FJET.L Regulatory News (FJET)

Rubicon Software Group plc

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2010

Rubicon Software Group plc ("Rubicon" or "the Group"; AIM: RUBI) announces its unaudited results for the six months ended 31 December 2010.

Highlights:

·; Significant contract with new customer during the period, outside the Financial Services sector

·; Revenues of £258,000 (2009 underlying*: £308,000)

·; Significant reduction in ongoing cost base

·; Underlying loss** for the period reduced to £69,000 (2009: £91,000)

*Underlying revenue for the comparative period is adjusted to take account of the effect of the one-off perpetual licence recognised in the prior year, as explained in the June 2010 financial statements.

**Underlying loss is adjusted for the above and for non-recurring costs.

Commenting on these results Chairman, Rob Burnham, said:

"The last 6 months have been a continuation of major transition for the Group in realigning the cost base and diversifying its market focus."

Notes to Editors

About Rubicon Software

Based near Woking in Surrey, Rubicon is a provider of smart customer relationship management and collaboration IT solutions. Its core technology is designed to enhance the effectiveness and efficiency of customer service, fulfilment and product selection, whilst facilitating business process and change management. Current clients include First Response Finance Limited, Market Harborough Building Society Limited, Norton Finance (UK) Limited, Segen Limited and Videocall Limited.

For further information, please contact:

CHAIRMAN'S STATEMENT

Business review

The last 6 months have been a continuation of transition for the Group in diversifying its market focus and realigning the cost base.

I am delighted to announce that we have contracted with a significant new customer, outside of the financial services sector from whom we expect to generate significant revenues over the medium term.

I am also pleased to confirm that the restructuring plan announced in my last statement has now been completed. The cost base of the Group has been reduced significantly going forward including reduction in headcount, particularly in administrative and corporate functions. Most significantly, we have reached an agreement to lease a smaller property, adjacent to our previous location; this property is much more suitable for the scale and nature of the business and reduces our on-going property costs significantly. As part of the negotiations we have agreed to pay an amount of £125,000 to release the Group from obligations under the previous lease. This results in a one-off cost to the Group which has been recognised in full in these interim financial statements, but over the medium term results in much lower overall property costs.

Financial review

Reported revenues for the period are £258,000 which represents a reduction of £80,000 compared to the same period last year, and a £50,000 reduction after adjusting for the effect of the one-off perpetual licence recognised in the prior year, as explained in the June 2010 financial statements.

The operating loss for the period amounts to £180,000 (2009: £61,000) but this includes a one-off cost of £110,000 in respect of the property move as explained above. After adjusting for the above effects, underlying losses are down to £69,000 from £91,000 in the six months to 31 December 2009.

Despite the disappointing financial results, the Group has been cash generative for the period with net cash generated of £17,000.

Outlook

The last couple of years have seen extremely difficult market conditions in the Group's niche within Financial Services and our results continue to reflect those conditions. However, demonstrable progress has also been made in the period and the Board believes that a solid platform has now been created from which to develop and sustain future profitable growth.

Consolidated statement of comprehensive income

All activities of the Group are classed as continuing.

Consolidated statement of changes in equity

Consolidated statement of financial position

Consolidated statement of cash flows

Notes to the interim results

1. Basis of preparation and accounting policies

The financial information set out in this interim results statement is for the six months to 31 December 2010 and has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". The interim financial information has not been audited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

The accounting policies applied are consistent with those of the last annual financial statements for the year ended 30 June 2010, which were prepared in accordance with IFRS as adopted for use in the European Union, and on which the auditor gave an unqualified opinion containing no statement under either Section 498(2) or (3) of the Companies Act 2006. The Group's annual financial statements have been filed with the Registrar of Companies.

The interim financial statements have been prepared under the historical cost convention and are presented in Pounds Sterling (£), which is the functional currency of all Group companies.

Application of the Group's accounting policies in preparing these interim financial statements requires management to make judgements and estimates that affect the reported amount of assets and liabilities, revenues and expenses. Actual results may ultimately differ from these estimates.

Rubicon Software Group plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. The Group's shares are listed on the AIM Market of the London Stock Exchange.

2. Segment reporting

The Board reviews the Group's internal reporting in order to assess business performance and allocate resources. The business is viewed as one unit, in terms of both geography and product, and the internal reporting reflects this. Therefore the Directors do not believe that segment disclosures are required.

3. Re-organisation costs

Re-organisation costs in the period to 31 December 2010, and the year to 30 June 2009 represent amounts paid or payable to release the Group from obligations under the previous lease, together with redundancy costs.

4. (Loss)/profit per share

The relevant figures used in the calculation are stated below:

In view of the loss for the period, share options in issue have no dilutive effect.

Copies of this interim report will be available on the company's website at www.rubiconsoftware.com

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