Final Results

Room Service Group PLC
29 May 2002

For Embargoed Release: 0700 hours, 29th May 2002



                             ROOM SERVICE GROUP PLC
                          (formerly The Cube8 Group plc)

               FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2001

Summary

  • Reverse takeover of Room Service, the exclusive restaurant food and dry
    cleaning delivery business, approved on January 4th 2002
  • New board of directors and change of name to Room Service Group plc
  • Continuing disposal of Cube8 assets
  • Room Service food and drink business performing well with the new dry
    cleaning service proving extremely popular
  • Expansion options being explored

Alexander Duma, Chairman of Room Service Group plc commented,

'This has been a important period in the development of the company.  As a
result of the reverse takeover I expect that shareholder value will be
significantly enhanced as there are good prospects for the new Group.'

Further Information:-

Ronnie Pearl
Managing Director
Room Service Group plc
020 7644 6666

Adam Reynolds/Takki Sulaiman
Hansard Communications
020 7735 9415


CHAIRMAN'S STATEMENT

Your present Board of Directors was appointed after the end of the year covered
by these financial statements.  Our appointment followed the completion of the
reverse takeover of the company by Room Service (UK) Limited, which was given
shareholder approval on 4 January 2002.

Last December the then Chief Operating Officer of the Company wrote to you
informing you of the reasons for the reverse takeover - that the investments
within the Group's portfolio were not contributing income to the Group and that
the level of overheads supporting the portfolio was unsustainable.  The
accompanying financial statements bear this out.

Review of operations

The principal changes in the group's portfolio during the year were the
acquisition and subsequent part disposal of the online games service
Freeloader.com Limited, the sale of the Blue Carrots internet shopping portal
and the decision to cease development of the Boris Commerce shopping mall
technology.  Freeloader was acquired in May 2001 for £600,000 in ordinary
shares.  A further £350,000 was invested by way of loans in its development
prior to the decision to sell 61% of the company to its management for a nominal
sum in November 2001.  Our remaining 39% stake in the company was sold in April
2002 for £40,000.

Following losses incurred by Blue Carrots of approximately £500,000 during the
year, the business was sold for £693,000 to Affinity Internet Holdings plc
satisfied by a combination of listed shares in that company and unlisted shares
in the Affinity e-commerce division. Continuing uncertainty in the internet
sector has required us to write down these unlisted shares by £100,000 to
£25,000.

During the year, a further £390,000 was invested in the Boris Commerce operation
prior to its closure in September.  In addition to the above, Planet Three was
placed into voluntary liquidation last July having contributed trading losses of
approximately £190,000 to the Group.

Additional cash investment in the remaining portfolio, principally in the form
of unsecured loans and advances, totalled approximately £430,000.

Despite efforts to reduce the central unrecovered overheads, the value of these
was in excess of £1.75 million over the year.

In addition to the write off of goodwill on the acquisition of Freeloader of
£617,000, during the year under review, further provisions of approximately £2.7
million have been made against the remaining portfolio to reflect the continuing
downturn in the internet, telecoms and technology markets.

The Future

Following a strategic review of the portfolio my fellow board members and I
decided on a strategy to complete an orderly programme of disposal of the
portfolio.  This is not a fire sale and realising maximum value from a diverse
portfolio of mainly unquoted investments will inevitably take some time.
However I hope to be able to report progress on this at the time of our interim
statements.  At that time I will also be reporting upon the first six months of
trading of the group's core business of food and drink delivery and dry cleaning
services.

Alexander Duma
Chairman
28 May 2002




CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2001

                                                                                   2001                   2000
                                                                                  Total                  Total
                                                                                  £'000                  £'000

Turnover - discontinuing activities                                                991                   1,560
Cost of sales                                                                     (380)                  (890)
Gross profit                                                                       611                    670
Administrative expenses                                                          (4,185)                (4,284)
Amounts written off investments                                                  (2,704)                (1,313)
Operating loss - discontinuing activities                                        (6,278)                (4,927)
Profit on sale of business                                                         684                     -
Share of operating loss of associated undertakings                                  -                    (205)
Interest receivable and similar income                                              90                    300
Interest payable and similar charges                                                -                     (2)
Loss on ordinary activities before taxation                                      (5,504)                (4,834)
Tax on loss on ordinary activities                                                  -                     (1)
Loss on ordinary activities after taxation                                       (5,504)                (4,835)
Minority interest                                                                   25                    142
Retained loss for the period                                                     (5,479)                (4,693)
Loss per share                                                                   (1.39p)                (1.66p)
Fully diluted loss per share                                                     (1.38p)                (1.53p)



The group has no recognised gains or losses other than the loss for the year.

None of the Group's activities are classed as continuing.



BALANCE SHEETS
at 31 December 2001


                                                              Group                             Company
                                                     2001               2000              2001            2000
                                                    £'000              £'000             £'000           £'000
Fixed assets                                          

Tangible fixed assets                                  7                 343                -               -
Investments                                           75               1,664               75             5,264
Investments in associates                             -                  3                 -                -
                                                      82               2,010               75             5,264
Current assets

Investments                                          425                 -                197               -
Debtors                                              376                860               457             2,639
Cash at bank and in hand                             728               3,996              655             3,748
                                                   1,529              4,856             1,309             6,387

Creditors: amounts falling due within one           (409)             (1,206)            (208)            (155)
year

Net current assets                                  1,120              3,650             1,101            6,232

Total assets less current liabilities               1,202              5,660             1,176           11,496

Provisions for liabilities and charges              (200)               (15)             (200)            (15)

Net assets                                          1,002              5,645              976            11,481

Capital and reserves                                

Called up share capital                             4,180              3,530             4,180            3,530
Share premium account                               9,371              9,371             9,371            9,371
Profit and loss account                           (12,527)            (7,048)          (12,575)          (1,420)

Equity shareholders' funds                          1,024              5,853              976             1,481
Minority interest                                    (22)              (208)               -                -
Total capital and reserves                          1,002              5,645              976            11,481



CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2001


                                                              2001                               2000
                                                    £'000             £'000              £'000            £'000

Cash outflow from operating activities                               (2,673)                             (2,809)

Returns on investments and servicing of
finance

Interest received                                    90                                   300
Interest paid                                         -                                   (2)
                                                                        90                                 298

Taxation                                                                -                                   -

Purchase of tangible fixed assets                                      (36)                               (327)

Acquisitions                                        

Acquisition of fixed asset investments              (651)                               (2,040)
Acquisition of investments in associates              -                                  (716)
Loans and advances to fixed asset investments       (98)                                 (130)
Loans and advances to associates                    (509)                                (284)
Acquisition of subsidiaries                         (18)                                 (14)
Net overdraft acquired with subsidiaries              -                                  (35)
                                                                     (1,276)                             (3,219)
Disposals                                                                              

Cash balances of discontinued activities            (77)                                   -
Sale of business                                     684                                   -
Sale of tangible fixed assets                        18                                    -
                                                                       625                                  -

Financing                                                               

Issue of equity shares                                                  -                                 9,975
(Decrease)/increase in cash in the period                            (3,268)                              3,918


NOTES

1       Earnings per share are calculated on a net basis using the profit on
ordinary activities after taxation and the weighted average number of shares
detailed below.

For fully diluted earnings per share, the weighted average number of shares is
adjusted for the effect of potentially dilutive share options issued under the
Group share option schemes.


                                                                                      2001               2000
                                                                                     £'000              £'000

Basic and diluted losses attributable to ordinary shareholders                      (5,479)            (4,693)

                                                                                     Number              Number
Weighted average number of ordinary shares                                        395,029,879        282,552,595
Diluted share options                                                              2,777,800          24,487,650
Adjusted weighted average number of ordinary shares                               397,807,679        307,040,245
Loss per share                                                                      (1.39p)            (1.66p)
Fully diluted loss per share                                                        (1.38p)            (1.53p)


2.       The financial information set out in this document does not constitute
statutory group accounts.

3.           The report and accounts for the year to 31 December 2001 will be
posted to shareholders shortly and, after being laid before the Annual General
Meeting, will be delivered to the Registrar of Companies.

4.           The Annual General Meeting will be held at 20 Eastbourne Terrace,
London on 17 July  2002 at 11am

                      This information is provided by RNS
            The company news service from the London Stock Exchange