Final Results

Canisp PLC
30 September 2005


30 SEPTEMBER 2005

CANISP PLC


Preliminary Results for the year ended 31 March 2005

- Turnover of £4.1m (2004: £0.4m)

- Loss on ordinary activities before taxation of £3.5m after charging 
  exceptional loss of £2.5m (2004: £0.4m)

- Loss per share of 21.85p after exceptional loss (2004: 4.25p).

Commenting, John Leat, Chairman, said:

'We will continue to pursue every possible avenue to restrict costs and increase
revenues so as to achieve profitability, and to expand both organically and
through further acquisitions. While this is not expected to be easy, and the
sector within which we operate remains a difficult and increasingly competitive
one, we are confident that we are approaching the task in the right way and will
in due course achieve these objectives.'

Canisp PLC will today publish its Annual Report and Accounts to its web site and
post to shareholders..


Chairman's Statement

Introduction

I present the Group's results for the year ended 31 March 2005.

The period since the Company's admission to AIM in October 2003 has seen
considerable corporate activity and consequent change in the underlying
business. I believe the reported results and prospects can only be properly
considered in the context of these various developments, which I therefore
summarise below.

Background

Shareholders will remember that the Group was created with the stated objective
of building, largely through acquisition, a group specialising in the provision
of telecommunications services, and this remains the case.

Our first acquisition, completed in December 2003, was The Airtime Group Limited
(TAG). Trading under the name World Telecom, TAG owned a number of
telecommunications assets as well as a telecommunications licence and fixed line
and global calling card businesses, and in 2004 achieved Service Provider status
with BT Wholesale. TAG was loss-making at the time of its acquisition and,
despite a number of measures to remedy this, it remained so and the global
calling card business in particular became a significant drain on the Group's
cash resources. It was clear that additional remedial action would be required
and in January of this year, TAG was able to complete the sale of the contracts
and customer base relating to its global calling card business.

During 2004, the Group resolved to pursue opportunities to purchase the SME
fixed line customer bases of certain other operators. In September 2004 we
announced the acquisition by TAG of the business of International Telecom
Brokers (ITB), and this was followed in December by the acquisition of the
businesses of two smaller operators based in Scotland, Elphinstone
Communications and Sports Club Telecom. In each case the fixed line customer
base and non-geographic number services were acquired, to complement those of
TAG and enhance group revenues. We are therefore now engaged principally in the
provision of fixed line telephony services to the SME market, including
wholesale line rental.

Results

For the year ended 31 March 2005 the Group recorded a loss on ordinary
activities before taxation of £3,537,000 (2004: £409,000) and a loss per share
of 21.85p (2004: 4.25p). In each case the comparative figures for 2004 are for
the period from incorporation on 12 August 2003 to 31 March 2004.

No dividend is recommended.

Outlook

In retrospect the performance of TAG has proved to be disappointing, absorbing
an undue amount of management time and financial cost. Although the business is
now at last approaching profitability, it remains burdened by significant
non-trading liabilities inherited from the past. Additionally, with the loss of
certain contracts, the monthly billings derived from the three acquired fixed
line businesses have been below our original expectation, such that Group
revenues have yet to reach a level capable of sustaining net cash generation.
All necessary provisions to reflect this position have been made in arriving at
the reported figures accompanying this report.

We have conducted another stringent review of the central overhead and we will
continue to pursue every possible avenue to restrict costs and increase revenues
so as to achieve profitability, and to expand both organically and through
further acquisitions. While this is not expected to be easy, and the sector
within which we operate remains a difficult and increasingly competitive one, we
are confident that we are approaching the task in the right way and will in due
course achieve these objectives.

I would like to thank all of our staff, advisers and financial stakeholders for
their continued support.


John Leat
Chairman
30 September 2005



                                             Note   Year ended    Period ended
                                                     31.3.2005       31.3.2004
                                                         £'000           £'000

Turnover
Continuing operations                                      352             104
Acquisitions                                             2,946               -
                                                         3,298             104
Discontinued operations                                    783             267
                                                         4,081             371

Cost of sales                                           (2,942)           (202)

Gross profit                                             1,139             169

Administrative expenses                                 (2,024)           (587)

Operating loss
Continuing operations                                     (744)           (273)
Acquisitions                                               188               -
                                                          (556)           (273)
Discontinued operations                                   (329)           (145)
                                                          (885)           (418)
Loss on sale of discontinued operations         2       (2,542)              -
Net interest (payable) / receivable                       (110)              9

Loss on ordinary activities before taxation             (3,537)           (409)

Taxation                                        3            -               -

Loss on ordinary activities after taxation
and retained loss                               5       (3,537)           (409)

Loss per ordinary share                         4       (21.85p)         (4.25p)



There were no recognised gains or losses other than the loss for the financial
year.



                                                 Note        2005        2004
                                                            £'000       £'000

Fixed assets
Intangible assets                                           3,267       2,304
Tangible assets                                                19          82
                                                            3,286       2,386

Current assets
Debtors                                                     1,348         367
Cash at bank and in hand                                       43         137
                                                            1,391         504

Creditors:
Amounts falling due within one year                        (3,624)     (1,243)

Net current liabilities                                    (2,233)       (739)

Total assets less current liabilities                       1,053       1,647

Creditors:
Amounts falling due after more than one year               (1,051)        (63)
                                                                2       1,584

Capital and reserves
Called up share capital                                       182         125
Share premium                                               3,766       1,868
Profit and loss account                                    (3,946)       (409)
Equity shareholders' funds                          5           2       1,584






                                                  Note        Year      Period
                                                             ended       ended
                                                         31.3.2005   31.3.2004
                                                             £'000       £'000

Net cash outflow from operating activities           6        (246)       (515)

Returns on investments and servicing of finance
Interest received                                                8          10
Interest paid                                                 (108)         (1)

Net cash (outflow)/inflow from returns on
investments and service of finance                            (100)          9

Capital expenditure and financial investments
Sales of tangible fixed assets                                   4           -

Acquisitions and disposals
Purchase of subsidiary undertakings                            (60)     (1,336)
Purchase of businesses                                      (2,912)          -
Sale of customer base                                          120           -
Net cash acquired with subsidiary undertakings                   -          25
Net cash outflow from acquisitions                          (2,852)     (1,311)

Net cash outflow before financing                           (3,194)     (1,817)

Financing
Issue of shares                                              1,972       2,113
Share issue costs                                              (17)       (120)
New long term loans                                          1,250           -
Capital element of hire purchase contracts                    (105)        (39)

Net cash inflow from financing                               3,100       1,954

(Decrease)/increase in cash                          7         (94)        137



1     BASIS OF PREPARATION

The preliminary announcement has been prepared in accordance with applicable
accounting standards and under the historical cost convention.

The principal accounting policies of the Group have remained unchanged from
those set out in the Group's 2004 annual report and financial statements.

2     LOSS ON SALE OF DISCONTINUED OPERATIONS

Exceptional items of £2,542,000 relate to the loss on disposal of the Group's
Global Calling Card customer base, which was sold in January 2005.

3     TAXATION ON LOSS ON ORDINARY ACTIVITIES

There is no tax charge for the period.

Unrelieved tax losses of £2.8 million (2004: £1.3 million) remain available to
offset against future taxable trading profits. The unprovided deferred tax asset
at 31 March 2005 is £840,000 (2004: £390,000).

The tax assessed for the period differs from the standard rate of corporation
tax in the UK as follows:

                                                          Year    Period ended
                                               ended 31.3.2005       31.3.2004
                                                         £'000           £'000

Loss on ordinary activities before tax                 (3,537)           (409)
Loss on ordinary activities multiplied by
standard rate of corporation tax in the UK
of 30%                                                  (1,061)           (123)

Effect of
Expenses not deductible for tax purposes                   585               2
Depreciation in excess of capital
allowances                                                  16              26
Deferred tax asset not recognised                          460              95
Current tax charge for period                                -               -


4     LOSS PER SHARE

The calculation of the loss per share is based on the loss on ordinary
activities after tax divided by the weighted average number of ordinary shares
in issue during the year, as set out below.

                              2005                           2004

                 Loss       Weighted    Loss    Loss       Weighted   Loss per 
                      average number     per         average number      share
                           of shares   share              of shares
                £'000                  pence   £'000                     pence


Basic loss    (3,537)     16,189,629  (21.85)   (409)     9,633,624     (4.25)
per share

The impact of the share options on the loss per share is anti-dilutive.


5     RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                                            Year        Period
                                                           ended         ended
                                                       31.3.2005     31.3.2004
                                                           £'000         £'000

Loss for financial period                                 (3,537)         (409)
Issue of ordinary share capital                            1,955         1,993
Net (decrease) / increase in shareholders' funds          (1,582)        1,584
Equity shareholders' funds brought forward                 1,584             -
Equity shareholders' funds carried forward                     2         1,584


6     RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING 
      ACTIVITIES

                                                                2005      2004
                                                               £'000     £'000

Operating loss                                                  (885)     (418)
Cashflows in respect of loss on disposal of discontinued
operation                                                       (145)        -
Depreciation                                                      55        80
Amortisation of goodwill                                         388        26
(Increase) in debtors                                           (826)       (2)
Increase / (decrease) in creditors                             1,163      (201)
Loss on disposal of fixed asset                                    4         -
Net cash outflow from operating activities                      (246)     (515)

     
7     RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                                                 2005     2004
                                                                £'000    £'000

(Decrease) / increase in cash for the period                      (94)     137
Cashflow from capital element of hire purchase contracts          105       39
Change in net funds resulting from cashflows                       11      176
New long term loans                                            (1,250)       -
Hire purchase contracts acquired with subsidiary undertakings       -     (207)
                                                               (1,239)     (31)
Net debt brought forward                                          (31)       -
Net debt carried forward                                       (1,270)     (31)


8     ANALYSIS OF CHANGES IN NET DEBT

                         1 April   Cash flow   Non-cash items    31 March 2005
                            2004
                           £'000       £'000            £'000            £'000

Cash at bank and in
hand                         137         (94)               -               43
Bank loan                      -      (1,250)               -           (1,250)
Hire purchase contracts     (168)        105                -              (63)
                             (31)     (1,239)               -           (1,270)


9     PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.

The consolidated balance sheet at 31 March 2005 and the consolidated profit and
loss account, cash flow statement and associated notes for the year then ended
have been extracted from the Group's 2005 statutory financial statements upon
which the auditors opinion is unqualified and does not include any statement
under Section 237 of the Companies Act 1985.


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