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Knowledge Support (KSS)

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Monday 12 March, 2001

Knowledge Support

Final Results

Knowledge Support Systems Group Plc
12 March 2001



PRELIMINARY RESULTS FOR THE 12 MONTHS ENDED
31 DECEMBER 2000

'A year of significant progress'

Knowledge Support Systems Group PLC, ('the Company' or 'KSS'), which develops
and markets software systems which enable organisations to make profitable
decisions through the setting of prices in competitive markets, today
announces its audited results for the year ended 31 December 2000.

Highlights

*         Revenue increased 55% to £2.804m (1999: £1.838m)

*         Loss before tax £2.117m (1999: £0.083m)

*         Closing net funds £32.513m (1999: £0.362m)

*         Strengthened sales, marketing and operations infrastructure to
          support growth plans through 2001

*         Staff numbers increased from 41 to 148

*         Opened office in Newark, New Jersey and commenced operations in US.
          Strong US sales prospect list already developing

*         Five new licences signed in 2000 including a key European reference
          site for TelPrice at SFR in France and multiple orders for PriceNet   
          under the global framework agreement signed in 2000 with a multi-     
          national fuels retailer

*         Strong prospect list developing in Telecommunications, General
          Retailing and Petroleum Retailing

*         Partnerships discussions advancing to create multiple routes to
          market



Commenting on the results, Madan Singh, Chief Executive Officer, said 'The
year 2000 has seen KSS establish the infrastructure necessary to provide the
foundations for future growth. We are very encouraged by the sales prospect
list that is developing in each of our divisions'.



Contact:


KSS
Madan Singh, Chief Executive Officer                 Tel: 0161 228 0040
Iain Cockburn, Finance Director

Buchanan Communications
Tim Thompson / Nicola Cronk                          Tel020 7466 5000:


Chairman's statement

It is my pleasure to present the first annual report since the successful
flotation of the company on the London Stock Exchange on 28 March 2000.

Results

Following the Trading Statement issued on 7 January 2001, I can now report
that the Group achieved a turnover of £2.8m, up from £1.8m in 1999. The loss
before tax was £2.1m against a loss of  £0.1m in the prior year. The group
ended the year with £32.5m of cash resources, including short-term
investments.

Activities

Although the year ended 31 December 2000 may have been disappointing in terms
of the financial results due to the Group being unable to close its first
major licensing deal with a large retail customer before the year end, in all
other ways it has been a very positive and significant year.

Since the flotation, the Group has recruited heavily but carefully. The
current scale of operations in 2001, together with the positive interest from
the market for our Market Adaptive Pricing products, has allowed the Group to
significantly increase the number of active sales leads and opportunities. We
are confident that this will reduce the Group's dependence on any one
particular deal to achieve its targets in 2001 and beyond.

We have made excellent progress in building our US Operations. From the
experience we have already obtained we have validated the assumptions that
were made about the importance of the opportunity that the US market presents,
in particular in the retail sector. The resources we have in place are already
generating strong sales pipeline opportunities.

Having established the critical mass of direct sales and marketing support,
the Group is now accelerating efforts to develop relationships and alliances
with key consultancy, technology and OEM partners to obtain further leverage
from the direct resources already in place. This will continue to be a key
focus in 2001.

Board

A number of Board changes took place during the year reflecting the
development of the Group. David Lee joined the Board as a part-time acting
executive finance director on 18 January 2000 to assist the company through
the flotation process. On 25 July 2000, Mark Hawtin stepped down from the
Board to focus his considerable product experience and knowledge in the
operational role of Director of Marketing. Finally, Iain Cockburn was
appointed to the Board as the Finance Director on 27 September 2000 allowing
David Lee to assume a role as an independent non-executive director.

Outlook

Although the IT sector has clearly weakened in recent months, the Board
remains encouraged by the prospects for the Group's operations in each of its
current key vertical and geographical markets. As discussed in the Chief
Executive's review, the particular need for Market Adaptive Pricing products
is growing at a significant rate. Our product range and experience and strong
financial resources uniquely position the Group to take first mover advantage
of that opportunity as it unfolds.

Chairman's statement

Forecasting the precise phasing of revenue streams remains a challenge,
particularly as orders leading to projects and licences follow different sales
cycles and revenue models in each of our markets.  However, based on the sales
and support infrastructure now in place, a healthy number of ongoing pilot
projects and much higher levels of prospect activity, we are confident of the
outcome for next year.

I would like to take this opportunity on behalf of the Board to thank the
management team and staff for their hard work, enthusiasm and commitment
during this year of significant change.


John A C King

Chairman
                        12 March 2001



Chief Executive's statement

This last year has seen the transformation of the venture that Jean-Christophe
Bennavail and I established in 1993 from being a small technology consultancy
into a sales and marketing led product licensing enterprise with international
reach and presence.

Market Adaptive Pricing ('MAP')

KSS is often classified as a provider of price optimisation.  In reality our
solutions extend beyond simple price and product optimisation to provide
customers with the tools necessary to achieve the optimal price mix to support
complex sets of strategic objectives.  MAP solutions provide the basis for
deriving the tactical implementation of an overall set of complex strategic
goals.  The summary we have provided in the Annual Report overviews the
customer needs we address and the trends that are developing in these
customers' markets.

It is apparent from our work over the last twelve months that customers across
all our sectors acknowledge the requirement for MAP solutions and are
increasingly ready to implement. This is especially the case in the US markets
where an increasing number of consulting firms are delivering pricing strategy
advice and pricing solution line items are appearing in customers' budgets.

Review of Operations

Since the flotation we have developed an organisation structure that consists
of two separate divisions.  The retail division, led by Colin Brookes,
encompasses the Group's interests in petroleum retailing, convenience
retailing, mass or large format retailing and hospitality and leisure
retailing. The telecoms division, led by Barry Turner, encompasses the Group's
activities in fixed and mobile telephony, cable services and utilities.
During 2001 we plan to establish a financial services division to address the
market opportunities for the Group in this sector.

The Retail Division

The development of the Retail Division has been the key focus in the last six
months of the year. Although we had operations and infrastructure already
established for petroleum retailing and convenience retailing, the Group
previously had not actively marketed or sold to large retailers due to both
lack of funds and restrictions on access to the market.  The year 2000 saw the
infusion of investment from the flotation and the termination of KSS's
marketing agreement with Armature Ltd which had restricted the Group's
marketing or licensing of PriceStrat.

Chief Executive's statement


General Retail Sector

We have made great progress in establishing teams focused specifically on the
general retail sector in both the UK and the US. Although we were unable to
convert either of the pilots we started with UK retailers in the fourth
quarter into licences by the end of year, as stated in our January trading
statement, we remain confident about converting at least one of these into
licences in 2001.  In addition we have established a strong pipeline of other
retail opportunities for 2001 in both the UK and US.

Since the flotation we have continued to develop and refine our key retail
product, PriceStrat, and also commenced work on the next version with a view
to release in the second quarter of 2001. This importantly, will provide
promotions effect in addition to enhancements to the data handling and user
interface. We also have a new generation of the PriceStrat product in the
pipeline for release at the end of 2001 which will incorporate significant
further enhancements to the algorithms, particularly in the area of promotions
optimisation and modelling.

Petroleum Retail Sector

Looking at the petroleum sector, which historically has been our strongest
segment, 2000 has been a year that has seen significant new deal activity as
well as the re-positioning of the division to take advantage of further new
opportunities in 2001. The global framework agreement with a multi-national
fuels retailer that we signed and announced in July 2000 produced the first
two implemented licences of our PriceNet product with that customer, with a
third on order. The implementations have been completed very successfully and
with effect from the beginning of 2001 we have focused a dedicated sales team
on to the account to accelerate the acquisition of other opportunities in that
Group. We are particularly interested in breaking into the US market and are
also looking at actively developing opportunities for our retail product,
PriceStrat, for application in their convenience store operations.

For the same reasons we have also appointed a dedicated sales team to target
another major fuels retailer with whom we have had significant activity in the
past. We also continue to target and develop opportunities with other major
players in petroleum retailing for both PriceNet and PriceStrat.

The version of PriceNet with which we started the year was already a clear
industry-leading product. Despite that during the year we upgraded the product
through several releases providing enhancements to the underlying algorithms.
We also commenced work at the end of 2000 on the next major upgrade which will
be due for release in the third quarter of 2001. This next version will
provide even more sophisticated data handling as well as user interface
enhancements. In addition to the core PriceNet product we also completed the
development of a new tool allowing fuel retailers to consider the correlation
of sales between the convenience store and forecourt fuel sales. These
developments will allow us to approach some major new customer groups.

Chief Executive's statement

Telecommunications

Our activities in Telecommunications have also seen considerable development
in the latter half of 2000, under the leadership of Barry Turner who joined
the Group in August 2000.

Barry has recruited sales and marketing staff to improve support for our key
distributor, Alcatel. The year has seen the signature of two key licences for
TelPrice - one in June with Vodacom in South Africa and the second in December
with SFR in France. Both these are key reference sites. We have devoted a
significant amount of time to working with Alcatel to help raise the profile
of TelPrice within the global Alcatel sales force and assist with sales force
training and support. We are confident that both KSS and Alcatel will see
significant benefits from this investment in 2001.

Whilst we still view Alcatel as a key long-term partner, subsequent to the
year end we are also negotiating with Alcatel a new arrangement that will
allow KSS to sell and market direct to customers in parallel with their
continuing distribution activities. The rationale for doing so is that KSS can
now sell into regions and to customers where Alcatel are not actively
promoting TelPrice. Any additional licence implementation secured by KSS will
be to the advantage of both Alcatel and KSS by providing more reference sites
for TelPrice and any other products developed by KSS. The sales, marketing and
support infrastructure that we have developed to support Alcatel has provided
us with a sound basis for launching our direct sales efforts under the new
arrangement. As we recently announced we have already started a project with
one of the world's largest mobile operators as a result of our direct sales
activities which we hope will become an exciting and important opportunity for
the Telecommunications business.

During the year we released two new versions of TelPrice, upgrading the
product functionality to include sophisticated modelling of pre-pay contracts,
promotions and non-price variables. We are currently working on developments
that will support the 2001 release schedule. These developments will integrate
fixed line product requirements as well as further improving the flexibility,
reporting and ease of modelling for non-price variables.

Barry Turner and the Telecommunications division are also responsible for the
execution of the QOSIPS research product and product development. The EU
funded research project is now well underway and we are very pleased with the
progress that is being made.

Although we had interest from potential customers to start projects in the
Financial Services and Utilities sectors, with our focus on the Retail
division and the Alcatel partnership we elected not to pursue opportunities in
these sectors during the year. 2001 will provide us with the opportunity to
start our efforts in earnest.

Business Strategy

There are two major strategic issues that KSS will be focussing on in 2001 -
The US market and development of partnership and alliances to increase our
reach and routes to market.

Chief Executive's statement

USA Market

In 2000 we have experienced at first hand the opportunities offered by the US
market, in particular the retail market. By the end of the year we had built
our US team up to seven people operating from our Newark, New Jersey office.
The intelligence we have collected has increased our commitment and desire to
be actively involved in that market.

As expected, we are coming across a number of small competitor companies
offering a wide array of price optimisation related products and services. The
evolving competitive market in the US reflects both the readiness of the
customers in that market to adopt solutions and the large size of the
opportunity at hand. We are closely monitoring that competitive space and
assessing the threats and are confident that we have a significant
technological lead on our competitors. We recognise that success will not be
achieved solely on the basis of technology and will continue developing our
direct sales and marketing efforts supplemented by the formation of suitable
partnerships and alliances.

Partnerships and Alliances

In line with the business plan, during 2000 we have invested heavily to create
a direct sales and marketing force in each of our vertical markets. In
addition we have recruited and trained a team of experienced professionals to
ensure we can provide first-rate implementation and support services.

In 2001 we are placing a major focus on creating the alliances and
partnerships necessary to scale the business on a global basis. We will be
seeking to build on the discussions that have already started with a number of
potential partners in the consulting, technology and OEM software arenas.
These negotiations will be continued and broadened to identify the right
partners for KSS and to develop value-adding relationships.

In the retail sector in particular we are in discussions with ERP and Supply
Chain software providers who recognise the value of MAP in unlocking
additional benefits for their customers.

Quality

The company is committed to quality and excellence.  We are developing world
class internal operating and quality procedures and are actively working
towards ISO 9001 certification which we expect to achieve in 2001.

Management and Staff

One of the biggest challenges facing any company that is looking to rapidly
scale its operation is building a strong management team and staff. With our
positive image in the North West recruitment market and the profusion of both
technical and commercial talent available in the region we have been able to
maintain the highest standards in all our recruitment. In recognising the
importance of attracting and retaining a well-trained and motivated workforce
the Group has developed a Human Resources function focused on all issues from
pay and benefit structures to appraisal and review processes of new and
existing staff.

I am delighted with the workforce we have in place both in Manchester and in
the US and I would like to thank the team for their contribution and
commitment during the year 2000.

Chief Executive's statement

Summary

Although we are unlikely to be wholly immune from the slow down in IT
expenditure that is taking place, the MAP market is growing rapidly. We have a
unique technology and approach that sets our solutions apart from all others.
The robustness and commercial benefits of our software are now well proven and
we have the sales and marketing team in place to communicate these messages
effectively. We have the financial resources available and the growing
pipeline of prospects that will be necessary to support our objective of
becoming the dominant supplier in the global MAP market.


Madan G Singh

Chief Executive Officer



Finance Director's review

Profit and loss account

Total revenues for the year were £2.8m compared to £1.8m in the prior year.
Revenues for the year included £0.8m of marketing rights relating to the
extension of the marketing agreement signed with Alcatel in 1998 to include
any products developed by the Group in relation to the pricing of quality of
service on Internet Protocol Networks. Marketing rights revenue recognised in
1999 under the original Alcatel contract was £0.5m. Licence fees and royalties
increased to £1.2m in the year compared to £0.6m in the prior year reflecting
the signature of five licences during the year.

Operating expenses increased to £6.6m for the year compared to £1.9m for the
prior year. The  £4.7m increase can primarily be attributed to the recruitment
of additional staff following the flotation. During the year £0.5m of
operating expenses were incurred in the USA to develop the US Operations.

Interest income for the year was £1.62m compared to £0.03m for the previous
year. This income was derived from the investment of the surplus funds from
the flotation in various money market funds and cash deposits at annual rates
varying between 5.25% and 6.25% over the year. The average rate of return on
invested cash was 6.0%.

The company has incurred no charge to taxation due to trading losses. Group
tax losses are currently estimated to be £2.2m.

The loss of 3.0p (1999: 0.1p) per share is calculated using an average of
69.6m (1999: 55.7m) shares.

Consolidated balance sheet

The main components of the consolidated balance sheet have changed
substantially from the previous year as a result of the flotation. Net assets
at the end of the year stood at £34.9m compared to £0.3m at the end of the
previous year.

The Group's working capital requirements have increased due to higher trade
receivables resulting from the concentration of sales in the final quarter of
the year. Trade receivables also include the second instalment of £0.4m
relating to marketing rights recognised as revenue in 2000, which is not yet
due from Alcatel.

In preparation for the flotation, on 22 March 2000, each of the 1,250,000 10
pence ordinary shares were sub-divided into 50 ordinary shares of 0.2 pence
each. On 28 March 2000, 18.2m ordinary 0.2 pence shares were issued at £2.20
as part of the flotation.

Finance Director's review

Cash flow

The Company raised £36.8m from the issue and placing of 18.2m shares on the
flotation of the Company on 28 March 2000. The surplus cash invested generated
interest receipts of £1.4m during the year. Net cash outflow from operating
activities increased to £4.2m from a net inflow of £0.1m in the prior year
reflecting the higher operating expenses as the company scales up its
activities following the flotation. Capital expenditure for the year totalled
£1.9m as a result of investment in IT, leasehold improvements and furniture
relating to the consolidation of the Group's UK activities into the new
offices in St James's Buildings in Manchester. The other significant capital
expenditure related to computers for new staff.

Treasury function

The Group's treasury function is primarily charged with managing the exchange
rate and interest rate exposures of the Group whist ensuring that surplus
funds are invested to best support the Group's cash needs. The treasury
polices are regularly discussed at Board Meetings and decisions are
implemented by the Finance Director. The Group's treasury function is not
permitted to enter into any transactions of a speculative nature.

The Group's policy is to limit its exposure to interest rates by placing the
surplus cash on the money markets with investment maturities varying to
reflect working capital needs and market conditions.

The Company uses forward foreign exchange contracts to manage foreign currency
risk on known and committed third party trade receivable balances.

The Group transfers money to fund its US Operations on a weekly basis. As the
investment in the US operations increases and the cash flow profile changes,
it will be necessary to review the existing policy to minimise the impact of
movements in the US Dollar/sterling rates.



Iain D Cockburn

Finance Director



Consolidated profit and loss account

for the year ended 31 December 2000


                                         Note             2000             1999
                                                             £                £

Turnover from continuing operations         2        2,803,736        1,838,025
Cost of sales                                                -         (12,500)


Gross profit                                         2,803,736        1,825,525

Administrative expenses                            (6,553,077)      (1,920,715)
Other operating income                                  21,167                -


Operating loss from continuing                     (3,728,174)         (95,190)
operations
Interest receivable                                  1,617,325           25,313
Interest payable                                       (5,731)         (13,620)


Loss on ordinary activities before                 (2,116,580)         (83,497)
taxation
Taxation on loss on ordinary activities     7                -                -



Loss for the year transferred to                   (2,116,580)         (83,497)
reserves



Loss per ordinary share - basic             3           (3.0)p           (0.1)p

Loss per ordinary share - diluted           3           (3.0)p           (0.1)p



There were no material differences between the reported profits and historical
cost profits on ordinary activities before taxation in either of the above
financial years.


Consolidated balance sheet

at 31 December 2000
                                                  2000                1999
                                                  £         £       £        £
Fixed assets
Intangible asset                                            4                4
Tangible assets                                     1,864,674          280,369

                                                    1,864,678          280,373
Current assets
Debtors                                   2,000,172           357,579
Investments                              32,114,215                 -
Cash at bank and in hand                    419,513           445,539

                                         34,533,900           803,118
Creditors: amounts falling
  due within one year                   (1,383,209)           (807,532)

Net current assets/                                 33,150,691          (4,414)
(liabilities)

Total assets less current                           35,015,369          275,959
liabilities

Creditors: amounts falling due
after        more than one year                        (83,747)         (24,545)
                                                     

Net assets                                          34,931,622          251,414

Capital and reserves
Called up share capital                               147,698          111,334
Share premium account                               37,350,013          577,214
Profit and loss account                             (2,566,089)        (437,134)


Equity shareholders' funds                          34,931,622          251,414



Consolidated cash flow statement
for the year ended 31 December 2000


                                             Note        2000        1999
                                                            £           £
Net cash (outflow)/inflow from continuing    4     (4,164,678)    125,000
operating activities

Returns on investments and servicing of
finance
Interest received                                   1,374,688      25,313
Interest paid                                          (5,731)     (9,793)

Net cash inflow from returns on investments
and servicing of finance                            1,368,957      15,520
                                                   
Taxation                                                    -        (744)

Capital expenditure
Purchase of tangible fixed assets                  (1,863,603)   (243,255)
Sale of tangible fixed assets                           1,026           -

Net cash outflow from capital expenditure          (1,862,577)   (243,255)

Cash outflow before management of liquid
resources and financing                            (4,658,298)   (103,479)
                                                   
Management of liquid resources
Increase in short term deposits                   (23,379,524)          -
Purchase of shares held in money market           (12,484,811)          -
Sale of shares held in money market                 3,750,120           -

                                                  (32,114,215)          -


Cash outflow before financing                     (36,772,513)   (103,479)

Financing
Issue of ordinary share capital                    40,000,000           -
Share issue costs charged to share premium         (3,190,836)          -
account
New secured loan acquired                                   -      89,500
Repayment of loan                                     (73,097)    (20,230)

Net cash inflow from financing                     36,736,067      69,270

Decrease in cash in the year                 6        (36,446)    (34,209)




Consolidated Statement of Total Recognised Gains and Losses
for the year ended 31 December 2000


                                                       2000           1999
                                                          £              £

Loss attributable to members of the              (2,116,580)       (83,497)
company
Exchange translation differences                    (12,375)             -


Total recognised gains and losses for the        (2,128,955)       (83,497)
year



Reconciliations of movements in shareholders' funds
for the year ended 31 December 2000


                                               Group                  Company
                                          2000      1999         2000      1999
                                             £         £            £         £

Loss for the financial year        (2,116,580)  (83,497)            -         -
Net proceeds from issue of shares  36,809,163         -    36,809,163         -

                                   34,692,583    (83,497)  36,809,163         -
Exchange translation difference       (12,375)         -            -         -

Net addition to / (reduction in)
shareholders' funds                34,680,208    (83,497)  36,809,163         -
                                    
Opening shareholders' funds           251,414    334,911      691,348   691,348

Closing shareholders' funds         34,931,622   251,414   37,500,511   691,348



Notes to the preliminary results for the year ended 31 December 2000

1          Basis of reporting

            This preliminary statement of annual results which covers the year
to 31 December 2000 has been agreed by the Group's auditors and is consistent
with the full financial statements.

            The abridged preliminary Group accounts for the year ended 31
December 2000 are not statutory accounts and have been extracted from the full
statutory accounts for the year ended 31 December 2000.  The full statutory
accounts for the year on which the auditors report is unqualified will be
delivered to the Registrar of Companies in due course.



2          Analysis of turnover and loss on ordinary activities before
          taxation

All turnover and results are derived from the Group's principal activity.

Analyses of operations by geographical origin, client location and type of
activity are shown below:



Turnover by geographical origin
                      2000                                1999
          Turnover Loss before  Net Assets    Turnover Loss before  Net Assets
                           Tax                                 Tax
                 £           £           £           £           £           £

UK       2,803,736 (1,634,519)  34,704,160   1,838,025    (83,497)     251,414
US               -   (482,061)     227,462           -          -            -
                     
Total    2,803,736 (2,116,580)  34,931,622   1,838,025    (83,497)     251,414




Turnover by client location


                                              2000                         1999
                                                 £                            £

United Kingdom                             794,080                      631,776
Rest of Europe                           1,383,185                      862,318
Other                                      626,471                      343,931

                                         2,803,736                    1,838,025



2          Analysis of turnover and loss on ordinary activities before
           taxation (continued)

            Turnover by activity


                                                 2000                     1999
                                                    £                        £

Marketing rights                              800,000                  500,000
Licences                                    1,049,919                  430,464
Royalties                                     179,000                  120,000
Maintenance income                             99,920                   48,887
Professional services                         674,897                  738,674

                                            2,803,736                1,838,025


3              Earnings per share

                Losses and number of shares used in the calculations of loss
                per ordinary share are set out below:
Basic
                                                   2000            1999


Loss after tax                              £(2,116,580)       £(83,497)

                                          No. of shares     No. of shares
Weighted average number of shares           69,565,033         55,667,150

Loss per share                              (3.0)p             (0.1)p



Diluted

                                            2000               1999

Loss after tax                              £(2,116,580)       £(83,497)

                                          No. of shares     No. of shares
Weighted average number of shares -         69,565,033         55,667,150
basic
Weighted average effect of share            1,513,577             748,950
options

Weighted average effect of shares -         71,078,610         56,416,100
diluted

Loss per share                              (3.0)p             (0.1)p



            The weighted average number of shares used in the calculation of
EPS above takes into account, retrospectively for 1999, the 50 for 1 share
split which was effected on 22 March 2000.

4          Reconciliation of operating loss to net cash flow from operating
activities


                                                2000              1999
                                                £                 £
Operating loss                                  (3,728,174)       (95,190)
Depreciation                                    375,325           118,215
Profit on sale of fixed assets                  (554)             -
(Increase) / decrease in debtors                (1,399,956)       262,090
Increase / (decrease) in creditors              588,681           (160,115)


Net cash (outflow) / inflow from                (4,164,678)       125,000
operating activities



5          Reconciliation of net cash flow to movement in net funds


                                       Note       2000              1999
                                                     £                 £
Decrease in cash in the year             6     (36,446)          (34,209)
Cash flow from decrease / (increase)     6       73,097          (69,270)
in debt
Cash outflow from increase in liquid     6   32,114,215                -
resources


Change in net funds resulting from           32,150,866           (103,479)
cash flows
Loan interest capitalised                             -             (3,827)


Movement in net funds / (debt) in the        32,150,866           (107,306)
year
Net funds at the start of the year              361,694            469,000


Net funds at the end of the year       6     32,512,560            361,694



6          Analysis of net funds


                          At 31 December  Cash flows         At 31 December
                          1999                               2000
                          £               £                  £

Cash                      445,539         (26,026)           419,513
Overdrafts                (10,748)        (10,420)           (21,168)

                                          (36,446)

Debt due within one year  (48,552)        48,552             -
Debt due after one year   (24,545)        24,545             -

                                          73,097

Current asset investments -               32,114,215         32,114,215

                          361,694         32,150,866         32,512,560



7          Taxation



                There is no charge for taxation during the current year due to
the incidence of losses.



                                                       

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