Cadence Mineral Regulatory News (KDNC)

29 June 2010

Zest Group plc

("Zest" or "the Group")

Interim Results

for the six months ended 31 March 2010

Zest Group plc (AIM:ZEST), announces its interim results for the six months ended 31 March 2010.

During the period the Group made a loss before taxation of £194,000 (2009: loss £113,000). There was a loss per share from continuing operations of 0.05p (2009: loss per share 0.07p).

Current trading

During the period under review the Group has continued to make progress on several fronts.

Tony Fennell has been writing in Los Angeles both for a new artist and a new television show. In addition one of his songs has been recorded by Warner Bros artist " Fabio" and will be released throughout the world this year.

The Group is negotiating the release of Tara Chinn's Album with a major European based label.

We have suffered delays on the sales of Nasio Fontaine's catalogue with the current distributor and publishing administrator. Although we expect this issue to be resolved in the final quarter of this year, we have been in negotiations to secure a new worldwide distribution deal. In addition one of Nasio's songs has been placed in a movie which is due to be released during the first quarter of 2011.

In 2006 Zest signed songwriter Ben Langmaid. In 2008 we released him from his agreement but put in place a settlement agreement. This agreement called for two payments which for legal reasons cannot be listed. We received the first one in 2009 and the second payment is due in the third quarter of 2010. Ben has recently had worldwide success writing with the artist La Roux.

The Group has also begun to provide consultancy services drawing on the experience of its executives which has provided us with a new revenue stream.

Outlook

The Group has continued to incur losses to date and is reliant on external funding. In November 2009 the Company raised £300,000 through a placing of new shares to fund its working capital requirements. The Group is actively managing its cost base and has reduced its overheads but will need to raise further funds for working capital by the end of its financial year. The Group is in discussions with potential funders and will provide an update in due course

The Group is continuing to develop its current roster of artists and in line with its strategy will continue to look for potential acquisition opportunities.

Richard Griffiths

Chairman

29 June 2010

ZEST GROUP PLC

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 MARCH 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 MARCH 2010

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2010

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD 31 MARCH 2010

NOTES TO THE INTERIM REPORT

FOR THE PERIOD ENDED 31 MARCH 2010

1 GENERAL INFORMATION

The financial information for the period ended 31 March 2010 does not constitute statutory accounts as defined in Section 240 of the Companies Act 2006. The figures for the year ended 30 September 2009 have been extracted from the 2009 statutory financial statements. The auditors' report on those accounts was unqualified and did not contain a statement under section 237(2) of the Companies Act 2006.

2 BASIS OF PREPARATION

The Company's shares are listed on the AIM market of the London Stock Exchange and apply the Companies Act 2006 when preparing its annual financial statements.

The principal accounting policies of the Group remain unchanged from those set out in the Group's 2009 financial statements except for the adoption of IAS 1 Presentation of Financial Statements (Revised 2007) and IFRS 8 Operating Segments.

The adoption of IAS 1 (Revised 2007) does not affect the financial position or profits of the Group, but gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged, however, some items that were recognised directly in equity are now recognised in other comprehensive income, for example gains/losses on available for sale financial assets. IAS 1 (Revised 2007) affects the presentation of owner changes in equity and introduces a 'Statement of comprehensive income'.

The adoption of IFRS 8 has not changed the segments that are disclosed in the interim financial statements.

Interim financial information in this report has been neither audited nor reviewed by the Group's auditors.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results

3 SEGMENTAL REPORTING

(a) By business segment (Primary segment)

As defined under International Financial Reporting Standard 8 (IFRS 8) the only material business segment the Group has is that of music publishing and distribution.

(b) By Geographical Segment (Secondary segment)

Under the definitions contained in IFRS 8 the only material geographic segment the Group operates in is the United Kingdom.

4 LOSS PER SHARE

The calculation of the loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The share options are anti-dilutive.

5 SHARE CAPITAL

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