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Fidelity Systems PLC (FID)

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Friday 11 June, 2010

Fidelity Systems PLC

Final Results


Fidelity Systems plc

Chairman's Statement

for the year ended 28th February, 2010

It gives me great pleasure in presenting Fidelity's final results for the
financial year ended 28th February 2010.

As reported in our interim figures we suffered, as many companies did, in the
first half of our financial year due to the credit crunch affecting corporate
expenditure. Things picked up however in the second half of the financial year
to give a final result, which although not as good as the previous year was
never the less entirely acceptable given the state of the UK economy.

Results

The group achieved a turnover of £1,389,446 for the year to 28th February 2010
(compared to £1,425,332 for the last financial year to 28th February 2009).

Gross profit margins were 78% compared to 2009 (75%). Profit on ordinary
activities before taxation was £170,126 compared to the previous year (£
240,695)

We still have a strong balance sheet with a cash balance at the end of the year
of £992,632 after the payment of the dividend and a surplus of current assets
over current liabilities of £1,174,872.

The group's profit after taxation has been added to reserves.

Operating Review

Last year we won orders from thirteen new Higher Education clients for
Fidelity's EPoS hardware and software and now supply a total of seventy
universities and colleges in the UK. In September we announced the signing of a
Partnership agreement with Magna Carta Chipcard Solutions BV., one of the
leading suppliers of cashless payment systems in Europe. Magna Carta's
technology enables a single smart card to be used as a method of payment for
printing, photocopying, catering and vending together with other uses such as
campus access control, car parking, time & attendance and lockers. The
partnership with Magna Carta has given Fidelity access to their smart card
technology and will enable both companies to jointly approach this new market
in the UK. I am pleased to be able to report that our first contract has been
gained for this new and exciting system - see Post Year End.

Research & Product Development

R&D has continued during the last year with numerous new products and updates
being introduced to either complement or update the current range.

Interim Dividend

I was pleased to be able to announce that an interim dividend of 0.35p net per
10p ordinary share was to be paid on Friday 8th May 2009 to shareholders on the
register at the close of trading on Friday 17th April 2009

Post Year End

Together with our partner Magna Carta Chipcard Solutions BV, I am pleased to
announce that despite having serious competition, we successfully won the
tender for a complete campus chip card solution for the University of Keele.
This is to be installed over the summer and will give Keele facilities for
cashless payments throughout the campus. I will report on this more fully in a
later trading statement.

Prospects & Outlook

During the last financial year we invested heavily in marketing to try and
increase our market penetration during the harsh trading conditions. This
included the introduction of three new web sites to promote all areas of
Fidelity's software and services. Hopefully this will pay off in the long run
as the economy recovers. We have restructured our Northampton office to improve
group profitability by incorporating the accounting and admin functions within
our head office in Hull. The branch still remains as an active sales and
service centre but the consolidation should result in quite substantial
savings. We are building up a very full order book for installations due to
take place over the summer and despite the economic uncertainties at the moment
demand for our products is still healthy.

I look forward to be able to announce further progress in the first half of our
new financial year.

Paul Lowsley

Chairman

Fidelity Systems Plc - Audited Group Profit and Loss Account

for the year ended 28th February, 2010

                                           2010               2009       
                                                                              
                                             £                  £         
                                                                              
Turnover                                                                      
                                                                              
Continuing                               1,389,466          1,425,332         
                                                                              
Total turnover                           1,389,466          1,425,332         
                                                                              
Profit on ordinary activities before       170,126            240,695           
taxation                                                                      
                                                                              
Tax on profit on ordinary activities        27,668             21,500            
                                                                              
Profit on ordinary activities after        142,458            219,195           
taxation                                                                      
                                                                              
Dividends                                                                     
                                                                              
Retained profit for the financial period   142,458            219,195           
                                                                              
Profit per share - basic                     0.46p              0.71p             

Fidelity Systems Plc - Audited Group Balance Sheet

at 28th February, 2010

                                            2010               2009       
                                                                              
                                             £                  £         
                                                                              
Fixed assets                               283,472            297,976           
                                                                              
Current assets                           1,299,812          1,229,005         
                                                                              
Current liabilities                        124,940            106,155           
                                                                              
Net current assets                       1,174,872          1,122,850         
                                                                              
Total assets less current liabilities    1,458,344          1,420,826         
                                                                              
Creditors: amounts due after more then                                        
one year                                                                      
                                                                              
Provisions for liabilities and charges     (6,104)            (3,037)           
                                                                              
Net assets                               1,452,240          1,417,789         
                                                                              
Capital and reserves                                                          
                                                                              
Called up share capital                  3,094,027          3,086,381         
                                                                              
Share premium account                      651,301            651,301           
                                                                              
Other reserves                           (2,494,050)        (2,494,050)       
                                                                              
Profit and loss account                    200,962            174,157           
                                                                              
Equity shareholders' funds               1,452,240          1,417,789         


                                                                                                                                                                                                                                                              

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