Final Results

Farsight PLC
30 November 2004


                                  FARSIGHT PLC

                              PRELIMINARY RESULTS

                          FOR THE YEAR TO 31 MAY 2004


Farsight plc

Chairman's Statement


Introduction

I am pleased to report that during the year ended 31 May 2004, Farsight's
business has continued to move forward with increasing sales revenues which
together with lower costs has resulted in an improved financial result for the
year.  In addition, Farsight has improved its levels of customer service and has
continued its research and development into its e-surveillance software.

Over the past two years I have consistently reported that Farsight was
reorganising its business around its core remote CCTV monitoring activity and
that the costs of the business were being reduced in line with revenue.  I am
pleased to report that this reorganisation is now largely completed and that the
Company is now in a position to move forward more positively.  Sales growth has
proven slower than anticipated partly due to the delayed roll out of broadband
services in the UK.  However, the provision of broadband services in the UK is
now rapidly expanding and I am pleased to announce that Farsight will formally
launch its e-surveillance software as a licensed product for the security market
in January 2005 at IIPSEC.  This launch will be supported by an advertising
campaign in the securities industry press.

Results for the year

Turnover on continuing activities increased by 16.1 per cent. year on year to
£777,000 (2003: £669,000).

The operating loss on all operations was £1,375,000 (2003: loss £2,818,000).
This loss is stated after charging £289,000 of amortised goodwill and making a
£596,000 provision in respect of the impairment value of goodwill.

The operating loss on continued operations was reduced to £1,378,000 (2003: loss
£1,795,000).

No dividend is recommended.

Funding

At the EGM held in December 2003, all resolutions including those in relation to
the approval of a £750,000 conditional secured convertible loan facility from a
'concert party' of investors were approved by shareholders. During the 2004
financial year the Company drew down £450,000 of this facility.

Subsequent to the 2004 balance sheet date the remaining balance of this facility
amounting to £300,000 has been drawn down by the Company.

Details of further financial support agreed with the 'concert party' investors
is set out in Note 2 to the financial statements.

The directors are satisfied that sufficient funds are available to the Company
to see  Farsight plc return to a net cash generating position.

Trading review and current activity

In my interim statement I announced the commencement of a major contract in the
facilities management sector.  This contract has progressed well with the
consulting phase nearly completed.  In the next phase Farsight expects to
commence monitoring a large number of sites across the UK using its
e-surveillance technology.

Our sales operation is continuing to steadily win new monitoring business and
this will provide an increasingly solid base upon which the business can be
moved forward.

Other new niche sales opportunities are currently being developed, in particular
what we call our 'Buildsecure' monitoring service which provides a level of 24
hour per day surveillance of construction sites across the UK.  New contracts
have been won with some of the UK's largest construction companies, and we
believe this will prove to be an important new revenue stream over the next 2-3
years.

We continue to invest in our operations centre, 'The Observatory' in
Peterborough.  During the year we made the decision to invest ahead of revenue
generation in the capacity and skills of Farsight's monitoring operation; we
have been operating two parallel systems; one operation utilising standard
telephony based CCTV technology, the other operating on the new broadband
compatible, e-surveillance technology. In February 2004, e-surveillance software
was loaded onto our servers in Peterborough and we recruited a new team of
monitoring professionals, trained them in the use of the software, and launched
a new service to our customers whereby all monitoring was conducted via the
internet utilising broadband connectivity.  We estimate that we have sufficient
installed capacity to handle at least two years growth in monitoring
connections, circa £750,000 in revenue terms.

The company achieved an important milestone in obtaining official Microsoft
certification for the e-surveillance software.

To date, the e-surveillance software has only been used for managed services but
in the past six months the development team have completed the necessary
packaging and documentation to allow the sales launch of a licensed product for
the wider retail security market in January 2005.  In preparation for this
launch, and to provide a web based resource for our service customers, Farsight
has developed a second web site for e-surveillance customers, whether a
purchaser of the software package or a CCTV monitored site using our
e-surveillance broadband service.

We live in an age where security issues are becoming an increasing factor in
both our lives at work and at home. Farsight's focus over the past two years has
been on the development of a broadband enabled monitoring service to corporate
clients and some high net worth individuals. Whilst these users will continue to
be the prime users of monitored CCTV, the opportunity now presents itself for
Farsight to sell into the public sector and to continue to seek a low cost,
reliable service that can be offered to the retail, mass market.  Farsight will
therefore continue to invest in the e-surveillance software with a focus on
allowing an increasing number of multiple users and integration of our
customers' networks.

Conclusion

I stated last year that Farsight plc is well placed to take advantage of the
market opportunity presented by security networks looking to increasingly
utilise IP/broadband technology.  Farsight continues to grow the monitored CCTV
services business, and in 2005 will launch a shrink wrapped e-surveillance
software product that will create a new revenue stream for the Company.

I am confident that the difficult period of restructuring and cost cutting is
drawing to completion, and that the business has been put on a firm foundation
to allow Farsight to profit from the opportunities on offer in the security
market.

Our current plan will see the company continue to grow organically, however, the
Board now recognises that the opportunity exists to increase the scale of
operations via acquisition or merger, and will actively pursue such growth
opportunities.


A T G Wix, Chairman

November 2004


Enquiries:              Chris Thomas, Chief Executive 07812 145350


Consolidated Profit and Loss Account
for the year ended 31 May 2004

                                                                                   2004                  2003
                                                                                  £'000                 £'000
Turnover
Continuing operations                                                               777                   669
Discontinued operations                                                               -                   358
                                                                                    777                 1,027
Cost of sales                                                                     (628)               (1,186)
Gross profit/(loss)                                                                 149                 (159)
Net operating expenses                                                            (928)               (1,366)
Exceptional net operating expenses                                                (596)               (1,293)
Total net operating expenses                                                    (1,524)               (2,659)
Operating loss

Continuing operations                                                           (1,375)               (1,795)
Discontinued operations                                                               -               (1,023)
Total operating loss                                                            (1,375)               (2,818)

Profit on sale of discontinued operations                                             -                   400
Interest payable and similar charges                                               (53)                  (41)
Interest receivable                                                                   -                     3
Loss on ordinary activities before taxation                                     (1,428)               (2,456)
Taxation                                                                              2                     -
Retained loss for the year                                                      (1,426)               (2,456)

Loss per ordinary share                                                        (0.469)p              (0.997)p

Fully diluted loss per ordinary share                                          (0.437)p              (0.997)p

The Group has no gains or losses other than the results for the year, and so no
statement of recognised gains or losses has been presented.

There is no difference between the loss on ordinary activities before taxation
and the retained loss for the year stated above and their historical cost
equivalents.

Reconciliation of Movements in Group Shareholders' Funds
at 31 May
                                                                                             2004      2003             
                                                                                            £'000     £'000

Loss for the financial year                                                                 (1,426)   (2,456)
Proceeds of share capital issues                                                                 32     1,408
Net decrease in shareholders' funds                                                         (1,394)   (1,048)

Opening shareholders' funds                                                                     537     1,585
Closing shareholders' (deficit)/funds                                                         (857)       537


Balance Sheet
at 31 May 2004

                                                                                        2004         2003
                                                                                       £'000        £'000

Fixed assets
Intangible assets                                                                          -          885
Tangible assets                                                                          325          408
                                                                                         325        1,293
Current assets
Debtors: amounts falling due within one year                                             231          248
Cash at bank and in hand                                                                   -           14
                                                                                         231          262
Creditors: amounts falling due within one year                                         (963)      (1,003)
Net current liabilities                                                                (732)        (741)
Total assets less current liabilities                                                  (407)          552
Creditors: amounts falling due after one year
        Secured convertible loans                                                      (450)            -
        Obligations under finance leases                                                   -         (13)
Provisions for liabilities and charges                                                     -          (2)

Net (liabilities)/assets                                                               (857)          537

Capital and reserves
Called up share capital                                                                7,484        7,452
Share premium account                                                                  4,493        4,493
Capital redemption reserve                                                                20           20
Profit and loss account                                                             (12,854)     (11,428)
Equity shareholders' (deficit)/funds                                                   (857)          537


Consolidated Cash Flow Statement
for the year ended 31 May 2004
                                                                                             2004       2003
                                                                                            £'000      £'000

Net cash (outflow) from operating activities                                                (262)    (1,061)
Returns on investments and servicing of finance
Interest received                                                                               -          3
Interest element of finance lease payments                                                   (41)       (40)
Interest paid                                                                                (12)        (1)
                                                                                             (53)       (38)
Taxation
United Kingdom corporation tax paid                                                             -       (85)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                            (50)       (12)
Proceeds from sale of tangible fixed assets                                                    17          -
                                                                                             (33)       (12)
Acquisition and disposals
Net (cash) disposed with subsidiary                                                             -       (28)
                                                                                                -       (28)
Net cash outflow before management of liquid resources and financing                        (348)    (1,224)

Financing
Issue of new share capital                                                                     32      1,408
Issue of convertible loans                                                                    450          -
Capital element of finance lease payments                                                   (119)      (149)

Net cash inflow from financing                                                                363      1,259

Increase in cash in the year                                                                   15         35


Reconciliation of Operating Loss to Net Cash Flow from Operating Activities
                                                                                               2004      2003
                                                                                              £'000     £'000

Operating loss                                                                              (1,375)   (2,818)
Amortisation of intangible fixed assets                                                         289       289
Provision against impairment in value of intangible fixed assets                                596     1,174
Depreciation of tangible fixed assets                                                           133       211
Profit on disposal of tangible fixed assets                                                    (17)         -
Decrease in debtors                                                                              17       271
Increase/(decrease) in creditors                                                                 95     (188)
Net cash flow from operating activities                                                       (262)   (1,061)

Notes to the Preliminary Results for the year ended 31 May 2004
     
1.   Loss per ordinary share

Basic loss per share (LPS) is calculated by dividing the loss attributable to
ordinary shareholders, namely a loss of £1,426,000 (2003: loss £2,456,000) by
304,102,072 ordinary shares (2003: 246,422,277 ordinary shares), being the
weighted average number of ordinary shares in issue and ranking for dividend
during the year.

                                        2004                                             2003 
                                    Weighted                                         Weighted
                                     average                                          average   
                      Earnings /   number of                     Earnings /            number                           
                          (loss)      shares       Per share         (loss)         of shares       Per share
                           £'000        '000  amount (Pence)          £'000              '000  amount (Pence)
Basic LPS                (1,426)     304,102         (0.469)         (2,456)          246,422         (0.997)
Fully diluted LPS        (1,426)     326,602         (0.437)         (2,456)          246,422         (0.997)

     
2.   Reconciliation of net cash flow to movement in net debt


                                                                                          2004            2003
                                                                                         £'000           £'000
Movement in cash in year                                                                    15              35
Cash (inflow)/outflow from change in debt                                                (331)             149
Change in net debt resulting from cash flows                                             (316)             184
Movement in net debt in the year                                                         (316)             184
Net debt at 1 June, 2002                                                                 (186)           (370)
Net debt at 31 May, 2003                                                                 (502)           (186)

3.   Analysis of net debt


                                                               At 1 June, 2003     Cash Flow  At 31 May, 2004           
                                                                         £'000         £'000            £'000
                                                                                       
Net cash:
Cash at bank and in hand                                                    14          (14)                -
Overdrafts                                                                (66)            29             (37)
Debt:                                                                     (52)            15             (37)
Secured convertible loans                                                    -         (450)            (450)
Finance leases                                                           (134)           119             (15)
Total                                                                    (186)         (316)            (502)

4.   Statutory Accounts

The financial information contained in this announcement does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The figures for the year ended 31 May 2003 have been extracted from the
statutory accounts which have been filed with the Register of Companies and
which are available on request from the Company Secretary.  The auditor's report
on those accounts was unqualified and did not contain any statement under
section 237(2) or section 237(3) of the Companies Act 1985.  The statutory
accounts for the financial year ended 31 May 2004 have been approved by the
Directors and are available for collection at the Company's registered office or
in electronic form on the company's website, www.farsight.co.uk.  The auditors'
report on these accounts was unqualified and did not contain any statement under
section 237(2) or section 237(3) of the Companies Act 1985.


                      This information is provided by RNS
            The company news service from the London Stock Exchange