ELECTRIC WORD PLC FINANCIAL STATEMENT year ended 30 November 2000
	Go to: CONSOLIDATED PROFIT AND LOSS ACCOUNT CONSOLIDATED BALANCE SHEET COMPANY BALANCE SHEET CONSOLIDATED CASH FLOW STATEMENT NOTES TO THE FINANCIAL STATEMENTS CHAIRMAN'S and CHIEF EXECUTIVE'S REPORT HOME

CONSOLIDATED PROFIT AND LOSS ACCOUNT
		Continuing Operations
		2000	Acquisitions 2000	Total 2000	Total 1999
	Notes	£	£	£	£
TURNOVER	1	487,297	151,760	639,057	382,649
Cost of sales		(337,357)	(126,323)	(463,680)	(345,034)
GROSS PROFIT		149,940	25,437	175,377	37,615
Operating expenses	2	(361,964)	(112,030)	(473,994)	(128,900)
Operating loss before goodwill amortisation		(212,024)	(86,593)	(298,617)	(91,285)
Goodwill amortisation		(5,000)	(52,762)	(57,762)	(5,000)
OPERATING LOSS		(217,024)	(139,355)	(356,379)	(96,285)
Interest receivable	3			30,298	813
Interest payable				-	(13)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION	4			(326,081)	(95,485)
Taxation				-	-
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION				(326,081)	(95,485)
LOSS PER SHARE    Basic	5			(0.62)p	(0.29)p
LOSS PER SHARE    Diluted	5			(0.62)p	(0.29)p
No separate statement of Total Recognised Gains and Losses has been presented   as all such gains and losses have been dealt with in the Profit and Loss account.

CONSOLIDATED BALANCE SHEET
		Group 2000	Group 1999
	Notes	£	£
FIXED ASSETS Intangible assets		1,315,484	35,000
Tangible assets		25,925	4,354
		1,341,409	39,354
CURRENT ASSETS Stocks		7,368	9,200
Debtors	6	73,701	8,942
Cash at bank and in hand		574,679	51,049
		655,748	69,191
CREDITORS: Amounts falling due within one year	7	(464,388)	(194,377)
NET CURRENT ASSETS/(LIABILITIES)		191,360	(125,186)
TOTAL ASSETS LESS CURRENT LIABILITIES		1,532,769	(85,832)
CREDITORS: Amounts falling due after more than one year (including convertible debt)	8	(400,000)
NET ASSETS/(LIABILITIES)		1,132,769	(85,832)
CAPITAL and RESERVES Called up share capital		627,858	321,429
Share premium account		986,705	-
Merger reserve		(96,227)	(96,227)
Other reserve		251,548	-
Profit and loss account		(637,115)	(311,034)
SHAREHOLDERS' FUNDS		1,132,769	(85,832)

COMPANY BALANCE SHEET
			Company 2000
	Notes		£
FIXED ASSETS Intangible assets			978,045
Tangible assets			1,172
Investments			579,504
			1,558,721
CURRENT ASSETS Debtors	6		450,841
Cash at bank and in hand			433,191
			884,032
CREDITORS: Amounts falling due within one year	7		(134,872)
NET CURRENT ASSETS			749,160
TOTAL ASSETS LESS CURRENT LIABILITIES			2,307,881
CREDITORS: Amounts falling due after more than one year (including convertible debt)	8		(534,718)
NET ASSETS			1,773,163
CAPITAL AND RESERVES Called up share capital			627,858
Share premium account			986,705
Other reserve			251,548
Profit and loss account			(92,948)
SHAREHOLDERS' FUNDS			1,773,163

CONSOLIDATED CASH FLOW STATEMENT
	Notes	2000 £	1999 £
Cash flow from operating activities	9a	(278,545)	(39,934)
Returns on investments and servicing of finance	9b	30,298	800
Taxation		-	-
Capital expenditure and servicing of finance	9b	(27,023)	(5,064)
Acquisitions and disposals	9b	(494,234)	-
		(769,504)	(44,198)
Financing	9b	1,293,134	44,742
INCREASE IN CASH IN THE PERIOD		523,630	544
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN FUNDS		2000 £	1999 £
Increase in cash in the period		523,630	544
Cash inflow from shareholders' funds		-	258
MOVEMENT IN NET FUNDS IN PERIOD		523,630	802
NET FUNDS AT 1 DECEMBER 1999		51,049	50,247
NET FUNDS AT 30 NOVEMBER 2000		574,679	51,049

NOTES TO THE FINANCIAL STATEMENTS
1  TURNOVER The company's turnover and loss on ordinary activities before taxation were all derived from its principal activity. Sales were made in the following geographical markets:
		2000 £	1999 £
United Kingdom		611,305	375,268
Other		27,752	7,381
		639,057	382,649
2   OPERATING EXPENSES		2000 £	1999 £
Administration expenses		473,994	128,900
3   INTEREST RECEIVABLE		2000 £	1999 £
Bank interest		30,298	318
4  LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION Loss on ordinary activities before taxation is stated after charging:		2000 £	1999 £
Depreciation and amounts written off tangible fixed assets		10,756	1,654
Amortisation of intangible fixed assets		57,762	5,000
Auditors' remuneration : audit services		15,000	5,000
Auditors' remuneration : non-audit services		10,750	-
5  LOSS PER ORDINARY SHARE The calculation of loss per ordinary share is based on the following losses and numbers of shares:		Basic 2000 £	Basic 1999 £
Loss for the financial period		(326,081)	(95,485)
		2000 No of shares	1999 No of shares
Weighted average number of shares		52,575,538	32,142,900
There is no dilutive effect from the issue of share options, warrants, the future redemption of convertible loan stock or the future issue of shares as deferred consideration.

6  DEBTORS: Due within one year:	Group 2000 £	Group 1999 £	Company 2000 £
Trade debtors	634	-	494
Other debtors	26,784	8,942	3,162
Prepayments	46,283	-	4,504
	73,701	8,942	8,160
Due after one year: Amounts due from group undertakings	-	-	442,681
	73,701	8,942	450,841
7  CREDITORS: Amounts falling due within one year:	Group 2000 £	Group 1999 £	Company 2000 £
Trade creditors	12,736	48,560	-
Corporation tax	20,619	-	20,619
Other taxation and social security costs	-	7,090	-
Loans from shareholders	-	10,718	-
Accruals	73,363	-	55,100
Deferred subscription revenue	357,670	128,009	59,153
	464,388	194,377	134,872
8  CREDITORS: Amounts falling due after more than one year:	Group 2000 £	Group 1999 £	Company 2000 £
Unsecured convertible loan stock	400,000	-	400,000
Amounts due to group undertakings	-	-	134,718
	400,000	-	534,718
The convertible unsecured loan stock may be redeemed for cash at par or converted into fully paid ordinary shares at the average of the aggregate mid-market price per share on application by the loan stock holders at any time during the conversion period of 31 March 2001 to 30 March 2002
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS FUNDS	Group 2000 £	Group 1999 £	Company 2000 £
Loss for the financial period	(326,081)	(95,485)	(92,948)
Issue of shares	306,429	-	627,858
Premium on shares issued in period (net of expenses)	986,705	-	986,705
Shares to be issued (see note 8)	251,548	-	251,548
	1,218,601	(95,485)	1,773,163
Opening shareholders' funds	(85,832)	9,653	-
Closing shareholders' funds	1,132,769	(85,832)	1,773,163

9  CASH FLOWS   9a  Reconciliation of operating loss to net cash outflow from operating activities	2000 £	1999 £
Operating loss	(356,379)	(96,285)
Amortisation	57,762	5,000
Depreciation	10,756	1,654
Decrease/(increase) in stocks	1,832	(4,967)
(Increase)/decrease in debtors	(34,403)	2,234
Increase in creditors	41,887	52,430
Net cash outflow from operating activities	(278,545)	(39,934)
9b  Analysis of cash flows for headings netted in the cash flow statement	2000 £	1999 £
Returns on investments and servicing of finance Interest received	30,298	813
Interest paid	-	(13)
Net cash inflow from returns on investments and servicing of finance	30,298	800
Capital expenditure and financial investment Purchase of tangible fixed assets	(27,023)	(5,064)
Net cash outflow from capital expenditure and financial investment	(27,023)	(5,064)
Acquisitions and disposals Purchase of subsidiary undertakings	(638,712)	-
Net cash acquired with subsidiary undertakings	144,478	-
Net cash outflow from acquisitions and disposals	(494,234)	-
Financing Issue of share capital	1,506,429	45,000
Repayment of shareholders' loans	-	(258)
Equity share issue expenses	(213,295)	-
Net cash outflow from financing	1,293,134	44,742

CASH FLOWS (continued):   9c  Analysis of funds	at 1 December 1999 £	Cash flow £	At 30 November 2000 £
Cash at bank and in hand	51,049	523,630	574,679
The subsidiary undertaking acquired during the period contributed minimally to the group's net operating cashflows, paid £nil in respect of net returns on investments and servicing of finance, paid £nil in respect of taxation and utilised £nil for capital expenditure

For further information, please call:

Julian Turner, Chief Executive Electric Word plc www.electricwordplc.com	020 7251 9034
Jonathan Wright Seymour Pierce	020 7648 8700
Adam Reynolds / Takki Sulaiman Hansard Communications www.hansardcommunications.com	020 7735 9415 07778 419 218

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