Interim Results

Web Shareshop (Holdings) PLC
16 May 2001


WEB SHARESHOP (HOLDINGS) PLC

INTERIM REPORT - 12 MONTHS TO 31 JANUARY 2001

MANAGEMENT COMMENTARY


Highlights

The Directors present their Interim Report for the twelve months ended 31
January 2001. This is the second Interim Report since Web Shareshop (Holdings)
plc's shares were admitted to trading on the Alternative Investment Market in
September 2000.

Since the last Interim Report the Company has:

*        Completed development of the Placings Club software and

*        Maintained tight control over overheads to conserve cash, in light of
         the fragility of the new issues market on which the Company's business 
         model depends.


Results

Results for the 12 months to 31 January 2001 record an operating loss of  £
746,000, reflecting mainly site development costs, professional advice and
business development costs. This was offset by interest of £22,000, reducing
the loss before taxation for the period to £724,000.

At 31 January 2001, the Company had £1,135,000 in cash in the bank, net
current assets of £1,008,000 and net assets of £1,082,000.

No dividends have been proposed for the period.



Prospects

As I reported to you in my letter dated 20 April 2001, the Company has now
completed development of the Placings Club software and is conducting rigorous
consumer testing of the software. We are also continuing the application
process for PIA A1 registration. However, in our judgement, current market
conditions are not suitable for a launch and we will hold off launching the
Placings Club until we believe the market is ready.

Because of this delay in marketing, it is essential that the Company conserve
capital. I have therefore instituted cost savings to take effect over the
months of May and June. This will reduce ongoing monthly overheads by one
third. Reductions come mainly from salaries, other staff costs and
professional fees and will not affect our ability to operate the business.

In the current market conditions, we believe that Web Shareshop is more likely
to deliver a return to shareholders if it can broaden its portfolio of
products and services. To this end, we have held constructive discussions with
a number of potential partners in the financial services industry. I am
hopeful that I will have positive developments to report in the near future.


W Jackson
Chairman and Chief Executive




CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                        12 months to    8 months to  Year ended
                                          31 January   30 September  31 January
                                                2001           2000        2000
                              Note         Unaudited      Unaudited     Audited 
                                               £'000          £'000       £'000
                                                                          
Commission earned                        1                -              -

Group establishment expenses             (4)              (4)            (5)
Group administrative expenses            (743)            (536)          (40)


Group operating loss -
continuing operations                    (746)            (540)          (45)

                                         

Group interest receivable                22               14             -


Loss on ordinary activities
before taxation                          (724)            (526)          (45)
                                         
Tax on loss on ordinary                  -                -              -
activities


Loss on ordinary activities
after taxation                           (724)            (526)          (45)
                                    

Dividends - on equity shares             -                -              -


Retained loss for the period             (724)            (526)          (45)


Loss per share                  2             p              p              p
Basic and diluted                         (4.4)          (3.5)          (1.9)
                                                          



CONSOLIDATED BALANCE SHEETS

                                             At              At              At
                                     31 January    30 September      31 January
                                           2001            2000            2000 
                                      Unaudited       Unaudited         Audited
                                          £'000           £'000           £'000

Fixed assets
Intangible assets                    12              12              14
Tangible assets                      62              70              4


                                     74              82              18

Current assets
Debtors                              132             27              5
Cash at bank and in hand             1,135           1,258           368


                                     1,267           1,285           373
Creditors:
Amounts falling due within one       (259)           (128)           (18)
year


Net current assets                   1,008           1,157           355


Net assets                           1,082           1,239           373



Capital and reserves
Called up share capital              198             196             67
Share premium account                1,228           1,189           351
Merger reserves                      425             425             -
Profit and loss account              (769)           (571)           (45)


Equity shareholders' funds           1,082           1,239           373



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                     12 months to 31  8 months to   Year ended
                                             January 30 September   31 January
                                                2001         2000         2000
                                           Unaudited    Unaudited      Audited
                                               £'000        £'000        £'000

Total recognised losses relating        (724)             (526)        (45)
to the period
Net proceeds of share issues            1,433             1,392        418


Increase in shareholders' funds         709               866          373
Opening shareholders' funds             373               373          -


Closing shareholders' funds             1,082             1,239        373




1.         BASIS OF ACCOUNTING

Web Shareshop (Holdings) plc was incorporated on 20 April 2000, and no trading
activity was undertaken between that date and 31 May 2000. On 31 May 2000, Web
Shareshop (Holdings) plc acquired 100% of the share capital of The Web
Shareshop Limited and its subsidiaries by way of a share for share exchange.

The consolidated financial statements have been prepared using merger
accounting.  Under merger accounting the results and cash flows are combined
from the beginning of the financial period and all comparatives are restated
on the combined basis.  These interim financial statements consolidate the
financial statements of Web Shareshop (Holdings) plc, The Web Shareshop
Limited and its subsidiaries as though they had been in existence with its
present constitution.

The first reporting period of the Company is to be the 18 months ending 31
July 2001.

These interim financial statements cover the twelve month period to 31 January
2001. The last interim results reported were for the eight months ended 30
September 2000. The last audited results reported were for The Web Shareshop
Limited for the year ended 31 January 2000 and were included in the prospectus
for the Offer for Subscription for shares in Web Shareshop (Holdings) plc and
its admission to the Alternative Investment Market.  The year end for the
Group is 31 July.



2.         LOSS PER SHARE


                                     12 months to    8 months to     Year ended
                                       31 January   30 September     31 January
                                             2001           2000           2000
                                        Unaudited      Unaudited        Audited
                                            £'000          £'000          £'000

These have been calculated on           (724)          (526)          (45)
losses of




The weighted average number of 
shares used was:
  Basic                                 16,486,370     14,830,007     2,369,072


            There were no diluting factors in the period.


3.     INTERIM REPORT

       This interim report was neither audited nor reviewed by the auditors.  It
was approved by the Board on 14 May 2001.  It has been prepared using accounting
policies that are consistent with those adopted in the statutory accounts for
the year ended 31 January 2000 by The Web Shareshop Limited and its subsidiary
undertakings, and those to be adopted in the statutory accounts for the Group
for the period ending 31 July 2001.