Conduco Plc

August 27, 2010 10:52 ET

Statement re Final Results

                                                Conduco PLC
                                               FINAL RESULTS
                                     FOR THE YEAR ENDED 31 MARCH 2010

The Board of Conduco PLC ("Conduco" or "the Company"), the software development company that specialises in
Identity Management Solutions, is pleased to announce its final audited results for the twelve-month period
to 31 March 2010.


* Recurring revenue has increased by 18% to £255,682 (2009: £216,207)
* Turnover £386,130 (2009: £440,930)
* Cash reserves £853,329 (2009 £1,119,364)
* EPS (£1.29p) (2009 0.37p)
* Operating loss (£222,795) (2009 profit: £886)

Commenting  on  the  results,  Scott  Fletcher, Chairman of Conduco,  said:  "Although  these  results  are
disappointing  we  now have cash burn under control and the balance sheet remains well capitalised.   As  a
result  the  Board  believes that now is the time to evaluate the operations of the business  and  we  look
forward to updating you with the results of this strategic review in the near future"


Over the last twelve months the Company has invested heavily in Sales and Product Development, most notably
with  the  development  of  the  Conduco asset tracking solution (RTLS), incurring  significant  costs  and
developing  the  product  to the stage where it was ready to be rolled out to customers  and  installed  on

Unfortunately, the current economic climate combined with the extensive sales cycle required for this  type
of  product  has  meant  that  no  sales of the asset tracking solution have  been  achieved,  despite  the
recruitment of a highly experienced Managing Director to drive sales and development.  The company has  now
made  the  decision  to cease development of the asset tracking solution and conduct an  overall  strategic
business review of the business.

The  recent  departure  of  the  Managing  Director combined  with  extensive  cost  cutting  measures  has
significantly reduced the cost base and as a consequence the company will reduce the cash burn to a minimal

Although  this year has been disappointing the Company now has the cash burn under control and  is  in  the
process of carrying out an overall strategic review of the business.  The Company will be in a position  to
update shareholders on the outcome of this strategic review in the near future.


Overall turnover for the year has reduced by 12% from the previous year, reducing from £440,930 in 2009  to
£386,130 in 2010.  Despite this reduction in overall turnover, recurring revenues have increased by 18% and
now stand at approximately £260,000.

Overheads  have  risen  by  44% mainly due to the appointment of the new Managing Director,  the  increased
development  in  the  DIS  service,  the  rebranding and associated advertising  and  marketing  costs  and
provisions against uncertain and disputed debtors.

This increase in costs and reduction in turnover has led to an operating loss of £222,795. Loss before  tax
has also fallen to £200,157 from a profit of £58,852 in 2009.

Cash  reserves  have decreased to £853,329 from £1,119,364 in 2009 however the balance sheet  remains  well
capitalised with no debt.

During  the  year  the company also took the strategic decision to invest in a hybrid  mail  company  named
Viapost Communications Limited and continues to retain a 19% shareholding. The company has also provided  a
£500,000 loan facility to Viapost Communications by way of a secured redeemable convertible loan note.

Scott Fletcher
Conduco PLC

                                                                      2010             2009
                                                                        £               £
Turnover                                                             386,130         440,930
Cost of sales                                                         5,063           19,294
                                                                     -------        -------
Gross profit                                                          381,067         421,636

Administrative expenses                                               603,862         420,750
                                                                       ------        -------
Operating profit                                                      (222,795)        886

Interest receivable and similar income                                 22,638         57,966
                                                                      -------         -------
(Loss)/Profit on ordinary activities before taxation                  (200,157)       58,852

Tax on (loss)/profit on ordinary activities                            (39,055)       12,362
                                                                       -------        -------
(Loss)/Profit for the financial year                                   (161,102)      46,490
                                                                        =======       =======

Earnings per ordinary share                                             (1.29)          0.37
Diluted earnings per ordinary share                                     (1.23)          0.35

31ST MARCH 2010

                                                                       2010                 2009
                                                                        £                    £
Fixed assets
Tangible assets                                                       7,702                 10,647
Investments                                                          118,147                  -
                                                                     ---------             -------
                                                                      125,849               10,647

Current assets
Debtors                                                              137,785               110,100
Cash at bank                                                         853,329               1,119,364
                                                                     ---------             ---------
                                                                     991,114               1,229,464

Creditors: amounts falling due within one year                      (341,232)              (300,165)
                                                                    ---------              ---------
Netcurrent assets                                                                                                                                                                                       649,882               929,299
                                                                    ---------              ---------
                                                                    ---------              ---------
Total assets less current liabilities                                775,731               939,946
                                                                   =========              =========

Capital and Reserves
Called up share capital                                              125,000               125,000
Share premium account                                                648,353               648,353
Equity reserve                                                        28,546                31,659
Profit and loss account                                              (26,168)              134,934
                                                                    ---------             ---------
Shareholders' funds                                                                                                                                                                                        775,731               939,946
                                                                   =========              =========

1.       The  financial  information set out in this announcement does not constitute  statutory  accounts.
         This financial information has been extracted from the audited full accounts of the Company.

2.       The  financial  statements  are prepared in accordance with applicable United  Kingdom  Accounting
         Standards (United Kingdom Generally Accepted Accounting Practice).

3.      The directors do not recommend the payment of a dividend.

The Directors of the Issuer accept responsibility for this announcement

- ENDS -

Conduco PLC                                                      TEL: 0161 227 1000
Scott Fletcher, Chairman

Rivington Street Corporate Finance                               TEL: 0207 562 3393
Leo Godsall & Eran Zucker

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