Innovative Software Direct plc
LSE : ISDP

September 29, 2010 10:09 ET

Interim Results to 30 June 2010

29 September 2010
                                                 
                                  INNOVATIVE SOFTWARE DIRECT PLC
                                                 
UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010

The  Directors  of  Innovative Software Direct Plc ("ISD" or "the Group") announce  the  unaudited
financial results for the six months ending 30 June 2010.

Financial review
The  Group  turnover for the period showed a modest 5% improvement on the same  period  last  year
though  with  a  shift in mix of revenue streams and supplier pricing reducing  the  gross  profit
earned to 51% from 54%. However, the significant benefits of the cost cutting exercise implemented
throughout 2009 reflected in the 26% savings in administrative expenses compared to the first half
of last year, resulting in a reduced operating loss of £49k (2009 - £208k).

The  working capital position of the Group has improved to net liabilities of £17k as at  30  June
2010  from  £400k at the financial year end on 31 December 2009 by the renegotiation of the  Group
funding arrangements over a longer term period aligned to the business' needs.

Sales and Marketing
Signs of recovery in the sale of telephone systems early in 2010 have abated through the middle of
the  year  however  it  appears that there are renewed opportunities for  this  business  activity
visible in the market again. The Directors are pleased with the progress that has continued to  be
made in the telephone services area of the business, in line with the strategy to re-position  the
business  in  this  area, reducing the exposure to volatility in the capital  expenditure  systems
market.

Summary
The  Directors  are pleased to report a steady improvement in the turnaround of the  business  and
especially  to  note that the Group's earnings before interest, tax depreciation and  amortisation
returned  to  a positive contribution of £15k for the six months to June 2010 (2009 -  a  loss  of
£144k).  This  has been achieved due to the improvement in performance of the trading subsidiaries
generating EBITDA of £89k (2009 - a loss of £28k).


Douglas Johnson-Poensgen
Chairman
29 September 2010




CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2010

                                                            6 months           6 months           12 months
                                                               ended              ended               ended
                                                             30 June            30 June         31 December
                                                                2010               2009                2009
                                                         (Unaudited)        (Unaudited)            (Audited)
                                                               £'000              £'000               £'000
                                                                                                           
Revenue                                                          894                849               1,729
                                                                                                           
Cost of sales                                                   (431)              (385)               (811)
                                                                                                           
Gross profit                                                     463                464                 918
Administrative expenses                                         (448)              (608)             (1,120)
Amortisation of intangible                                       (64)               (64)               (127)
Other Operating Income                                             -                  -                   5
                                                                                                           
                                                                                                           
Operating loss                                                   (49)              (208)               (324)
Interest receivable                                                -                  -                   1
Finance costs                                                     (9)                (6)                (28)
                                                                                                           
                                                                                                           
Loss before tax                                                  (58)              (214)               (351)
                                                                                                           
Taxation                                                           -                  -                   4
                                                                                                           
Loss for the period                                              (58)              (214)               (347)
                                                                                                           
                                                                                                           
                                                                                                           



CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2010
                                                              As at                As at
                                                            30 June          31 December
                                                               2010                 2009
                                                        (Unaudited)            (Audited)
                                                          GBP £'000            GBP £'000
                                                                                        
FIXED ASSETS                                                                            
Intangible assets                                               955                1,019
Tangible assets                                                  10                   10
                                                                                        
                                                                965                1,029
                                                                                        
CURRENT ASSETS                                                                          
Stocks                                                          409                  409
Debtors                                                         235                  342
Cash at bank and in hand                                         25                   31
                                                                                        
                                                                669                  782
                                                                                        
CURRENT LIABILITIES                                            (686)              (1,182)
                                                                                        
NET CURRENT LIABILITIES                                         (17)                (400)
                                                                                         
TOTAL ASSETS LESS CURRENT LIABILITIES                           948                  629
                                                                                        
Long term liabilities                                          (337)                   6

                                                                                        
NET ASSETS                                                      611                  635
                                                                                        
CAPITAL AND RESERVES                                                                    
Called up share capital                                         268                  257
Share Premium Account                                         2,728                2,705
Share based payments reserve                                     30                   30
Profit & Loss Account                                        (2,415)              (2,357)
                                                                                        
SHAREHOLDERS' FUNDS                                             611                  635

No  comparative balance sheet results have been produced for the 6 month period to 30 June 2009 as
no such figures were announced for that period.

The  interim report and accounts are unaudited and have not been reviewed by ISD's auditors.  They
do not constitute Statutory Accounts as defined in section 240 of the Companies Act 1985.


The Directors of the Issuer accept responsibility for this announcement.

                                            --- ENDS---



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