Interim Results

Coms PLC 26 September 2007 COMS PLC ("Coms", or "the Company") Interim accounts for the six months ended 31 July 2007 Highlights: • Developed three focussed and recurring revenue streams • Delivered a gross margin in excess of 40% • Generated a gross profit of £202,000 on revenues of £501,000 • Delivering on the CompanyOs acquisition strategy Commenting on the interim results, Jason Drummond, Chairman said: "As consumer migration to internet telephony accelerates, Coms is well positioned for exceptional growth based on an attractive product offering in the three major revenue generating channels of consumer, business and wholesale distribution. We are actively pursuing both our organic and acquisition strategies." Contact: Coms plc Richard Bennett +44 (0)7966 388 374 HB Corporate Rod Venables/Rory Creedon +44 (0)20 7538 1166 Square1 Consulting Ltd Mark Longson +44 (0)20 7929 5599 Chairman's Statement: I am pleased to report that as a result of organic growth and acquisition strategy, Coms has made significant progress in developing a long-term recurring revenue stream from providing internet telephony services. Our business has progressed significantly since admission to AIM last year, and today's interim results begin to demonstrate the momentum we have gained from the successful execution of our strategies. Coms has three distribution channels - consumer, business and wholesale - each generating a separate revenue stream. From a standing start the combined streams have yielded revenue of £501 and gross profits £202k for this interim period. Consumer Services: Our consumer service, coms.com, allows individuals to connect their home phone or a WiFi enabled mobile phone to our innovative internet telephony platform. We are driving sales directly through the coms.com website and through retail outlets including the John Lewis Partnership. Business Services: Coms sells directly to business customers under the coms.net brand to differentiate the extra value-added business services from our consumer offering. The service is based upon the service developed by ExchangeXT Limited, a business that we acquired in December 2006. Coms is making steady progress signing up small and medium sized businesses and is looking to expand into the mainstream business market. Distribution Services: The acquisition of VCOMM Limited in March this year contributed four months of revenue to the interim revenues and will have a greater impact on the revenues for the full year. More importantly, VCOMM has 450 active resellers that Coms intend to motivate to resell its expanded package of internet telephony hardware and services. I am very confident about the immediate and long-term outlook for Coms. For the remainder of this financial year, we expect VCOMM to contribute a full 6 months of revenue to the year-end revenue, and we also expect to see further revenue growth from both coms.com and coms.net. I am also encouraged by continued analyst predictions that forecast that both consumers and businesses will continue to migrate from traditional telephony (PSTN) services to internet telephony (VoIP) services, which will provide an enduring and lucrative market for Coms. This, coupled with the fact that we have achieved a gross margin in excess of 40% during this period, makes me continue to believe that Coms is well positioned for exceptional growth. Accordingly, we intend to continue our current strategies of pursuing organic growth and seeking out other complementary acquisitions. Jason Drummond Chairman. COMS PLC Income Statement For the Six months ended 31 July 2007 Six months to Six months Year ended 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Continuing operations Revenue 501 - 106 Cost of Sales (299) - (79) ---------- --------- ---------- Gross Profit 202 - 27 Administrative expenses Exceptional loss on intangibles written off - - (126) Other administrative expenses (485) (71) (574) ---------- --------- ---------- Operating Loss (283) (71) (673) Investment revenues 3 7 10 Finance costs (3) - (1) ---------- --------- ---------- Loss before tax (283) (64) (664) Income tax charges - - - ---------- --------- ---------- Loss for the period from continuing operations attributable to shareholders (283) (64) (664) ========== ========== ========= Loss per share From continuing operations: Basic and diluted (0.03p) (0.05p) (0.17p) --------- --------- --------- The Company's turnover and operating loss arose from continuing operations. There were no recognised gains or losses other than those recognised in the income statement above. COMS PLC Balance Sheet as at 31 July 2007 As at As at As at 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Assets Non-current assets Property, plant and equipment 49 - 22 Goodwill 2,330 - 1,950 Other intangibles 14 - 10 ---------- ---------- --------- 2,393 - 1,982 ---------- ---------- --------- Current assets Inventories 56 - 5 Trade and other receivables 296 6 94 Cash and cash equivalents 186 433 179 --------- --------- ---------- 538 439 278 --------- --------- ---------- Current liabilities Trade and other payables (414) (60) (318) Other loans (37) - - ---------- --------- ---------- (451) (60) (318) ---------- --------- ---------- Net current assets/(liabilities) 87 379 (40) ---------- --------- ---------- Non current liabilities Other loans (61) - - ---------- ---------- ---------- (61) - - ---------- ---------- ---------- Net assets/(liabilities) 2,419 379 1,942 ========= ========== ========== Equity and liabilities Capital and reserves Share capital 3,446 476 2,686 Accumulated deficit (1,027) (97) (744) ----------- ---------- ---------- Total equity 2,419 379 1,942 =========== ========== ========== COMS PLC Cash Flow Statement For the Six months ended 31 July 2007 Six months to Six months Year ended 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Note Operating activities 3 (565) (22) (465) Investing activities Interest received 3 7 10 Interest paid (3) - (1) Purchases of plant and equipment (39) - (7) Purchase of other intangibles (1) - (110) Purchase of subsidiary undertakings (net of cash acquired) (39) - (487) Financing activities Proceeds on issue of shares 660 - 917 Repayment of bank loans (9) - - ---------- ---------- ---------- Net cash outflow 7 (15) (143) Cash and cash equivalents at the beginning of the period 179 448 322 --------- ---------- ---------- Bank balances and cash 186 433 179 --------- ---------- ---------- Consolidated statement of changes in equity As at As at As at 31 July 2007 31 July 2006 31 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s As at beginning of period 1942 443 (29) Deficit for the period (283) (64) (664) Share options granted - - 29 Value of reverse acquisition - - 1,689 Issue of share capital net of expenses 760 - 917 ---------- ---------- ---------- As at end of period 2,419 379 1,942 ---------- ---------- ---------- COMS PLC Notes to the Interim Report 1. Significant Accounting Policies These accounts have been prepared in accordance with International Financial Reporting Standards and on the historical cost basis, using generally recognised accounting principles consistent with those used in the annual report and accounts for the year ended 31 January 2007. This interim report for the six months to 31 July 2007 was approved by the Board on 25 September 2007. 2. Loss per Share Six months to Six months to Year ended 31 July 2007 31 July 2006 31 January 2007 Earnings per ordinary shares Basic and diluted (0.03p) (0.05p) (0.17p) --------- --------- --------- The loss per ordinary share is based on the company's loss for the period of £283,024 (31 July 2006 - £63,716; 31 January 2007 - £664,331) and a basic weighted average number of shares of 908,450,023 (31 July 2006 - 121,750,000; 31 January 2007 - 394,284,174) and a diluted weighted average number of shares of 937,950,023 (31 July 2006 - 121,750,000; 31 January 2007 - 409,559,517). The share options are anti-dilutive as they decrease the loss per share. 3. Reconciliation of operating loss to net cash outflow from operating activities. Six months to Six months to Year ended 31 July 2007 31 July 2006 31 January 2007 £O00s £O00s £O00s Loss for the period (283) (71) (673) Adjustments for: Share based payments - - 30 Write off of other intangibles - - 126 Depreciation and amortisation 14 - 29 (Increase) in inventories (17) - 7 (Increase)/Decrease in receivables (54) 2 (11) (Decrease)/Increase in payables (225) 47 27 ----------- ---------- ----------- Net cash from operating activities (565) (22) (465) =========== ========== =========== 4. Called up Share Capital The issued share capital as at 31 July 2007 was 921,378,200 Ordinary Shares of 0.1 p each (31 July 2006 - 121,750,000; 31 January 2007 - 793,878,200). 5. The unaudited results for period ended 31 July 2007 do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the year ended 31 January 2007 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and which contain an unqualified audit report and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 6. Copies of this interim statement are available from the Company at its registered office at 5-7 Cranwood Street, London, EC1V 9EE. The interim statement will also be available on the company website www.coms.com 7.Events subsequent to 31 July 2007 On 17 September 2007 the Company issued 1,000,000 ordinary shares for a consideration of 0.1p each as the result of an exercise of warrants. This information is provided by RNS The company news service from the London Stock Exchange

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