Highlights

• Strong Revenue and Operating Profit Growth
  • Revenue up 32% to £5.0m                                   (2006: £3.8m)
  • Operating profit before tax to £0.2m                     (2006: £0.0m)
  • Basic earnings per share increased to 0.11p       (2006: 0.02p)
  • Net cash increased to £0.7m                                (2006: £0.5m) 

• On-line marketing demand continues
  • The introduction of on-line marketing delivered strong growth in the UK
    • Significant new customer acquisition channel
    • Customer up sell & cross selling delivering good returns
    • More revenue on-line as budgets migrate
• International partner migration progressing well
  • Good progress in developing partner network
    • New Asia Pacific distribution partner Smart Soft PTY
    • Potential new partners in new territories expected to expand reach in 2007
    • 5 new partners added to network
• Demand for hosted solutions and managed services increasing
  • Partner network benefiting as UK operation adapts

Commenting on outlook, Chris Underhill, CEO of smartFOCUS said: 

“Looking forward, the Board is confident with the on-going development of the 
Company’s business model. The Company is well placed to benefit from the 
growth in its market and can adapt positively to changes in the software industry 
through the delivery of new compelling solutions and deployment models. The 
Board retains a positive outlook for continued growth in demand and is 
encouraged by the number and quality of new projects in the pipeline.”