(PFO) Prime Focus London

Prime Focus London Plc

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

AND REVIEW OF AIM ADMISSION

The Board of Prime Focus London plc, the visual entertainment services group, is pleased to announce its unaudited interim results for the six months to 30 September 2011. An overview of the financial statements is set out below and full version is available on the Company's website at www.primefocusworld.com.

Overview

·     Profit before tax of £1.795m on turnover of £20.348m (6 months to 30 September 2010: £2.673m on turnover of £18.495m)

·     Basic EPS at 5.46p (6 months to 30 September 2010: 8.19p)

·     Borrowings increased in the period to £9.369m from £8.277m at 31 March 2011.

·     Review of decision to cancel AIM admission commissioned. Further announcement to be made by 31 January 2012

For further information, please contact

Prime Focus London Plc

Tony Bradley - Communications Director                                                                             +44 ( 0) 20 7437 0026

Grant Thornton Corporate Finance

Colin P Aaronson / Jen Hatter                                                                                                    +44 (0) 20 7383 5100       

Chairman's Statement

The Board of Prime Focus London Plc, the visual entertainment services group, is pleased to announce its unaudited interim results for the six months to 30 September 2011.

Overview

In the 6 months to 30 September 2011, Prime Focus London Plc and its subsidiaries (together "the Group") made a profit before tax of £1.795 million on turnover of £20.348 million, compared to a profit before tax of £2.673 million on turnover of £18.495 million for the 6 months to 30 September 2010. Basic earnings per share were 5.46p (6 months to 30 September 2010: 8.194p).

Borrowings increased to £9.369m from £8.277m at the March 2011 year end.

Sales in the period increased by almost £2m to £20.348m and cost of sales reduced by £.770m compared to the same period last year.  In the 6 months to 30 September 2010, cost of sales included £1.6m in respect of the cost of outside facilities required for the post production on 3 Hindi films. Additionally, the previous period figures include £2.029m charged in respect of the 2D to 3D conversion of a major feature film. Use of outside facilities has been much reduced in the current period.

However, administration expenses continued to rise in the period primarily due to the costs associated with the View-D™ business (referred to below). Total administration expenses rose by £4.546m to £14.585m from £10.039m in the equivalent period of the prior year. Of this increase £4.5m relates to £3.7m of salaries and £0.8m of rent incurred in connection with the View-D™ business, increasing the losses incurred on this former part of the Group's activities.

The Group generated an exceptional gain on the disposal of the View-D™ business, referred to below.

A nonrecurring exceptional charge of £0.485m was incurred in respect of professional fees and other costs related to an aborted corporate transaction and prior period write off.

Sale of View-D™ Business

Since the period under review, in October 2011 the Company announced the sale of its View-D™ 2D to 3D film conversion business to Prime Focus International Services (UK) Limited, a wholly owned subsidiary of the Company's majority shareholder, Prime Focus Limited for a total consideration of approximately £2.1 million.

As was announced at that time, the Company's View-D™ Division made losses, in part due to the cost of the license to the View-D™ software, and the board did not believe that the division would become profitable in the foreseeable future. Since the disposal of the View-D™ business these losses are no longer being incurred.

The Company generated an exceptional gain on the disposal of this part of the Company's activities of £1.799m (this includes USD 0.5m reported earlier and an adjustments of USD 2.3m for the operating performance between 1 April 2011 till 30 September 2011). Intercompany debt of USD2.8m (£1.8m) due to the Indian holding company has been written off as part of this transaction.

Review of AIM Admission

I am aware that there has been some concern among shareholders following the announcement at the Annual General Meeting on 1 November 2011 of the board's decision to seek a cancellation of your Company's admission to AIM. The board has been considering a number of options and now proposes to conduct a review, in conjunction with its advisers, the purpose of which will be to assess what changes to the Company may need to be made in the best interest of all shareholders and stakeholders.

One outcome of this review may, or may not, be that the Company will continue to be listed on AIM.

There will be a further announcement to shareholders on the progress of this review by 31 January 2012.

Ramakrishnan Sankaranarayanan

Chairman and Managing Director

30 December 2011

Consolidated statement of changes in equity

for the six months ended 30 September 2011

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 2011 comprise the Company and its subsidiaries (together referred to as "the Group").

The condensed consolidated half-yearly financial statements were authorised for issue on 29 December 2011.

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 2011. 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 2010 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 2011 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.primefocusworld.com.