NAK.L Regulatory News (NAK)

Highams Systems Services Group plc (HSS/L)

("Highams" or "the Group")

The AIM quoted recruitment consultancy and leading niche provider of technology, business and professional services to the insurance and financial services sectors announces its interim results

for the six months ended 30 September 2010

INTERIM RESULTS

For the six months ended 30 September 2010

Highlights

·; Revenue £4.41m (2009: £3.77m) up 17%

·; Gross profit £770,000 (2009: £572,000) up 35%

·; Profit before tax of £123,000 (2009: profit £40,000) up 208%

·; Increase in gross margin from 16.8% to 17.4%

·; Market activity continues to improve

·; Selective recruitment of new staff, with Group still currently recruiting

·; Continuing firm control over costs

Ken Ford, Chairman of Highams, commented:

"We are pleased to report our interim results which show an increase in revenue of 17% to £4.41m (2009: £3.77m), together with an increased gross profit and an increase in profit before tax.

We continue to see an improvement in demand for our services and we are staying close to our niche markets. We have benefitted during the period both from our longstanding relationships with existing clients and from a range of new clients. Although the competition and customer buying behaviour remains challenging, especially in these uncertain economic conditions, we have strong networks and an ability to react quickly to our client needs. We therefore look forward to the second half of our year, which we believe, on current forecasts, will show further improvements in turnover and profit."

Enquiries:

CHAIRMAN'S STATEMENT

Interim results for the six months ended 30 September 2010

Introduction

We are pleased to report our interim results which show an increase in revenue of 17% to £4.41m (2009: £3.77m), together with an increased gross profit and an increase in profit before tax.

We continue to see an improvement in demand for our services and we are staying close to our niche markets. We have benefitted during the period both from our longstanding relationships with existing clients and from a range of new clients. Although the competition and customer buying behaviour remains challenging, especially in these uncertain economic conditions, we have strong networks and an ability to react quickly to our client needs. We therefore look forward to the second half of our year, which we believe, on current forecasts, will show further improvements in turnover and profit.

Financials

We had a good start to the year: Group turnover increased to £4.41 million (2009: £3.77 million), and gross profit increased to £770,000 (2009: £572,000). The operating profit before interest and tax was £128,000 (2009: profit £45,000).

The Company will not be declaring an interim dividend.

Summary and Outlook

We look forward to continuing the progress made in the first half. The current forecast is for further improvement in turnover and profit and the Board looks forward to the future with enthusiasm and confidence.

Ken Ford

Chairman

4 November 2010

Notes to the Interim Report

1. Basis of Preparation

This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statement for the year ended 31 March 2011 and are unchanged from those disclosed in the group's Annual Report for the year ended 31 March 2010

The financial information for the six months ended 30 September 2010 and 30 September 2009 is unreviewed and unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 March 2010 has, however, been derived from the audited statutory financial statement for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-498(3) of the Companies Act 2006.

The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

2. Earnings per share