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26-September-2007-Energy-Asset-Management-Plc-(“EAM”-or-the-

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					26 September 2007 Energy Asset Management Plc (“EAM” or the “Company”) Interim Results for the Six Months Ended 30 June 2007 Highlights        Contracts secured at a greater rate than anticipated; Activity increasing as customers/energy suppliers experience and realise benefits of EAL meter exchange solutions; Mobilisation slower than originally anticipated but activity and pipeline of new business establishing a long term foundation for the business; Company expected to trade profitably in the second half and cash flow positive Q4; Strategic Alliance signed with IMServ –UK’s most experienced electricity data collector; 2 contracts with major independent energy suppliers signed (others in negotiation); End user contracts with M&S and Woolworths have been extended to provide additional metering services.

Chairman’s Statement I reported in my statement accompanying the last accounts to 31 December 2006 that we have been successful in negotiating and winning contracts at a greater rate than previously anticipated. The mobilisation of these contracts has been at a slower rate than originally anticipated, thus resulting in our trading at a loss for the first half of the year, the underlying resultant levels of activity and pipeline of new business is establishing a long-term foundation for a business that promises to surpass even our most optimistic beliefs. Activity is steadily rising as both customers and energy suppliers experience and realise the benefits of our metering solutions and, as a result, we expect to be trading profitably in the second half of the year and cash flow positive in the fourth quarter. Financial Results In the six months to 30 June 2007 the Group made a loss after taxation of £584,910 (2006loss £346,484), but before a further share option charge of £56,573 representing a loss per share of 0.25p (2006- loss 0.21p). Current Activity The Group has signed a Strategic Alliance with IMServ, part of Invensys plc. IMServ is the UK’s most experienced independent electricity data collector with a major presence in the collection and management of electricity energy data through an established customer base who increasingly require similar solutions for their gas consumption. Through this alliance Energy Assets provides IMServ with the ability to confidently deliver its clients with a complete energy solution addressing both electricity and gas remote automated meter reading. This has already resulted in the development of significant new business which we believe will lead to increased activity over the coming months and years. The Group has in addition signed two contracts with major independent energy suppliers, who cannot be named for reasons of confidentiality, with several others under negotiation. These contracts, although slower to implement than end user contracts, will in the longer term

provide many times the number of potential installations, as each energy supplier has a significant number of customers, many of whom are large multi site portfolios similar to those end user groups we have announced. Consequently we expect substantive growth will come from independent energy suppliers. In addition the end user contracts we have with Marks & Spencer and Woolworths have been extended to provide additional gas and electricity services, these will generate long-term sustainable revenues over the life of the contracts. All of the above contracts have contributed to the Group’s four figure installed base of meters and dataloggers. The rate of installation is increasing on a monthly basis and the number of installations based upon signed long-term contracts is expected to increase by some two fold in the second half and by a further three fold in 2008. The Group has high operational gearing and the addition of these further installations will add only a small increment to costs. Consequently we expect to see the full benefit of our current and expected contracts and strategic alliance with IMServ come through in 2008. We believe that the Group is operating in a market sector that has significant growth prospects, encouraged by government and public support through the increasing awareness of the importance of conserving energy. We look forward to reporting further contract wins and progress. Stephen Barclay Non-Executive Chairman 25 September 2007

Financials Energy Asset Management Plc Consolidated Income Statement - By function of expense
for the six month period ended 30 June 2007 Note 30-Jun 2007 £ Unaudited 261,288 (136,072) 125,216 (767,877) (642,661) 1,178 (641,483) 30-Jun 2006 £ Unaudited 450 (300) 150 (357,215) (357,065) 10,581 (346,484) 31-Dec 2006 £ Audited 20,768 (10,664) 10,104 (2,811,165) (2,801,061) 18,791 (2,782,270) -

Revenue Cost of sales Gross Profit Operating expenses Operating loss Finance Income Loss before taxation Taxation

Loss after taxation Retained loss for the period Attributable to Equity holders of the Company Minority interest Retained loss for the period Loss per share basic and diluted (p)

(641,483)

(346,484)

(2,782,270)

(641,483)

(346,484)

(2,782,270)

(648,928) 7,445

(346,484) -

(2,774,375) (7,895)

(641,483)

(346,484)

(2,782,270)

2

(0.25)

(0.21)

(1.35)

Energy Asset Management Plc Consolidated Balance Sheet
As at 30 June 2007 30-Jun 2007 £ Unaudited Assets Non current assets Property, plant and equipment Intangible assets- Goodwill Total non current assets Current assets Trade and other receivables Cash and cash equivalents Inventories Total current assets Total Assets 30-Jun 2006 £ Unaudited 31-Dec 2006 £ Audited

173,090 745,475 918,565 203,847 108,882 124,395 437,124 1,355,689

22,531 2,480,019 2,502,550 27,050 725,812 752,862 3,255,412

20,405 745,475 765,880 53,335 249,095 9,360 311,790 1,077,670

Equity and liabilities attributable to equity holders of the Company Share capital and reserves Issued capital Share premium account Retained earnings Minority interest Total Equity Current liabilities

2,787,684 1,163,929 (3,173,235) 778,378 778,378

2,467,684 1,083,929 (371,370) 3,180,243 3,180,243

2,467,684 1,083,929 (2,580,880) 970,733 (7,445) 963,288

Trade and other payables Total equity and liabilities

577,311 1,355,689

75,169 3,255,412

114,382 1,077,670

Energy Asset Management Plc Statement in changes in Equity
Share Capital £ 6 months to June 2006 Balance at 1 January 2006 Acquisition of Energy Assets Ltd on 9 March 2006 Additional issues on 9 March 2006 Share issue costs Loss for the year attributable to equity holders Balance at 30 June 2006 Share Premium £ Retained Earnings £ Minority Interest £ Total Equity £

219,351 1,415,000 833,333 2,467,684

107,185 707,500 416,667 (147,423) 1,083,929

(24,886) (346,484) (371,370)

-

301,650 2,122,500 1,250,000 (147,423) (346,484) 3,180,243

6 months to June 2007 Balance at 1 January 2007 Loss for the year attributable to equity holders Profit for the year attributable to minority interest Share based costs Additional issues on 26 March 2007 Balance at 30 June 2007

2,467,684 320,000 2,787,684

1,083,929 80,000 1,163,929

(2,580,880) (648,928) 56,573 (3,173,235)

(7,445) 7,445 -

963,288 (648,928) 7,445 56,573 400,000 778,378

Energy Asset Management Plc Consolidated cash flow statement
For the six months ended 30 June 2007 30-Jun 2007 £ Unaudited Cash flows from operating activities Operating loss for the year as per income statement Depreciation of non current assets Impairment of goodwill Share based reserve Movements in working capital 30-Jun 2006 £ Unaudited 31-Dec 2006 £ Audited

(642,661) 5,832 56,573 (580,256)

(357,065) (357,065)

(2,801,061) 33,175 1,734,544 218,381 (814,961)

Increase in trade and other receivables Increase in inventories Increase / (decrease) in trade and other payables Net cash outflow from operations Cash flows from investing activities Interest received Net purchase of subsidiary undertaking Cash acquired with subsidiary Purchase of non current assets Net cash expenditure from investing activities Cash flows from financing activities Net proceeds from issue of equity shares Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of financial period Cash and cash equivalents at end of period

(150,512) (115,035) 462,929 (382,874)

(11,210) (53,081) (421,356)

(37,045) (9,360) (13,868) (875,234)

1,178 (158,517) (157,339)

10,581 (260,190) 4,353 (22,531) (267,787)

18,791 (260,190) 4,353 (53,580) (290,626)

400,000

1,102,577

1,102,577

(140,213)

413,434

(63,283)

249,095

312,378

312,378

108,882

725,812

249,095

Notes to the unaudited financial statements
1. The financial information for the period ended 30 June 2007 is unaudited and has been prepared on the, basis of the Group's adopted accounting policies. This information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 31 December 2006 has been extracted from the Group’s statutory accounts, which have been delivered to the Registrar of Companies. The audit report for the year ended 31 December 2006 was unqualified. 2. Loss per share The loss per share has been calculated by dividing the loss after taxation of £648,928 by the weighted average number of Ordinary Shares in issue for the period of 263,917,554 (2006- 163,080,420). As the Group incurred a loss for the period, the share options and warrants in existence do not have a dilutive effect and therefore the basic and diluted loss per share are the same. 3. Dividend As previously no dividend is recommended. 4. Share capital At 30 June 2007 the Company had 278,768,383 Ordinary shares of 1p each in issue. (2006246,768,383)


				
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