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Three's A Crowd Plc (TACP)

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Friday 31 October, 2008

Three's A Crowd Plc

Preliminary Results


                              THREE'S A CROWD PLC                              
                        ("the Company" or "the Group")                         

             Preliminary results for the period ended 31 May 2008              

AT A GLANCE

  * Turnover of £381,254 reflects six months trading since Introduction to
    PLUS-quoted markets
   
  * Gross profit of £98,012 for the reported period
   
  * Consolidated loss of £472,749 reflects exceptional cost of £163,379 for
    website development and launch and creation of a share based payment
    reserve of £240,125
   
Post balance sheet events

  * New subsidiaries established, Feast Films Limited and Smoking Gun Design
    Limited
   
  * Joint venture agreed with Boutique Editions which has created offshore
    events business, Vespers All Round
   
  * Board restructuring
   
CHAIRMAN'S STATEMENT

This report and the accounts for the period ended 31 May 2008 reflects six
months of trading on PLUS-quoted markets. I am delighted to report that we have
had a busy year of growth and development.

Highlights for the period to 31 May 2008

Three's A Crowd was introduced to PLUS Markets in November 2007 with an online
lifestyle website concept, and a track record of managing the organisation for
a small number of events.

During the period in question the Company managed and produced six main events
including Play.com Live at Wembley Stadium and provided successful corporate
launches for high profile brands, including the inaugural PLUS Investors
Awards.

The Company's reports a consolidated loss of £472,749 which includes:

  * A charge of £240,125 for share based payment transactions. This is a
    technical charge balanced by the creation of a share based payments reserve
    on the balance sheet, in respect of the notional cost to the group of the
    warrants and options issued; and
   
  * On an operational level, Three's A Crowd Events reported a loss of £48,407,
    and Three's A Crowd Online reported a loss of £163,379. These losses partly
    reflect the costs of starting up these businesses.
   
The online lifestyle site went live at www.3sacrowd.com on 21 February 2008.
The site reports on aspects of entertainment, both at home and around town, and
offers news, reviews, lifestyle and fashion updates and social networking.

The site platform content is updated daily and the Company will now focus now
on monetising the site over the next 12 months through the development of
retail possibilities and improving affiliate relationships to generate more
traffic.

Post Balance Sheet Events


Joint Ventures and Interests

The Company took an 80% stake in Feast Films Limited which was set up in June
2008 and develops corporate videos and productions.. This Company is producing
promotional videos for leading corporate brands such as Play.com, The May Fair
Hotel and Clive Christian perfume and has assisted a well-known soft drinks
brand in celebrity castings for its corporate video.

The Company created a joint venture company, Vespers All Round, with
international publishing company Boutique Editions Limited on 21 August 2008.
Vespers All Round will exploit Three's A Crowd's experience in producing
high-quality events, and Boutique Editions' extensive international reach as a
producer of publications for entertainment trade shows around the world and is
planning themed events in such show business hotspots as Cannes and Hollywood.
The events will bring together key names in the international entertainment
industries, celebrities, performers, international press and media, and
high-end sponsors, to create networking opportunities in exclusive
environments.

Most recently the Company has taken an 80% stake in Smoking Gun Design Limited,
established in September 2008 which provides the infrastructure and production
required to put an event together, from staging and backdrops to lighting and
effects.

Board changes

We recently restructured and streamlined our Board as announced on14 August
2008. The previous Board members all remain shareholders in the Company and I
would like to thank them for their support in a crucial time of growth for the
Company and guiding it to market.

In addition, the Company also welcomed Stewart Morris, an accomplished
television executive and creative producer as a new non-executive director.

Future prospects

We are developing our capabilities beyond events and are now including
production and public relations in our portfolio of services with our first
high end clients being PlayTrade (a subsidiary of Play.com) and Clive
Christian.

We are currently actively seeking to develop projects for 2009/2010 and the
Board is focused on seeking to secure the order book beyond the next six months
with some flagship events.

We are looking to appoint a new Chairman in due course and are in discussions
with potential candidates.

I would like to take this opportunity to thank our Board and staff who are
working extremely hard to fulfill our business goals of growth. Finally we
would like to thank all of our shareholders for their support.

Mark Emms
Acting Chairman and Chief Executive


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the period ended 31 May 2008

                                          Note    Period ended                 
                                                                               
                                                  31 May 2008                  
                                                                               
                                                       £                       
                                                                               
Turnover                                               381,254                 
                                                                               
Cost of sales                                        (283,242)                 
                                                     ---------
                          
Gross profit                                            98,012                 
                                                                               
Expenses                                                                       
                                                                               
Administration expenses excluding share                               
based expenses                                       (335,386)                          
                                                                               
Share based payment transactions                     (240,125)                 
                                                     ---------
                          
Total expenses                                       (575,511)                 
                                                     ---------
                          
Operating loss                                       (477,499)                 
                                                                               
Interest receivable                                      4,750                 
                                                     ---------
                          
Loss on ordinary activities before                   (472,749)                 
taxation                                                                       
                                                                               
Taxation                                                     -                 
                                                     ---------
                          
Loss after tax for the period                        (472,749)                 
                                                     =========                          
Earnings per share from continuing                                             
operations attributable to the equity                                          
shareholders:                                                                  
                                                                               
Basic                                       5          (1.09)p                 
                                                                               

All of the Group's operations are classed as continuing. There were no gains or
losses in the period other than those included in the above consolidated income
statement.

CONSOLIDATED BALANCE SHEET
as at 31 May 2008

                                                  31 May 2008                 
                                                                              
                                                       £                      
                                                                              
Tangible fixed assets                                                         
                                                                              
Plant and equipment                                     10,327                
                                                                              
Goodwill                                               120,772                
                                                       -------
                       
Total tangible fixed assets                            131,099                
                                                                              
Current assets                                                                
                                                                              
Debtors                                                 66,841                
                                                                              
Cash at bank                                           126,342                
                                                       ------- 
                      
Total current assets                                   193,183                
                                                                              
Current liabilities                                                           
                                                                              
Creditors                                             (88,670)                
                                                      --------
                        
Net current assets                                     104,513                
                                                      -------- 
                       
Net assets                                             235,612                
                                                      ========                        
Capital and reserves                                                          
                                                                              
Ordinary share capital                                 352,822                
                                                                              
Share premium                                          115,414                
                                                      --------                       
                                                       468,236                
                                                                              
Share based payment reserve                            240,125                
                                                                              
Profit and loss account                              (472,749)                
                                                     ---------
                         
Total shareholders' funds                              235,612                
                                                      ========                        

NOTES TO THE PRELIMINARY ANNOUNCEMENT

1   The financial information set out in this preliminary announcement does not
    constitute statutory accounts within the meaning of section 240 of the     
    Companies Act 1985. This financial information has been extracted from the 
    unaudited full accounts of the Group for the year ended 31 May 2008.       
                                                                               
2   The directors do not recommend the payment of a dividend.                  
                                                                               
3   A copy of the Company's financial statements will be posted to shareholders
    in November and after approval at the Company's Annual General Meeting,    
    which is due to be held on 28 November 2008, will be delivered to the      
    Registrar of Companies.                                                    
                                                                               
4   A copy of the full financial statements will be published on the Company's 
    website as soon as they are produced.                                      
                                                                               
5   Loss per share: the basic loss per share for the Group is based on a       
    consolidated loss of £472,749 and the weighted average number of shares of 
    43,220,345 in issue during the year. There was a weighted average number of
    share potions and warrants of 14,314,625 outstanding during the year,      
    however, given the Group's reported loss for the year, outstanding dilutive
    instruments are not taken into account when determining the weighted       
    average number of ordinary shares in issue during the year, and therefore  
    the basic and diluted earnings per share are the same.                     

The Directors of Three's A Crowd Plc accept responsibility for this
announcement.

Further information:

Three's A Crowd Plc
Mark Emms, Chief Executive
Tel: 020 7242 6151
Email: [email protected]

Rivington Street Corporate Finance Ltd
Leo Godsall, Director
Tel: 020 7562 3393
Email: [email protected]

Note to editors:

Three's A Crowd Plc is a holding company that owns the "Three's A Crowd" events
management brand. It aims to develop this brand further in the events
management sector and to expend into other areas by the creation of an online
lifestyle portal.


                                                                                                    

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