Stockcube plc Interim Report 2003
                                                                                                                       
The Stockcube group produces research and analysis of the relative strengths and weaknesses of price trends of stocks,
stock indices, currencies, bonds and technical data to assist professional and non-professional investors with the
timing of investment transactions.
 
BOARD OF DIRECTORS
EDWARD FORBES             Chairman *                       
JULIAN BURNEY             Chief Executive Officer          
SHIRLEY YEOH              Finance Director                 
ANDREW ASHMAN             Director                         
TIMOTHY HORLICK           Director *                       
DENNISON VERU             Director *                       
* non executive                                            
 
 
Highlights
for the six months ended 30 June, 2003
 
Turnover up 7% at �1,153,000 (2002: �1,078,000)
�34,000 profit (2002: �34,000 loss) before tax and exceptional items
Earnings per share 0.03p (2002: 1.70p loss per share);
 
"Volatile markets in the first six months of this year have tested the nerve of both the professional and
non-professional investor. Such market conditions put a premium on the services of research houses like Stockcube
because stock and market timing become ever more important both in the preservation of capital and in making positive
returns. Although we have seen more, if fragile, optimism neither 'buy and hold' nor 'stay in cash' are realistic
options for serious investors. This has created a favourable environment for the group's technically-based trading
strategies and investment advice. 
 
We have increased our turnover by 7% over 2002, which is particularly pleasing, as we have also built steadily on our
reputation by making some very well timed calls for our clients.
 
I am also pleased that the group has returned to profit in the period and that Chartcraft has made its first positive
contribution to the group since we acquired it, as well as making its first profit for many years."
 
 
Julian Burney, Chief Executive of Stockcube, 24 September, 2003
 
Enquiries:
Julian Burney, Chief Executive        +44 207 352 4001                    
ShirleyYeoh, Finance Director         +44 207 352 4001                    

Our website is                       www.stockcube.com                    
                                                                          
                                                                          
 
 
CHAIRMAN'S STATEMENT
 
Introduction
 
We continue to improve the quality and accessibility of our research services and to build our reputation in the UK and
USA.
Financial review
 
Turnover for the six months ended 30 June, 2003 amounted to �1,153,000, a 7% increase over �1,078,000 for the same
period in 2002.
The like-for-like comparison is a profit before tax of �34,000 against a loss of �34,000 before tax and exceptional
items of �1,589,000 in 2002. We consider this is a satisfactory result and considerably ahead of our budgetary
expectations.
The absorption of six months additional Sapphyr-related costs together with lower earnings on our cash deposits
squeezed our UK-generated pre-tax profit to �17,000 against �53,000 in 2002. However, this was more than compensated
for by Chartcraft's turn around to a profit of �17,000 against a loss of �87,000 in 2002. 
Earnings of 0.03p per 1p ordinary share for the period to 30 June, 2003 compare favourably to losses per share of
(1.70)p in 2002.
We had cash balances of �3,952,000 at 30 June, 2003 compared with �3,768,000 at the beginning of the year.
 
Review of operations
 
EFMtech's income grew by 5% over the same period for 2002 and we expect this improvement to continue for the rest of
the year. We are satisfied that we have established a strong track record in our field.
 
We firmly believe that independence of thought and opinion is one of our greatest assets. During the period we took the
initiative to form the Association of Independent Research Providers. Formally constituted on 8 July, 2003, the
Association has eleven founder members; its aims are to promote the causes and interests of independent research in the
UK and Europe and to further the commercial interests and technical skills of its members.
 
Our global strategy newsletter, Fullermoney, and related on-line market commentaries continue to attract a worldwide
audience. We plan to integrate our 'wider picture' economic reviews into our stock-specific professional advisory
services in the coming months.
In March we introduced greatly improved on-line services for Chartcraft and we are pleased that the business has been
generating cash and profit since the end of last year. Despite little active marketing or selling effort during this
bedding in process, on-line revenues have been gradually increasing and Chartcraft is now very well-positioned to
benefit from a structured marketing and customer after sales effort.
 
During the period we successfully put together a number of contracts combining EFMtech's research and analysis services
with Ecube by website building and delivery capability. We believe that up to date analysis packaged with value for
money web-based access systems, have a potentially wide market appeal.
 
We are in the process of launching our new professional website, which will include elements of re-branding over the
coming months.
 
Capital Reorganisation
Subsequent to the year end, on 3 July 2003, the High Court of Justice, Chancery Division, Companies Court confirmed a
reduction of the share premium account of Stockcube Plc by �340,050. This was registered by the Registrar of Companies
on 7 July 2003. The impact was to transfer �340,050 from the share premium account, thereby eliminating the deficit on
the profit and loss account  of the holding company as at 31 December 2002. If the accounts had been drawn up as at 7
July 2003, the consolidated balance sheet would show reductions of the same amount in the share premium account and in
the deficit in the profit loss account.
Trading outlook
 
While we are cautious about the future directions of the markets we monitor and analyse we are entirely confident of
the soundness of our business and that the steady approach we have adopted to profitable organic growth will bear
fruit.
We expect a favourable result for the year as a whole.
 
Edward Forbes,
Chairman
London
24 September 2003
 
Group Profit and Loss Account
 
                                               Unaudited   Unaudited    Audited 
                                              Six Months  Six Months    Year to 
                                                 30 June     30 June     31 Dec 
                                                    2003        2002       2002 
                                                   �'000       �'000       �000 
                                                                                
Turnover                                           1,153       1,078      2,045 
                                                                                
Administrative expenses:                                                        
Ongoing (excluding impairment and website         (1,187)     (1,116)    (2,293)
development costs)                                                              
Website development costs                              -         (82)      (125)
Impairment                                             -      (1,589)    (1,795)
                                                 --------    --------   --------
Administrative expenses                           (1,187)     (2,787)    (4,213)
                                                 --------    --------   --------
Group operating loss                                 (34)     (1,709)    (2,168)
Interest receivable and similar income                68          86        155 
                                                  -------     -------    -------
Profit/(Loss) on ordinary activities before           34      (1,623)    (2,013)
taxation                                                                        
Tax on (loss)/profit on ordinary activities           (6)        (10)        (2)
                                                  -------     -------    -------
Profit/(Loss) retained for the period                 28      (1,633)    (2,015)
                                                 --------    --------   --------
                                                                                
Basic earnings/(Loss) per share                     0.03p     (1.70)p    (2.10)p
                                                                                
Diluted earnings/(loss) per share                   0.03p     (1.70)p    (2.10)p
 
There were no recognised gains or losses other than the profit/(loss) for the period.
 
Group Balance Sheet
                                           Unaudited   Unaudited     Audited 
                                          Six Months  Six Months     Year to 
                                             30 June     30 June      31 Dec 
                                                2003        2002        2002 
                                               �'000       �'000        �000 
Fixed assets                                                                 
Tangible assets                                  343         364         346 
                                             --------    --------    --------
                                                 343         364         346 
                                             --------    --------    --------
Current assets                                                               
Debtors                                          584         502         394 
Cash at bank and in hand                       3,952       4,325       3,768 
                                             --------    --------    --------
                                               4,536       4,827       4,162 
                                                                             
Creditors: amounts falling due within           (910)       (844)       (567)
one year                                                                     
                                             --------    --------    --------
Net current assets                             3,626       3,983       3,595 
                                             --------    --------    --------
Total assets less current liabilities          3,969       4,347       3,941 
                                             --------    --------    --------
Capital and reserves                                                         
Called up share capital                          961         961         961 
Share premium account                          4,114       4,114       4,114 
Merger reserve                                   568         568         568 
Profit and loss account                       (1,674)     (1,296)     (1,702)
                                             --------    --------    --------
Equity shareholders' funds                     3,969       4,347       3,941 
                                             --------    --------    --------
                                                                             
 
Approved by Order of the Board on 24 September 2003
 
 
Julian Burney
Director
 
GROUP STATEMENT OF CASH FLOWS
 
                                           Unaudited   Unaudited     Audited 
                                          Six Months  Six Months     Year to 
                                             30 June     30 June      31 Dec 
                                                2003        2002        2002 
                                               �'000       �'000        �000 
                                                                             
Net cash inflow/(outflow) from operating         126         146        (205)
activities                                                                   
                                                                             
Returns on investments and servicing of                                      
finance                                                                      
Interest received                                 68          86         155 
                                                                             
Taxation                                           -          (2)        (59)
                                                                             
Capital expenditure                                                          
Payments to acquire tangible fixed               (10)        (25)        (25)
assets                                                                       
                                                                             
Acquisitions and disposals                                                   
Payments to acquire investments                    -           0        (218)
                                             --------    --------    --------
Net cash inflow/(outflow) before                 184         205        (352)
financing                                                                    
                                                                             
Management of liquid resources                                               
(Increase)/Decrease in short-term               (940)        140         320 
deposits                                                                     
                                             --------    --------    --------
(Decrease)/increase in cash                     (756)        345         (32)
                                             --------    --------    --------
 
GROUP STATEMENT OF CASH FLOWS
Reconciliation of net cash flow to movement in net funds
 
                                           Unaudited   Unaudited     Audited 
                                          Six Months  Six Months     Year to 
                                             30 June     30 June      31 Dec 
                                                2003        2002        2002 
                                               �'000       �'000        �000 
(Decrease)/increase in cash                     (756)        345         (32)
Increase/(decrease) in short-term                940        (140)       (320)
deposits                                                                     
                                             --------    --------    --------
Movement in net funds                            184         205        (352)
Net funds at 1 January                         3,768       4,120       4,120 
                                             --------    --------    --------
NET FUNDS                                      3,952       4,325       3,768 
                                             --------    --------    --------
                                                                             
 
Analysis of net debt
 
                                           Unaudited   Unaudited     Audited 
                                          Six Months  Six Months     Year to 
                                             30 June     30 June      31 Dec 
                                                2003        2002        2002 
                                               �'000       �'000        �000 
Cash at bank and in bank                         152         205         908 
Short Term Deposits                            3,800       4,120       2,860 
                                             --------    --------    --------
                                               3,952       4,325       3,768 
                                             --------    --------    --------
                                                                             
 
NOTES TO THE INTERIM REPORT
1. Basis of preparation of interim financial information
The interim financial information has been prepared on the basis of the accounting policies set out in the group
statutory accounts for the year ended 31 December 2002. The taxation charge is calculated by applying the directors'
best estimate of the annual tax rate to the profit for the period.  All other accounting polices set out in the
accounts for Stockcube Plc for the year ended 31 December 2002 were applied for the purposes of this statement.
 
Basis of consolidation
The group accounts consolidate the accounts of Stockcube plc and all its subsidiary undertakings. 
 
2. Earnings per share
The calculation of basic earnings per ordinary share is based on profits after tax and exceptional items of �28,000
(year to December 2002:loss of �2,015,000, six months to 30 June 2002: loss �1,633,000) and on 96,106,300  (December
2002: 96,106,300; June 2002: 96,106,300) ordinary shares.
The diluted earnings per share are based on 108,706,750 (December 2002: 108,706,750) ordinary shares, which takes into
account theoretical ordinary shares that would have been issued, based on average market value if all outstanding
options had been exercised.
 
3.Reconciliation of operating profit to net cash inflow from operating activities
                                         Unaudited   Unaudited     Audited 
                                        Six Months  Six Months     Year to 
                                           30 June     30 June      31 Dec 
                                              2003        2002        2002 
                                             �'000       �'000        �000 
Operating (Loss)                               (34)     (1,709)     (2,168)
Impairment                                       -       1,589       1,795 
Depreciation                                    13          23          38 
Goodwill amortisation                            -          25          24 
Amortisation of trademarks and licence           -           1           2 
fees                                                                       
Loss on disposal                                 -           -           4 
Exchange losses                                  -          12           - 
(Increase)/decrease in debtors                (190)        (34)         74 
Increase in creditors                          337         239          26 
                                           --------    --------    --------
Net cash inflow/(outflow) from                 126         146        (205)
operating activities                                                       
                                           --------    --------    --------
 
4.Publication of non-statutory accounts
The financial information contained in this statement does not constitute statutory accounts as defined in section 240
of the Companies Act 1985.  The financial information for the preceding full year, is based on the statutory accounts
of Stockcube plc, for the year ended 31 December 2002.Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.
 
INDEPENDENT REVIEW REPORT TO STOCKCUBE PLC
 
Introduction
We have been instructed by the company to review the financial information for the six months ended 30 June 2003, which
comprises the Group Profit and Loss Account, Group Balance Sheet, Group Statement of Cash Flows and the related notes 1
to 4. We have read the other information contained in the interim report and considered whether it contains any
apparent misstatements or material inconsistencies with the financial information.
 
This report is made solely to the company in accordance with guidelines contained in Bulletin 1999/4 "Review of interim
financial information" issued by the Auditing Practices Board.  To the fullest extent permitted by the law, we do not
accept or assume any responsibility to anyone other than the company, for our work, for this report, or for the
conclusions we have formed.
 
Directors' Responsibilities
 
The interim report, including the financial information contained therein, is the responsibility of, and has been
approved by the directors. The directors are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied
to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where
any changes, and the reasons for them, are disclosed.
 
Review work performed
 
We conducted our review in accordance with guidance contained in Bulletin 1999/4 'Review of interim financial
information' issued by the Auditing Practices Board for use in the United Kingdom.  A review consists principally of
making enquiries of group management and applying analytical procedures to the financial information and underlying
financial data, and based thereon, assessing whether the accounting policies and presentation have been consistently
applied, unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with
United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit.  Accordingly we do
not express an audit opinion on the financial information.
 
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial
information as presented for the six months ended 30 June 2003.
Ernst & Young LLP
London
24 September 2003