Auxinet plc                                                                            
Consolidated Profit and Loss Account                                                   
For the year ended 31 December 2002                                                    
                                                           Year ended      Year ended 
                                                          31 December      31 December 
                                                                 2002            2001 
                                                                 £000            £000 
Turnover                                                                               
Continuing operations                                           2,703           2,073  
Discontinued operations                                             -              971 
Total Turnover                                                  2,703           3,044  
 
Administrative expenses                                                                
     Amortisation of Goodwill                                  (1,975)         (1,975) 
     National insurance on share option credit                      -             157  
     Severance payments                                             -            (112) 
     Other operating expenses                                  (3,113)         (7,714) 
                                                          ------------    ------------ 
Total administrative expenses                                  (5,088)         (9,644) 
                                                          ------------    ------------ 
Operating loss                                                                         
Continuing operations                                          (2,385)         (6,170) 
Discontinued operations                                             -            (430) 
                                                          ------------    ------------ 
Total operating loss                                           (2,385)         (6,600) 
Interest receivable and similar income                             19              65  
Amounts written off investments                                     -            (310) 
Interest payable and similar charges                                -              (3) 
                                                          ------------    ------------ 
Loss on ordinary activities before and after taxation          (2,366)         (6,848) 
                                                          ------------    ------------ 
Basic and diluted loss per share                               (5.44)p        (16.96)p 
Adjusted basic and diluted loss per share                      (0.90)p        (12.18)p 
                                                                                                
 
 
 
 
Consolidated Balance Sheet                                              
As at 31 December 2002                                                  
                                           31 December     31 December 
                                                  2002            2001 
                                                  £000            £000 
Fixed assets                                                            
Intangible assets                               14,262          16,237  
Tangible assets                                    170             312  
Investments                                        160             210  
                                           ------------    ------------ 
                                                14,592          16,759  
                                           ------------    ------------ 
Current assets                                                          
Debtors                                            641             728  
Cash at bank and in hand                           667             951  
                                           ------------    ------------ 
                                                 1,308           1,679  
                                           ------------    ------------ 
Creditors                                                               
Amounts falling due within one year               (959)         (1,466) 
                                           ------------    ------------ 
Net current assets                                 349             213  
                                           ------------    ------------ 
Total assets less current liabilities           14,941          16,972  
 
Provisions for liabilities and charges            (789)           (525) 
                                           ------------    ------------ 
                                                14,152          16,447  
                                           ------------    ------------ 
Capital and Reserves                                                    
Called up share capital                            436             432  
Share premium account                            9,509           9,442  
Share scheme reserve                                 4              19  
Merger reserve                                    (124)           (124) 
Other reserve                                   18,889          18,889  
Profit and loss account                        (14,562)        (12,211) 
                                           ------------    ------------ 
Equity shareholders' funds                      14,152          16,447  
                                           ------------    ------------ 
 
 
                                                                                               
 
Company Balance Sheet                                                   
As at 31 December 2002                                                  
                                           31 December     31 December  
                                                  2002            2001 
                                                  £000            £000 
Fixed assets                                                            
Tangible assets                                     22              20  
Investments                                        472             597  
                                           ------------    ------------ 
                                                   494             617  
                                           ------------    ------------ 
Current assets                                                          
Debtors                                          9,922           9,072  
Cash at bank and in hand                           551             918  
                                           ------------    ------------ 
                                                10,473           9,990  
                                           ------------    ------------ 
Creditors                                                               
Amounts falling due within one year               (126)           (304) 
                                           ------------    ------------ 
Net current assets                              10,347           9,686  
                                           ------------    ------------ 
Total assets less current liabilities           10,841          10,303  
 
Provisions for liabilities and charges            (784)              -  
                                           ------------    ------------ 
                                                10,057          10,303  
Capital and Reserves                       ------------    ------------ 
Called up share capital                            436             432  
Share premium account                            9,509           9,442  
Share scheme reserve                                 4              19  
Profit and loss account                            108             410  
                                           ------------    ------------ 
Equity shareholders' funds                      10,057          10,303  
                                           ------------    ------------ 
                                                                                                     
 
 
 
 
Consolidated Cash Flow Statement                                                 
For the year ended 31 December 2002                                              
                                                     Year ended      Year ended  
                                                    31 December     31 December  
                                                           2002            2001  
                                                           £000            £000 
 
Net cash outflow from operating activities                 (357)         (3,885) 
 
Returns on investments and servicing of finance                                  
Interest received                                            19              65  
Interest paid                                                 -              (3) 
 
Net cash inflow from returns on investments         ------------    ------------ 
and servicing of finance                                     19              62  
                                                    ------------    ------------ 
Capital expenditure and financial investment                                     
Purchase of tangible fixed assets                           (67)           (277) 
Sale of tangible fixed assets                                 -              35  
Decrease/(Increase) in investment loans                      50             (50) 
                                                    ------------    ------------ 
                                                                                     
Net cash outflow from capital expenditure and   
financial investments                                       (17)           (292) 
                                                    ------------    ------------ 
Net cash outflow before management                                                    
of liquid resources and financing                          (355)         (4,115) 
                                                    ------------    ------------ 
Management of liquid resources                                                        
Decrease in short term bank deposits                        364           1,837  
                                                    ------------    ------------ 
Net cash inflow from management of liquid resources         364           1,837  
                                                    ------------    ------------ 
Financing                                                                             
Capital element of finance lease rental payments              -             (57) 
                                                                                                     
Issue of ordinary share capital including premium 
(net of expenses)                                             -           2,027  
                                                                                                 
Exercise of share options                                    71              18  
                                                    ------------    ------------ 
Net cash inflow from financing                               71           1,988  
                                                    ------------    ------------ 
Increase/(decrease) in cash in the year                      80            (291) 
                                                    ------------    ------------ 
                                                                                                         
 
 
 
Reconciliation of Net Cash Flow to Movement in Net Funds                                 
For the year ended 31 December 2002                                                      
 
                                                             Year ended      Year ended  
                                                            31 December     31 December  
                                                                   2002            2001  
                                                                   £000            £000  
 
Increase/(decrease) in cash in the year                              80            (291) 
Cash outflow from lease financing                                     -              57  
Cash outflow from management of liquid resources                   (364)         (1,837) 
                                                            ------------    ------------ 
Movement in net funds                                              (284)         (2,071) 
Opening net funds                                                   951           3,022  
                                                            ------------    ------------ 
Closing net funds                                                   667             951  
                                                            ------------    ------------