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Financial Objects - Plans to hand back £6m cash to holders in November

September 2002

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Interim results for the six month to 30 June show turnover downsharply to £6.8m from £8.7m. Pretax loss before an exceptional gain was£0.9m compared to a profit of £1.5m. In line with other companies in its sector, Financial Objectsencountered difficult trading conditions but unusually it has continuedto be cash generative. Operating cash flow of £1.2m  resulted inlifting the cash pile to £16.6m or 42.8p a share. Three Activebank licences were signed in the period, a fourth hasbeen signed in July, compared to just two in the whole of 2001, as wellas one for the new IBIS/S2 system.IBIS revenues declined yet again to £3.6m. This was due to thecontinued slow roll out of IBIS/S2 software which has taken longe ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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