CMS Webview Plc Final Results For The Year Ended 31 December 2006

Financial and business highlights:

Turnover of £697,000 (2005: £934,000)
Loss before tax of £399,000 (2005: loss of £553,000)
Major cost cutting exercise completed
Implemented new outsourced marketing and IT support model
Successfully disposed of data sales operation to Tenfore Systems Ltd.
Appointed David Hardy, former Chief Executive of LCH.Clearnet, as an adviser to the Company
Created ‘clean’ company structure

Keith Young, Chairman of CMS WebView plc, commented:

“Feedback from many of the meetings indicates that the new model may have the potential to deliver future revenues, and that it would be sensible for CMS to verify this possibility by continuing to meet potential TDI customers over the short term.

“However, while TDI sales are being actively pursued, the board also recognises that CMS’s current cash position requires other corporate actions to be considered at the same time. Acting in the best interests of shareholders, CMS directors are open to corporate deal opportunities with companies that might find significant value in CMS’s ‘clean’ balance sheet and our proven TDI product or in realising the value of CMS’s intellectual property assets.”

Chairman’s statement

We made substantial changes to CMS in 2006, the most significant of which followed a wholesale review of the business resulting in the outsourcing of our sales, marketing and IT support functions to partner firms, the successful disposal of our data sales operation, and the introduction of a new business model for our lead software product TDI.

As a consequence of these changes, not only has CMS’s fixed cost base been substantially reduced but also a new corporate structure created that has the flexibility to allow the board to consider a number of options.

In revenue terms, 2006 was disappointing, with no new client sales of our wholly-owned TDI software solution being reported apart from an extension to its licence to the CBOT. The performance should be taken in the context of the company’s transition to the new model during the year.

Results

I can report that turnover for the year ended 31 Dec 2006 fell by 25% to £697,000 (2005: £934,000) while losses before taxation were reduced by 28% to £399,000 compared with £553,000 in 2005. The fall in losses should be reviewed in the context of all redundancy costs having already been incurred and that overheads have been reduced going forward. The losses prior to redundancy costs were £112,000. At the year end we had cash in the bank and in hand of £382,000 (2005: £844,000).

Business Review

CMS continued to market its wholly-owned TDI product to futures exchanges but also repositioned TDI as a self-supported development tool that would appeal to a broader range of organisations involved in financial data management.

As part of the new sales and marketing model, clients are offered individual licences to the source code. By putting clients in charge of their own destiny, we hope to have removed the concerns clients may have on being dependent on a small supplier.

A thorough reorganisation of the sales and IT support functions was successfully completed in the second half of 2006. We are pleased to report that all the costs have been met associated with staff redundancies and delivering the new marketing and business plans.

As previously reported in September 2006, our data sales business was disposed to Tenfore. This was undertaken in a way to ensure a smooth client transfer process.

In terms of ongoing TDI usage, the Chicago Board of Trade (CBOT), one of the world’s largest futures exchanges, continues to use TDI for the collection, processing and distribution of its data.

Under a separate licence agreement the CBOT is also still using TDI for the distribution of other North American exchanges (Minneapolis Grain Exchange, Kansas City Board of Trade and the Winnipeg Commodity Exchange) in conjunction with Dow Jones Indexes. This licence, which includes recurring revenues, was further extended in 2006 to include the Joint Asian Derivatives Exchange (JADE), a Singapore-based commodities joint venture between the CBOT and the Singapore Exchange. JADE commenced operations in September.

In line with the reorganisation previously reported to shareholders, CMS and the CBOT agreed that the support element of this contract be cancelled with effect from 30 June 2006.

Outlook

This year, the board has focussed on reducing central costs to a minimum, while maintaining an outsourced sales and IT support function with the potential to maximise returns on the sizeable investment already made in TDI.

In terms of new TDI sales, to date, our sales partners have arranged more than 30 first appointments with the heads of IT and key data management at appropriate financial data organisations.

At the meetings completed so far, CMS has presented how TDI’s flexible modular software could be ‘bolted’ into existing market data infrastructure, enabling purchasers to process, distribute or archive live financial data with significantly increased efficiency and at relatively low expense.

Although sales meetings are still ongoing, the board wishes to stress that no new TDI sales have yet resulted. However, feedback from many of the meetings indicates that the new model may have the potential to deliver future revenues, and that it would be sensible for CMS to verify this possibility by continuing to meet potential TDI customers over the short term.

However, while TDI sales are being actively pursued, the board also recognises that CMS’s current cash position requires other corporate actions to be considered at the same time.

Acting in the best interests of shareholders, CMS directors are open to corporate deal opportunities with companies that might find significant value in CMS’s ‘clean’ balance sheet and its proven TDI product or in realising the value of CMS’s intellectual property assets.

A further update will be made to shareholders at the AGM which is to be held on 28 June 2007.

Keith Young
Chairman

Profit and Loss Account for the year ended 31 December 2006

	Notes	2006	2005
		£’000	£’000


Turnover		697	934
Cost of sales		323	744

Gross profit/(loss)		374	190
Business development and marketing		45	86
Administrative expenses		564	696
Redundancy costs		287	-
Income from disposal of data sales business		107	-

Operating loss		(415)	(592)
Interest receivable		16	39

Loss on ordinary activities before taxation		(399)	(553)

Taxation		-	-

Loss on ordinary activities after taxation		(399)	(553)

Dividends - equity		-	-

Retained loss for the year		(399)	(553)

Earnings per share (p)	1	(0.499)	(0.691)

Dividends per share (p)		-	-

Turnover includes £147,000 which is derived from operations which have been sold or terminated during the year.

Statement of total recognised gains and losses

	Notes	2006	2005
		£’000	£’000

Loss for the financial year		(399)	(553)

Prior year adjustment		(11)	-

Total recognised gains and losses since last financial statements		(410)	(553)

Balance Sheet as at 31 December 2006

	Notes	2006	2005
		£’000	£’000


Fixed assets
Intangible assets		-	-
Tangible assets		-	24
Investments		-	-
		-	24

Current assets
Debtors		15	125
Cash at bank and in hand		382	844
		397	969

Creditors: amounts falling due within one year		116	313

Net current assets		281	656


Total assets less current liabilities		281	680


Capital and reserves
Called up share capital		160	160
Share premium account		4,615	4,615
Share option reserve		11	11
Profit and loss account		(4,505)	(4,106)
Shareholders' funds	2	281	680

Approved and signed on behalf of the Board on 23 May 2007.

K Young

R E Antell

Cash Flow Statement for the year ended 31 December 2006

	Notes	2006	2005
		£’000	£’000


Net cash outflow from operating activities	3	(483)	(654)

Returns on investments and servicing of finance
Interest received		16	39

Taxation		-	-

Capital expenditure and financial investment
Purchase of intangible fixed assets Purchase of tangible fixed assets Proceeds of sale of tangible fixed assets		- - 5	- (2) -
Net cash flow from capital expenditure and financial investment		-	(2)

Equity dividends paid		-	-

Financing
Issue of ordinary shares		-	-
Net cash flow from financing		-	-


Decrease in cash	4	(462)	(617)

Notes to the final results for the year ended 31 December 2006

1. Earnings per share

	2006	2005

Weighted average number of shares in issue during the year and used to calculate:

Loss attributable to equity shareholders (£’000)	(399)	(553)
Ordinary shares in issue during the year	80,000,000	80,000,000

Earnings per share (p)	(0.499)	(0.691)

2. Reconciliation of moments in shareholders’ funds

	2006	2005
	£’000	£’000

Loss for the financial year	(399)	(542)
Ordinary dividends	-	-
New share capital issued	-	-
Net premium on shares issued	-	-
Net reductions from shareholders’ funds	(399)	(542)
Shareholders’ funds at the start of the year	680	1,228
Shareholders’ funds at the end of the year	281	680

3. Reconciliation of operating loss to net cash flow from operating activities

	2006	2005
	£’000	£’000

Operating loss	(415)	(592)
Depreciation	19	33
Amortisation of IT Development costs	-	14
Profit on sale of investments	-	-
Decrease in debtors	110	22
Decrease in creditors	(197)	(142)
Share option charge	-	11
Net cash outflow from operating activities	(483)	(654)

4. Reconciliation of net cash flow to movement in net funds

	2006	2005
	£’000	£’000

Decrease in cash in the year	(462)	(617)

Net cash at 1 January	844	1,461

Net cash at 31 December	382	844