Seven Arts Pictures plc
LSE : SAPP

June 30, 2008 11:00 ET

UNAUDITED RESULTS FOR 12 MONTHS ENDED 31 MARCH 2008

                                                                                                     30/06/2008
                                                                                      GB00B02HX878/GBP/PLUS-exn



                                            SEVEN ARTS PICTURES PLC


                              UNAUDITED RESULTS FOR 12 MONTHS ENDED 31 MARCH 2008
                                                       
                                                       
The Directors of Seven Arts Pictures Plc (the Company) are pleased to announce the unaudited results for the 12
months ended 31 March 2008.

Review of the Business:-

As previously announced the Company has changed its fiscal year end to 30 June commencing in the current fiscal
year  and the Company will therefore announce audited results only for the 15 month period ended 30 June  2008.
As  required  by PLUS market regulations the Company hereby announces unaudited results for the  twelve  months
ended 31 March 2008. These results for the twelve month period ended 31 March 2008 are not a true reflection of
the business's activities for its current fiscal year the fifteen month period to 30 June 2008 due to:

     1.      the timing of the delivery of our four major productions of 2007/8; American Summer,  Autopsy,  Knife
         Edge  and A Broken Life being between 1 April and 30 June 2008. According to our accounting policies sales
         and margins from these films can only be recorded at point of delivery;

     2.      the majority of our previously announced film investment deal by Zeus Partners concluded between 1
         April and 31 May 2008. As previously announced the Company has received in excess of £8 million from
         this deal which will reduce the Group's future cost of sales.
     
As a result the Company anticipates that its pretax profits on an aggregate and primary per share basis for the
fiscal  period end 30 June 2008 will be significantly in excess of pre tax profits  (£1.5 million) and  EPS  of
7.8p reported for the fiscal year to 31 March 2007.

The trade for the twelve months to 31 March was impacted by the delay of the US releases of Noise and Deal (our
two  major  releases  of 2007) to late April/early May 2008. This has meant that income from  the  distribution
deals with Think Film and MGM respectively will be delayed to the first quarter of 2008/9 fiscal year.

.

Approximately  £0.6 million of the proceeds from the Zeus investment scheme has been applied  to  the  carrying
value of the assets by 31 March hence reducing the amortisation charges required. (The Company also reduced the
accrued participations on one motion picture by approximately £750,000 based on a settlement arranged with  the
applicable producer).

Overheads  at  £1.5 million (2007: £1.2 million) have increased from the fiscal year ended  31  March  2007  in
significant part due to the increased costs for the Board of Directors and the Company's planned relisting onto
AIM..

Interest charges are significantly higher this year at £0.8 million (2007: £0.35 million) due to the full  year
impact of the loan from Cheyne Capital($6.5million) which was repaid in early April.

.
Corporate Activity:-

The  Company  has  engaged the services of Zimmerman Adams International to act as Nominated  Advisor  to  seek
readmission to AIM. The Company has decided to delay  admission until its 30 June 2008 numbers are released..

The Company was listed on the Over the Counter Bulletin Board of the NASDAQ in March 2008.

I  look  forward  to the audience reaction to our newly delivered productions American Summer,  Autopsy,  Knife
Edge  and A Broken Life . I believe these films will further establish Seven Arts' reputation as one of only  a
few reliable and experienced producers of independently produced theatrical motion pictures.


Peter Hoffman

CEO



SEVEN ARTS PICTURES PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
 FOR THE TWELVE MONTHS ENDED 31 MARCH 2008

                                                                           Unaudited                    Audited
                                                                     12 months ended            12 months ended
                                                                             31March                   31 March
                                                                                2008                       2007
                                                                                   £                          £
Turnover                                                                     988,928                  5,879,289
Cost of sales                                                                420,379                (1,052,211)
- Amortisation of intangible assets                                            5,241                (1,711,509)
                                                                             425,620                (2,763,720)
Gross profit                                                               1,414,549                  3,115,569
Other operating expenses (net)                                           (1,495,712)                (1,218,531)
Operating profit                                                            (81,164)                  1,897,038
Net interest payable                                                       (801,230)                  (354,184)

Profit/(Loss) on ordinary activities before taxation                       (882,394)                  1,542,874


Taxation                                                                     250,000                  (575,744)
                                                                                                               
Retained Profit/(Loss) for the period                                      (632,394)                    967,130
                                                                                                               
Earnings/(loss) per share in pence                                            (2.70)                       7.18
Diluted earnings/(loss) per share in pence                                    (1.48)                       1.59
                                                                                                               


SEVEN ARTS PICTURES PLC                                                                                           

CONSOLIDATED BALANCE SHEETS
AS AT 31 MARCH 2008
                                                                           Unaudited                    Audited
                                                            12 months ended 31 March   12 months ended 31 March
                                                                                2008                       2007
                                                                                   £                          £
Fixed assets                                                                                                   
Intangible assets                                                         19,753,422                 11,668,310
Tangible assets                                                            1,872,215                     15,554
Investments                                                                  800,000                    800,000
                                                                          
                                                                          22,425,637                 12,483,864
                                                                                                               
Current assets                                                                                                 
Debtors: amounts falling due within one year                              31,633,047                  6,023,646
Debtors: amounts falling due after more than one year                      1,507,066                    663,626

Cash at bank and in hand                                                 101,168,632                      4,748
                                                                         
                                                                         134,308,745                  6,692,020

Creditors: amounts falling due within one year                         (136,608,202)                (8,312,453)

Net current assets/(liabilities)                                         (2,299,457)                (1,620,433)
Total assets less current liabilities                                     20,126,180                 10,863,431
Creditors: amounts falling due after more than one                      (15,785,091)                (6,307,585)
year
Total assets less current liabilities                                      4,341,090                  4,555,846
Capital and reserves                                                                                           
Called up share capital                                                   10,150,500                 10,017,000
Share premium account                                                      2,130,686                  1,838,186
Share-based payments                                                          25,297                     25,297
Convertible debt                                                           1,750,000                  1,750,000
Profit and loss account                                                   (9,7159393)                (9,074,637)

Shareholders' funds                                                        4,341,090                  4,555,846
                                                                                                               
Equity                                                                     (408,910)                  (194,154)
Non-equity                                                                 4,750,000                  6,000,000
                                                           
                                                                           4,341,090                  4,555,846


1. Earnings/(loss) per share

Basic (loss)/earnings per ordinary share of (2.70) pence (year ended 31 March 2007: 7.18p pence) is calculated

using  the  Group loss/profit for the period after taxation of (632,394) (year ended 31 March 2007:  £967,130)

and  the  weighted  average  number of shares in issue of 23,381,507 (year ended 31 March  2007:  13,474,411).

Diluted  earnings per share is calculated on the basis of the weighted average number of shares in issue  plus

potential ordinary shares of 42,713,013 (year ended 31 March 2007: 37,270,575).

The  weighted  average  number of shares is calculated by time-apportioning each share  in  issue  during  the

period.

The convertible preference shares and convertible debt in issue are anti-dilutive where a loss has arisen in a

period.

2. Dividend

The directors do not recommend the payment of a dividend for this period

3. Zeus Transaction

On  6 February 2008 Seven Arts Pictures plc (SAP plc) entered into an agreement with Zeus Capital Partners LLP

(Zeus)  to  raise capital from individual investors for investment, through a number of companies  established

for  the  purpose,  into  the production and distribution costs of  Seven  Arts existing   and  future  motion

picture  productions  and  acquisitions. In total Zeus helped to raise funding for 17  companies  (SAFCos)  to

invest in a slate of motion pictures produced by, or to be produced by, Seven Arts. Zeus closed the investment

in the first four companies before 31st March 2008.



Under  the  agreement, the SAFCos have each acquired a percentage of certain of the completed film  assets  of

Seven  Arts  and have paid Seven Arts to produce certain other titles. The companies have also employed  Seven

Arts to market and distribute all titles on their behalf.



During  the  period  ended 31 March 2008, Cinematic Finance Ltd,(a 100% subsidiary of  SAP  plc)  raised  bank

finance  of £113 million for the purpose of making available, in the form of onward loans, part of the finance

for  the investors in the SAFCos should they choose to take it up. At 31 March 2008 onward loans had been made

to investors in SAFCos totalling £26.8 million and

£86.2  million  of the proceeds of the bank finance remained attributable to Cinematic Finance Limited  to  be

lent to investors in the SAFCos after the balance sheet date.



Under  the agreement, the SAFCo's have agreed to make advances of their investments to SAFE (UK) Ltd  (a  100%

subsidiary of SAP Plc) in three tranches. Of the SAFCo's which had closed prior to the balance sheet date only

the first tranche of funding had been advanced transferred to SAFE UK Ltd.



In  accordance  with the accounting policies of SAP Plc, revenues attributable to it from the  Zeus  agreement

have  been recognised in the income and expenditure account on an individual film basis in the proportion that

income  for the accounting period bears to the directors' forecast of total revenue to be received.   Advances

of  financing  received from the SAFCo's in the period have been deferred into future periods to  set  against

costs of production as they arise.



4. Basis of Presentation

The results for the twelve months ended 31 March 2008, which are neither audited nor reviewed by the auditors,

have  been prepared on the basis of the accounting policies adopted for the year ended 31 March 2007,  as  set

out  in  the  Company's annual report and accounts after taking into account any accounting  standards  issued

since that date, none of which have resulted in any changes to the accounting policies of the Company.



The  results  for the year ended 31 March 2007 are an abridged version of the Group's full accounts  for  that

period, which carry unqualified auditors' reports and do not contain any statements under S237 (2) or  (3)  of

the  Companies Act 1985. The full accounts for the year ended 31 March 2007 have been filed with the Registrar

of Companies.

Copies  of  the statement are available at the registered office of the Company, 1 America Square,  Crosswall,

London EC3N 2SG. And on the Company's website (www.7artspictures.com)




The Directors of Seven Arts Pictures Plc accept responsibility for this announcement.


For further information please contact:

Seven Arts Pictures plc UK contact:
Elaine New, +44-203-006 8225
elainenew@7artspictures.com

Barry Hocken/Duncan Vasey
St Helen's Capital Plc
020 7628 5582











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