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Interactive Publish (INTP)

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Monday 01 March, 2010

Interactive Publish

Interim Financial Statement for the 6 months en...

                                       INTERACTIVE PUBLISHING PLC
                                        ("IP" or the "Company")

                                      INTERIM FINANCIAL STATEMENT
                               FOR THE SIX MONTHS ENDED 31 DECEMBER 2009


I am pleased to be able to make this report to you as Chairman of the Company and of the Group.

As previously announced, recent trading periods have been the most challenging years on record for the
publishing industry and its related sectors. IP has had to become more diverse, ensure leanness within
the portfolio and adapt to a fast changing environment.

During the six month trading period to 31 December 2009 there have been a number of notable milestones
achieved  and  your  Board believe that the Company is now in excellent shape to  build  the  business
profitably,  even  in  these difficult trading conditions. Furthermore, should the  expected  economic
recovery materialise then the Company is now in a position to achieve the level of results which would
be expected from its current portfolio.

Significant events within the current reporting period include:

a)       On 19 August 2009, IP acquired the entire issued share capital of Marine Media Limited.  This
company publishes "Sailing Today" - a magazine committed to providing the most authoritative, relevant
and up to date information on all aspects of sailing.

b)       The Group's wholly owned subsidiary, Trojan Publishing Limited, entered into an agreement  to
manage  the  administration,  production, printing, circulation  and  distribution  of  the  magazines
published  by Paul Raymond Publications Limited. This contract is for an initial minimum  term  of  12
months at a rate of £300,000 per annum.

c)       The acquisition on 12 November 2009, of the entire issued share capital of Scissorhands Media
Limited. This company publishes magazines focused on providing relevant and up to date information  on
all aspects of the hair and beauty industries.

The  Directors continue to review all aspects of the business to ensure the Group remains  competitive
and profitable. Steps are taken accordingly to streamline staffing levels whenever appropriate and the
Board constantly monitor our distribution, marketing, print and paper contracts.

Financial Overview

Turnover,  which comprises all the external turnover in the Group, has increased from £3.2m  to  £3.7m
over  the  preceding  interim period (an increase of 15.6%).  This is attributable  to  the  increased
performance of the Group's leading titles and the new title acquisitions made during the period.   The
gross profit has also increased from £613,110 to £971,116 (an increase of 58.4%).

Administrative expenses have increased from £706,246 to £833,545, which is primarily due to  the  move
into larger trading premises and the additional costs relating to the acquisitions. The net result  is
an  increase  in  the profit from operations to £137,571 from a loss of £93,136 in  the  corresponding
period, an overall improvement of £230,707.

On  12  October 2009, IP was able to draw down the £200,000 Enterprise Finance Guarantee Scheme  loan,
which  had  been secured through the support of Barclays Bank plc and has provided additional  funding
for  the  Group's  working capital needs. This loan is a term loan, as opposed  to  the  previous  'on
demand' overdraft facilities, and is repayable at £12,000 per quarter.

The  Group  profit  before tax and basic earnings per share for the period under  review  amounted  to
£132,231  (2008:  £83,772  loss)  and  0.08p  (2008: 0.06p  loss)  respectively.   At  30  June  2009,
shareholders'  funds  were £0.65m and £0.86m at 31 December 2009.  The Directors  do  not  propose  to
declare a dividend.

The  Company's statutory accounts for the year to 30 June 2009 were filed slightly late  at  Companies
House,  as  the  Group's invoice discounting facility was in the process of being  renegotiated.  This
facility has now been agreed (as noted below) and the statutory accounts have now been formally signed
off, filed at Companies House and sent out to shareholders.

Review of Activities

IP  is a London-based magazine publishing company that acquired Trojan Publishing, a company formed in
June  2006 with the strategy of building a publishing group engaged in the production of both magazine
and digital content. IP now has a portfolio of 55 magazines (30 June 2009: 51 magazines).

The major titles are 'Women's Fitness', 'What Diesel', 'Scarlet', 'Hair Now', 'Perfect Hair', 'Hair  &
Beauty', 'Sailing Today' and 'Attitude' (the UK's number one gay lifestyle magazine).

The  Group  has applied economies of scale to its diverse portfolio and has streamlined its activities
to  exploit the critical mass now being achieved.  The Directors' strategy is to focus heavily on  the
consumer  based  brands  whilst  nurturing  the adult portfolio  to  ensure  that  high  revenues  and
profitability complement and enhance the growth of the Group.

In  addition to straightforward publication of printed titles, IP develops social networking platforms
for  its  key  brands  which  involve  fully interactive websites that  enhance  the  magazine  users'
experience  of the brand while building the brand awareness.  In creating this interactive experience,
a  separation has been maintained between the user and the magazine. This enables a title or brand  to
maintain traditional revenue streams while adding new revenue streams to flow from the platform.

The Group's strategy remains for each magazine title in the IP portfolio to develop a niche and sought
after  brand that will generate new revenue streams, thereby increasing the longevity of the  life  of
the  title.  As titles can be published over several decades, there is a real benefit to be gained  by
creating on-target brands.

The  key  components  in creating a brand are: the ability of the consumer to visualise  the  magazine
experience  without being reliant on the editorial content; an understanding of the  target  audience;
and the ability to interact with that audience.

The  Directors intend to keep the development of new revenue streams under constant review  to  ensure
that  the  Company  is  not  overly  dependent  upon one revenue  source  and  the  portfolio  remains
complementary and varied. This is to ensure that the effects of a downturn in one revenue source  have
less impact on the overall Company.

Key Performance Indicators

The principal performance indicator used to measure the progress of the Group's business activities is
the  contribution generated by each magazine title or brand.  This is assessed by reference to  direct
costs associated with the production and maintenance of that title or brand.

The  Directors  keep the performance of each title under constant review and take a  commercial  view,
based  on research and their own industry experience, of the future contribution to the business that,
in their opinion, each title or brand is likely to make.

Principal risks and uncertainties

The principal risks and uncertainties experienced by the Group are as follows:

*       The  continued attraction, retention and motivation of qualified employees to provide  a  high
        quality  of  content  in  the  publication and to drive  circulation,  advertising  and  other
*       changing  customer and market demands, and changes in the competitive environment  in
        which the business operates;
*       the  effect of current global economic conditions on the level of consumer spend, particularly
        on advertising revenues; and
*       the  ability  of  senior  management  to  continue to identify  suitable  targets  for  future
        acquisitions and to develop complimentary revenue streams.

Post Balance Sheet Events

In  January  2010,  Trojan Publishing Limited secured a new invoice discounting  facility  with  Bibby
Financial  Services  Limited.  The Directors believe that this facility will increase  the  amount  of
drawdown available and further aid the working capital requirements of the Group.

I would like to take this opportunity to thank shareholders for their support and fellow Directors and
staff for their invaluable commitment in building IP to where it is today.

Peter Jay

For the period ended 31 December 2009

                                                         Six months       Six months                 
                                                              ended            ended       Year ended
                                              Note         31.12.09         31.12.08         30.06.09
                                                        (Unaudited)      (Unaudited)        (Audited)
                                                                GBP              GBP              GBP

REVENUE                                                  3,755,442        3,283,481        6,426,474

Cost of sales                                           (2,784,326)      (2,670,371)      (5,641,116)
                                                         _________         _________       _________

GROSS PROFIT                                               971,116          613,110          785,358

Administrative expenses                                   (833,545)        (706,246)      (1,217,396)
Impairment provisions                                            -                -         (419,255)
                                                         _________        _________        _________

PROFIT/(LOSS) FROM OPERATIONS                                                                        
                                                            137,571         (93,136)        (851,293)

Finance Revenue                                                213               34               34
Finance costs                                               (5,553)            9,330         (22,874)
                                                         _________         _________       _________

PROFIT/(LOSS) BEFORE TAX                                    132,231         (83,772)        (874,133)

Taxation                                                         -                -           85,657
                                                         _________         _________       _________

PROFIT/(LOSS) FOR THE PERIOD                                                                         
                                                            132,231         (83,772)        (788,476)
                                                         _________        _________        _________

Basic earnings/(loss) per share               3               0.08p          (0.06)p          (0.50)p

Diluted earnings/(loss) per share             3               0.07p          (0.05)p          (0.50)p

Note  -  the comparative figures for the six months to 31 December 2008 have been adjusted to  reflect
the  allocation  of  costs between Cost of Sales and Administrative expenses  used  in  the  statutory
accounts to 30 June 2009 and the interim results to 31 December 2009.  The loss from operations in the
comparative period remains the same.


Notes to the financial information

1.      While  the  financial information included in this interim announcement has been  computed  in
        accordance with IFRS, this announcement does not itself contain sufficient information to comply with
        IFRS.   The full financial statements of the company will be prepared in accordance with IFRS,
        International Accounting Standards and their interpretations issued or adopted by the International
        Accounting Standards Board as adopted for use in the European Union.

2.      This interim financial statement has not been audited or reviewed by the auditors and does not
        constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.

3.      The  calculation of basic earnings/(loss) per share is based on the profit/(loss) on  ordinary
        activities after taxation of GBP 132,231 (31 December 2008: GBP (83,772); 30 June 2009: GBP (788,476)
        and the weighted average number of shares of 173,377,221 (31 December 2008: 148,445,355; 30 June 2009:
        157,800,457) in issue during the period.  The adjusted weighted average number of shares used to
        calculate the diluted earnings per share were 181,710,555 (31 December 2008: 165,112,021; 30 June
        2009: 157,800,457).

4.      This  interim  financial statement was approved by the Board of Directors  on  1  March  2010.
        Copies of this statement will be available free of charge from the Company's Registered Office at 207
        Old Street, London EC1V 9NR.

Registered No. 06388765


Interactive Publishing plc                  
Justin Sanders, CEO                               0207 608 6300

PLUS Corporate Adviser                                         
Gary Miller                                                    
Fisher Corporate                                  020 7388 7000

Interactive Publishing Plc								


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