Interim results

Prime Focus London Plc

(the "Company" or "Prime Focus London")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

The Board of Prime Focus London plc, the visual entertainment and advertising services group, is pleased to announce its unaudited interim results for the six months to 30 September 2012. An overview of the financial statements is set out below and full version is available on the Company's website at www.pflplc.com

Overview

·; Profit before tax of £0.183m on turnover of £10.389m (6 months to 30 September 2011: £1.795m on turnover of £20.348m)

·; After adjusting for discontinued operations and exceptional items the loss before tax is £0.643m. Like for like sales in the prior year 6 month period of £14.118m generated an equivalent profit before tax of £0.591m.

·; Trade debtors and creditors reduced from the March 2012 position of £26.714m to £18.482m and from £19.944m to £10.510m, respectively.

·; Consolidated indebtedness owed to the PLC from the majority shareholder reduced to £4.094m from the March 2012 position of £5.320m, and remains higher than the September 2011 position of £1.523m

·; Net debt, including external debt and intra company debt, reduced to £5.451m when compared to the same period last year, £6.890m.

Bernard Kumeta, Chief Executive Officer, commented:

"The Company that I joined in April of this year had lost its way in an increasingly demanding and competitive market place and a lack of a clear strategy had created a malaise within the business and disaffection amongst shareholders. A re-structuring of the Company was completed in October which has resulted in significant annual cost savings and placed the business on a much more sound financial footing.

"The remaining core operations of the Company possess great skills and the wider Prime Focus network provides us with a real competitive edge. With the right support from our major shareholders and employees, I believe that we can create a strong position in an ever changing market place for the benefit of all shareholders in the medium term."

For further information, please contact

Prime Focus London Plc

Bernard Kumeta Chief Executive Officer +44 (0) 20 7565 1000

Northland Capital Partners Limited

Tim Metcalfe / Edward Hutton / Lauren Kettle +44 (0) 20 7796 8800

Newgate Threadneedle

Graham Herring / Josh Royston +44 (0) 20 7653 9850

Interim Management Report

The Board of Prime Focus London Plc, the visual entertainment and advertising services group, is pleased to announce its unaudited interim results for the six months to 30 September 2012.

Overview

In the six months to 30 September 2012, Prime Focus London and its subsidiaries (together "the Group") made a profit before tax of £0.183 million on turnover of £10.389 million, compared to a profit before tax of £1.795 million on turnover of £20.348 million for the 6 months to 30 September 2011.

Basic earnings per share were 0.56p (6 months to 30 September 2011: 5.46p).

A summary of key figures is shown below:

Sales

Sales in the period reduced by £9.959m to £10.389m and cost of sales reduced by £2.481m compared to the same period last year.

In the six months to 30 September 2011, sales included £6.230m, cost of sales included £1.690m and administration expenses included £4.825m in respect of the 2D to 3D conversion of a major feature film undertaken by the View D business disposed of later in the year.

Of the continuing operations, Independent film sales in the period reduced by £3.617m compared to the same period last year, accounting for the majority of the shortfall in sales. In the 2011 period, nine individual projects were undertaken compared to five in the period under review. Variability of earnings and the size of each project is not unusual in this channel.

Other channels performed slightly ahead of expectations and the decline in commercials turnover, although severe, was not as dramatic as had been expected to this point in time.

Cost base and restructuring

Administrative expenses have reduced year on year by £6.161m. Of this reduction, £4.825m related to the disposed of View D business. The like for like reduction in costs was therefore £1.336m (down 13.7%) and is a proportional reduction linked to a lower volume of activity.

The operational restructuring of the Commercials business announced previously has been completed. This has had no effect on the numbers being reported here but provides an annualised saving of around £3m which will serve to insulate the business from the effects of negative industry trends in the TV advertising sector.

Exceptional item

The Group generated an exceptional gain of £1.24m by the write off of the assets and liabilities of the View D subsidiary company which was liquidated on 17th April 2012.

Future progress

Although the full benefit will not be felt until the new financial year, the cost reduction program completed in October was the first step in the process of repositioning the Company with the aim of improving the underlying trading performance and generating a long term sustainable business.

Among a number of key initiatives, over the coming months, the Company will seek to exploit the full advantage of potential margin and operational gains associated with the use of Prime Focus' facilities in India.

In the Broadcast and Broadcast VFX channel the Company is witnessing upwards sales momentum linked to new client wins. In Broadcast a new "facility within a facility" has been built outside of Soho providing dedicated client embedded service and speed of response. In Broadcast VFX the development of new, high value creative assets specifically for the television documentary makers is gaining industry-wide recognition. Additionally, the Commercials business has been newly rostered as a preferred partner of a major international consumer goods company offering the prospect of high volumes of work in the future and the further development of our World Versioning activities.

In the face of the continuing challenges posed by the difficult trading environment, there is still much work to do to get our businesses operating to their full potential. Each of our business channels has its own strengths and issues to deal with, but each now has a clear development route and the recovery of the business is underway.

I am confident of achieving improved shareholder returns over the medium term.

Bernard Kumeta

Chief Executive Officer

19 December 2012

Consolidated statement of changes in equity

for the six months ended 30 September 2012

Notes to the interim results

1. GENERAL INFORMATION

Prime Focus London Plc (the "Company") is a company domiciled in England whose registered office address is 64 Dean Street, London W1D 4QQ. The condensed consolidated half-yearly financial statements of the Company for the six months ended 30 September 2012 comprise the Company and its subsidiaries (together referred to as "the Group").

The condensed consolidated half-yearly financial statements were authorised for issue on 19th December 2012.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The interim financial report comprises the results and balances of the Company and its subsidiaries (the Group) for the six month period ended 30 September 2012. They are unaudited and do not comprise statutory accounts in accordance with Section 434 of the Companies Act 2006.

The comparative period for the six months ended 30 September 2011 are also unaudited.

This set of interim financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. As required, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 March 2012 and should be read in conjunction with those annual financial statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

4. AVAILABILITY OF ACCOUNTS

A copy is available on the Company's website at www.pflplc.com