OCT.L Regulatory News (OCT)

21 December 2012 SureTrack Monitoring plc ("SureTrack", the "Company" or the "Group")

Interim results for the six months ended 30 September 2012

SureTrack (AIM: STK), one of the UK's leading cash security and crime deterrentcompany's announces its interim results for the six months ended 30 September2012.

Simon Barrell, Executive Chairman commented:

"Whilst this has been a disappointing period due to the Eastern European PostOffice delay in proceeding with stage two, IBP has traded at smaller loss thanin previous periods. We have undertaken a strategic review of the Group and arelooking into all alternative avenues available to enhance stakeholder value.

"Within the period under review we have been given court approval for thecapital reconstruction and reduction of share capital."

For further information contact:

SureTrack Monitoring plc Simon Barrell - Executive Chairman Tel: 07850

934204

Merchant Securities Limited (Nominated Adviser and Broker) Simon Clements - Corporate Finance Tel: 020 7628

2200

Catherine Miles - Corporate Broking Chairman's StatementThese results are the first since the disposal of Sure-Track Europe Limited inMarch 2012 and the first interim figures since the change of accounting yearend to 31 March. The comparative figures for September 2011 have never beenpublically reported.The results show that the Group made a small loss for the period of £65,107(2011: loss of £301,511). The majority of the loss is attributable to costsrelating to the holding company with the remaining trading business, IBPLimited ("IBP"), generating a trading loss of £20,162 (2011: loss of £42,953)

Trading

IBP had a good start to the year with some additional work being won inrelation to stage one of the Eastern European Post Office project.Unfortunately, as announced on 24 October 2012, the decision on whether toproceed with stage two has been delayed until 2013. This has obviously been asetback and a disappointment for the business.

The trial of IBP's smoke note product with a major high street chain has beensuccessful in so far as there have been no robberies to date on the sites wherethe trail was undertaken. Despite the success of the trial the customer hasn'tyet placed an order for further stores and discussions continue with a view tosecuring such orders. In the event that we are not successful in securing anorder then we intend to withdraw the trial products from the customer's sitesin Q1 2013.

The challenges in the financial services industry have led to a slowdown inorders from that sector although we have undertaken a number of one-off siteinstallations.

In the period under review we have been developing new products and ourcustomers are showing early interest in them. We continue to service our bluechip customer base with maintenance work and new installations. The outlook forthe full year is not as positive as it was at the beginning of the year but weare working hard to grow the business and enhance shareholder value.

PLC

We are pleased that the capital reconstruction and the reduction in capital haspassed through the courts successfully.

As the Group lacks critical mass the Board has decided to consider all viablestrategic opportunities to maximise value for shareholders, including thepotential disposal of the remaining operating business.

In the meantime, the Group is also seeking to minimise its cash burn fromon-going operations.

Simon BarrellExecutive Chairman

Consolidated Income Statement

Notes Six months Six months Six months Six months Year Year Year ended ended ended ended ended ended ended 30 30 30 30 31 31 31 September September September September March March March 2012 2011 2011 2011 2012 2012 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited)

(Audited) (Audited) (Audited)

£ £ £ £ £ £ £ Discontinued Continuing Discontinued Continuing Total business business business business Revenue 2 127,454 241,284 122,822 364,106 478,578 466,399 944,977 Cost of sales (64,013) (137,301) (78,602) (215,902)

(305,435) (279,134) (584,569)

Gross profit 63,441 103,983 42,220 148,203 173,143 187,265 360,408 Administrative (128,548) (290,361) (159,269) (449,630) (605,429) (332,130) (937,559)expenses Exceptional - (19,313) (19,313)items Operating loss (65,107) (186,378) (117,049) (301,427)

(432,286) (164,178) (596,464)

Finance Income - - 99 Finance - (84) -expense Loss before (65,107) (301,511) (596,365)tax Tax expense 4 - - - Loss for the (65,107) (301,511) (596,365)period Loss per share 3 Basic (0.00009p) (0.0004p) (0.08p)

Consolidated Statement of Comprehensive Income

Six months Six months 14 Months ended ended ended 30 September 30 September 31 March 2012 2011 2012 (Unaudited) (Unaudited) (Audited) £ £ £ Loss for the period (65,107) (301,511) (596,365) Other comprehensive income - - - Total comprehensive income for (65,107) (301,511) (596,365)the period

Consolidated Statement of Financial Position

Notes 30 September 30 September 31 March 2012 2011 2012 (Unaudited) (Unaudited) (Audited) £ £ £ Non-current assets Goodwill 5 885,028 902,696 885,028 Other intangible assets 6 3,970 57,653 3,970 Property, plant and equipment 11,353 40,905 13,646 Long term loan note 188,062 - 188,062 1,088,413 1,001,254 1,090,706 Current assets Inventories 29,422 173,433 25,444 Trade and other receivables 23,703 233,216 54,961 Cash and cash equivalents 167,819 273,849 228,930 220,944 680,498 309,335 Total assets 1,309,357 1,618,752 1,400,041 Equity and liabilities Equity Share capital 4,170,844 4,170,844 4,170,844 Share premium account 2,091,897 2,091,897 2,091,897 Other reserves - (2,148,000) - Retained earnings (5,067,937) (2,709,578) (5,006,961) Total equity 1,194,804 1,405,163 1,255,780 Current liabilities Trade and other payables 114,553 276,589 144,261 Total current liabilities 114,553 276,589 144,261 Total equities and 1,309,357 1,681,752 1,400,041liabilities

Consolidated Statement of Cash Flows

Six months Six months 14 Months ended ended ended 30 30 30 March September September 2012 2012 2011 (Unaudited) (Unaudited) (Audited) £ £ £ Operating activities Loss before tax (65,107) (301,511) (595,365) Adjustments for: Depreciation and amortisation 2,292 22,378

45,573

Loss on sale of fixed assets - 385

385

Profit on disposal of subsidiary - - (19,337) Share based payment costs 4,131 6,000 11,321 Finance costs/income - 84 (99) (Increase) in inventories (3,978) 32,262 (18,448) (Increase)/Decrease in receivables 31,258 (54,642)

25,240

(Decrease)/Increase in payables (29,707) (48,188) 86,348 Cash utilised by operations (61,111) (343,232) (465,382) Net finance income Net cash utilised from operating (61,111) (344,232) (465,382)activities Investing activities Purchase of intangible assets - (17,150) (17,150) Purchase of fixed assets - (5,515) (9,860) Acquisition of business - (30,000) (30,000) Proceeds from the sale of fixed assets - 10,136

10,136

Cash disposed of with subsidiary - - (29,250) Interest paid/received - (84) 99 Net cash used in investing activities - (42,613)

(76,025)

Net cash outflow before financing (61,111) (273,561) (541,407) Financing activities Issue of shares (net of costs) - 249,375

249,375

Net cash inflow from financing - 249,375

249,375

Decrease in cash and cash equivalents in (61,111) (136,470) (292,032)period Net cash and cash equivalents at start of 228,930 54,185 520,962the period Net cash and cash equivalents at end of 167,819 273,849 228,930the period

Consolidated Statement of Changes in Equity

Share Share Other Retained Total capital premium reserve earnings account £ £ £ £ £ At 1 April 2011 4,133,344 1,879,858 (2,148,000) (2,414,067) 1,451,135 Total comprehensive income - - - (301,511) (301,511)for the period Share based payment charge - - - 6,000 6,000 Issue of share capital 37,500 212,039 - - 249,539 At 30 September 2011 4,170,844 2,091,897 (2,148,000) (2,709,578) 1,405,163 At 1 April 2012 4,170,844 2,091,897 - (5,006,961) 1,255,780 Total comprehensive income - - - (65,107) (65,107)for the period Share based payment charge - - - 4,131 4,131 At 31 July 2011 4,170,844 2,091,897 - (5,067,937) 1,194,804

Notes to the interim report

1 Basis of preparation of the interim report

The financial information set out in this interim report does not constitutestatutory accounts as defined in section 434 of the Companies Act 2006. TheGroup's statutory financial statements for the 14 months ended March 2012 havebeen delivered to the Registrar of Companies. The auditor's report on thosefinancial statements was unqualified and did not contain statements underSection 498(2) or Section 498(3) of the Companies Act 2006.This interim financial report has been prepared in accordance withInternational Accounting Standard 34 Interim Financial Reporting. The interimfinancial information has been prepared on a basis which is consistent with theaccounting policies adopted by the Group for the last financial statements andcomparative figures are given for the six months to 30 September 2011 and the14 months ended 31 March 2012. These are the first interim reports preparedafter the change in the year end and as such the September 2011 comparativefigures have never been publically reported.

2 Segmental information

The group has two key operating segments which are overseen by distinctmanagement teams and reported to the board. These are the provision of trackingdevices, monitoring and recovery services thereon and the supply, assembly andinstallation of security equipment. The former is conducted through itssubsidiary company, Sure-Track Europe Limited and the later through therecently acquired subsidiary, IBP Limited. 6 months 6 months 14 months to ended ended 31 March 30 September 30 September 2012 2012 2011 £ £ £ Subsidiary Revenue Split Sure- Track Europe Revenue from UK - 241,284 478,578 Revenue from Europe - - - - 241,284 312,175 IBP Revenue from UK 61,350 96,427 267,755 Revenue from Europe 66,104 26,395 189,644 127,454 122,822 466,399 Group Revenue Revenue from UK 61,350 337,711 755,333 Revenue from Europe 66,104 26,395 189,644 127,454 364,106 944,977 Subsidiaries Sure -Track Europe Interest Expense - - - Amortisation - 20,255 39,862 Loss before tax - 186,378 411,153 Total External Liabilities - 155,992 - Total Assets - 444,864 - IBP Interest Expense - 6,308 - Amortisation 2,292 599 5,711 Loss before tax 20,162 42,953 5,173 Total External Liabilities 43,363 51,023 38,495 Total Assets 152,074 143,656 244,214 Central Adjustments Interest Expense - (99) Amortisation - - Loss before tax 44,945 72,180 180,039 Total External Liabilities 71,191 69,574 (105,766) Total Assets 1,157,283 1,093,232 1,175,826 Group Interest Expense - 84 (99) Amortisation - 20,854 30,966 Loss before tax 65,107 301,511 542,452 Total External Liabilities 114,554 276,589 273,571 Total assets 1,309,357 1,618,752 1,400,0413 Earnings per shareEarnings per share has been calculated on a loss of £65,107 (2010: £293,738)and the average number of shares in issue for the period of 736,347,670 (2010:686,072,994 shares). Six months ended Six months ended 14 Months ended 30 September 30 September 31 March 2012 2011 2012 (Unaudited) (Unaudited) (Audited) Basic Basic Basic £ £ £ Earnings attributable to (65,107) (107,360) (164,079ordinary shareholders from continuing operations Earning per share (0.00009p) (0.0001p) (0.02p) Earnings attributable to - (186,378) (432,286)ordinary shareholders from discontinued operations Earning per share - (0.003p) (0.06p) Total Loss for the period (65,107) (293,738) (596,365) Loss per share (0.00009p) (0.0004p) (0.08p)4 Tax

No tax has been accounted for any of the periods shown as the group has been

loss making during these periods.

5 Post balance sheet events

On 17 October 2012 the Company received court approval for the capitalreorganisation, the cancellation of the share premium and the deferred share toenable the share buyback of 117,538,809 shares.

On 26 November 2012 the Company completed the buyback of the shares. The shareswere bought back for £188,062, the value of the long term loan. The number ofshares in issue is now 618,808,861.

6 Copies of the interim report

Copies of the interim report will be sent to shareholders shortly and will beavailable from the registered office of the Company at Wolfe Lodge, FarnhamRoad, Bordon, Hampshire, GU35 0NH and from the Company's website www.suretrackgroup.com