Journeo Regulatory News (JNEO)

19 July 2011

21st Century Technology plc ("21st Century", "the Company" or "the Group")

Interim Results for the six months ended 30 June 2011

21st Century, a leading supplier of public transport CCTV and other monitoring systems, including their award winning EcoManager, today announces its unaudited interim figures for the six months to 30 June 2011.

Highlights

·; Revenue for the six months up 39% to £7,825,000 (2010: £5,632,000)

·; Profit after tax up 76% to £530,000 (2010: £301,000)

·; Net margin up 28% to 6.8% of revenue (2010: 5.3%)

·; Sales to FirstGroup UK Bus (new customer last year) up 94% to £996,000 (2010: £514,000)

·; Several EcoManager trials underway in  Europe and the Middle East

·; Earnings per share from continuing operations 0.57p (2010: 0.37p)

·; Deficit on the parent company reserves eliminated following cancellation of share premium

Commenting on the results, Jan Holmstrom, Chairman of 21st Century, said:

"We have delivered another strong performance for the period on the back of new contracts won in mainland Europe and improved sales in the UK on certain contracts. We are continuing our drive to develop domestic and international sales opportunities for CCTV, EcoManager and our passenger counting system. The Group continues to strengthen through our actions and with EcoManager gaining considerable interest and traction in Europe and the Middle East we are looking forward to the future with optimism."

A copy of this interim results announcement is available on the Company's website: www.21stplc.com

Notes to editors:

21st Century Technology plc (AIM: C21), a leading supplier of public transport CCTV and other monitoring systems, was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2005.

21st Century is the preferred supplier of on-board CCTV systems for Arriva UK Bus and the Go-Ahead Group in the UK and an approved supplier to FirstGroup UK Bus.

The Company has pioneered the use of WiFi with on-board CCTV systems and Transport for London commissioned the Company to undertake a trial of 'LiveView' - a system which transmits live CCTV pictures from on board the bus to a public transport and police control centre. 21st Century was also the first company to successfully launch Automatic Video Downloads and a bus CCTV monitoring system (HeartbeatTM) which allow the CCTV manager to remotely download CCTV footage from the bus to his computer and check that all the CCTV systems fitted to his buses are fully operational, without leaving his desk. The company's overhead camera passenger counting device, known as Passenger Analysis System ("PAS"), links to the ticket machine and enables bus operators to analyse specific bus route ticket sales and passenger numbers.

21st Century's EcoManager product has made a significant contribution to sales since its launch in July 2008. The EcoManager black-box system is aimed at reducing fuel and maintenance costs, reducing emissions and improving safety for bus operators by monitoring individual driving styles against fuel consumption. Following a successful trial, in April 2009 Arriva UK committed to install the device on all their new buses and to retrofit a large proportion of their existing fleet. In November 2009 Arriva North West and Merseytravel won the industry recognised Alexander Dennis Award for Innovation following their installation of the EcoManager system which yielded fuel savings of up to 12%, associated CO2 emission reductions and a 62% reduction in accidents. This was followed in 2010 with a driver safety award for EcoManager presented by the road safety charity, Brake.

For further information go to www.getecomanager.com.

21st Century Technology plc

Chairman's statement

Results overview

The financial information contained within this interim report is based upon the Group's unaudited results for the six months to 30 June 2011.

I am pleased to report that in the first half of 2011 the Group has achieved a 76% increase in profit after tax to £530,000 (2010: £301,000) on revenue up 39% to £7,825,000 (2010: £5,632,000).

The Group is focused on the supply of CCTV and other monitoring systems to the public transport market. These embrace the supply and installation of mobile (on vehicle) and fixed (on premises) CCTV, EcoManager driver monitoring and our passenger counting system, PAS.

In the UK we supply mobile CCTV to three of the largest bus operators - Arriva UK Bus, the Go-Ahead Group and FirstGroup UK Bus. FirstGroup UK Bus was added to our client list at the start of last year and I am pleased to report that in the first 6 months of this year sales to this company have almost doubled to £996,000 (2010: £514,000).

We continue to pursue our strategy of looking to mainland Europe for growth opportunities and this year we have invested in additional European sales staff to support expansion outside of the UK. We are already seeing the results of this investment and I was particularly delighted to announce in January this year that the Group was awarded two contracts with a total value of £7.2m by Keolis Sverige AB ("Keolis") to supply CCTV systems, related maintenance and depot infrastructure for a total of 1,475 buses which Keolis operates under the 'Busslink' trading name in Stockholm. Approximately £6.4m of this contract is expected to be delivered in the current year and at 30 June 2011 we had successfully completed one contract and commenced the second. As at 30 June we have invoiced a total of £4,724,000 in respect of these contracts. To provide operational support for the Keolis contracts we set up a wholly owned subsidiary company in Stockholm which will also provide a platform for further business development in Scandinavia. The set up and operating costs of this subsidiary of £0.25m to 30 June 2011 have been included in administrative expenses within the Consolidated Statement of Comprehensive Income.

To date we have sold mobile CCTV and EcoManager in eight countries in Europe and currently have major trials of EcoManager running with four potential new customers in Europe and one in the Middle East.

Cash flow and working capital

Sales invoiced in June 2011 were particularly high as we completed the first of the Keolis contracts and this resulted in an increase in trade receivables at 30 June compared to last year. Following the Tsunami in Japan earlier in the year, we took the precaution of buying in extra stock of key components that are sourced from the Far East to hedge against possible shortages and we continue to monitor our supply chain closely. As a result of this increased investment in working capital our net bank borrowings at 30 June 2011 have risen to £0.6m which compares to a facility of £2m and a positive cash position £1.1m at the start of the current year. However, we anticipate that the Group will be cash positive again by the year end.

Land and buildings

The Group owns its head office premises in Mitcham, Surrey, which comprises 51,000 sq ft of office and warehouse space on a 3.2 acre site. As reported previously, since the disposal of our legacy distribution businesses, these premises have been underutilised and we are actively marketing the property for sale. Consequently, since 31 December 2010, the carrying value of these land and buildings has been included under current assets held for sale in our Consolidated Statement of Financial Position. We have received a number of enquiries from potential purchasers of the site but no firm offers as yet. To improve the attractiveness of the property to developers we have, subject to the completion of a s106 agreement, obtained planning permission to build a number of light industrial units on the site.

Cancellation of share premium account and dividends

At the Annual General Meeting ("AGM") held on 1 June 2011 a special resolution was passed to transfer £3,387,000 standing on the credit of the parent company's share premium account to distributable reserves. Following the AGM an application to the High Court was made and this completed on 23 June 2011. Consequently the deficit on the parent company's distributable reserves, which had prevented the Company from paying a dividend, has now been eliminated. The Board will give serious consideration to the payment of a full year dividend if the Company has sufficient surplus distributable reserves and cash and the Board considers that the distribution is in the best interests of the Company.

Current trading and outlook

We are currently trading in line with management expectations. There are a number of EcoManager trials in progress with customers and potential customers in mainland Europe and the Middle East. We are hopeful that these, along with our other marketing activities, will generate further sales overseas in the short to medium term. The Group continues to strengthen through our actions and we are looking forward to the future with optimism.

Jan G Holmstrom

Chairman

Consolidated statement of comprehensive income

Consolidated statement of changes in equity shareholders' funds

At the AGM held on 1 June 2011 a special resolution was passed to transfer £3,387,000 standing on the credit of the parent company's share premium account to distributable reserves. Following the AGM an application to the High Court was made and this completed on 23 June 2011.

Consolidated statement of financial position

Consolidated statement of cash flows

* The amount received in 2010 was deferred consideration in respect of the disposal made in 2009.Notes

1. Basis of preparation and approval of interim statement

The financial information for the six months ended 30 June 2011 and for the six months ended 30 June 2010 is unaudited.

The interim financial statement for the six months to 30 June 2011 has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union ("EU") and specifically in accordance with International Accounting Standards ("IAS") 34 'Interim Financial Reporting'. It does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2010.

The financial information has been prepared on the basis of IFRSs that the directors expect to be applicable as at 31 December 2011.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2010, which were prepared in accordance with IFRSs.

This interim financial statement does not comprise statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2010 were approved by the Board on 22 March 2011 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or section 498(3) of the Companies Act 2006.

The interim financial statement was approved by the Board of Directors on 18 July 2011.

2. International Financial Reporting Standards

The Group follows the Standards and Interpretations issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee of the IASB and endorsed by the EU that are relevant to its operations.

3. Segmental reporting

4. Earnings per ordinary share

Details of the weighted average number of ordinary shares used as the denominator in calculating the basic and diluted earnings per ordinary share are given below:

5. Cash generated from operations