Interim Results

Eurolink Managed Services PLC
30 November 1999


EUROLINK MANAGED SERVICES PLC
Interim results for the six months ended 30 September 1999

Chairman's Statement

Introduction
It is my pleasure to present the first interim report of the
Company since its introduction to AIM in the summer of this
year.  The results for this six month period are in
accordance with  expectation at the time of flotation and
should be viewed in the context of the significant
developments which the Company's operating subsidiary, RDF
Consulting Limited, has undertaken to position itself for
growth in the IT market.

Results
Turnover for the period was £4.07m (1998 £4.12m) with profit
before tax £0.19m (1998 £0.62m).  Earnings per share were
1.29p (1998 3.92p).  As indicated in the admission document,
a dividend is not being recommended.

Business review
During this period the Company has maintained turnover
levels by growing its customer base.  As expected, activity
levels at certain clients have reduced, partly as the burden
of Year 2000 work has eased.  We have brought in several new
clients since this time last year, for whom we have
undertaken a range of initial assignments, and we see good
opportunities arising from this wider client base.

Gross margin is as budgeted with the change from last year
arising principally from the different mix of customers,
increased IT consultants costs and commission for the
introduction of new IT resources, a specific cost which we
did not have last year.

The significant developments referred to above included
investment in the infrastructure of the business, which
commenced in the second half of the last financial year. The
full impact of these costs is being felt this year, and is
reflected in the increase in administrative expenses.  We
expect to see the full benefit of this expenditure over the
next twelve to eighteen months.  The costs related to the
need for support staff in the areas of business services,
finance and sales, and to the need for office space in
Livingston, Scotland and additional space in Brighton.  The
additional premises are necessary to be able to offer
clients one of the key features of our service, which is an
off-site development facility, and enable the Company to
respond quickly to client needs.

Outlook
With the ability substantially to increase the volume of
business without the need to incur additional infrastructure
costs, the Company is well placed to benefit from the effort
currently being expended to develop existing and new
business.

At the present time we believe many organisations with
substantial IT development requirements are reviewing the
manner in which they resource those requirements, and are
seeking more cost effective and flexible resourcing
solutions, particularly after the significant costs incurred
addressing the Year 2000 issue through the more traditional
resourcing channels.

Whilst confident that the Company is positioning itself well
as a cost-effective source of professional teams for IT
development, your Board considers that major new orders are
unlikely to be secured over the next few months, because of
the uncertainty that still surrounds the millennium date
change.  Consequently, your Board does not expect
significant improvement in trading performance in the second
half of the financial year ending March 2000.

We see good opportunities for growth and improved
profitability in the next financial year.


Anthony G Antoniades
Chairman
29 November 1999




GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 1999
                                                            
                                                                 
                                                Pro-forma           
                                                Unaudited     
                                 Unaudited        and not     Audited
                                Six months       reviewed      twelve
                                     to 30     six months   months to
                                 September   30 September    31 March
                                     1999            1998        1999
                                   £ '000          £ '000      £ '000
                                                                 
                                                                 
      Turnover                       4,069          4,116       8,323
                                                                 
      Cost of sales                (3,238)         (3,031)     (6,454)
                                 ---------      ----------   ---------
                                                              
      Gross profit                     831          1,085       1,869
                                                                 
      Administrative expenses        (639)           (433)       (988)
                                ----------      ----------   ---------
      Operating profit                 192            652         881
                                                                 
      Net interest payable             (3)            (29)        (36)
                                ----------     ----------   ---------
      Profit on ordinary               189            623         845
    activities before tax
                                                                 
      Tax                             (59)           (227)       (310)
                                 ---------       ---------   ---------
      Profit on ordinary               130            396         535
    activities after tax
                                                                 
      Dividend                           -              -        (300)
                                 ---------       --------    --------         
                    
      Retained profit for the          130            396         235
    period
                                   =======        =======     =======
      Earnings per share             1.29p           3.92p        N/a
                                   =======        =======     =======



                                                       
                                                       

      GROUP BALANCE SHEET                               
      At 30 September 1999                              
                                            Pro-forma            
                                            unaudited            
                                              and not      
                             Unaudited       reviewed      Audited
                           30 September  30 September    31 March
                                   1999          1998        1999
                                 £ '000        £ '000      £ '000
                                                              
      Fixed assets                                            
      Tangible assets               277           149         188
                               --------      --------    --------             
  
      Current assets                                          
      Debtors                     1,408         1,074       1,335
      Cash at bank                  163           107           -
                              ---------     ----------   ---------
                                  1,571         1,181       1,335
                              ---------     ----------   ---------
      Creditors - amounts                                     
      falling
         due within one                                       
      year
      Borrowings                   (41)           (8)        (50)
      Other creditors           (1,217)         (888)     (1,196)
                              ---------     ---------   ---------
                                                               -
                                (1,258)         (896)     (1,246)
                              ---------      ---------   ---------
      Net current assets            313          285          89
                                                              
      Total assets less                                       
         current                    590          434         277
      liabilities
                                                              
                                                              
      Creditors - amount                                      
      falling
          due after one                                       
      year
      Borrowings                   (87)          (38)        (42)
                              ---------      --------   ---------
                                    503          396         235
                                 ======       ======      ======
      Capital and reserves                                    
      Share capital                 208            -           -
      Share premium                 130            -           -
      Profit & loss                 165          396         235
      account
                              ---------     ---------   ---------
                                    503          396         235
                                 ======       ======     =======





GROUP CASH FLOW
for the six months ended 30 September 1999
                                                          
                                                Pro-forma           
                                                unaudited    
                                                  and not    Audited
                                  Unaudited      reviewed     twelve
                              six months to six months to  months to 
                               30 September  30 September   31 March
                                       1999          1998       1999
                                                               
                                     £ '000        £ '000     £ '000
                                                                 
 Net cash flow from operating          111            263        496
activities
                                                                 
 Returns on investments and                                      
servicing of finance
 Interest Paid                           (3)          (29)       (36)
                                                                 
 Net capital expenditure and          (119)          (173)      (252)
financial investment
                                                                 
 Equity dividends paid                    -             -      (300)
                                  ----------     ---------  ---------
 Net cash flow outflow before         (11)             61       (92)
financing
                                  ----------     ---------  ---------
 Financing                                                       
 Issue of shares                        400             -          -
 Expenses of issue                    (262)             -          -
 Capital element of finance                                      
leases
   and hire purchase contracts           73            46         55
                                  ----------     ---------  ---------
 Net cash inflow from                   211            46         55
financing
                                  ----------     ---------  ---------
 Increase/(decrease) in cash            200           107       (37)
                                  ----------     ---------  ---------
                                                              

 Reconciliation of operating                              
profit to net cash flow from
operating activities

 Operating profit                       192           652        881
 Depreciation charges                    30            24         60
 Loss on sale of tangible                 -             -          3
fixed assets
 Increase in debtors                    (73)        (1074)    (1,335)
 Decrease in creditors                  (38)          661        887
                                  ---------      ---------  ---------
 Net cash inflow from                   111           263        496
operating activities
                                      =====         =====      =====
 Reconciliation of net cash                                      
flow to movement in net debt

 Opening net debt                      (92)            -          -
 Increase/(decrease) in cash            200          107       (37)
in year
 Capital element of finance                                      
leases and hire purchase               (73)          (46)       (55)
contracts
                                  ---------     ---------  ---------
 Closing net funds/(debt)               35            61        (92)
                                      =====       ======     ======
                                                          

NOTES TO THE INTERIM STATEMENT

Preparation of interim report
The financial information for the six month period ended 30
September 1999 is unaudited and does not constitute
statutory accounts within the meaning of the Companies Act
1985.  It has been prepared using accounting policies
consistent with those set out in the Group's statutory
accounts for the period ended 31  March 1999.

The pro-forma financial information for the six month period
ended 30 September 1998 is prepared from the separate
management accounts of RDF Consulting Limited and has not
been reviewed or audited.  Eurolink Managed Services Limited
did not have any activity during this period and acquired
the share capital of RDF Consulting Limited on 1 March 1999.
However the figures are presented as if the acquisition
occurred on 1 September 1997.

The financial information for the period ended 31 March 1999
has been extracted from the statutory accounts of Eurolink
Managed Services Limited and RDF Consulting Limited for that
period which contained unqualified audit reports and which
have been filed with the Registrar of Companies.

Tax
The tax charge for the six months ended 30 September 1999
has been calculated using the 'discrete' approach and
represents the charge applicable for the six month period.

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 ordinary shares in issue during
the period. The comparative earnings per share for the
period ended 30 September 1998 have been calculated on the
same basis notwithstanding that the changes in share capital
took place subsequent to that date.

Copies of report
The Interim Report will be posted to all shareholders and
will be available on request from the Company Secretary, 1
Queen Square, Brighton, BN1 3FW.

Year 2000 compliance
The company has reviewed its computer systems for the impact
of the Year 2000 date change.  The issue is complex and no
business can guarantee that there will be no Year 2000
problems.  However, the board believes that its plans, the
resources allocated and actions implemented are appropriate
to address the issue.  External costs in addressing the
issue were minimal.

INDEPENDENT REVIEW REPORT TO EUROLINK MANAGED SERVICES PLC

Introduction
We have been instructed by the company to review the
financial information set out on pages 3 to 6 (the unaudited
proforma information for the period to 30 September 1998 is
beyond the scope of our review) and we have read 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.

Review work performed
We conducted our review in accordance with guidance
contained in Bulletin 1999/4 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 the accounting policies
and presentation have been consistently applied unless
otherwise disclosed.  A review excludes audit procedures
such as tests of controls 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 an audit.  Accordingly we do not express an audit
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 financial
information as presented for the six months ended 30
September 1999.

BDO Stoy Hayward, Chartered Accountants, Brighton
29 November 1999