Interim Results

31 March 2011

Hot Tuna (International PLC

("Hot Tuna", "the Company" or "the Group")

Interim Results

Hot Tuna (International) PLC (AIM: HTT), a leading surf wear and fashion brand, announces its interim results for the six months ending 31 December 2010.

Highlights

·; Successfully raised approximately £1.1 million via an equity placing

·; New agreement with Interga SPA to distribute Hot Tuna products in Italy and Austria

·; Appointment of Francis Ball as a Non-Executive Director

·; Autumn Winter 2011 collection well received at recent trade shows

·; Negotiating new distribution agreements in Europe and South East Asia

Interim Review

Sales for the six months to 31 December 2010 were down on the previous year due to challenging retail conditions and poor consumer confidence which affected the lead times and level of orders taken for the period. Whilst sales are anticipated to improve in the second half, revenues for the full year will be lower than the prior year. The company was focused on reducing levels of discounted merchandise and selling full price stock which also impacted sales in the period under review but will ensure better profitability in the long term.

During the period, the Company realised the efficiencies made last year by moving production from China to Turkey, thereby reducing costs relating to wage increases, manufacturing costs, and transportation costs from the factory in Asia to Europe.

Consumer confidence is slowly strengthening and forward orders for the coming season have been encouraging. The appointment of distributors and distribution partners will aid sales growth in new regions as the company expands into new markets and continues its programme of appointing these distributors.

Current Trading and Outlook

In Europe, current trading continues to be restrained in UK and European markets; however the launch of the Hot Tuna e-commerce site this summer will provide an additional uplift to sales for 2011 and 2012 and the new distribution agreements in place are also helping drive sales. The Company has commenced delivery of the Spring Summer 2011 collection to ASOS.com, and continued its partnerships with Amazon.com. The appointment of Interga as the new Italian and Austrian distributor for the brand has helped increase business.

The Autumn Winter 2011 collections were very well received in January at the Berlin trade show Bread and Butter and secured new retail accounts in Germany. New working partnerships are now in place in Germany and Denmark for 2011 and 2012.

The US, after a restructure of the operations last year, recommenced business with major partners including Delia's, Karmaloop and Victoria's Secret and has successfully delivered product for the opening season of the US swim catalogues at Victoria's Secret and Delia's for Summer 2011.

In Australia, the Hot Tuna adult ranges were launched last August and were well received. A network of Independent stores have now selected the brand for inclusion in the Southern hemisphere Autumn Winter 2011 ranges. Further orders were secured a Sydney trade show in February 2011.

Central costs will increase in the coming year due to additional staffing requirements and ecommerce start up costs. The recent fundraising will help however expand the brand into new international markets, develop the new transactional website, fund online marketing, product design and development and provide the Company with working capital.

The focus continues to be on a design led offering which differentiates itself from other street and surf apparel brands. We continue to improve the design element of the brand, ensure each garment displays the iconic pink piranha.

The Company continues to talk to new partners and new markets and is confident that these will result in new distribution agreements. The Company is also seeking to appointment a new Chairman in the near term.

Geoff O'Connell, CEO of Hot Tuna: 

"We remain focused on increasing brand awareness in both new and existing markets and keeping our cost base down. The recent equity placing and new distribution agreements illustrate the ongoing support for the Company. Hot Tuna is an iconic surf heritage brand and we are positive about the continued appeal of the brand internationally."

Enquiries:

Hot Tuna plc

Geoff O'Connell - CEO Tel: 020 7440 0644

Pelham Bell Pottinger

Lucy Frankland / Dan de Belder Tel: 0207 861 3885

Seymour Pierce Limited

Mark Percy / Catherine Leftley (Nominated Adviser) Tel: 020 7107 8000

Paul Jewell (Corporate Broking)

Allenby Capital Ltd Tel: 020 3328 5656

Nick Naylor/Alex Davies

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 1 JULY 2010 TO 31 DECEMBER 2010

All activities relate to continuing operations

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2010

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD FROM 1 JULY 2010 TO 31 DECEMBER 2010

CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE PERIOD FROM 1 JULY 2010 TO 31 DECEMBER 2010

NOTES TO THE UNAUDITED INTERIM REPORT

FOR THE PERIOD ENDING 31 DECEMBER 2010

1. BASIS OF PREPARATION

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 31 December 2010 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the year ended 30 June 2010. The figures for the year ended 30 June 2010 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 30 March 2011.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Group's 2010 annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Hot Tuna (International) plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

Turnover and Segmental Analysis

The Group has adopted IFRS 8 which is required for all annual reports and interim financial statements starting 1 January 2009 or later. Implementation of IFRS 8 has not changed the Group's policy in measuring the amounts included in the turnover and segmental analysis reporting. However the presentation of the turnover and segmental analysis has changed in these interims compared to the report and accounts for the year ended 30 June 2010.

The reportable segments identified make up all of the Group's external revenue, which is derived primarily from the design, production and sale of branded apparel. The reportable segments are an aggregation of the operating segments within the Group as prescribed by IFRS 8. The reportable segments are based on the Group's management structures and the consequent reporting to the Chief Operating Decision Maker, the Board of Directors. Our sector results are attributable to the design, production and sale of branded apparel and corporate costs. The design, production and sale of branded apparel are carried over three continental segments, Australia, Europe and United States. Corporate costs are solely borne in the United Kingdom. Income and expenses included in profit for the year are allocated directly or indirectly to the reportable segments.

Inter-company balances comprise arms' length transactions between operating segments making up the reportable segments. These balances are eliminated to arrive at the figures in the consolidated accounts.

2. TURNOVER AND SEGMENTAL ANALYSIS

2. SEGMENT REPORTING (CONTINUED)

3. LOSS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

The denominator for the purpose of calculating the basic earnings per share has been adjusted to reflect all capital raisings. Due to the loss incurred in the period, there is no dilutive effect resulting from the issue of share options, warrants and shares to be issued.

4. SHARE CAPITAL

4. SHARE CAPITAL (CONTINUED)

5. EVENTS OCCURRING AFTER THE REPORTING PERIOD

On 21 February 2011, Francis Ball was appointed as a Non-Executive Director of the Company.

On 3 March 2011, Melissa Sturgess was appointed as Non-Executive Chairman of the Company, however, later resigned on 14 March 2011.

On 23 March 2011, the Company announced that it had raised £1.08 million in a placing to institutional investors of1,084.9 million new ordinary shares of 0.05p each in the Company at 0.1p per share.