Tanfield Group PLC
26 March 2007

                               Tanfield Group plc

                              Preliminary Results

                      Twelve months to December 31st 2006

FINANCIAL AND BUSINESS REVIEW

The Tanfield Group Plc (TAN), the leading global manufacturer of zero emission
vehicles and aerial work platforms, is pleased to announce its preliminary
results for the 12 months to December 31, 2006.

Building on the progression achieved during 2005, these results further
demonstrate the advancement of The Tanfield Group Plc as a high growth,
profitable and robust business.

All figures and their comparatives are presented in line with the International
Financial Reporting Standards (IFRS).

Highlights:

  ? Turnover increased to £40.9m, from £22.4m
  ? Significant growth in profit
  ? Robust balance sheet; £44m net assets
  ? Built & delivered world's first high performance 7.5t electric truck
  ? Confirmed orders for new range of electric vehicles
  ? Fully integrated UpRight acquisition
  ? Strengthened global distribution network
  ? Continued significant growth in order book
  ? Substantially increased levels of enquiry
  ? Significant working capital to fund strong growth in 2007



Chairman's Statement

Turnover for the 12 month period grew to £40.9m, compared to £22.4m for the full
year to December 2005. The Group delivered this substantial increase through
organic growth of existing operations and a  contribution from the Upright
Powered Access business, acquired midway through 2006.

Operating profit for the period of £5.4m before restructuring costs and after
goodwill adjustments demonstrates significant growth from the £2.0m profit in
the year to December 2005. After restructuring, the £3.5m operating profit
before tax for the period (from continuing business) is an increase of 75%
against 2005.

The balance sheet is  robust, with Net Assets at the end of December standing at
£44m (£11.8m at the end of December 2005). Net Current Assets were £32m (2005
£2.5m), with cash balances in excess of £13m and borrowing limited to a £1.1m
loan on Group properties.  This underlines that the Company has significant
levels of working capital, allowing it to fund strong organic growth in 2007.

Internal Restructuring

The UpRight acquisition paved the way for the internal restructuring of the
Group into two key divisions: Powered Access, sold under the UpRight brand; and
Specialist Electric Vehicles, sold under the principal brand of Smith Electric
Vehicles and sub-brands of Norquip and Jumbotugs.

The highly profitable growth of the past year demonstrates the success of the
Group's strategy to concentrate on the expansion of these two key divisions.

Growth of the Group

Over the past 12 months, the Group has continued to consolidate and develop its
portfolio of businesses, focused on providing zero emission vehicles and powered
access platforms to customers operating in closed urban and industrial
environments.

We significantly enhanced this portfolio with the acquisition of UpRight in June
2006. This acquisition presented an ideal opportunity for the Group to
consolidate all UK product assembly operations on one flagship site: Vigo Centre
in Tyne & Wear, which was officially opened by the Prime Minister, the Rt Hon
Tony Blair MP, in February 2007.

The acquisition of UpRight in June 2006 accelerated Tanfield's growth as a
global business. I am delighted with the progress we have made with UpRight and
pleased to announce that it entered 2007 with a strong order book.

With UpRight, we have successfully restored market confidence in what was a very
strong global brand. We have re-established an effective worldwide distributor
network, which now stands at over 150 distributors, compared to 15 in June 2006.
We have also been successful in extending the UpRight product range. These
achievements are reflected in the huge increase in average weekly order intake.

UpRight has provided access to a well-established component supply chain from
low cost countries and the move to Vigo Centre is providing further cost
synergies, by consolidating all Group product assembly operations on one
flagship site.

The strong growth in our electric vehicle service and maintenance operations has
underpinned overall growth in our Specialist Electric Vehicles Division. This
core element of the business is beginning to fulfil its potential in terms of
addressing the requirements of large urban fleet operators, who want to reduce
their operational costs and more importantly, greatly reduce their carbon
footprint. This is evident in the increase in both the order book and enquiry
levels.

Board Changes

In June 2006 we welcomed Charles Brooks as our new Financial Director. Charles
worked on the UpRight acquisition for several months prior to this appointment,
where he very ably demonstrated his acumen, diligence and dedication to
Tanfield.

In September 2006, Brendan Campbell joined the Board as Operations Director.
Brendan has been with the Group for six years and has played a key role in the
successful integration and de-risking of the UpRight business; developing the
low cost supply chain; and delivering a five-fold increase in output.

Also in September, I stepped down from my dual role as Chief Executive and
Chairman, with the appointment of Darren Kell as Chief Executive. As Business
Development Director, Darren played a key role in the substantial growth of the
Group over the previous two years and subsequent successful integration of the
UpRight business.

I am confident that this very strong team can continue to establish Tanfield as
a world leader in both commercial electric vehicles and powered access
platforms.

Summary

The group has experienced another exciting year of exceptional growth and
improved profitability. The consolidation onto one assembly site has improved
efficiency and control, and has given us significant expansion potential to
further continue this growth. We also see opportunities to increase capacity in
the USA, both for powered access and electric vehicles.

We operate in sizeable markets which present significant opportunities for
growth. The Group's strategy remains to grow its two core divisions, both
organically and - where opportunities arise - through acquisition.

There has been a major step change in our organisation over the past 12 months.
We now have 600 people in the business, led by a strong, integrated senior
management team. We have facilities in the UK, USA, and Japan, with an
established manufacturing supply chain in China and Eastern Europe.

I would like to take this opportunity to thank all our people for their efforts
and for the continuing support of all our stakeholders.

Roy Stanley
Chairman
The Tanfield Group Plc


Chief Executive's Report for 2006 & Trading Update for Q1 2007

OPERATIONAL HIGHLIGHTS

  ? Built & delivered Smith Newton, the world's first high performance 7.5t
    electric truck
  ? Successfully penetrated parcel delivery & logistics market, with sales of
    Newton to TN T Express and CEVA Logistics (formerly TNT Logistics)
  ? First Newton order from DHL Logistics
  ? Ongoing Newton trials with TNT, CEVA and Starbucks are meeting or
    exceeding all performance expectations
  ? Successfully penetrated retail sector, with sales to Marks & Spencer and
    Sainsbury's Online
  ? Launching Smith Edison, the world's first 3.5t electric van, in April
    2007, to facilitate further penetration of the broader urban delivery and
    logistics sector
  ? Developing 9t and 12t Smith Newtons, to facilitate penetration of the
    chilled food distribution market
  ? Further confirmed orders for new range of electric vehicles
  ? Substantially increased levels of enquiry for electric vehicles
  ? Fully integrated and de-risked UpRight acquisition (acquired June 2006)
  ? Strengthened UpRight global distribution network from 15 at point of
    acquisition, to over 150
  ? UpRight average weekly order intake grown from £150,000 at point of
    acquisition, to £1.2m
  ? UpRight product portfolio expanded from 10 machines to over 20
  ? Increase in volume orders: 1,300 machines to Benelux region; orders of
    100+ machines to clients in UK, Southern Europe, Scandinavia and USA
  ? Successful UpRight brand re-launch in the USA in February 2007; average
    weekly order intake quadrupled to $2m
  ? Record UpRight forward order book of £35m
  ? Consolidated all product assembly operations in Vigo Centre, a new
    250,000sq ft UK production facility, providing cost savings and production
    synergies


Introduction

2006 was another year of strong growth for Tanfield.

The launch of the Smith Newton, the world's largest high-performance,
all-electric truck was a phenomenal success and Tanfield remains uniquely
positioned to win business in this sector, as the only company in the world with
a zero emission production model of this size and carrying capacity.

The acquisition of UpRight Inc in 2006 and the subsequent expansion of its
activities confirmed that we have the ability to transform a struggling company
into a successful, profitable operation. Our sales and marketing strategy,
allied to the strength of the UpRight brand, has proven to be so successful that
we now have a record forward order book for aerial work platforms.

Vigo Centre

The move to Vigo Centre, a modern 250,000sq ft facility in North East England,
has been crucial to our operational success and provides a superb foundation for
future growth.

Vigo Centre opened in November 2006 and Tanfield immediately began transferring
assembly of UpRight products from the incumbent Irish facility in Dublin.

In a time frame of just over two months, the Group simultaneously recruited and
trained a new, UK-based assembly workforce, while transferring the entire
UpRight machine production operations from Dublin to Vigo Centre. The Group also
quadrupled UpRight machine output during the same period.

Vigo Centre was fully operational and assembling the Group's entire product
portfolio by the beginning of December. This was delivered ahead of our internal
schedule and under budget.

The Company endeavoured to keep down costs. To this end, the Chairman and
founder of Tanfield, Roy Stanley, successfully negotiated a 15-month rent-free
period at Vigo Centre. The Chairman also secured a £1.95m grant for Tanfield,
from Regional Development Agency, One NorthEast.

The overall operational synergies and improvements gained from consolidation
into Vigo Centre and have led to reduced unit build costs and greatly improved
output volumes.

In 2006, the Group also started manufacturing smaller products from the UpRight
portfolio at a facility in Fresno, California. We anticipate significantly
broadening manufacturing capability in North America during 2007.

The accelerated growth in forward orders placed further demands on our
Production team to increase output and they rose to the challenge. Machine
output hit 100 units per week at the end of February 2007, ahead of schedule. We
are installing a third, larger crane line to accommodate larger machines and
vehicles.

Divisional Progress Report

1. Specialist Electric Vehicles Division

The division's flagship brand is Smith Electric Vehicles, a leading manufacturer
of zero emission commercial electric vehicles - principally vans and trucks. Its
new technology vehicles have fast acceleration, top speeds of up to 55mph and a
range between battery charges of up to 150 miles. These characteristics make
them ideal for urban applications where vehicle emissions are becoming
increasingly important.

As zero emission vehicles, the entire Smith range qualifies for several key tax
and legislative benefits - including exemption from the London Congestion
Charge.

Jumbotugs and Norquip are airport-specific sub-brands, manufacturing airside
ground support vehicles.

Overall, the division continues to benefit from a buoyant level of enquiries and
accelerated market interest created by the changing drivers within the
commercial vehicle market. The older technology electric vehicles - and the new
technology Faraday, launched in 2005 - have maintained strong sales growth in
the traditional market sectors of municipalities, dairies and waste removal
applications.

The launch of the latest generation of high performance, zero-emission vehicles,
initially with the Smith Newton 7.5 tonne truck, has been very well received by
the target market of urban delivery fleet operators. This is a new market which
is outside of the division's traditional customer base; and one which the
Directors anticipate will be high growth.

The first of these Smith vehicles have entered service with business-to-business
parcel delivery company TNT Express; and contract logistics company CEVA
Logistics (formerly TNT Logistics), on behalf of Starbucks.  Attracting such
high profile launch partners has led to the division enjoying unprecedented
levels of enquiries from potential customers with broadly similar delivery
applications.

TNT Express has indicated that there is the potential for it to replace up to
10% of its UK fleet with zero-emission vehicles such as the Smith Newton. TNT's
global chief executive, Peter Bakker, has also commissioned a Europe-wide study
into the adoption of Newton throughout TNT's operations.

Trading Update

In February 2007, we entered into an agreement to supply Marks & Spencer with
the Smith Newton and they have purchased the vehicle for distribution to their
stores. Again, they are examining the potential to replace a proportion of their
internal-combustion powered fleet with the Newton.

Since then, this division has won new orders for the Smith Newton from a
significant number of other fleet operators, including DHL, the logistics
company. DHL operates a fleet of 76,000 vehicles worldwide and is part of
Deutsche Post World Net.

DHL will take delivery of a 9 tonne version of Newton, with greater payload
capabilities. The first vehicle, the largest higher function electric truck ever
produced, will operate for DHL's Department Stores & Fashion division.

I am pleased to announce that the ongoing field trials of our first Smith
Newtons with TNT Express UK and CEVA Logistics continue to be a success.

The TNT vehicle is deployed in business-to-business express delivery operations
in and around London. The CEVA vehicle is deployed in delivery operations for
coffee retailer Starbucks in and around London.

Both TNT and CEVA have confirmed that Newton is meeting or exceeding all of
their expectations, in terms of performance; reliability; and driver
acceptability.

TNT Express UK remains committed to replacing up to 10% of its UK fleet with
Newtons, a total of approximately 200 vehicles, if the trial continues to be a
success. Tanfield is in further negotiations with CEVA Logistics over the supply
of more Newton vehicles, where pertinent.

TNT NV is examining opportunities where it could deploy Smith Newtons in
mainland Europe.

Tanfield is also presently in discussions to supply both CEVA and TNT with
Edison, our higher function, all-electric, 3.5 tonne van.

Product Development

During 2007, the division will launch a 12 tonne version of the Smith Newton.
Along with our 9 tonne Newton, this will not only increase the Company's UK
target market by offering greater payload capabilities, but will facilitate the
development of the lucrative chilled-food distribution market. The 9 and 12
tonne vehicles will also provide solutions more suited to the regulatory
requirements of markets in mainland Europe and North America.

The next vehicle in the high-performance, zero-emission range, the Edison, will
be offered in 3.5 to 4.3 tonne sizes; and configurations including chassis cab,
panel van, crew cab and minibus.

This will be the world's first 3.5 tonne, all-electric van and we anticipate
there will be widespread demand from urban fleet operators, in existing and new
market sectors. We have already secured confirmed orders and generated further
significant interest for Edison - both from existing and new customers - and we
will be announcing our launch partners for the vehicle at the Commercial Vehicle
Show, held in the UK in April 2007.

Other products in this family of vehicles are under development and these will
be launched over the course of the next 18 months.

Market Development

Aside from the exciting domestic opportunities and potential for additional
orders from existing customers, we are also receiving significant enquires from
potential customers within territories including mainland Europe; the
Asia-Pacific region; and in particular North America.

Converging market drivers such as congestion charging; oil pricing; energy
security; vehicle maintenance costs; and punitive legislative measures on
vehicle emissions, are now applicable to a global marketplace. Smith's products
are very pertinent for applications in these markets and we are examining ways
in which our vehicles can be offered to customers outside the UK.

The North American market is extremely receptive to the concept of the higher
function, zero emission, closed urban delivery vehicle. Discussions are ongoing
with a number of existing, global customers and new USA customers, with regard
to the most efficient method to facilitate their requirements for our products
within these markets.

Service and Maintenance

The service and maintenance sub-division, SEV, has doubled sales over the past
twelve months. There continues to be further growth potential in this division
based out of our nationwide chain of depots. SEV currently has over 160 people
employed in servicing and maintaining electric vehicles. The sale of each new
electric vehicle normally involves a five year service and maintenance contract.
A key USP for domestic vehicle sales is the coverage of this service and
maintenance network, which gives existing and future buyers of electric vehicles
the confidence that there is a high level of support for their fleets.

SEV is also in negotiation with a number of potential customers outside its
traditional operating sphere, further broadening the scale and breadth of the
infrastructure and service capability. Moving into new territories will also
accelerate the growth of this part of the Group.

2. Powered Access Divison

UpRight Powered Access is an aerial work platform manufacturer with a brand name
recognised worldwide and a proven product portfolio. It has an established
global network of independent distributors and its own sales and service centres
in the USA and Japan.

UpRight products, which are largely battery powered, are used for safe working
at height, in applications such as building and facilities maintenance; and
construction. They are known by a variety of names, including powered access
platforms, aerial work platforms, aerial lifts and cherry pickers.

The UpRight Powered Access business was acquired on 9 June 2006. Since then we
have significantly increased machine output, in order to keep pace with the
growth in orders.

We have built on the extensive goodwill that exists within the global market
towards UpRight, by strengthening and developing the sales and marketing
structure. This, allied to the recruitment of new, high-quality dealers and
distributors, this has significantly increased order intake.

Output Growth

The effectiveness of our Operations team is again demonstrated by the fact that
they continue to hit significant production milestones: 50 machines per week in
2006; and 100 machines per week by the end of February 2007.

In order to meet anticipated demand, ongoing output growth is planned and the
facility will be producing 150 units per week by the third quarter of 2007. A
third, larger capacity overhead crane line has been ordered and will be
installed in the second quarter of 2007.

USA

The USA presents a significant market opportunity for this division,
representing almost half of the global marketplace for powered access equipment.

We commenced limited manufacture of a select cross-section of machine types
towards the end of 2006 at the Group's facility in Fresno, California. This
facility comfortably reached our production target of 20 units per week by the
end of February 2007.

The UpRight brand was re-launched in the USA at the American Rental Association
show in February 2007, where the emergence of another significant player in the
US market was very well received. This resulted in substantial machine order
intake, averaging in excess of US$1m per week, within four weeks of the show's
end.

The Group is currently assessing the best method to address the strong market
demand in the US market for UpRight products and further leverage brand equity.
It is clear that this will require a significant expansion of our US assembly
operations.

Product Development

When we acquired UpRight in 2006, the previous owners were at an advanced stage
in a programme of product rationalisation that in 2006 cut the range from 18
models to just 10. This dwindling portfolio became of limited interest to rental
companies and stronger distributors.

During 2006, Tanfield re-launched dormant models and integrated four products
from the Aerial Access range, expanding the UpRight portfolio to over 20 models.

Throughout the course of 2007, the division will be launching a number of
mid-range products for the UpRight portfolio. These are updated versions of
dormant machines that were once made at UpRight's US facilities.

There is strong global demand for these new products and we anticipate
assembling these machines in both Europe and the USA.

The appetite for these products was demonstrated by our recent announcement
regarding the re-launch of the UpRight AB46 machine. UpRight had ceased
production of the AB46 some time prior to Tanfield's acquisition. Within two
weeks of announcing we were bringing back this popular machine, we secured
orders for over 100 units. We believe the addition of the AB46 to the range will
significantly increase UpRight's ability to penetrate the high volume major
rental companies worldwide.

Customer Base

During 2006, Tanfield appointed new UpRight distributors worldwide and
re-engaged with ex-UpRight distributors who had left as the UpRight product
range dwindled. The global distributor network now stands at over 150
independent companies.

Tanfield also appointed sales managers in the Scandinavia, Southern Europe and
Asia-Pacific territories; and re-established a US sales team.

Market Development

Globally, the powered access industry remains buoyant in all sectors. The
well-regarded 2007 Access Confidence Survey, published by influential industry
magazine Access International, recorded an unprecedented level of optimism.

Half of rental companies anticipate growing by more than 10% and another 46%
expect to grow by 1 - 10%. Overall, 64% said they will grow their fleets, with a
further 18% still planning to buy new machines to replace ageing stock.

While the North American market has matured, anecdotal feedback indicates that
there is a substantial appetite among access buyers for an alternative to the
main two OEM brands, JLG and Genie.

This is demonstrable in another highly mature market - Scandinavia. Here,
UpRight is already winning volume orders from both its established distributor
network and from major rental companies.

We anticipate that the recent EU legislation governing safe Working at Height
will continue to drive sales in member states. Other key growth markets include
the Middle East, which is increasingly eschewing labour-intensive scaffolding
for mega-construction projects, in favour of more productive US building
practices, which rely on high intensity use of aerial work platforms.

Trading Update

I am delighted to announce that UpRight has further strengthened its independent
distributor network, with new distributors appointed in Saudi Arabia; South
Korea and Turkey. All three companies are established and experienced, providing
excellent sales channels into these territories.

Our strategy to grow the existing network of high quality independent
distributors continues to translate into significant orders - the appointment of
one new distributor for the Benelux region resulted in an order for over 1,300
UpRight machines. Further volume orders of 100+ units each have been received
from distributors in the USA, Southern Europe, Russia and Scandinavia.

This week, UpRight has won two more volume orders. A major UK access rental
company has ordered 96 machines, with a value in excess of £2m.

This is particularly pleasing as UpRight had declining market penetration in the
UK under its previous owners.

The order came via IPS Ltd, our Master Distributor for the UK, which further
validates our strategy of appointing well-regarded distributors who can add real
value to the product, in territories where UpRight sales historically were weak
or in decline.

We have also received an incremental order for 150 UprRight X32 scissor lifts,
with a market value in excess of £1m. The machines will be supplied to meet a
new order placed with one distributor in mainland Europe.

When we acquired UpRight in June 2006, it was producing around 20 machines per
week and had a forward order book of less than £3m. The value of the UpRight
forward order book for 2007 now stands at over £35 million, while output is 100
machines per week and climbing.

Summary

We have two key brands which are well respected in their markets. We have a
robust distribution model with strong sales channels. We are experiencing
unprecedented enquiry and order intake levels and we are poised to further
accelerate this growth with the introduction of additional new products and
expansion into new geographic markets and sectors.

The business has never been in better health. The Board and senior management
team have been strengthened and we continue to successfully penetrate all of our
target markets. These developments, allied to the operational synergies brought
about by the move to Vigo Centre and the developing supply chain from low-cost
countries, mean that Tanfield is well positioned for continued growth in 2007.

Darren Kell
Chief Executive
The Tanfield Group Plc



TANFIELD GROUP PLC

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006

                                                                2006              2005
                                                              £000's            £000's
Continuing Operations
Revenue                                                       40,913            22,431

Other operating income                                             -                42
Changes in inventories of finished goods and WIP               1,222             1,983
Raw materials and consumables used                          (20,275)           (9,112)
Reversal of previously impaired assets                             -                69
Staff costs                                                 (11,290)           (9,080)
Depreciation and amortisation expense                            816               456
Other operating expenses                                     (5,946)           (4,680)
Restructuring costs                                          (1,877)                 -

Profit from continuing operations                              3,563             2,109

Finance costs                                                  (105)             (109)


Net Profit before tax for year                                 3,458             2,000

Income tax expense                                             (846)             (344)

Profit for the year from continuing operations                 2,612             1,656

Discontinued operations
(Loss)/Profit for period from discontinued operations          (108)                38

Net profit for the year                                        2,504             1,694

Earnings per share
From continuing operations
Basic                                                          1.10p             1.00p
Diluted                                                        1.03p             0.97p

From continuing and discontinued operations
Basic                                                          1.05p             1.03p
Diluted                                                        0.99p             0.99p
                                                               


CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006

                                                                    2006                2005
                                                                  £000's              £000's
ASSETS
Non Current Assets
Property, Plant and Equipment                                      3,734               4,015
Goodwill                                                           5,143               5,143
Intangible Assets                                                  5,792               3,213
                                                                  14,669              12,371
Current Assets
Inventories                                                       14,158               4,377
Trade and Other Receivables                                       13,833               5,700
Investments                                                           94                   -
Cash and Cash Equivalents                                         13,605               1,478
                                                                  41,690              11,555
TOTAL ASSETS                                                      56,359              23,926
LIABILITIES
Current liabilities
Trade and Other Payables                                           6,801               5,511
Tax Liabilities                                                    1,178                 299
Obligations Under Finance Leases                                     421                 631
Bank & Other Loans and Overdrafts                                    163               1,048
Other Creditors                                                    2,221               1,583
                                                                  10,784               9,072
Non Current Liabilities
Bank & Other Loans                                                   948               1,392
Other Creditors                                                      310                 211
Obligations Under Finance Leases                                     549                 723
Deferred Tax Liability                                                19                  45
Convertible Loan Notes                                                69                  69
Provisions                                                           262                 661
                                                                   2,157               3,101
TOTAL LIABILITIES                                                 12,941              12,173
EQUITY
Share Capital                                                      2,921               1,905
Share Premium Account                                             29,578               1,509
Share Option reserve                                                 255                 308
Loan Stock Equity Reserve                                              6                   6
Merger Reserve                                                     1,534               1,534
Capital Reduction Reserve                                          7,228               7,228
Profit And Loss Account                                            1,896               (737)
TOTAL EQUITY                                                      43,418              11,753

TOTAL EQUITY AND LIABILITIES                                      56,359              23,926



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED
31 DECEMBER 2006

                                        Share                 Capital  Loan Stock              Profit    
                              Share    Option       Share   Reduction      Equity    Merger  and Loss    Total
                            capital   reserve     Premium     Reserve     Reserve   Reserve   Account   Equity
                             £000's    £000's      £000's      £000's      £000's    £000's    £000's   £000's

Balance at 1 January 2006     1,905       308       1,509       7,228           6     1,534     (737)   11,753

Issue of new share capital    1,000         -      28,055           -           -         -         -   29,055

Exercise and Grant of share      
options                          16      (53)          14           -           -         -       129      106
Net profit for the year           -         -           -           -           -         -     2,504    2,504

Balance at 31 December 2006   2,921       255      29,578       7,228           6     1,534     1,896   43,418



CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006
                                                                             2006                     2005
                                                                           £000's                   £000's

Operating Activities
Cash used in operations                                                   (7,248)                  (1,990)
Interest paid                                                               (208)                    (207)

Net Cash used in Operating activities                                     (7,456)                  (2,197)

Investing Activities
Acquisitions                                                              (6,851)                    (324)
Purchase of property, plant and equipment                                   (503)                  (2,562)
Proceeds from sale of property plant and equipment                            150                        -
Purchase of investments                                                      (94)                        -
Purchase of intangible fixed assets                                         (312)                  (1,488)
Interest received                                                              34                       98

Net cash used in investing activities                                     (7,576)                  (4,276)

Financing Activities
Issue of ordinary share capital                                            29,055                    6,886
Repayment of bank loan                                                      (870)                      742
Capital element of finance leases                                           (567)                    (121)

Net cash from financing                                                    27,618                    7,507

Net Increase in Cash and Cash Equivalents                                  12,586                    1,034

Cash and cash Equivalents at beginning of Year                                960                     (74)

Cash and Cash equivalents at end of the year                               13,546                      960




Notes

1      Accounting Policies

       The financial statements have been prepared in accordance with International Financial Reporting
       Standards ("IFRS").

2.     Unaudited Financial Statements

       The above figures do not constitute full accounts within the meaning of Section 240 of the
       Companies Act 1985.

       The figures for the year ended 31st December 2005 constitute abridged accounts extracted from the
       published accounts for the year which have been filed with the Registrar of Companies and on which
       the auditors' report was unqualified and did not contain a statement under Section 237(2) or (3) of
       the Companies Act 1985.

3.     Earnings per ordinary share

       Earnings per share have been calculated using the weighted average number of shares in issue during the relevant
       financial periods. The weighted average number of shares in issue is 237,396,217 (2005 - 165,038,027), and the
       earnings, being the profit on ordinary activities after taxation and minority interest are £2,504,000. (2005:
       1,694,000).

       The weighted average number of shares for diluted earnings per share is 252,639,361 (2005 - 165,038,027) and the
       diluted earnings are £2,490,000 (2005 -£1,680,000).

                                                                       Year ended 31        Year ended 31
                                                                       December 2006        December 2005
                                                                               Pence                Pence
     Earnings/(Loss) Per share                                                  1.05                 1.03
     Diluted Earnings per share                                                 0.99                 0.99






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