RNS Number:4792P
Claims People Group PLC
08 September 2003

CHAIRMAN'S STATEMENT



Highlights:



*                   Turnover up 72%

*                   Profitability achieved

*                   New client wins

*                   Acquisition programme initiated



The Board of The Claims People Group plc announces the interim results for the
six months ended 30 June 2003.



Turnover for the six months improved by 72% from #533,469 to #916,990 compared
to the same period last year (full year 2003 #1,035,024) resulting in a profit
of #5,346 compared to a loss of #100,451 for the corresponding period last year.
This profit achievement represents an important milestone in the development of
the business and continues the pattern of improvement from the full year ended
31 December 2002 whereby the year's losses were reduced to #304,032 compared
with a losses of #934,186 for the previous financial year.



The commencement of the new Liverpool Victoria contract assisted the first six
months results as did increased support from Norwich Union and HSBC. I reported
in May of this year that the new 'Verify' product had been rolled out and was
being taken up by Axa, Chaucer and Hastings Direct and we have recently
introduced this new product to British Telecom as an addition to the liability
claims handling services we already provide to this important corporate client.



Acquisition of CCS Global UK



Further to our recent fundraising exercise The Claims People Group plc (TCP) has
acquired the claims handling and UK loss adjusting division of CCS Global from
Axis (Global) UK Limited for a maximum consideration of #355,000.



The UK loss adjusting and claims management business acquired generated
approximately #500,000 (unaudited) of turnover in calendar year 2002. The
consideration is structured with an upfront payment of #105,000 followed by
scheduled payments based upon the continuing business achieving agreed turnover
benchmarks. The deal provides for the transfer of key personnel and TCP will
take over the CCS regional offices in Newcastle and Stockport. The CCS London
office operation will be absorbed into the existing TCP offices in Southwark.



The CCS business represents an important first acquisition for the Group. The
business acquired is complimentary to the existing Claims People offering with
no overlap of client base. The brand name of CCS will be retained and we are
confident that, with the transfer of work in progress and essential CCS staff,
the new division will immediately contribute towards our profitable growth.



The directors view the future prospects, both in terms of organic growth and
earnings enhancing acquisitions, with confidence. We have a strong and committed
team and I look forward to reporting to you further as we pursue future
opportunities.



John French
Chairman
8th September 2003
                                                                                




THE CLAIMS PEOPLE GROUP PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2003


                                                                                                                   
                                             Notes        6 months ended   6 months ended        Year ended             
                                                            30 June 2003     30 June 2002     31 December 2002          
                                                               Unaudited        Unaudited        Audited                
                                                                        #                #                #             
            
                                                                                                                      
  Turnover                                                        916,990          533,469        1,035,024             
               
  Administrative expenses                                        (912,834)        (634,645)      (1,337,462)            
                
  Operating profit/(loss)                                           4,156         (101,176)        (302,438)            
                
  Interest receivable                                               1,617            1,185            2,704             
               
  Interest payable                                                   (427)            (460)          (4,298)            
                
  Profit/(loss) before taxation                                     5,346         (100,451)        (304,032)            
                
  Taxation                                           2                  -                -                 -          

  Profit/(loss) after taxation and for the                          5,346         (100,451)        (304,032)            
  period                                                                                                              

  Profit/(loss) per share                            3              0.01p           (0.2)p           (0.52)p

  Fully diluted profit/(loss) per share              3              0.01p           (0.2p)           (0.52)p



The attached consolidated profit & loss account, balance sheet, cash flow 
statement and related notes were approved by the Board of Directors on 
8th September 2003.



P M Morgan Director


THE CLAIMS PEOPLE GROUP PLC 
UNAUDITED CONSOLIDATED BALANCE SHEET 
30 JUNE 2003 
 




                                  30 June 2003    30 June 2002   31 December 2002                               
                                     Unaudited       Unaudited         Audited                                        
                                             #               #               #                                          
   
  Fixed assets                                                                                                        
  Tangible assets                      175,729         260,847         219,007                                        

  Current assets                                                                                                      
  Work in progress                     131,990          74,741         128,068                                        
  Debtors                              416,382         253,371         232,695                                        
  Cash                                  13,847           5,759         100,979                                        
                                       562,219         333,871         461,742                                        

  Creditors: Amounts falling due                                                                                      
  within one year                     (434,024)       (467,840)       (375,954)                                      
  Net current assets/(liabilities)     128,195        (133,969)         85,783                                         
                                                                                                                      
  Total assets less current            303,924         126,878         304,795                                        
  liabilities                                                                                                         

  Creditors: Amounts falling due                                                                                      
  after                                                                                                               
  one year                              (4,549)        (32,492)        (10,766)                                       
                                       299,375          94,386         294,029 
  Share capital and reserve                                                                                           
  Called up share capital            1,123,780         771,280       1,123,780                                      
  Share premium account                832,123         781,399         832,123                                        
  Profit and loss account           (1,656,528)     (1,458,293)     (1,661,874)                                    

  Equity shareholders' funds           299,375          94,386         294,029                                        







THE CLAIMS PEOPLE GROUP PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003



                                                                                                                      
                              Notes       6 months ended    6 months ended            Year ended             
                                            30 June 2003      30 June 2002      31 December 2002                        
                                               Unaudited         Unaudited               Audited                        
                                                       #                 #                     #                        
                 
                                                                                                                      
                                                                                                                      
  Net cash outflow from                                                                                               
  operating activities        4                  (29,828)         (165,527)             (478,783)              

  Return on investments                                                                                               
  and servicing of                                                                                                    
  financing                                                                                                           
  Interest received                                1,617              1,185                2,704                        
  Interest element of                                                                                                 
  finance                                                                                                             
  lease payments                                    (427)              (460)              (4,298)                       
            
  Capital expenditure                                                                                                 
  Purchase of tangible                           (12,632)            (9,902)             (22,855)                       
  fixed assets                                                                                                        

  Cash outflow before use                                                                                             
  of liquid resources and                        (41,270)          (174,704)            (503,232)                       
  financing                                                                                                           

  Financing                                                                                                           
  Issue of equity share                                -                  -              411,250                        
  capital                                                                                                             
  Costs of issue of equity                             -                  -               (8,026)                       
  share capital                                                                                                       
  Capital element of                                                                                                  
  finance lease                                                                                                       
  rental payments                                (12,433)           (10,567)             (23,475)                       
  Decrease in cash                               (53,703)          (185,271)            (123,483)                       
          




  THE CLAIMS PEOPLE GROUP PLC                                                                                           
                     
                                                                                                                      
  NOTES TO THE INTERIM FINANCIAL INFORMATION                                                                            
  FOR THE SIX MONTHS ENDED 30 JUNE 2003                                                                                 
                      
                                                                                                                      
1. Financial Information

The financial information above does note constitute statutory accounts within
the meaning of  Section 240 of the Companies Act 1985.


The interim financial information has not been audited but has been reviewed by
the Company's auditors.



2. Taxation

No liability to taxation arises due to the loss incurred.



3. Profit/(loss) per share

The profit/(loss) per share is based on the profit/(loss) for the period and the
weighted average number of ordinary shares in issue and ranking for dividend.


                            6 months ended             6 months ended           Year ended                              
                              30 June 2003               30 June 2002      31 December 2002                           
                                 Unaudited                  Unaudited               Audited                             
                                         #                          #                     #                             
                                                                                                                      
        Profit/(loss) for the        5,346                   (100,451)             (304,032)              
        period                                                                                  

        Weighted average number 74,918,667                 51,418,667            58,350,174             
        of shares                                                                               
                              


In calculating diluted earnings per share, share options have been considered to
be non-dilutive.



4.  Reconciliation of operating profit/(loss) to net cash outflow from
    operating activities

            
                                                                                                   
                                                     6 months ended    6 months ended        Year ended        
                                                       30 June 2003      30 June 2002  31 December 2002  
                                                          Unaudited         Unaudited           Audited           
                                                                  #                 #                 #                 
                                                                                                             
          Operating profit/(loss)                             4,156          (101,176)         (302,438)         
          Depreciation                                       55,909            53,436           108,228           
          (Increase) in work in progress                     (3,922)           (9,787)          (63,114)          
          Increase in debtors                              (183,687)         (117,697)          (97,021)          
          Increase/(decrease) in creditors                   97,717             9,697          (124,438)         
          Net cash outflow from operating activities        (29,827)         (165,527)         (478,783)         
     
 

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