwill amortisation amounted to £132,000. No
interim dividend is being proposed.

As described in the prospectus, the funds raised at flotation have been
applied in repaying outstanding loan notes amounting to £490,000, financial
marketing activities, developing the sales and technical support teams and
providing working capital whilst expanding the Group's product range.


Net cash balances as at 30 September 2000 amounted to £733,000.


Operating Review


Clarity provides a range of software solutions and services to the hospitality
industry, including touch screen EPOS (electronic point of sale) products,
head office estate management software for leisure and catering groups, and
loyalty and customer relationship products.


Our software solutions are used to manage the flow of information concerning
sales, pricing, margins, staff, revenues and customer behaviour, and are
installed with clients such as Belgo, The River Cafe, Harry Ramsdens and Punch
Group.


In addition, our services division provides field-based personnel to clients
such as Bass, enabling the implementation of systems and training of staff
within clients' outlets.


Since flotation, the group has increased the number of employees from 61 to
75. Growth has been in the areas of sales, software developers, support and
customer service personnel, and field based trainers.


The company has recently secured a significant contract with Punch Group for
the installation of Clarity Central head office software to control the
product database for over 1,000 outlets. Software has also been developed for
P&O, facilitating the obtaining of an order to supply terminals to their
shore-based operations. Clarity continues to work closely with the Belgo group
who have an aggressive expansion plan. Clarity is installing its systems into
all their new outlets.


Microtrain, our subsidiary dedicated to providing field based resource for
client training and system installation has extended its contract with Bass,
and has also secured new business with Punch Group.


Significant development of the product range has also taken place, primarily
around the areas of web based front ends to our products. Clarity Central, our
head office software, now offers a web interface for both head office
personnel and for site managers, based around specialist webserver technology
developed by Clarity. Ongoing development will take our back office software
towards a web based ASP model.


Since flotation the company has held discussions with a number of significant
new sales prospects, with a number of these resulting in agreements to pilot
our systems.


Employees


I would like to take this opportunity to thank the Directors and employees for
all their hard work and effort in continuing to grow the Company and its
successful public flotation on AIM.


Current Trading and Prospects


The company is currently trading in line with expectations with a rapidly
growing pipeline of sales prospects.


We will continue to grow organically and by complementary acquisitions in the
hospitality and leisure markets and the Board looks forward to the future with
confidence.






A L R MORTON

Chairman





CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the period ended 30 September 2000

                                                                      Period
                                                          24 January 2000 to
                                                           30 September 2000
                                                                   Unaudited

                                                     Notes             £'000

Turnover                                                               1,448
Cost of sales                                                            825
Gross profit                                                             623
Operating costs                                                        (935)
Operating loss before amortisation of goodwill                         (312)
Amortisation of goodwill                                               (132)
Operating Loss                                                         (444)
Net interest payable and similar charges                                (58)
Loss before tax                                                        (502)

Loss excluding goodwill amortisation                                   (370)

Goodwill amortisation                                                  (132)

Loss before tax                                                        (502)

Taxation                                               2                   -

Loss on ordinary activities after taxation                             (502)
Dividends                                              4                   -
Retained loss for the period                                           (502)

Loss per share                                         3
- basic                                                               (8.9)p
- fully diluted                                                       (8.5)p
- adjusted basic                                                      (4.8)p
Dividends per share                                                        -





CONSOLIDATED BALANCE SHEET

AT 30 SEPTEMBER 2000

                                                                          At
                                                           30 September 2000
                                                                   Unaudited
                                                                       £'000
Fixed assets
Tangible assets                                                          208
Intangible assets                                                         19
Goodwill                                                               4,775
                                                                       5,002

Current assets
Stocks                                                                   265
Debtors                                                                1,134
Cash at bank and in hand                                               1,060
                                                                       2,459

Creditors: amounts falling due within one year                       (1,474)
Net current assets                                                       985
Total assets less current liabilities                                  5,987
Creditors: amounts falling due after more than one year                (980)

Net assets                                                             5,007
Capital and reserves
Called up share capital                                                2,361
Share premium account                                                  3,148
Profit and loss account                                                (502)
Equity shareholders' funds                                             5,007





CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 SEPTEMBER 2000

                                                                        Period
                                                               24 January 2000
                                                                            to

                                                                  30 September
                                                                          2000
                                                                     Unaudited
                                                                         £'000

Net cash outflow from operating activities                               (895)
Returns from investments and servicing of finance
Interest paid and similar charges                                         (42)
Interest element of hire purchase and finance leases                       (5)
Net cash outflow from returns on investments and servicing                (47)
of finance
Taxation                                                                     -
Capital expenditure and financial investment
Purchase of tangible fixed assets                                         (47)
Sales of tangible fixed assets                                             166
Net cash inflow from capital expenditure and financial                     119
investment
Acquisitions and disposals
Purchase of subsidiary undertakings                                    (1,438)
Net cash acquired with subsidiary undertakings                             246
Net cash outflow from acquisitions and disposals                       (1,192)
Equity dividends paid                                                        -
Cash outflow before use of liquid resources and financing              (2,015)
Financing and management of liquid resources
Issue of share capital (net of costs)                                    2,890
Issue of loan notes                                                        399
Repayment of loan notes                                                  (490)
Bank loan repayments                                                      (21)
Capital element of finance lease rental payments                          (30)
                                                                         2,748
Cash placed on short term deposit                                        (650)
Net cash inflow from financing and management of liquid                  2,098
resources
Increase in net cash in the period                                          83







NOTES


 1. Nature of the financial information

    The company was incorporated on 24 January 2000 and its first statutory
    accounts will be prepared to 31 March 2001. The company acquired its
    trading operations Clarity Retail Systems plc and Microtrain Limited 31
    March 2000 and Formative Systems Limited 26 July 2000.

    The interim results present the consolidated profit and loss account for
    the period since incorporation to 30 September 2000.

    The financial information set out does not constitute statutory accounts
    within the meaning of Section 240 of the Companies Act 1985 and has not
    been audited.

 2. Taxation

    The taxation charge on the loss on ordinary activities for the period from
    24 January 2000 to 30 September 2000 is based upon the anticipated tax
    position for the full year.

 3. Earnings per share

    Basic loss per share for the period ended 30 September 2000 is calculated
    by dividing the loss for the period of £502,000 by 5,626,561 being the
    weighted average number of shares in issue during the period.

    The adjusted basic loss per share for the period ended 30 September 2000
    is calculated by dividing the loss for the period before the amortisation
    of goodwill of £370,000 by 7,686,558 being the weighted average number of
    shares in issue since the group commenced trading on 31 March 2000.

    The diluted earnings per share has been calculated on the basic earnings
    and the weighted average number of shares plus an additional 299,074
    shares representing the fair value of the weighted average number of
    shares under option during the period.

 4. Dividends


        The company does not propose the payment of a dividend.


        Copies of this interim report are being despatched to shareholders
        shortly. Copies are also available from the Company's registered
        office, Number One, Netherhampton Business Centre, Netherhampton,
        Salisbury, Wiltshire SP2 8PU and on the company's website at '
        www.claritycommerce.com'.