Final Results

Eurolink Managed Services PLC
3 August 2001



                        EUROLINK MANAGED SERVICES PLC

            CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2001

Introduction and Results

I have pleasure to report results for the year ended 31 March 2001, with
turnover up 9% to £8.27 million (2000: £7.6 million) and profit before tax
increased by 15% to £0.39 million (2000: £0.34 million). Earnings per share
have increased by 16% to 2.57p (2000: 2.21p). A dividend is not being
recommended.

Business Review

As reported in December 2000, demand at the start of the financial year was
slower than anticipated. Project work increased during the summer months and
whilst the mix of business changed during the year, levels were maintained
into the second half culminating in the group's highest sales month ever in
March 2001.

Gross margin continued to increase moving from 21.9% last year to 23.9% this
year, partly from the mix of projects from clients and partly through the
balancing of chargeable staff between permanent and contract labour with
permanent now forming 20% of total chargeable staff.

The property acquired and developed and infrastructure instated during the
last two years at our Brighton and Livingston sites has positioned the group
to double chargeable staff levels without a further significant increase in
support costs. However, this year has seen the inclusion in the results of a
full year's cost for some of this infrastructure.

The group has grown its client base during the year but not at the rate
previously envisaged. Accordingly the group has recently recruited a senior
sales person in Scotland and is currently seeking to recruit for a similar
position in Brighton with the objective of developing the client base and
creating new sales opportunities. Further sales roles are anticipated to be
created during the year to support this activity.

Outlook

Amongst the group's existing clients there continues to be a positive outlook
for maintaining and enhancing current levels of business, although the nature
of project work inevitably produces peaks and troughs of activity.

There is an uncertainty in the market place at the moment which, together with
the additional infrastructure and personnel costs put in place in anticipation
of growth, leads your directors to believe that the results for the first six
months are likely to be impacted by these factors. However, with the group's
sales and marketing activities set to increase during the year, your directors
believe that the group will be well placed to achieve revenue growth in the
second half of the year.

David Wood

Chairman and Managing Director

2 August 2001

Consolidated profit and loss account for the year ended 31 March 2001


                                              Note          2001          2000
                                                           £'000         £'000

Turnover                                                   8,269         7,596
Cost of sales                                            (6,292)       (5,932)
Gross profit                                               1,977         1,664
Administrative expenses                                  (1,514)       (1,287)
Operating profit                                             463           377
Net interest payable                                        (73)          (37)
Profit on ordinary activities                                390           340
before taxation
Tax                                                        (123)         (113)
Profit for the financial year                                267           227

Earnings per share
Basic                                            2         2.57p         2.21p
Diluted                                          2         2.57p         2.19p



Consolidated balance sheet at 31 March 2001
                                                                 2001      2000
                                                                £'000     £'000
Fixed assets
Tangible assets                                                   382       300

Current assets
Debtors                                                         1,392     1,186
Cash at bank                                                      211       193
                                                                1,603     1,379
Creditors: amounts falling due                                (1,091)   (1,004)

within one year
Net current assets                                                512       375
Total assets less current liabilities                             894       675
Creditors: amounts falling due after more than one year          (85)      (83)
                                                                  809       592

Capital and reserves
Called up share capital                                           208       208
Share premium account                                              72       122
Profit and loss account                                           529       262
Equity shareholders' funds                                        809       592



Consolidated cash flow statement for the year ended 31 March 2001
                                                                  2001     2000
                                                                 £'000    £'000

Net cash inflow from operating activities                          329      481
Returns on investments and servicing of finance
Net interest paid                                                 (73)     (37)
Taxation
UK corporation tax                                               (107)    (246)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                (226)    (200)
Sale of tangible fixed assets                                       61       27
Cash (outflow)/inflow before financing                            (16)       25
Financing
Issue of ordinary shares less costs                                  -      130
Capital element of finance lease contracts
- New finance lease contracts                                       99      134
- Repayments                                                      (65)     (59)
Cash inflow from financing                                          34      205
Increase in cash in the year                                        18      230

Reconciliation of operating profit to net cash inflow from operating
activities
                                                                 2001     2000
                                                                £'000    £'000
Operating profit                                                  463      377
Depreciation                                                       77       61
Loss on sale of tangible assets                                     6        1
(Increase)/ decrease in debtors                                 (206)      149
(Decrease) in creditors                                          (11)    (107)
Net cash inflow from operating activities                         329      481



Reconciliation of net cash inflow to movement in net debt
                                                                   2001    2000
                                                                  £'000   £'000
Increase in cash at bank                                             18     230
Increase in finance leases and hire purchase contracts             (34)    (75)
Net funds/(debt) at start of year                                    63    (92)
Net funds at end of year                                             47      63



NOTES TO THE PRELIMINARY ANNOUNCEMENT

1. Preparation of preliminary announcement

The preliminary results have been extracted from the group's audited accounts
which have been approved and signed by the directors and auditors. They have
not yet been delivered to the Registrar of Companies. The financial
information set out in this preliminary announcement does not comprise
Statutory Accounts within the meaning of section 254 of the Companies Act
1985.

2. Earnings per share

The calculation of earnings per share is based on the profit on ordinary
activities after tax for each period and the weighted average number of shares
in issue during the period, being 10,400,000 (2000: 10,255,342).

The diluted earnings per share is based on the profit after tax for each
period and the weighted average number of shares in issue during the period
being 10,400,000 (2000: 10,341,795).

3. Copies of report

The Annual Report will be posted to all shareholders and will be available on
request from the Company Secretary, Queen Square House, 15 Queen Square,
Brighton, East Sussex, BN1 3FD.

4.Copy of this announcement

A copy of this announcement will be available for one month from the Company
Secretary, Queen Square House, 15 Queen Square, Brighton, East Sussex, BN1
3FD.



3 August 2001