IMPACT HOLDINGS UK PLC

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					Press Release                                                    29 December 2010
                             Impact Holdings (UK) plc
                              ("Impact" or "The Group")

                                  Interim Results

Impact (AIM: IHUK), the specialist lender, announces its unaudited interim results for
the six months ended 30 September 2010.

Financial Highlights

   results in line with management expectations
   cash and cash equivalents of £2.02 million
   net assets of £4.6 million
   profit after tax of £139,534
   earnings per share 10p

Operational Highlights

   bolstering of the Board with the appointment of Justin Bates as a Non-Executive
    Director replacing Richard Kilsby who has now left the board as planned but
    remains a significant and supportive shareholder
   successful acquisition of new HQ building completed on 15th November 2010
   full integration of Sutherland Professional Funding Limited
   significant reduction in borrowings from financial institutions
   structured risk management to support monitoring of existing exposures
   further growth opportunities for primary business lines identified

A copy of the interim results is also available on the Group’s website
(www.impactholdings.net).

For further information:

Impact Holdings (UK) plc
Paul Davies, Chief Executive Officer                Tel: 0161 437 9499

Zeus Capital
Alex Clarkson/Tom Rowley                            Tel: 0161 831 1512

Notes to Editor:

Impact Holdings (UK) plc through its individual subsidiaries provides short term
funding solutions, loans administration and IT support services in two specific
sectors:

1. The legal disbursements market;
2. Property based bridging and development market.

In addition Impact will fund other opportunities where debt instruments or debentures
provide the primary security and there are opportunities for short term bespoke
funding where serviceability precludes larger lenders from entering this area. Impact
is regulated by The Office of Fair Trading through which it is licensed to lend under
the Consumer Credit Act 1974.
CHAIRMAN'S STATEMENT

I am pleased to report our unaudited interim financial results for the six months
ended 30th September 2010. Revenue of £1,019,392 and pre-tax profit of £139,534
were in line with expectations, as were cash flows and origination levels.

The general economic downturn experienced in 2009 has continued into 2010 with a
lack of confidence in the economy and a lack of liquidity in the banking markets.

Business Overview

The Board remains concerned at the lack of liquidity in the banking markets and for
the overall economic environment in which we trade. The consequence to these
concerns and our desired strategy of concentrating on better quality covenants has
been a slowing down of our organic growth within the solicitor lending business over
the past eighteen months. The Board intends to continue this prudent strategy until
the economic environment returns to a more stable platform.

The business of solicitor lending, in relation to funding disbursements on personal
injury cases, continues to be our core market albeit we have adopted a more
conservative approach within the credit risk function by only lending new monies to
the larger law practices.

We continue to incur upfront legal expenses in seeking to recover loans which have
been previously provided against by the Group. A number of these matters have
been successfully concluded at mediation avoiding further expensive litigation to trial
however repayment of these settlements will be received over a longer period under
agreed terms of repayment.

The Board remains committed to diversifying its product offering as we align the
business to providing ancillary services to the legal and professional sectors and are
presently assessing a number of new initiatives.

In preparation for the future growth of the business we have taken advantage of the
depressed property market values and purchased a 4,250 square foot new Head
Office based in Daresbury which is sufficient to accommodate the aspirations of the
Board in its development of ancillary business services.

Board Appointment

I was delighted to announce the appointment of Justin Bates to the Board on 1st
November 2010 which was part of our continued strengthening of the Board allowing
us to pursue our broader strategic objectives.

Justin is Senior Vice President of Keefe, Bruyette & Woods Limited, the largest full-
service investment bank specialising exclusively in the financial services sector.
Justin has significant experience in the UK Speciality Financial market having been
involved in numerous IPO’s and will assist the Board in its growth strategy.

I would also like to place on record the Board’s thanks to Richard Kilsby who
resigned as a Non-Executive director as planned but remains a committed and
substantial shareholder.
Outlook

The Group remains focussed on providing services to the legal and professional
sectors and maximising niche funding opportunities. The Board of Directors has
earmarked a number of future growth opportunities and remains committed to
developing this strategy and this, coupled with our existing businesses, will provide
the foundation for controlled growth, improved profitability and enhanced shareholder
value.


Roger Barlow
Non-Executive Chairman
IMPACT HOLDINGS (UK) PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME




                                                    6 Months     6 Months       Year
                                                      ended        ended       ended
                                                   30/09/2010   30/09/2009   31/03/2010
                                                        £            £            £

Revenue                                             1,019,392      893,606    1,679,362
Cost of sales                                       (213,123)    (225,760)    (448,613)
Gross profit                                          806,269      667,846    1,230,749


Operating expenses                                  (667,446)    (531,159)    (907,712)

Operating profit                                     138,823      136,687      323,037

Interest receivable                                      711          667        1,427

Profit for the period from operations before tax     139,534      137,354      324,464

Tax credit                                                 -            -         725
Profit for the period                                139,534      137,354      325,189

Earnings per share
Basic and Fully Diluted (pence)                          10p          12p          23p
IMPACT HOLDINGS (UK) PLC

UNAUDITED CONSOLIDATED BALANCE SHEET

                                                           As At          As At         As At
                                                        30/09/2010     30/09/2009     31/03/2010
                                                              £             £             £
Non-current assets

Goodwill                                                   421,766               -       421,766
Other intangible assets                                     70,395         86,993         93,547
Property, plant and equipment                               24,768         42,295         46,196
Deferred taxation                                          190,049              -        190,049
                                                           706,978        129,288        751,558
Current assets

Trade and other receivables including amounts falling
due after more than one year                            10,409,283      8,832,097     11,914,133
Cash and cash equivalents                                2,023,594        406,994      2,213,497
                                                        12,432,877      9,239,091     14,127,630

Total assets                                            13,139,855      9,368,379     14,879,188

Capital and reserves

Share capital                                             6,211,201      5,666,667      6,211,201
Share premium account                                     5,005,288      4,759,823      5,005,288
Share based payment reserve                                 172,199        373,836        172,199
Shares held by Employee Benefit Trust                       (44,876)       (26,646)       (11,645)
Retained earnings                                       (6,729,638)    (7,258,644)    (6,869,172)
Equity attributable to equity shareholders of the
parent                                                   4,614,174      3,515,036      4,507,871

Creditors: amounts falling due within one year           8,525,681      5,853,343     10,371,317
                                                        13,139,855      9,368,379     14,879,188
IMPACT HOLDINGS (UK) PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD

                                                        6 Months      6 Months         Year
                                                          ended         ended         ended
                                                       30/09/2010    30/09/2009     31/03/2010
                                                            £             £             £
Operating activities

Cash generated from operations                          1,518,249       311,455     3,008,430
Net cash generated by operating activities              1,518,249       311,455     3,008,430


Investing activities
Purchase of other intangible assets                             -               -      (51,147)
Purchase of property, plant and equipment                  (1,577)          152           (505)
Acquisition of own shares by Employee Benefit Trust      (44,876)             -              -
Disposal of own shares by Employee Benefit Trust          11,645              -              -
Acquisition costs                                                             -        (21,345)
Net cash acquired with subsidiary undertaking                  -             -        403,116
Interest received                                            711           667           1,427
Net cash (used in)/by generated investing activities     (34,097)          819        331,546

Financing activities
Share issue expenses                                            -            -         (10,000)
Decrease in amount owed to lending institutions        (1,674,055)    (314,853)     (1,526,052)
Net cash used in financing activities                  (1,674,055)    (314,853)     (1,536,052)

Net (decrease)/increase in cash and cash equivalents    (189,903)       (2,579)     1,803,924

Opening cash and cash equivalents                       2,213,497      409,573        409,573

Closing cash and cash equivalents                       2,023,594      406,994      2,213,497
IMPACT HOLDINGS (UK) PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                     Share        Share       Share     Shares         Profit        Total
                                    Capital    Premium       Based      held by          and
                                                           Payment         EBT         Loss
                                                           Reserve                  Account


Balance as at 31 March 2009       5,666,667   4,759,823    373,836     (26,626)   (7,395,998)   3,377,702
Profit for the period                     -           -           -          -      137,354      137,354
Balance as at 30 September 2009   5,666,667   4,759,823    373,836     (26,626)   (7,258,644)   3,515,056


Profit for the period                     -           -           -          -      187,835      187,835
Movement on shares held by EBT            -           -           -     14,981             -       14,981
Shares issued                       544,534    272,715            -          -             -     817,249
Issue expenses                            -     (27,250)          -          -             -      (27,250)
Transfer re lapsed options                                 (201,637)         -      201,637             -
Balance as at 31 March 2010       6,211,201   5,005,288    172,199     (11,645)   (6,869,172)   4,507,871


Profit for the period                     -           -          -           -      139,534      139,534
Movement on shares held by EBT            -           -          -     (33,231)            -      (33,231)
Balance as at 30 September 2010   6,211,201   5,005,288    172,199     (44,876)   (6,729,638)   4,614,174
Impact Holdings (UK) plc

Notes to the Interim Financial Statements


1.    Accounting policies

      The financial statements have been prepared in accordance with International
      Financial Reporting Standards as endorsed by the EU (“IFRS”).

      The financial statements have been prepared on the historical cost basis,
      except for the revaluation of certain financial instruments. The principal
      accounting policies adopted are set out below.

      The financial statements have been prepared on a going concern basis.

      New and revised accounting standards

      The introduction of new standards and revisions to IFRS 1, 2, 3, 5, 7, 8 and
      revisions to IAS 1, 16, 19, 20, 23, 27, 28, 29, 31, 32, 36, 38, 39, 40 and 41 are
      relevant to the group

      The effect of changes on the group’s financial statements as a result of
      adopting these standards (where applicable) is not significant. The group has
      elected not to adopt any other standards earlier than the proposed effective
      dates.

      Further detail in relation to the above International Accounting Standards is
      available from the IASB’s website, www.iasb.org.

      Basis of consolidation

      The consolidated financial statements of the Group incorporate the financial
      statements of Impact Holdings (UK) plc (the “Company”) and enterprises
      controlled by the Company (its subsidiaries) made up to the balance sheet
      date. Control is achieved where the company has the power to govern the
      financial and operating policies of an investee enterprise so as to obtain
      economic benefit from its activities. Subsidiaries are fully consolidated from the
      effective date of acquisition or up to the effective date of disposal, as
      appropriate.

      The purchase method of accounting is used to account for the acquisition of
      subsidiaries by the Group. The cost of an acquisition is measured as the fair
      value of the assets given, equity instruments issued and liabilities incurred or
      assumed at the date of exchange, plus costs directly attributable to the
      acquisition. Identifiable assets acquired and liabilities and contingent liabilities
      assumed in a business combination are initially measured at fair value at the
      acquisition date irrespective of the extent of any minority interest.

      The excess of cost of acquisition over the fair values of the Group’s share of
      identifiable net assets acquired is recognised as goodwill. Any deficiency of the
      cost of acquisition below the fair value of identifiable net assets acquired (i.e.
      discount on acquisition) is recognised directly in the income statement.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
other members of the Group.

All intra-group transactions, balances, and unrealised gains on transactions
between Group companies are eliminated on consolidation. Unrealised
losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred.

Goodwill

Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group’s interest in the fair value of the identifiable assets
and liabilities of a subsidiary, associate or jointly controlled entity at the date of
acquisition. Goodwill on acquisition of subsidiaries is separately disclosed.

Goodwill is recognised as an asset and reviewed for impairment semi-
annually or on such other occasions that events or changes in circumstances
indicate that it might be impaired. Any impairment is recognised immediately
in the income statement and is not subsequently reversed. Goodwill is
allocated to cash generating units for the purpose of impairment testing.

Goodwill arising on acquisitions before the date of transition to IFRS has been
retained at the previous UK GAAP amounts subject to being tested for
impairment.

Intangible assets
The cost of developing or acquiring computer software including own labour
costs incurred directly in connection with software development, is capitalised
as an intangible asset where the related expenditure is separately identifiable
and where there is reasonable expectation that future economic benefits will
arise from the development. Software costs are amortised using the straight
line method over 3 years.

Interest income and expense

Revenue shown in the profit and loss account represents interest,
commission and arrangement fees receivable on loans made to third parties.
Interest income and expense are recognised in the profit and loss account for
all financial assets and liabilities using the effective interest method, being the
rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument to the net carrying amount
of the financial asset or financial liability. When calculating the effective
interest rate, the Group includes all establishment and arrangement fees,
commissions and administrative fees paid or received between parties to the
contract that are an integral part of the effective interest rate.

Interest on legal disbursement funding is added to the principal, is calculated
on a daily basis and is repaid to the Group at the end of the term of the
agreement. Interest and commissions are reversed retrospectively in
circumstances where a loan is unwound within 120 days of issue. Amounts
received in respect of interest on property bridging loans relating to future
periods are held on the balance sheet as deferred income within creditors.
Financial assets and liabilities

Financial assets and liabilities used by the Group include loans made to third
parties and debt finance received by the Group. Financial assets are
recognised initially at fair value and measured subsequently at amortised cost
using the effective interest method, less provision for impairment. Financial
liabilities are recognised initially at fair value and measured subsequently at
amortised cost.

Bad and doubtful debts

Specific provision is made against all advances considered to be impaired.
When there is reasonable doubt over recovery, provision is made against the
outstanding debt including interest and further interest is suspended until the
directors are satisfied as to the recoverability of the total amount due.

Segmental reporting
No separate segmental reporting information is provided as in the directors’
opinion all of the Group’s operations are similar and no separation would be
meaningful.

Leasing
Rentals payable under operating leases are charged to income on a straight
line basis over the term of the lease.


Retirement benefits costs
Payments to defined contribution retirement benefit plans are charged as an
expense as they fall due.

Taxation

The tax expense represents the sum of the current tax expense and deferred
tax expense.

The tax currently payable is based on taxable profit or loss for the year.
Taxable profit or loss differs from net profit as reported in the income
statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable
or deductible. The Group’s liability for current tax is calculated by using tax
rates that have been enacted or substantively enacted by the balance sheet
date.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of
taxable profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from the initial recognition of goodwill or from
the initial recognition (other than in a business combination) of other assets and
liabilities in a transaction which affects neither the tax profit nor the accounting
profit.

Deferred tax liabilities are recognised for taxable temporary differences arising
on investments in subsidiaries and associates, and interests in joint ventures,
except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in
the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled based upon tax
rates that have been enacted or substantively enacted by the balance sheet
date. Deferred tax is charged or credited in the income statement, except
when it relates to items credited or charged directly to equity, in which case
the deferred tax is also dealt with in equity.
Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation.
Depreciation is charged so as to write off the cost or valuation of assets over
their useful economics lives, using the straight line method on the following
basis:-
Leasehold improvements                   Unexpired length of lease
Plant and machinery                       3 years
Fixtures, fittings & equipment            3 years
Motor Vehicles                            4 years

Provisions are recognised when the Group has a present obligation as a
result of a past event which it is probable will result in an outflow of economic
benefits that can be reliably estimated.

Equity Instruments

Equity instruments, which are contracts that evidence a residual interest in
the assets of the Group after deducting all of its liabilities, are recorded at the
proceeds received, net of direct issue costs.

Provisions

Provisions are recognised when the Group has a present obligation as a
result of a past event which it is probable will result in an outflow of economic
benefits that can be reliably estimated.

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of equity-settled share-
based payments is expensed on a straight-line basis over the vesting period,
based on the Group’s estimate of shares that will eventually vest. Fair value
is measured by use of a binomial model. The expected life used in the model
has been adjusted, based on management’s best estimate, for the effect of
non-transferability, exercise restrictions, and behavioural considerations.

At each balance sheet date, the Group revises its estimates of the number of
options that are expected to become exercisable. It recognises the impact of
the revision of original estimates, if any, in the income statement and a
        corresponding adjustment to reserves over the remaining vesting period.
        Costs are recognised in the income statement with a corresponding credit to
        a share based payment reserve.

        Financial Risk Management

        Interest rate risk

        The interest rate risks are limited to the revolving credit facilities which the
        Group has in place.

        The Group has no exposure arising from trading overseas.

        Liquidity risk

        The Group has to monitor closely its access to bank and other funds and its
        ongoing loans and overdrafts to ensure that there are sufficient funds to meet
        its obligations.

        The Board receives regular debt management forecasts which estimate the
        cash inflows and outflows over the next eighteen months, so that
        management can ensure that sufficient financing is in place as it is required.

        Credit Risk

        The Group exposes itself to the risk that any counterparty to which the Group
        lends money will be unable to repay the amounts when they fall due. These
        risks are managed by ensuring that exposures to individual counterparties
        and particular market sectors or loans exhibiting particular attributes are
        minimized wherever possible. The Board and Risk Committee monitor such
        exposures on a regular basis, with figures being regularly reviewed. In
        respect of property bridging loans the Group enforces repossession of
        property where necessary with a view to holding the asset for resale in order
        to extinguish the debt. In addition, impairment provisions are made when it
        becomes evident that the Group may incur losses at the balance sheet date.

2.      Earnings per ordinary share

                                                 6 Months   6 Months     Year
                                                   ended      ended     ended
                                                30/09/2010 30/09/2009 31/03/2010
                                                     £          £         £

 Profit for the period                             139,524       137,354       325,189

 Number of shares – basic                        1,422,399     1,133,334     1,422,399

 Number of shares – diluted                      1,422,399     1,133,334     1,422,399
 EPS – basic (pence)                                   10p           12p           23p
 EPS – diluted (pence)                                 10p           12p           23p

        There is no difference between ordinary and fully diluted earnings per share.
 3. Trade and other receivables
                                               6 Months        6 Months        Year
                                                 ended           ended        ended
                                              30/09/2010      30/09/2009    31/03/2010
                                                    £              £            £


 Trade receivables
        Disbursement funding loans               8,607,863     6,332,262 10,087,930
        Property bridging loans                  1,448,812     2,350,202  1,607,813
 Prepayments and accrued income                    352,608       149,633    218,390
                                                10,409,283     8,832,097 11,914,133




 4. Trade and other payables : amounts
    falling due within one year

                                               6 Months        6 Months        Year
                                                 ended           ended        ended
                                              30/09/2010      30/09/2009    31/03/2010
                                                                   £            £


 Trade payables                                     98,653       118,934       170,844
 Bank loans and overdrafts
     - Disbursement funding loans                7,715,022     4,580,370  9,291,742
     - Property bridging loans                     615,070       884,976    712,405
 Other taxation and social security                 18,045        15,881     48,285
 Accruals and deferred income                       78,891       253,182    148,041
                                                 8,525,681     5,853,343 10,371,317


The disbursement funding loans for Impact Funding Solutions Limited are financed
by uncommitted revolving credit facilities secured by a fixed and floating charges
over the assets of the company supported by a parent company guarantee.
The disbursement funding loans for Sutherland Professional Funding Limited are
financed by committed revolving credit facilities secured by fixed and floating charges
over the assets of the company supported by a parent company guarantee.
Primarily both facilities represent individual funding loans, repayable when the related
disbursement loan is collected.
The property bridging loans are uncommitted revolving credit facilities secured by
secondary charges over all properties, where bank funding has been provided. In
addition, there are fixed and floating charges over all properties and assets, present
and future, of Impact Bridging Solutions Limited and Impact Bridging Developments
Limited supported by a parent company guarantee.



5.     The Board of Directors approved the interim report on 29 December 2010.

				
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