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Fidelity Systems PLC (FID)

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Friday 25 September, 2009

Fidelity Systems PLC

Half-yearly Report



I am pleased to present Fidelity's interim results for the period ending 31st
August 2009. Although not on a par with the same period last year, still
entirely acceptable and in line with our projections, taking into account the
dire status of the UK economy.

As I stated in my year end report, Fidelity's education sector clients still
account for a large proportion of income and this year has been no exception,
with orders being placed by eight new Universities for complete EPoS
(Electronic Point of Sale) and cashless payment systems to be installed over
the summer. In addition, a further seven existing University clients placed
orders for new systems or upgrades to existing ones, again for installation
over the summer break. Fidelity now have around seventy University and College
clients using our unique solution.

The new EPoS back office software, TC Premier which was launched in June has
been particularly well received and has started to produce income having been
sold to all of the new University clients.

Fidelity's reseller channel has been hit particularly hard by the lack of
funding by the banks. The resellers are winning contracts but the banks,
despite being bailed out by public funds, continue to withhold finance to small
businesses. The licence trade, which represents a large proportion of our
resellers revenue, has been particularly affected. This knock on effect has
seen many orders from our dealers being delayed or even postponed in some
cases. Things have improved though over the last three months (June, July &
August) and we can only hope that the economy picks up and the banks begin
making funds available again.

New Appointments

We are pleased to announce the appointment of John Ruston to the post of dealer
sales manager. John has considerable experience in this roll having been
employed by Casio Electronics in a similar roll for the past nine years. Having
a total understanding of the market John has already recruited many new dealers
and has improved the sales to existing ones.

Sam Sharpless has been promoted to the position of Operations Director from his
role as General Manager. Sam has been with Fidelity for more than ten years and
has considerable experience not only in Fidelity's products but also in the
industry as a whole.

Post Interims

In September we signed a partnership agreement with Magna Carta Chipcard
Solutions B.V., a leading provider of unmanned payment systems in the
Netherlands. We aim to jointly deliver systems and solutions to the UK Higher
Education sector. This partnership will open up many new opportunities for
Fidelity, both in the UK and abroad and I look forward to bringing further news
on this in subsequent trading reports.


Once the banks start supporting businesses again the economy should start to
improve. It's time our esteemed leaders put pressure on the banks to address
this but as usual, being politicians, they seem more inclined to put the effort
into feathering their own nests whilst leading the UK into oblivion.

As in my previous report at the end of last financial year I shall continue to
keep a tight hold of the purse strings without cutting back on our level of
support. Our balance sheet continues to increase and we are still developing
and improving existing products. Overall Fidelity's position is still extremely
strong in our market place and we continue to explore new avenues for our
products. On a more positive note, with many of Fidelity's competitors falling
by the wayside, we will be in an extremely good position to take advantage of
this when the time is ripe.

Paul Lowsley


25th September 2009


                                      Half Year             Half Year

                                       31.08.09              31.08.08

                                         GBP                    GBP

Turnover                                706,260                748,443

Cost of Sales                           149,671                144,133

Gross Profit                    (78.8%) 556,589         80.7%) 604,310

Administration Expenses                 434,970                422,925

Operating Profit / Loss                 121,619                181,385

Interest Receivable                       6,076                 19,753

PROFIT / LOSS ON ORDINARY ACTIVITIES    127,695                201,138

EARNINGS PER SHARE                        0.42p                  0.67p

The interim accounts and comparative figures have been prepared on a basis of
accounting policies consistent with those used in the Group's audited accounts
for the year ended 28th February 2009. The financial results have not been
audited but have been reviewed by the auditors



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