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GB Group PLC (GBG)

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Wednesday 29 May, 2002

GB Group PLC

Preliminary Results

GB Group PLC
29 May 2002


                      GB GROUP PLC
                            
  Preliminary Results for the Year Ended 31 March 2002
                            
                       Highlights


* GB  was reorganised during the year to focus on its
  Customer Relationship Management ('CRM') activities.  The
  Group disposed of its loss making Travel Interests for a
  cash  consideration of £4.0 million  and  Richard  Law,
  formerly  the  Finance Director,  was  appointed  Chief
  Executive to head up a new executive management team.

* The  Group's continuing CRM business is  profitable
  and  cash generative. In the year ended 31 March  2002,
  turnover from CRM increased by 8% to £12.0 million (2001:
  £11.1 million) and the operating profit, that is profit
  before head office costs, goodwill, interest and taxation
  was £1.1 million (2001: £1.1 million).

* The Group's strategy is now to grow its CRM business
  organically  to  increase its  market  presence  whilst
  improving the efficiencies of existing operations and to
  make strategic investments where appropriate.

* Cash generated from the Group's operating activities
  was £0.7 million (2001: £0.7 million cash consumed).

* Head  Office costs of £0.5 million are expected  to
  reduce to £0.3 million in the next  year following  the
  disposal of the Travel Interests.

* Exceptional  costs  primarily associated  with  the
  write-off of goodwill on disposal of the Travel Interests
  were £2.2 million. Of these costs, £0.3 million involved
  cash outflows while £1.9 million were non-cash items.

* Overall,  the Group's retained loss after  goodwill
  amortisation, exceptional costs and taxation  was  £1.7
  million (2001: £2.1 million).

* At 31 March 2002, the Group had net cash balances of
  £5.3  million  (2001:  £1.3 million)  and  the  current
  cashflows are positive.  On 28 May 2002, the Group  had
  net cash balances of £6.1 million.

* Commenting  on  the  results, John  Walker-Haworth,
  Chairman,  said:  'I  am pleased to  report  that  real
  progress has been made during this past year and GB  is
  now  a focused and profitable business.  We are pleased
  with our progress to date.'


For further information, please contact:

GB Group plc                                             
Richard Law, Chief Executive                 01244 657333
                                                         
Weber Shandwick Square Mile                              
Richard Hews                                020 7950 2800
Trish Featherstone                                       


CHAIRMAN'S  STATEMENT

I am pleased to report to you that real progress has been
made   during  this  past  year,  and  now  your  Company
comprises a focused and profitable business

Sale of Travel Interests and Reorganisation

The  Group's  Travel Interests, which were  loss  making,
were  sold in December 2001 for £4 million in cash.   (It
is  also  possible a further £1 million may  be  received
dependant  upon  an increased level of  turnover  of  the
Travel Interests during 2002 under their new ownership.)

Following  this  sale, the management of  the  Group  was
reorganised  and  Richard  Law,  previously  the  Finance
Director  of the Group, was appointed Chief Executive  to
lead a new management team drawn from within the Customer
Relationship  Management  ('CRM')  business.   Also,  the
Group  changed its name from Telme Group plc to GB  Group
plc ('GB');  GB is the brand name under which the Group's
CRM activities are carried out.

Graham  Ramsey was Chief Executive of the Group for  five
years  before leaving last December to run a  substantial
international  travel business, enlarged by  the  Group's
Travel  Interests, and he subsequently  relinquished  his
role  as  a  non-executive director.  Graham steered  the
Group with skill and tenacity through the difficult times
of  the  dot.com  boom and bust, and  more  recently  the
turbulence  of the travel sector during the last  quarter
of  2001.  We thank him for all he did for the Group, and
wish him well.

Continuing Business

The  result of the sale of the Travel Interests has  been
to  give  the  Group a clear focus on its CRM activities,
and  this, together with good demand in our markets,  has
resulted   in  an  underlying  improvement  in  financial
performance.   Our net cash balance at 28  May  2002  was
£6.1 million.

The  Group's strategy for the coming year is to grow  our
business  in  the CRM sector organically, whilst  at  the
same time to increase our own internal efficiency and, in
turn,   our margins.  We expect our development  team  to
enhance  our  existing products and devise  a  number  of
interesting   new  ones.   We  may  also  make   relevant
investments and acquisitions if we consider these  to  be
for the Group's long-term benefit.

Prospects

As  expected,  sales in the present financial  year  have
started  quietly, but we expect an increase  in  pace  in
line with the seasonal  trend of previous years.  We  are
pleased with our progress to date.


JL Walker-Haworth
Chairman
CHIEF EXECUTIVE'S REVIEW



Overview

This has been a year of positive change and progress  for
the business. The sale of the Group's Travel Interests in
December 2001 means that the Group is now firmly  focused
on   its   profitable  Customer  Relationship  Management
('CRM')  activities and is operating in a rapidly growing
and exciting market.

The   effect  of  the  disposal  of  the  Group's  Travel
Interests has been as follows:

*  The concentration on a single sector, with a sharper
   management   focus,  has  resulted  in  a  significant
   improvement in financial performance in the final quarter
   to  31  March  2002 through increased sales,  improved
   efficiency and higher margins.

*  The  Group  is profitable and cash generative.   As
   explained  in the Financial and Operating  Review  the
   Group's CRM activities generated operating profits, that
   is profits before head office costs, goodwill, interest
   and tax, of £1.1 million in the year to 31 March 2002.

*  The Group changed its name to GB Group plc (GB) and
   the business has been rebranded with a fresh new image.
   This has been well received by our clients and employees
   alike.

*  GB  now  has  cash resources with which  to  pursue
   opportunities in its marketplace.  At 31 March 2002, the
   Group had net cash balances of £5.3 million compared to
   £1.3 million a year earlier.  As at 28 May 2002 net cash
   balances were £6.1 million.

The Continuing GB Business

GB is one of the UK's leading CRM businesses specialising
in  customer and marketing data. We help our  clients  to
find, keep and get to know their most valuable customers.
We  do  this  by  using  advanced information  technology
together   with  GB's  National  Register(r) database  to
maximise  the  value of our clients' data.  GB  has  four
different  product  and  service offerings;  DataCapture,
DataManagement,   DataCare  and  DataInsight.   Each   is
dedicated to enhancing the customer information  held  by
our  clients, whether checking the accuracy of names  and
addresses  or  finding out more about people's  lifestyle
habits. This type of information is valuable to companies
who   want  to  forge  better  relationships  with  their
customers  and  increase  sales  of  their  products   or
services.

The three fundamental building blocks, which enable GB to
provide  its  products and services successfully  are  as
follows:

People

Talented  people  are  GB's  most  important  asset.  The
business  now  employs  139  highly  skilled  people  who
provide  the essential mix of management, sales,  support
and  business  development skills required  to  grow  the
business.  The average age of our people is only  34  but
many  are  long serving.  This means that GB is  able  to
combine  experience  and knowledge  with  enthusiasm  and
ambition to provide first class products and services  to
our  clients.  A new team of talented managers  has  been
drawn from within the CRM business to create an executive
management  board and an environment has been created  to
incentivise and motivate these managers to succeed.

Clients

GB's  clients include many household names such as BskyB,
WH  Smith,  NPower and Thomas Cook and  the  business  is
growing  organically by expanding the range  of  services
provided to these and our other clients.  Referrals  from
satisfied clients account for a significant proportion of
new  business and this has enabled GB to develop a market
leading  presence  in  sectors such  as  utilities.   The
products  and  services  provided  to  GB's  clients  are
usually  provided over a contractual period of  at  least
one year  and  a significant proportion of GB's  business
involves  renewals.  This means that once  a  product  or
service  is  sold to a client, revenue will  continue  to
come in each year unless the contract is cancelled. As  a
result,  GB's  earnings are of a  high  quality  and  the
repeat  nature of revenues means that sales and marketing
resource  can  be  directed principally  towards  further
expanding our client base.

Products and Services

GB  provides its clients with an extensive range  of  CRM
solutions.  We work with clients right from  the  initial
capture   of  their  customers'  data  through   to   its
management   and  updating  as  well  as   analysis   and
interpretation of that data.  One of GB's  key  strategic
objectives  is to ensure that our products  and  services
remain the best in the market. GB's products and services
are  underpinned by the National Register(r),  a  regularly
updated database of 48 million individuals and households
developed  and  owned  by  GB.  Industry  observers  have
described   the   National   Register(r)  as  the    most
comprehensive data set available in the UK.

Future Strategy

The Group's strategy for the coming year and beyond is to
remain  firmly focused on the CRM sector and to grow  the
business  organically whilst improving the efficiency  of
existing   operations.   We  will  also  make   strategic
investments and acquisitions where this makes sense.  The
market  for  our products and services is  continuing  to
expand  and  we  are committed to increasing  our  market
presence.  Progress towards achieving our strategy in the
period  since  the  disposal of Travel  Interests  is  as
follows:

*  A  strong  performance in the final quarter  to  31
   March  2002  enabled the CRM business  to  achieve  an
   operating  profit, that is profit before  Head  Office
   costs, goodwill, interest and tax, of £1.1 million.  This
   was  in line with last year's full-year result despite
   being £0.5 million behind at the half-year stage.

*  The  positive progress achieved at the end of  last
   year has continued.  Although sales are seasonally slow
   in the early months of the year our performance in the
   year-to-date is ahead of last year and Head Office costs
   for the CRM business have been reduced by approximately
   half.

*  Internal reorganisation throughout the business has
   improved  communication  and,  with  the  aid  of  new
   management  information systems, the business  is  now
   working  smarter. In addition, new managers have  been
   appointed to head up key areas of the business such as
   research and development and value added reseller sales.

*  GB  has  commenced,  and  will  continue  with,  a
   proactive  approach  to sales and marketing  aimed  at
   increasing  awareness  of its products,  services  and
   brands.   The commitment for the current  year  is  to
   increase marketing spend by around 40% compared to last
   year.

*  Internal  efficiency  initiatives  backed  by  new
   computer systems are starting to deliver improved margins
   from  our service businesses.  The benefits from these
   measures aimed at both existing and new contracts, are
   expected to continue throughout the year as existing long-
   term contracts come to an end and are renegotiated.

*  We  are  in the process of increasing our  business
   development resource to increase the flow of new business
   opportunities and initiatives.  In February  2002,  GB
   acquired  a  25% interest in PostcodeID Limited  which
   produces voice-activated data capture software to  the
   growing call centre market.

Regulation and the Use of Data for Marketing Purposes

GB's  National  Register (r) and a number of GB's  other
products  and  services make use of Electoral  Roll  data
which  is  sold  on to our clients for use  in  marketing
campaigns  and for purposes of data analysis.   Electoral
Roll  data,  compiled by local authorities, is  currently
available  publicly in its complete form.   From  October
2002,  as  a  result of a change in the law,  individuals
will  be able to opt out of allowing their Electoral Roll
details  to  be  used  for  marketing  purposes   and   a
proportion  of the population is expected to follow  this
course.  Whilst this choice will mean that it will be
less  comprehensive for all operators engaged in the  CRM
industry,  we  believe  that  the  Electoral  Roll   will
continue to be a valuable source of information  for  our
clients.   GB is currently developing relationships  with
other owners of data with the aim of securing alternative
sources of data to the Electoral Roll.

Reduction of Capital

In  March  2002, the Company obtained approval  from  the
High Court to offset £28 million of historical losses  in
its  company  balance  sheet against  the  share  premium
account.   This  is a positive move aimed at  giving  the
Company   the   option   to  pay   dividends   from   its
distributable profits in the future without first  having
to  generate sufficient profits to cancel out  historical
losses.

Summary

GB  is  entering a challenging and exciting stage in  its
development and we look forward to a positive year ahead.


RA Law
Chief Executive
FINANCIAL AND OPERATING REVIEW


Overview

As   outlined  in  the  Chairman's  Statement  and  Chief
Executive's Review the most significant event during  the
financial  year  has  been the  disposal  of  the  Travel
Interests.   At the last year-end, the Group's activities
comprised  of  three  trading divisions:  CRM,  Corporate
Travel and Online Services.  The Travel Interests,  which
were  disposed  of,  comprised the Corporate  Travel  and
Online  Services divisions.  The disposal of  the  Travel
Interests accounts for the downturn in Group turnover and
gross  profit shown in the profit and loss account.   The
underlying  turnover  and  gross  profit  trend  for  the
continuing CRM business was upwards.

The  Group  achieved operating profits  of  £0.4  million
(2001:  £0.8 million loss) before exceptional  costs  and
goodwill  amortisation.  The exceptional  costs  of  £2.2
million  (2001: £0.6 million) relate principally  to  the
disposal  of  the Travel Interests, and were  principally
non-cash  items  including the  impairment  of  goodwill.
Goodwill  amortised  during the  year  was  £0.6  million
(2001: £0.7 million).

The   retained   loss   for  the  year   after   goodwill
amortisation,  exceptional items and  taxation  was  £1.7
million  (2001:  £2.1  million).  Despite  the  loss  the
Group's   operations  generated  £0.7  million  of   cash
because, as outlined above, many of the large exceptional
items had no cash impact.

Accordingly, the Group's cash position and liquidity  has
improved significantly with net cash balances at the year-
end of £5.3 million (2001: £1.3 million).

Turnover

Turnover   attributable  to  the  continuing   businesses
increased  during the year by 8% to £12.0 million  (2001:
£11.1    million).    Turnover   attributable   to    the
discontinued  businesses at £5.2 million was  lower  than
that  reported last year as a result of the  disposal  of
these businesses during the year.

Continuing Business: CRM

The  CRM business provides software and services to major
corporates   enabling  them  to  have  a  more   in-depth
understanding  of  their customer's  current  and  future
needs  by  giving  them the ability  to  record  and  use
customer   data  accurately  and  effectively.   Turnover
increased  by  8% to £12.0 million (2001: £11.1  million)
and was the result of organic growth.

Discontinued Business:  The Travel Interests

The  Travel Interests comprised the Corporate Travel  and
the  Online  Services divisions.  The  results  of  these
divisions have been incorporated in the Group results for
the  9  month  period to 31 December 2001 - the  date  of
their  disposal.  On a like for like comparison, turnover
increased  by 5.5% to £5.2 million compared to  the  same
period last year.  At the half-year to 30 September 2001,
the   Travel  Interests  turnover,  which  had  not  been
significantly impacted by the events of September  11  at
that stage, had increased by 13% compared to the previous
half-year.

Gross Profit and Cost of Sales

Gross profit margin for the Group for the year reduced by
3%  to  68% (2001: 71%).  The principal reason  for  this
reduction is the change in sales mix as a result  of  the
disposal  of  the  Travel Interests.  Turnover  from  the
Corporate  Travel division represents the  commission  on
travel bookings and carried no cost of sales.  This  gave
rise to a 100% gross margin.  The underlying gross margin
on  the continuing business remains broadly in line  with
last year at 56%.

Other Operating Expenses

Other  operating expenses excluding goodwill amortisation
and  exceptional  items were £11.4 million  (2001:  £13.7
million).  Operating expenses for the continuing business
increased  by  11% to £6.1 million (2001: £5.5  million).
Included  in  the operating expenses for  the  continuing
business are head office costs of £0.5 million which  are
expected to reduce to £0.3 million per annum next year.

Exceptional  operating costs of £2.2 million (2001:  £0.6
million),  associated with discontinued operations,  were
incurred  during  the year.  The exceptional  costs  were
principally as a result of the impairment of goodwill  on
the Travel Interest divisions and other costs arising  as
a  result of the disposal of these businesses.  Of  these
costs, £0.3 million involved cash outflows of which  £0.1
million  had  been  paid  by 31 March  2002,  while  £1.9
million were non-cash items.

Goodwill Amortisation

The  goodwill  amortised during the year ended  31  March
2002 was £0.6 million (2001: £0.7 million).  Included  in
the £2.2 million of exceptional costs described above  is
an  additional  impairment provision of £1.8  million  in
respect of the Travel Interests.

Group Profit/Loss

The  Group  operating profit before goodwill amortisation
and  exceptional  items  was  £0.4  million  (2001:  £0.8
million  loss).   After  the  amortisation  of  goodwill,
exceptional items and taxation, the Group loss  was  £1.7
million (2001: £2.1 million).

Customer Relationship Management

The   CRM  division  generated  operating  profit  before
goodwill   amortisation  of  £1.1  million  (2001:   £1.1
million).   After  the amortisation of goodwill  of  £0.4
million  (2001:  £0.4 million) operating profit  for  the
year was £0.7 million (2001: £0.7 million).

Travel Interests

Travel  Interests,  which comprise the  former  Corporate
Travel and Online Services divisions, generated operating
losses before goodwill amortisation and exceptional costs
of   £0.2  million  (2001:  £1.4  million).   After   the
amortisation  of  goodwill of £0.1  million  (2001:  £0.2
million)  and  exceptional costs of £2.1  million  (2001:
£0.2  million)  the net operating loss was  £2.5  million
(2001: £1.8 million).

Head Office

Head Office comprises the cost of the Group's head office
function  and  the cost associated with  being  a  public
limited  company.  Head Office costs were  £0.5  million.
Annualised Head Office costs moving forward are now  £0.3
million.

Profit from Interest in Associated Undertaking

The  Group acquired 25% of PostcodeID Limited for £25,000
in  February 2002.  Following the investment, new  shares
were  issued  by Postcode ID Limited for  cash  to  other
investors  and  at 31 March 2002, the Group  held  23.2%.
The  Group's share of the pre-tax profits for the  period
ended 31 March 2002 was £12,000.

Disposal of Subsidiary Undertakings

In  anticipation of the disposal of the Travel  Interests
for  consideration  agreed in outline  an  impairment  of
goodwill   provision  was  recognised  in   the   interim
accounts.   This  impairment is shown as  an  exceptional
cost as it was created in advance of the disposal.  As  a
result  of this impairment there was no loss on  disposal
of  the  subsidiary to be recognised at the time  of  the
sale.

Interest Receivable Less Payable

Interest is earned on cash balances which are invested in
accordance  with  the Group's treasury policy.   Interest
payable  arose  on mortgages, loans, finance  leases  and
overdrafts.  Net interest receivable increased during the
year as a result of the increased cash balances following
the disposal of the Travel Interests and the transfer  of
mortgages, loans and overdrafts with the sale.

Taxation

The  Group  did  not incur a taxation charge  during  the
year.  Taxation provisions of £0.1 million, which are  no
longer  required, were released to the  profit  and  loss
account.

At  31  March 2002, the Group had potential deferred  tax
assets  of  £7.5 million of which £0.4 million  has  been
recognised  in the accounts in accordance  with  FRS  19.
Trading losses carried forward were £19.8 million  (2001:
£19.6  million)  and  capital losses  were  £1.7  million
(2001: £0.2 million).

Amounts Transferred from Reserves

The  amount transferred from reserves to cover losses was
£1.7 million (2001: £2.1 million).

Financial Instruments

At   31  March  2002,  the  Group's  principal  financial
instruments  comprise hire purchase contracts,  cash  and
short-term deposits.

Balance Sheet and Liquidity

The  principal influences on the balance sheet during the
year  have been the ongoing profitable operation  of  the
CRM  business  and the disposal of the Travel  Interests.
The  overall impact has been to increase Group  liquidity
as  a  result of the cash inflow from operations and  the
disposal  and  to  reduce  the  size  of  trade   debtors
associated  with the travel business and  the  associated
risk.   Net assets have reduced by £1.8 million to  £13.3
million (2001: £15.1 million), however, the current ratio
and  liquidity has improved significantly.  The principal
movements,   other  than  trade  debtors  and   creditors
associated  with  the  Travel Interests,  have  been  the
reduction  in  intangible assets of £4.3 million  and  an
increase  in cash balances of £3.5 million.  Explanations
of  the  most significant movements in the balance  sheet
during the year are as follows:

Intangible Assets

The  carrying value of intangible assets at 31 March 2002
was  £7.3 million (2001: £11.6 million).  During the year
the  Group disposed of the Travel Interests, the carrying
values  of the intangible assets in respect of the Travel
Interests  at  the  date of disposal  was  £1.8  million.
Goodwill   amortisation   and   amortisation   of   other
intangible assets associated with Travel Interests during
the  year was £0.6 million and £0.1 million respectively.
In addition, an impairment review of the Travel Interests
was  carried  out leading to an impairment  provision  of
£1.8 million prior to the disposal which was reflected in
the half-year accounts.

Cash and Short-Term Deposits

At  31  March  2002,  the Group had cash  and  short-term
deposit  balances of £5.3 million (2001:  £1.8  million).
There were no overdrafts (2001: £0.5 million) giving  net
cash  balances  available to the Group  of  £5.3  million
(2001:  £1.3  million).  In accordance with  the  Group's
treasury  policy all funds are held with  major  UK  High
Street financial institutions.

The  principal  uses of cash were the net  investment  in
tangible  fixed  assets  of  £0.2  million  (2001:   £0.5
million)  and  the  repayment of the capital  element  of
finance  leases  and  loans of £0.1 million  (2001:  £0.1
million).

The principal sources of cash were inflows from operating
activities  of £0.7 million (2001: £0.7 million  outflow)
and  net  cash inflow from acquisitions and disposals  of
£3.6 million (2001: £nil).

Share Premium Account

Following  the  passing  of  the  reduction  of   capital
resolution  at  the last Annual General Meeting  and  the
granting  of  High  Court approval in March  2002,  £28.1
million  of  the  Company's  share  premium  account  was
cancelled  against  the debit balance  of  the  Company's
profit  and  loss  account  reserve.  This  reduction  in
capital enables the Company to make distributions without
first  having  to equal its accumulated losses  built  up
over   the  years  that  the  company  has  traded  since
incorporation.   Consequently, the Company's  profit  and
loss reserves are now positive and the Company will be in
a  position to make distributions in the future when  the
Board  considers  this  to be in the  best  interests  of
shareholders.

Profit and Loss Account

The  balances  on the Group and Company profit  and  loss
reserve  accounts  at 31 March 2002,  were  £1.6  million
(2001: £29.7 million loss) and £3.0 million (2001:  £28.1
loss)   respectively.   The  change  from  a  significant
deficit at the end of last year to surplus at the end  of
this year was as a result of the offset £28.1 million  of
losses  against the share premium account  following  the
reduction of capital exercise, the release of the  merger
reserve  of  £4.9  million  in  respect  of  the   Travel
Interests  and  the transfer of losses  of  £1.7  million
(2001: £2.1 million) from reserves during the year.


M T Navin-Mealey
Chief Financial Officer

GROUP PROFIT AND LOSS ACCOUNT
Year ended 31 March 2002

                                                                      
                      Continuing   Discontinued                     
                      Operations     Operations Discontinued           
                       Including         before   Operations         
                     exceptional    exceptional  Exceptional         Restated
                           Items          items        Items           Note 2
                                              
                    Note    2002           2002         2002    2002     2001
                           £'000          £'000        £'000   £'000    £'000
                                                            
                                                                   
Turnover                                                             
Customer Relationship           
Management                12,017              -            -  12,017   11,081 
Travel Interests               -          5,172            -   5,172    7,008
------------------------------------------------------------------------------
                          12,017          5,172            -  17,189   18,089
Cost of sales             (5,326)          (133)           -  (5,459)  (5,194)
------------------------------------------------------------------------------
Gross profit               6,691          5,039            -  11,730   12,895
Other operating expenses 
(excluding goodwill 
amortisation)         1.  (6,101)        (5,271)      (2,122)(13,494) (14,326)
Goodwill amortisation       (449)          (111)           -    (560)    (654)
------------------------------------------------------------------------------
Operating profit /(loss)
Customer Relationship 
Management                   679              -            -     679      655
Travel Interests               -           (343)      (2,122) (2,465)  (1,782)
Head office                 (538)             -            -    (538)    (958)
------------------------------------------------------------------------------
                             141           (343)      (2,122) (2,324)  (2,085)
------------------------------------------------------------------------------
Share of operating profit                              
in associate                                                      12        -
------------------------------------------------------------------------------
Total  operating loss:                                  
Group  and  share   of associate                              (2,312)  (2,085)
                                                                            
------------------------------------------------------------------------------
                                                                       
Interest receivable less payable                                  52        2
------------------------------------------------------------------------------
Loss before taxation                                          (2,260)  (2,083)
Taxation                                                         517        -
------------------------------------------------------------------------------
Loss on ordinary activities                                                 
after taxation                                                (1,743)  (2,083)
Dividend                                                           -        -
------------------------------------------------------------------------------
Amount transferred from reserves                              (1,743)  (2,083)
------------------------------------------------------------------------------
Loss per 2.5p ordinary                                          
share (pence)           2.                                     (2.2p)   (2.8)p
------------------------------------------------------------------------------
Loss per 2.5p ordinary                                   
share (pence)- diluted                                         (2.2p)   (2.8)p
------------------------------------------------------------------------------
Adjusted profit / (loss) per 2.5p             
ordinary share (pence)- before goodwill
amortisation and operating exceptionalitems                      1.2p   (1.1)p
------------------------------------------------------------------------------
                                                                    

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

There were no other recognised gains or losses in the year ended  31
March 2002 or in the year ended 31 March 2001 apart from those shown
in the profit and loss account for the year.


GROUP BALANCE SHEET
As at 31 March 2002

                                                                 2002    2001
                                                                £'000   £'000
                                                                     
Fixed assets                                                         
Intangible assets                                               7,325  11,602
Tangible assets                                                   613   1,848
Investment in associate                                            33       -
                                                         --------------------
                                                                7,971  13,450
                                                         --------------------
Current assets                                                       
Stocks                                                              -       1
Debtors                                                         4,143   7,744
Cash and short-term deposits                                    5,338   1,786
                                                         --------------------
                                                                9,481   9,531


Creditors : amounts falling due within one year                (3,860) (7,534)
                                                         --------------------
Net current assets                                              5,621   1,997
                                                         --------------------
Total assets less current liabilities                          13,592  15,447
Creditors : amounts falling due after more  than one year           -    (358)
Provisions for liabilities and charges                           (246)      -
                                                         --------------------
                                                               13,346  15,089
                                                         --------------------
Capital and reserves                                                 
Called up share capital                                         1,991   1,991
Share premium account                                           3,132  31,219
Merger reserve                                                  6,575  11,526
Profit and loss account                                         1,648 (29,647)
                                                         --------------------
Shareholders' funds attributable to equity interests           13,346  15,089
                                                         --------------------


GROUP STATEMENT OF CASH FLOWS
Year ended 31 March 2002

                                           Note   2002   2002    2001    2001
                                                 £'000  £'000   £'000   £'000
                                                                    
                                                                    
Net cash inflow/(outflow) from    
operating activities                       4(a)           715            (673)
Returns on investments and                                          
servicing of finance
Interest received                                  229            151       
Interest paid                                     (177)          (140)       
Interest element of finance lease              
rental payments                                      -             (4)    
                                               ----------     ----------
                                                           52               7
Taxation                                                            
Corporation tax paid                                        -              (6)
Capital expenditure and financial investment                                  
Payments to acquire tangible fixed assets         (432)          (520)       
Receipts from the sale of                         
tangible fixed assets                              214             43
                                                ----------     ----------
                                                         (218)           (477)
Acquisitions and disposals                                          
Acquisitions of subsidiary undertakings              -            (22)       
Disposal of subsidiary undertakings              4,021              -       
Fees associated with the disposal            
of subsidiary undertakings                        (247)             -   
Net cash transferred  with              
subsidiary undertakings                           (190)             -       
Purchase of associate                              (25)             -  
                                               ----------     ----------     
                                                        3,559             (22)
                                                      ----------    ----------
            
Cash inflow/(outflow) before management    
of liquid resources and financing                       4,108          (1,171)
Management of liquid resources                                      
Cash (deposited)/withdrawn (to)/from 
short-term deposits                                    (3,833)             13 
Financing                                                           
Repayment of capital element of             
finance leases                                     (19)           (53)    
Repayment of capital element of loans              (61)           (79)    
                                               ----------     ----------   
                                                          (80)           (132)
                                                       ----------   ----------
Increase/(decrease) in cash       4(b)                    195          (1,290)
                                                       ----------   ----------
         

Notes to the Preliminary Announcement:

1.   Included in other operating expenses are exceptional
     costs which can be analysed as follows:

                                  Continuing   Discontinued   Total       
                                        2002           2002    2002     2001
                                        £000           £000    £000     £000
Impairment at half year of            
Prenton site arising through closure      50              -      50      149
Profit on sale of Prenton site           (38)             -     (38)       -
Write-off of assets no longer           
used at the Prenton site                   -              -       -      131
Provision for redundancy and          
other closure costs at the Prenton site   32              -      32       69
Costs of aborted acquisition               -              -       -      250
Impairment of goodwill on travel       
related businesses                         -          1,764   1,764        -  
Compensation for loss of office payments   -            112     112        -
Provision against lease rentals            -            246     246        -
------------------------------------------------------------------------------
                                          44          2,122   2,166      599
------------------------------------------------------------------------------
                                                          

The  provision against lease rentals is considered to  be
an  exceptional  cost as it relates to properties  leased
by  the  Group  which  are vacant  as  a  result  of  the
disposal of the Travel Interests.

2. There  has  been  a  change in accounting  classification
   whereby   the  direct  salary  and  other  direct   costs
   associated  with  the  fulfilment of  revenue  previously
   charged  to administrative expenses have now been charged
   to  cost of sales.  For consistency the 2001 numbers have
   been  restated  to  reflect the  same  classification  as
   follows:

                                                          
                                                                   Restated
Other operating expenses:                                   2002       2001
                                                           £'000      £'000
Administrative expenses before classification             15,399     15,142
Costs previously classified as operating  
expenses moved to cost of sales                           (1,896)    (1,501) 
                                                    --------------------------
Administrative expenses (including goodwill  
amortisation and exceptional items)                       13,503     13,641
Distribution costs                                           551      1,339
                                                    --------------------------
Less: goodwill amortisation                               14,054     14,980
                                                            (560)      (654)
                                                    --------------------------
                                                          13,494     14,326
                                                    --------------------------
                                              
                                                          

3. Earnings per share has been calculated in accordance with
   Financial Reporting Standard 14 by reference to a loss of
   £1,743,000  (2001:  £2,083,000) and  a  weighted  average
   number   of   shares   in  issue  of  79,665,527   (2001:
   79,665,527).

4(a).Reconciliation of operating loss to net cash
     outflows from operating activities

                                                               2002     2001
                                                              £'000    £'000
Total operating loss                                         (2,312)  (2,085)
Depreciation                                                    431      662
Goodwill amortisation and impairment                          2,324      654
Amortisation of intangible fixed assets                         120      160
Provision against tangible fixed assets                          50      149
(Profit)/loss on disposal of tangible fixed assets              (40)      (4)
Share of profit of associated undertaking                       (12)       -
Increase in provisions                                          246        -
Increase in debtors                                            (154)    (997)
Increase in creditors                                            62      788
                                                    --------------------------
Net cash inflow/(outflows) from operating activities            715     (673)
                                                    --------------------------
                                  

4(b).Reconciliation of net cash flow to movement in net funds

                                                               2002     2001
                                                              £'000    £'000
At the beginning of the year                                    939    2,110
Loans transferred on disposal of subsidiary undertakings        291        -
Decrease in debt                                                 80      132
Increase/ (decrease) in cash                                    195   (1,290)
Movement in short term deposits with banks                    3,833      (13)
                                                    --------------------------
At the end of year                                            5,338      939 
                                                    --------------------------
                                                       


5.   The  above financial information which is unaudited  does
     not  constitute statutory accounts as defined in  Section
     240 of the Companies Act 1985.  The financial information
     for  the year ended 31 March 2002 has been extracted from
     the  draft  statutory  accounts on which  an  unqualified
     audit  opinion  is  expected  to  be  issued.   Statutory
     accounts  for  the  year  ended 31  March  2002  will  be
     delivered   to   the  Registrar  in  due   course.    The
     preliminary announcement is prepared on the same basis as
     set  out in the previous year's statutory accounts except
     for  the  change  in accounting policy, the  adoption  of
     Financial  Reporting  Standard  19:  Deferred  Tax.   The
     comparative  financial  information  is  based   on   the
     statutory accounts for the financial year ended 31  March
     2001.  Those accounts, upon which the auditors issued  an
     unqualified opinion, have been delivered to the Registrar
     of Companies.

6.   The  Company intends to dispatch to shareholders  printed
     copies  of  the full annual report and accounts  for  the
     year to 31 March 2002 before the end of June 2002.


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

                             

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