Interim Results

RNS Number:0253U
Nexus Management plc
14 November 2005


NEXUS MANAGEMENT PLC
("Nexus Management" or "the Company")
INTERIM RESULTS FOR THE HALF YEAR ENDED 30TH SEPTEMBER 2005

Nexus Management plc (LSE: NXS) is a provider of Enterprise class IT Managed
Services to the SME market, specialising in Wide Area Network Management,
Disaster Recovery, Data Storage and Remote Server Management.

Highlights

*Turnover increased 115% to #1.2m for the half year ended 30th September
2005, from #572k for the same period last year, following the successful
merger with Nexus Management Inc and strong organic growth

*Focus on cost control and higher margin business resulted in reduced
administration costs from 52% of revenue in the first half of 2004, to 40%
for the same period this year

*Profit on ordinary activities increased 539% to #68k for the half year
ended 30th September 2005, from #10k for the same period last year

*Profit for the financial period increased to #48k for the half year,
against a loss of #4k for the same period last year

*Number of clients increased to 46 from 30 this time last year, with an
average win of 2-3 new contracts a month

*Demand for newly launched NexMail service continues to be strong with 3
new customers signed in the period

*Continued search for acquisition opportunities in the UK to accelerate
growth

As described in Note 1 of the financial statements attached, the Company's
accounts have been restated for previous years under the rules of merger
accounting. The above highlights are compared to the Company's results last
year.

Commenting on the results, Chairman Boris Adlam said: "Nexus Management is now a
stable, profitable business operating in a growth market. Our state of the art
Data Centre, highly skilled engineers, 24/7 service offering and broad product
range mean we are well positioned to grow both organically in the US, and
through acquisitions in the UK. We are pleased with the progress experienced
during the first six months of the year, and are confident of a successful
outcome to the year."

For further information, please contact:

Nexus Management, Tel: +44 (0) 1862 812107
Roger Richardson, Chief Executive Officer
Peter Weller, Finance Director
ICIS, Tel: +44 (0)20 7651 8688
Tom Moriarty/Caroline Evans-Jones

About Nexus Management plc
Nexus Management is a growing specialist IT Managed Services Provider focusing
on the SME market. Following the recent merger with Nexus Management Ltd and its
US subsiduary, Nexus Management Inc, the Company re-branded from PC Medics and
now has two key markets: the UK and the US, to whom it can offer 24 hour manned
support. Nexus specialises in Remote Server Management, Disaster Recovery, Data
Storage and Wide Area Network Management and monitoring - providing Enterprise
calibre technical support to SMEs. Through its world class data centre in Maine,
Nexus' customers have access to highly secure and robust IT infrastructure,
monitoring and support.
Nexus Management plc is listed on AIM, a market of the London Stock Exchange.
For further information on the company, please visit www.nexusmgmt.com

CHIEF EXECUTIVE'S STATEMENT

INTRODUCTION

I am pleased to report that the first half of this year has continued in the
same positive vein as the previous half year, with the Company experiencing
steady progress and an increase in customers, profits and gross margins. The
benefits of the merger with Nexus Management Ltd. continue to be felt in terms
of cost efficiencies, broader geographic reach and augmented technical skills.
Our customer numbers have grown satisfactorily and we have also experienced
success in selling additional services into our existing customer base. The
investment we made in our state of the art data centre has paid dividends this
period as the market for our products continues to improve, with demand for data
storage and hosting being particularly strong.

Once built, our solutions are highly scalable and we are now in a position to
seek accelerated growth. To that end, we are continuing with the search for an
appropriate acquisition in the UK, where we believe there is potential to
leverage our capabilities and enhance efficiencies.


FINANCIAL RESULTS

Sales for the half year ended 30 September 2005 were #1,233,412 versus #572,447
for the half year ended 30 September 2004. Operating profit amounted to #67,949
compared to #10,637 for the half year ended 30 September 2004. The Company's net
profit margin increased substantially due to increased cost-efficiencies and an
increase in higher margin business. Administrative expenses as a percentage of
revenue fell from 52% in 2004 to 40% in 2005.

REVIEW OF BUSINESS

The management team have continued the review of the business, following the
merger with Nexus Management Ltd, leveraging the synergies between the two in
terms of finding further cost-efficiencies and creating a solid base for the
Company's future growth.

New Business
This half year has seen our win rate remain steady at 2-3 new contracts a month.
We have placed particular focus on selling additional services to our existing
customers which accounts for approximately two thirds of new business. We now
have 46 customers compared with 30 this time last year. We maintain a sales
pipeline in excess of #600,000 in total contract value across the UK and US
companies and this pipeline and associated forecast is reviewed every week.

R&D
We have continued to invest in R&D to develop new services to augment and
complement our current offerings. In particular, we have developed a file
management system which will go live in the next half year. This will allow
users to access files remotely - enabling smaller firms to allow their employees
the freedom and flexibility to work from multiple locations. This new service
will also offer the user a valuable data store for backup and security purposes.

We are also currently carrying out further tests in the area of Voice Over IP,
where we see significant opportunities to leverage our position with both
existing and new customers.

Our most recently launched product, NexMail, a managed email service, has been
very well received by our target market. Since its launch in March 2005 we have
signed contracts with 7 customers and have a strong sales pipeline.

The Data Centre utilisation rate has risen from 25% in June to 30% at the end of
October, leaving us plenty of room to continue to grow without additional
investment. We have added a new Apple rack to support a newly won contract with
a local school in the Massachusetts area providing centralised services for the
children.


THE MARKET

We have seen the spending levels amongst SMEs steadily increase over the period,
as investment in their outdated and overburdened IT infrastructure starts to
become a necessity as opposed to a luxury. Data storage in particular looks to
be a very exciting growth area, and one which we are well positioned to
capitalise on, due to our state of the art data centre. The demand for hosting
services is also strong. In particular, demand is growing for co-location
hosting, where our customers' server and other mission critical systems, such as
point of sales systems, email systems and databases, are all located in our data
centre. This enables our customers to benefit from a higher level of security,
an optimised environment. Disaster recovery is also driving demand for IT
managed services

FUTURE DEVELOPMENTS

The second half of the year has continued in a positive manner, with the run
rate of new contracts remaining steady at 2-3 a month. The technical superiority
of our Data Centre, the skills of our engineers and the strength of our diverse
product portfolio mean that we are confident of a successful outcome to the
year.



NEXUS MANAGEMENT PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005

Strong buying of the shares again today, despite the hols????

The waiting is over!!!

mysunshine,

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