Final Results
2007-05-31 16:25:00

The Directors of samedaybooks.co.uk plc accept responsibility for the information in this announcement relating to the Company and its subsidiaries, themselves and their immediate families and connected persons. To the best of the knowledge and belief of such Directors (who have taken all reasonable care to ensure such is the case), such information is in accordance with the facts and does not omit anything likely to affect the import of such information.

In compliance with Rule 27.1 of the City Code, there are no material changes in any of the information provided to shareholders relating to the Company or the opinions of the Directors.

If you are in any doubt about the action you should take, you are recommended to seek your own personal financial advice immediately from your stockbroker, bank manager, solicitor, accountant or independent financial adviser authorised under the Financial Services and Market Act 2000 if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

SAMEDAYBOOKS.CO.UK PLC

Final Results for the year to 31 March 2007

Chairman’s Statement

The trading loss of the Group for the year to 31 March 2007, including losses from discontinued operations of £117,000, was £274,000, with a loss before interest from continuing operations of £123,000 (the unaudited figure for the comparable twelve month period was a loss of £96,000). Shareholders will be aware that the previous accounting period was one of eighteen months to 31 March 2006, and therefore there are no directly comparable audited figures for the twelve months to that date. The underlying loss position was offset by the receipt in the year of £500,000, being the proceeds received from a keyman insurance policy carried by the Company on the life of Alan Clifford, the then Managing Director. There was thus an aggregate profit for the year of £226,000 (eighteen months to 31 March 2006; aggregate loss of £1,186,000).

Alan Clifford, who had served as Managing Director since the Company began trading in 1993, tragically died in December 2006 and is greatly missed by his colleagues, the staff and by many in the bookselling world.

The pattern which the Company has seen in recent years continued throughout the year with a further decline in the turnover in the retail shops of 8%. The sales decline was offset by good trading from Waterside Book Services Limited, which contributed over 48% of the Group’s continuing turnover.

Inevitably the combination of trading losses and the cost of settling the Company’s obligations in respect of discontinued shops, in particular the payments of £230,000 to the landlords of the former Canterbury shop to enable a surrender of the lease to be agreed, imposed considerable pressure on the Company’s cash flow. It should be noted that only the receipt of the £500,000 from the insurance policy, of which £27,000 was paid to the widow of Alan Clifford as compensation for loss of office, resulting in a net receipt of approximately £470,000, enabled the financial statements for the year to show moves from negative to positive for both shareholders’ funds and net current assets.

Any company facing these trading difficulties and with no grounds for believing that the position is likely to improve would be obliged to consider its position. When this is coupled with the loss of the Company’s Managing Director and no clear route to a permanent replacement then clearly severe measures are required.

The Directors who took voluntary salary reductions in February 2006 continued and have continued to serve since then on those reduced emolument levels. Shareholders will have seen from the notes to the last two financial statements of the Company the significant loans from Andrew Wells, who was and remains the largest shareholder, in 2003, 2004 and 2005 to provide the Company with essential working capital.

It is against this background that the Board unanimously recommended the offer by Charles Denton to acquire samedaybooks. To demonstrate our commitment to this course both Andrew Wells and I have given irrevocable commitments in respect of our entire shareholdings to accept the offer.

Trading prospects for the high street shops remain little changed. While Waterside continues to trade in line with expectations, it is unlikely that this will be sufficient to to offset the underperformance of the high street outlets. Internet trading since the relaunch of direct selling on the Company’s website in July 2006 has and continues to be severely constrained by the Company’s inability to invest sufficient resources in both time and money in this venture.

If the offer by Charles Denton lapses and, given that the Board is not aware of any alternative proposals, the Board will seek shareholders' support to cancel the Admission of the Company’s shares to trading on AIM as the Board believes that the costs and obligations of remaining an AIM company cannot be justified or properly discharged given the management and trading difficulties referred to above.

Although cancellation of the Admission to AIM should enable some costs to be saved, the Company has incurred considerable unbudgeted costs incurred in relation to the offer. The Board has not received any approach which would give it grounds to believe that any party other than Charles Denton would be prepared to make an offer that would match or better the current offer.

The Board draws the attention of shareholders to the extension of the offer to 5 June. It remains the Board’s unanimous view that the terms of the offer are fair and reasonable and it strongly urges shareholders to accept the offer.

D A Mahony

Chairman

31 May 2007