Half Yearly Report

Cellcast plc

(the "Company")

Interim Results for the six months ended 30 June 2013

The Board of Cellcast plc (AIM: CLTV) announces the Group's interims results for the six months ended 30 June 2013.

Financial results Highlights

· Revenue for the six months ended 30 June 2013 of approximately £8.3m (H1 2012: £9.8m);

· First half loss before tax of £915,000 (H1 2012: loss before tax of £119,000);

· Cost reductions implemented to date will have a positive impact on second half of current year.

Andrew Wilson, CEO of Cellcast plc, commented:

"The first half of 2013 saw a continued decline in revenue and profitability largely due to continued fall in consumer demand for our products and services in the UK. We expect the second half of 2013 to benefit from the move to Milton Keynes; reorganisation of operations and reduction in broadband commitments."

For further information:

CHIEF EXECUTIVE OFFICER'S STATEMENT

Half year results

The Group's performance in the first half showed a decline in revenue and operating profit when compared with the first half of 2012.

Revenue for the six months ended 30 June 2013 was approximately £8.3 million, a decrease of 16% on the same period last year. Gross profit for the period was £44,000 (H1 2012: £678,000).

Operating costs in the UK, excluding TV exploration costs, for the period were £752,000, which is 4% lower than the £784,000 total for the first half of 2012.

Overall, the Group's UK operations incurred an operating loss of £912,000 for the period after depreciation and amortisation costs of £316,000. This compares unfavourably to an operating loss of £106,000 in the comparative period for 2012.

In the first quarter the Group also incurred the costs of trialling new international markets of £203,000 (H1 2012: nil).

After taking into account the interest charges, the loss for the period was £915,000 (H1 2012: £119,000 loss). This represents a loss per share of 1.2p (H1 2012: 0.2p loss).

The £239,000 investment was made predominantly in new mobile business ventures in the UK and internationally.

Funding

The cash balance at 30 June 2013 stood at £454,000 compared to a balance of £904,000 at 30 June 2012.

Having reviewed the forward cash flows for the foreseeable future, the directors are confident that the Company has sufficient financial resources and that the preparation of the interim accounts on a going concern basis is appropriate.

Outlook

In the UK, the Group continued to see reduced demand and this has impacted on revenue in the period.

To address these, further cost cutting measures have been implemented which include moving the studio facilities out of London and reorganizing the current operational structure. The beneficial effect of this relocation and reorganisation will be recognised commencing in October of this year.

In July the Group's losses were significantly curtailed by the rationalisation of its bandwidth commitments which translated into a 32% reduction in the Group's overall broadcast cost.

As the company's traditional UK market offers limited immediate opportunity for new customer acquisition the Group has focussed on two areas of potential growth. The first of these is to increase yield from existing customers through cross-selling and upselling complementary internet and mobile internet based services. The second are new initiatives to undertake tests in various international markets with a focus on Africa and South America where mobile penetration is growing rapidly and new broadcasting opportunities are emerging.

The combination of the cost reductions and the revenue benefit being derived from new services and international markets will benefit the Group in the second half of 2013 and significantly reduce the operating losses.

Andrew Wilson

Chief Executive Officer

27 September 2013

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

In the above tables, the amounts are attributable to the equity holders of the parent.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2013

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2013

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

1. General Information

Cellcast plc is a limited liability Company incorporated and domiciled in the United Kingdom. Its business address is Unit 20-22 Cochran Close, Crownhill Industrial Estate, Milton Keynes, MK8 0AJ. The address of its registered office is The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Copies of this statement are available from this address and from the Company's website www.cellcast.tv.

The Company is quoted on the AIM Market of the London Stock Exchange.

This condensed consolidated interim financial information was approved for issue on 27 September 2013.

2. Basis of preparation

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2013. This has been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union and implemented in the UK. The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS.

The comparative financial information for the year ended 31 December 2012 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of the Group for the year ended 31 December 2012 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not contain statements under section 498(2) and (3) of the Companies Act 2006 and included an emphasis of matter relating to the uncertainties in respect to the Group's ability to continue as a going concern.

The IFRS's that will be effective in the financial statements for the year to 31 December 2013 are still subject to change and to the issue of additional interpretation(s) and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period that are relevant to this interim financial information will be determined only when the IFRS financial statements are prepared at 31 December 2013.

Except as described above, the current and comparative periods to June have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2012 and are also consistent with those which will be adopted in the 31 December 2013 financial statements.

There were no other Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information that the directors anticipate will have a material impact on the financial statements of the Group.

NOTES TO THE UNAUDITED INTERIM ACCOUNTS STATEMENT

3. Loss per share

Basic and diluted loss per share is based on the loss after tax and on the following weighted average number of shares in issue.