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Osprey Comms. (OSPY)


Friday 01 December, 2000

Osprey Comms.

18 Months Rslts to 31/03/2000

Osprey Communications PLC
1 December 2000

                          Osprey Communications plc
          Final Results for the Eighteen Months ended 31 March 2000

Chairman's Statement

This  has  been a particularly difficult period for the Group.  The financial
results for the extended period of trading covering the eighteen months ended
31  March  2000 show a loss of £1.39m.  This is after charging  £176,000  net
interest  payable  and exceptional charges of £382,000 relating  to  the  re-
organisation  of  the  London  operations and redundancies.   The  Group  had
extended  its year-end because we were pursuing the possibility of a  reverse
take-over  of  HLM  Architects Limited.  The outcome  depended  upon  raising
substantial  funs.   Unfortunately, partly because of the  prevailing  market
conditions this proved impossible.

The Group has faced many difficulties during the period and several important
and  urgent  decisions  have  already  been  taken  to  improve  the  Group's
profitability.   There  are  still  a  number  of  steps  that  need  to   be
successfully undertaken if we are to achieve our goal.

In  September 2000 the business and assets of Osprey London Limited were sold
to Interfocus Group Limited for an initial consideration of £750,000.  Future
payments  on this transaction are expected to be received up to a maximum  of
£1.25m.  However, this is entirely dependent on the future  revenues  of  the
former  clients  of  Osprey  London Limited.  The initial  consideration  was
largely  used to reduce the secured overdraft from National Westminster  Bank
Plc.   As  there  are  insufficient funds to meet Osprey  London's  remaining
creditors,  and the deferred consideration payments are due by  30  September
2001,  it  was  decided  to  place Osprey London Limited  under  a  Corporate
Voluntary Arrangement.

Chris Still, until recently, Chief Executive of the Group and Lester Corney a
Group  Director  have  both  joined Interfocus  Limited  and  have  therefore
resigned  form the Board.  During September 2000 both Dennis Murphy and  Alex
Hammond  Chambers  submitted resignations.  I would like to  thank  them  for
their  contribution  over  the  years.   We  wish  them  well  in  their  new

The   Group  sold  the  business  of  Osprey  Lime  Limited  for  an  initial
consideration  of £140,000.  Further receipts are unlikely.  The  Group  sold
the  business  assets  and  liabilities of Osprey  Future  Image  Limited  to
management for a total consideration of £80,000, receivable over 12 months.

I  have resumed the role of Executive Chairman and have appointed Munir Samji
as  Director  of  the  Group.  Mr Samji was at one time finance  director  of
Dorland  Advertising  Limited  and Joint Managing  Director  of  Saatchi  and
Saatchi  Advertising  Europe.  We are now working together  in  a  determined
effort to restore the Group's prospects.

Following  the  disposal of Osprey London's business, we have  moved  out  of
Central London to smaller offices in Wembley.  This move has assisted us in a
significant reduction in our ongoing overheads.

We  are  in  the course of raising further funding to provide a platform  for
future  developments as well as to reduce our indebtedness.  Funds will  also
be  needed  to support the two remaining businesses, Osprey RMA  Limited  and
Osprey Scotland Limited, both of which are trading profitably.

Osprey  RMA Limited in particular has, despite the difficulties of the Group,
shown  itself to be particularly robust.  Its profits for the period of  this
report were £530,000 before head office recharges.  Recently its profits have
been further enhanced through the addition of new business.

Along  with this Annual Report & Accounts, we are sending to each shareholder
a  Document that sets out proposals for a Capital Reorganisation, Open  Offer
for  new  ordinary shares, Capitalisation of Loans, Reduction of Capital  and
Admission  to  trading on the Alternative Investment  Market.   We  are  also
seeking  your  approval  for the appointment of Stephen  Barclay  as  a  non-
executive Director.  Mr Barclay is Executive Vice Chairman of Seymour  Pierce
Group  Plc.  We believe that these measures, if approved, will stabilise  the
position  of  the  Group, and enable your Board to pursue  other  courses  of
action  to take the Group forward.  AS the Open Offer for new ordinary shares
has  been fully underwritten, the Accounts for the period ended 31 March 2000
have been prepared on a 'going-concern' basis.

J Rubins, Chairman
1 December 2000

Consolidated Profit and Loss Account

                                           Months         Year
                                            ended        ended
                                         31 March           30
                                             2000    September
                                             £000         £000
Turnover                                   25,374       24,313
Cost of sales                            (16,231)     (16,333)
Gross Profit                                9,143        7,980
Administrative expenses                  (10,356)      (8,216)
Operating loss and loss on ordinary                           
activities before interest                (1,213)        (236)
Net interest payable                        (176)        (113)
Loss on ordinary activities before        (1,389)        (349)
Tax charge on loss on ordinary                  1         (67)
Loss for the period                       (1,390)        (416)
Basic and diluted loss per share          (4.62)p      (1.39)p

The  results  for  the  Group for the period related entirely  to  continuing
operations within the meaning of Financial Reporting Standard No. 3.

Consolidated Balance Sheets

                                          At 31         At 30
                                          March     September
                                           2000          1998
                                           £000          £000
Fixed Assets                                                 
Tangible assets                             611           876
Current Assets                                               
Work in progress                            197           414
Debtors                                   2,455         4,085
                                          2,652         4,499
amounts falling due within one year     (5,688)       (6,548)
Net current liabilities                 (3,036)       (2,049)
Total     assets    less    current     (2,425)       (1,173)
amounts falling due after more than           -           (2)
one year
Net liabilities                         (2,425)       (1,175)
Capital and reserves                                         
Called up share capital                   7,516         7,516
Share premium account                       438           438
Shares to be issued                           -           250
Profit and loss account                (10,379)       (9,379)
Equity shareholders deficit             (2,425)       (1,175)

Consolidated Cash Flow Statement

                                         Months    Year ended
                                          ended            30
                                       31 March     September
                                           2000          1998
                                           £000          £000
Net cash inflow from operating              457           597
Return on investments and servicing       (176)         (101)
of finance
Taxation                                   (68)             -
Capital expenditure and financial         (236)         (236)
Acquisitions and disposals                 (10)           (2)
Net cash inflow/(outflow) before           (33)           258
Capital element of finance lease                             
and hire purchase rentals                  (27)          (74)
Loans received/(repaid) from                150         (216)
Receipt/(repayment) of other loans          300          (71)
Net cash inflow/(outflow) from              423         (361)
Increase/(decrease) in cash                 390         (103)

1.    The results have been prepared under the historical cost convention and
  in accordance with applicable accounting standards using accounting policies
  that have been applied consistently.
2.    The  financial  information  set out  above  does  not  constitute  the
  Company's statutory accounts for the 18 month period ended 31 March 2000. The
  information relating to the year ended 30 September 1998 has been extracted
  from  the  1998  Annual Report and Accounts which received  an  unqualified
  auditors' report and have been delivered to the Registrar of Companies.

3.    The  Report and Accounts for the period ended 31 march 2000  have  been
  prepared  and will be mailed to shareholders on 1 December 2000 and  copies
  will be available from York House, Empire Way, Wembley, Middlesex HA9 0PA.

For further information please contact;

Osprey Communications plc          020 8795 4559
Jack Rubins
Munir Samji

Seymour Pierce Limited             020 7648 8700
Sarah Wharry


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