NAME 24 August 2015 ELECTRIC WORD PLC

Interim Results to 31 May 2015

Electric Word, the specialist information business with divisions operating in the Sport and Gaming, Education and Health sectors, announced today interim results for the six months ended 31 May 2015.

HIGHLIGHTS

Revenues from continuing operations flat at £5.9m (2014: £5.8m) Adjusted EBITA* down to £14k (2014: £208k)

Cash flow from operations increased to £685k in H1 2015 compared to £411k in H1 2014

Strong balance sheet as a result of disposals of non-core businesses of Radcliffe Solutions and

Radcliffe Publishing

Strong performance in Sport & Gaming division with revenues up 16% and Adjusted EBITA* up

33%

Continuing change in Education division as revenues rose in premium CPD products but reduced in Knowledge Centre and conferences
Health division now solely focused on Speechmark, with new digital products in the pipeline

* EBITA denotes adjusted EBITA as defined in Note 3 and excludes amortisation and impairment of goodwill and intangible assets, restructuring and acquisition-related credits and costs, and share based payment costs, as well as the tax impact of those adjusting items and any non-cash tax credits and charges. This definition applies throughout the Interim Results statement.

Julian Turner, Chief Executive of Electric Word, commented:

'The group is in a strong position at the mid-year, having increased our focus and strengthened our balance sheet through improved cash generation and the disposal of non-core businesses. We have a clear plan to drive growth through a new generation of premium, digital subscription products and continue to invest in the resources and expertise we need to achieve that.'

Electric Word plc

INTERIM RESULTS TO 31 MAY 2015

Chairman's and Chief Executive's Statement

Financial summary (£'000) 2015 2014 % 2014

6 months 6 months Change 12 months

£'000 £'000 £'000 £'000

Restated Restated

Continuing operations

Revenue 5,855 5,819 +1% 12,427

Gross Profit 3,351 3,216 +4% 7,042

Adjusted EBITA* 14 208 898

Adjusted profit before tax* 5 192 863

Amortisation (248) (260) (513) Restructuring credits and (costs) - 6 (91)

Share-based payment (charges) and credits (32) (135) (270)

Loss before tax

(275)

(362) (0.11)p

(0.04)p

(0.22)p

11

(197) (11)

(Loss) / profit for the financial period from continuing operations

(275)

(362) (0.11)p

(0.04)p

(0.22)p

11

(157) 63

Diluted earnings per share from continuing operations

Adjusted diluted earnings per share*

Diluted earnings per share from continuing and discontinued operations

(275)

(362) (0.11)p

(0.04)p

(0.22)p

11

(0.06)p (0.01)p

0.001p 0.13p

(0.16)p (0.33)p

Net funds / (debt)

(275)

(362) (0.11)p

(0.04)p

(0.22)p

11

(89) (389)

Comparative figures for the year to 30 November 2014 and six months to 31 May 2014 have been restated to reclassify the results of the Sports Performance, Incentive Plus, Radcliffe Solutions and Radcliffe Publishing businesses as discontinued as a result of their disposals. See note 8.

* Adjusted figures (note 3) exclude amortisation, impairment of goodwill and intangible assets, acquisition-related and restructuring credits and costs, and share based payment costs, as well as the tax impact of those adjusting items and any non-cash tax credits and charges.

Net funds / (debt) (note 6) comprise cash held net of bank overdrafts and loans.

ENDS

Julian Turner, Chief Executive, Electric Word 020 7265 4170

Andrew Potts, Panmure Gordon 020 7886 2500

Electric Word plc

INTERIM RESULTS TO 31 MAY 2015

Chairman's and Chief Executive's Statement

GROUP OVERVIEW

Total Group

Continuing operations

2015

6 months

Total

£'000

2014

6 months

Total

£'000

Restated

2014

12 months

Total

£'000

Restated

Revenue

5,855

5,819

12,427

Adjusted EBITA*

14

208

898

Margin

-%

4%

7%

Net interest payable

(9)

(16)

(35)

Adjusted PBT*

5

192

863

* Adjusted figures (note 3) exclude amortisation and impairment of goodwill and intangible assets, acquisition-related and restructuring costs, and share based payment costs, as well as the tax impact of those adjusting items and any non-cash tax credits and charges.

The Group's strategy has been to increase the value that it adds for its customers by creating products and services that support their critical decisions and the achievement of their key organisational objectives. This has required a deeper engagement with our customers as well as some significant investments. Inevitably, in following this path, we have had to make some choices and are now doing fewer things, of greater value and on a larger scale.

The first half of 2015 has seen good progress towards these strategic objectives. The process of increasing focus has continued with the successful disposal of both Radcliffe Solutions and Radcliffe Publishing for a total of over £1m in cash. For the year ended 30 November 2014, the discontinued businesses contributed aggregate revenues of £1.7m and Adjusted EBITA of £0.4m loss. The impact of these disposals is therefore profit enhancing for the Group and they also added £1m in cash (of which £0.9m was received after the period end).

Cash generation from operating activities has been strong, increasing by 67% to £685k. This combined with the benefit of disposals put the Group in a net cash position, give the Group its strongest balance sheet for many years and put it in an excellent position to invest in the businesses that will drive future growth.

Our investment in the last two years has principally been in digital products and this has produced increased sales of higher-value, premium products which have pushed up average customer values in both SportBusiness and Optimus Education. The investment in digital development will continue across the Group, and is expected to drive an increase in the value of the Group's key brands in line with the goal of maximising shareholder value in the medium term.

Electric Word plc

INTERIM RESULTS TO 31 MAY 2015

Chairman's and Chief Executive's Statement

SPORT & GAMING DIVISION

2015

6 months

£'000

2014

6 months

£'000

Change

%

2014

12 months

£'000

Revenue

3,660

3,155

+16%

7,268

Adjusted EBITA*

954

719

+33%

1,934

Margin

26%

23%

27%

The Sport and Gaming division provides market information and knowledge to professionals in the global businesses of sport and online gaming. In this division, 73% of revenue was from live or digital products in the first half of 2015. IGaming's London conference successfully transitioned to Olympia in February and overall revenue from live events in the division grew by 9%. The June Amsterdam event was also successful. Subscription revenue is primarily from digital products and grew by 34%. This strong growth was driven by increases in the average customer value of all products but most notably TV Sports Markets, as a result of the introduction of the new premium TVSM Rights Tracker data visualisation tool.

EDUCATION DIVISION

Continuing operations

2015

6 months

£'000

2014

6 months

£'000

Restated

Change

%

2014

12 months

£'000

Restated

Revenue

1,352

1,814

-25%

3,536

Adjusted EBITA*

(469)

(289)

62%

(415)

Margin

-35%

-16%

-12%

The table above excludes the results of the Incentive Plus business which was sold on 15 October 2014 - see note 8

The Optimus Education division supports teachers' professional development requirements through an online subscription-based information and training service and through live conferences.

This business is changing rapidly, with strong growth seen from its new, premium online professional development service but declining revenues in its information products. Conferences revenue was also lower than in 2014, partly as a result of moving some events into the second half of this year and partly as a result of some of the market preferring other formats. We are continuing to invest in our products that address this customer need.

The Group sees a large opportunity in scaling up its new higher-value professional development service, which will continue to evolve and improve. We believe this service will represent an efficient and cost- effective solution to schools' needs in this critical area at a time when the education market is changing rapidly with many schools becoming independent of their local authority and consequently having growing needs for support from elsewhere.

Electric Word plc

INTERIM RESULTS TO 31 MAY 2015

Chairman's and Chief Executive's Statement

HEALTH DIVISION

Continuing operations

2015

6 months

£'000

2014

6 months

£'000

Restated

Change

%

2014

12 months

£'000

Restated

Revenue

843

850

-1%

1,623

Adjusted EBITA*

12

90

-87%

153

Margin

1%

11%

9%

The table above excludes the results of the Sports Performance business which was sold on 30 May 2014, and Radcliffe Solutions Ltd which was sold on 28 January 2015. It also excludes the results from Radcliffe Publishing, whose business and assets were sold on 19 June 2015 - see note 8.

Following the recent sales of Radcliffe Solutions and Radcliffe Publishing in 2015 and Sports Performance in 2014, the Health division is now solely focused on the Speechmark publishing business. Speechmark has a range of professional development, therapeutic and diagnostic tools aimed primarily at speech therapists in the healthcare and education sectors. It sells internationally as well as in the UK.

During the course of 2015, whilst Speechmark sales have remained flat, profitability of the legacy books and resources business has improved. Investment in digital products has continued and we now have five digital products fully launched.

CENTRAL COSTS

2015

6 months

£'000

2014

6 months

£'000

Change

%

2014

12 months

£'000

Adjusted EBITA*

(483)

(312)

-55%

(774)

As % of Group revenue from continuing operations

8%

5%

6%

Net interest payable

(9)

(16)

(35)

Central costs have increased as a result of moving offices in March 2015. Lower interest costs result from reduced levels of bank debt following loan repayments made in 2014 and 2015.

FINANCIAL REVIEW

Cash flow from operating activities was £685k for the period to 31 May 2015, compared to £411k in 2014 and is a result of continued focus on working capital management. Deferred revenue from continuing operations increased compared to 2014 as a result of growth in pre-billed subscriptions, conferences and events. Cash flows were positively impacted by a greater proportion of pre-billed revenues being received compared to the prior period. In addition, Group cash flow has also been impacted by the repayment of

£158k of bank loans, reducing bank debt to £228k, and the payment of £185k dividends to the minority shareholder of iGaming Business Ltd.

Initial proceeds from the sale of Radcliffe Publishing of £857k were received after period end in June 2015 and are therefore not reflected in the Condensed Consolidated Cash Flow Statement at 31 May 2015. The remaining £100k of proceeds are due to be paid in June 2016.

Electric Word plc

INTERIM RESULTS TO 31 MAY 2015

Chairman's and Chief Executive's Statement

CURRENT TRADING AND PROSPECTS

Current trading is in line with the Board's expectations. As we enter the fourth quarter, which is an important contributor to the Group's overall performance, we are expecting continued strong performance from our Sport and iGaming businesses. In Education and Health, our confidence in the potential of our digital product offerings has encouraged us to continue the investment in product development. Advance bookings for fourth quarter education conferences have been ahead of 2014. Central costs in the second half of the year will be lower than the first due to the one-off costs of the office move in March 2015.

Overall, we expect 2015 will be a year of continued profitable growth in Sport & Gaming coupled with targeted investments to create new value in Education and Health.

Andrew Brode Chairman

Julian Turner Chief Executive

Electric Word plc

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 31 May 2015 - unaudited

CONTINUING OPERATIONS

Note

Six months ended 31 May 2015 £'000

Six months ended
31 May
2014
£'000

Restated
Year ended
30 November
2014
£'000
Restated

REVENUE 25,855 5,819 12,427


Cost of sales - direct costs (1,968) (2,063) (4,383) Cost of sales - marketing expense (536) (540) (1,002) GROSS PROFIT 3,351 3,216 7,042

Other operating expenses (3,337) (3,101) (6,334) Restructuring credit / (expense) - 6 (91) Depreciation expense (32) (42) (80) Amortisation expense (248) (260) (513) Total administrative expenses (3,617) (3,397) (7,018)

OPERATING LOSS 2, 3(266) (181) 24

Finance costs (9) (16) (35) Finance income - - -

LOSS BEFORE TAX 3(275) (197) (11)

Taxation 4 (87) 40 74

(LOSS) / PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS (362) (157) 63

DISCONTINUED OPERATIONS

Loss for the period from discontinued operations,

net of tax 8 (471) (400) (1,352)

LOSS FOR THE PERIOD

(833)

(557)

(1,289)

Attributable to:

- Equity holders of the parent

3

(941)

(653)

(1,405)

- Non-controlling interest 108 96 116


TOTAL COMPREHENSIVE LOSS (833) (557) (1,289)

LOSS PER SHARE 5

From continuing and discontinued operations

Basic (0.23)p (0.16)p (0.35)p
Diluted (0.22)p (0.16)p (0.33)p

From continuing operations

Basic

(0.12)p

(0.06)p

(0.01)p

Diluted

(0.11)p

(0.06)p

(0.01)p


Prior period results have been restated to show the effect of operations which have been discontinued in the current and prior periods - see note 8. All of the loss from discontinued operations for the current and prior periods is attributable to equity holders of the parent.

Electric Word plc

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the period ended 31 May 2015 - unaudited

At 30 November
Share capital

£'000
Share premium account
£'000
Other reserves
£'000
Reserve for own shares
£'000
Retained earnings
£'000
Total
£'000
Non- controlling interest
£'000
Total equity
£'000
2013 4,068 7,531 105 (123) (3,960) 7,621 268 7,889
Total comprehensive
income - - - - (653) (653) 96 (557)

4,068 7,531 105 (123) (4,613) 6,968 364 7,332
Dividend paid by
subsidiary - - - - - - (303) (303) Share based
payment costs - - - - 135 135 - 135

At 31 May 2014 4,068 7,531 105 (123) (4,478) 7,103 61 7,164
Total comprehensive
income - - - - (752) (752) 20 (732) Tax credited
directly to equity - - - - 112 112 - 112

4,068 7,531 105 (123) (5,118) 6,463 81 6,544
Share issues 8 - - - - 8 - 8
Share based

payment costs - - - - 135 135 - 135
At 30 November
2014 4,076 7,531 105 (123) (4,983) 6,606 81 6,687
Total comprehensive
income - - - - (941) (941) 108 (833)

4,076 7,531 105 (123) (5,924) 5,665 189 5,854
Dividend paid by
subsidiary - - - - - - (185) (185) Share based

payment costs - - - - 32 32 - 32

At 31 May 2015 4,076 7,531 105 (123) (5,892) 5,697 4 5,701

Electric Word plc

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 May 2015 - unaudited

ASSETS Non-current assets


Note

31 May 2015 £'000

31 May
2014
£'000
30 November
2014
£'000
Goodwill 4,550 5,283 4,869
Other intangible assets 1,067 2,197 1,754
Property, plant and equipment 80 67 24

Deferred tax assets 1,846 1,650 1,804

7,543 9,197 8,451 Current Assets

Inventories 757 1,481 1,267
Trade and other receivables 3,732 3,150 2,777

Cash and cash equivalents 6 239 580 -

4,728 5,211 4,044


Assets classified as held for sale - - 81

Total current assets 4,728 5,211 4,125

TOTAL ASSETS 12,271 14,408 12,576 EQUITY AND LIABILITIES Capital and reserves

Called up ordinary share capital 4,076 4,068 4,076
Share premium account 7,531 7,531 7,531
Merger reserve 105 105 105

Reserve for own shares (123) (123) (123) Retained earnings (5,892) (4,478) (4,983) Equity attributable to equity holders of the parent 5,697 7,103 6,606

Non-controlling interest 4 61 81

TOTAL EQUITY 5,701 7,164 6,687 Non-current liabilities

Borrowings 6 61 353 94

Deferred tax liabilities 229 261 178

290 614 272 Current liabilities

Borrowings 6 167 316 295
Current tax liabilities 78 56 61
Trade payables and other liabilities 2,443 2,600 2,543
Provisions 7 60 49 60

Deferred income 3,532 3,609 2,481

6,280 6,630 5,440


Liabilities associated with assets held for sale - - 177

Total current liabilities 6,280 6,630 5,617

TOTAL LIABILITIES 6,570 7,244 5,889


TOTAL EQUITY AND LIABILITIES 12,271 14,408 12,576

These financial statements were approved by the Board of Directors and are authorised for issue on 24 August
2015.

Electric Word plc

CONDENSED CONSOLIDATED CASH FLOW STATEMENT For the period ended 31 May 2015 - unaudited

6 months ended 31 May 2015

6 months ended
31 May
2014
Year ended
30
November
2014

Note £ ' 0 00 £'0 0 0 £'0 0 0

OPERATING ACTIVITIES

Loss for the period

(833)

(557)

(1,289)

Taxation

87

(40)

(74)

Amortisation & impairment expense

318

350

1,470

Depreciation

32

46

88

Loss from disposal of property, plant and equipment

Loss on disposal of intangible assets

-

-

-

-

-

-

Loss on disposal of discontinued operation

23

51

(4)

Finance costs

9

16

35

Finance income

-

-

-

Share based payment charges / (credits) 32 135 270

Operating cash flows before movements in working capital (332) 1 496
Decrease in inventories 98 131 343 (Increase) / decrease in receivables 48 299 598

Increase / (decrease) in payables 941 53 (937)

Cash inflow from operating activities before interest and tax 755 484 500

Interest paid (9) (16) (35) Taxation paid (61) (57) (144) Cash inflow from operating activities 685 411 321

INVESTING ACTIVITIES

Deferred consideration paid - - - Purchase of property, plant and equipment (88) (12) (12) Purchase of intangible assets (133) (243) (511) Proceeds from disposal of discontinued operation received 121 70 120

Proceeds from disposal of property, plant and equipment - - - Interest received - - - Net cash used in investing activities (100) (185) (403)

FINANCING ACTIVITIES

Proceeds from issuance of ordinary shares - - 8
Proceeds of new borrowings - 200 200
Repayment of borrowings 6 (158) (6) (289) Payment of dividend to non-controlling interest (185) (303) (303)

Net cash from financing activities (343) (109) (384) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 242 117 (466) CASH AND CASH EQUIVALENTS AT THE

BEGINNING OF THE PERIOD (3) 463 463

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 6239 580 (3)

Electric Word plc

NOTES TO THE INTERIM REPORT

For the period ended 31 May 2015 - unaudited

1 PRESENTATION OF INTERIM RESULTS

GENERAL INFORMATION

Electric Word plc (the 'Company') is a company incorporated in the United Kingdom. The unaudited condensed set of consolidated financial statements as at May 2015 and for the six months then ended comprise those of the Company and its subsidiaries (together referred to as the 'Group').

The information for the six months ended 31 May 2015 and the comparative information for the six months ended 31 May 2014 are not audited by the Group's auditors. The comparative figures for the financial year ended 30 November 2014 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. The consolidated financial statements of the Group as at and for the year ended 30 November 2013 are available upon request from

the Company's registered office at 2ndFloor, 5 Thomas More Square, London E1W 1YW or atwww.electricwordplc.com.

The comparative information for the year to 30 November 2014 and the six months ended 31 May 2014 included in the condensed consolidated statements has been restated to reclassify the results of the Sports Performance, Incentive Plus, Radcliffe Solutions and Radcliffe Publishing businesses as discontinued as a result of their disposals. Further details are given in note 8.

ACCOUNTING POLICIES AND ESTIMATES

The financial statements have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards ('IFRS') as adopted for use in the European Union. The condensed set of consolidated financial statements included in this interim report has been prepared in accordance with International Accounting Standards 34 'Interim Financial Reporting', as adopted by the European Union.

The accounting policies, presentation and methods of computations applied by the Group in its consolidated financial statements are consistent with those applied by the Group in its consolidated financial statements for the year ended 30 November 2014.

The preparation of the condensed set of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and income and expense. Actual results may differ from these estimates.

In preparing these condensed set of consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the consolidated financial statements as at and for the year ended 30 November 2014.

GOING CONCERN

The Group has a net current liability position as at 31 May 2015 at £1,552,000 (31 May 2014: £1,419,000 and 30 November 2014: £1,492,000). Excluding deferred revenues, the Group had net current assets of

£1,980,000 (31 May 2014: £2,190,000 and 30 November 2014 £989,000). The level of net funds at 31

May 2015 is £11,000 (31 May 2014: Net debt of £89,000; 30 November 2014: Net debt of £389,000). The Directors have prepared group cash flow forecasts for the period ending 30 November 2017. These forecasts indicate that the Group will continue to meet its liabilities and bank debt requirements as they fall due for the foreseeable future. The Directors also prepare a rolling 12-month cash flow forecast each month to monitor the Group's expected cash balances.

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