SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-Q





QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF
1934

For the Six Months Ended June 30, 2009

Commission File No. 0-8488





TWENTY SERVICES, INC.

(Exact name of Registrant as specified in its Charter)







|                                                               |  |                         
|-------------------------------------------------------------- |  | ------------------------
|ALABAMA                                                        |  | 63-0372577              
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer ID No.)
|                                                               | 
|20 Cropwell Drive, Suite 100                                   |  | Pell City, Alabama 35128
|(Address or principal executive offices)                       |  | (City, State, Zip)      

Registrants telephone number, including area code 205-884-7932







Former name, former address, and former fiscal year, if changed since last report.





Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety (90) days.

YES  x    NO   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is
a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ̈        Accelerated filer   ̈        Non-accelerated filer   ̈        Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.

Yes   ̈    No  x

Indicate the number of shares outstanding of each of the issuers classes of Common Stock, as of the period of this report.

Par Value $0.10 per share 1,283,068 shares









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TWENTY SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



|                                            |  |              |           |   |                  |   |           |  
|------------------------------------------- |  | ------------ | --------- | - | ---------------- | - | --------- | -
|                                            |  | June 30,2009 |           |   | December 31,2008 |  
|ASSETS                                      |  |              |           |   |                  |   |           |  
|Cash and temporary investments              |  | $            | 510,988   |   |                  | $ | 53,461    |  
|Marketable securities and other assets      |  |              | 2,408,117 |   |                  |   | 3,211,640 |  
|                                            |  |              |           |   |                  |   |           |  
|Total assets                                |  | $            | 2,919,105 |   |                  | $ | 3,265,101 |  
|                                            |  |              |           |   |                  |   |           |  
|LIABILITIES AND STOCKHOLDERS EQUITY        |  |              |           |   |                  |   |           |  
|Liabilities:                                |  |              |           |   |                  |   |           |  
|Accounts payable and accrued expenses       |  | $            | 81,604    |   |                  | $ | 95,954    |  
|                                            |  |              |           |   |                  |   |          |  
|                                            |  |              |           |   |                  |   |           |  
|Stockholders equity:                       |  |              |           |   |                  |   |           |  
|Preferred stock, Cumulative $0.10 par value |  |              | 50,511    |   |                  |   | 50,511    |  
|Common stock, par value $0.10               |  |              | 128,307   |   |                  |   | 128,307   |  
|Additional paid-in capital                  |  |              | 1,716,074 |   |                  |   | 1,716,074 |  
|Retained earnings                           |  |              | 1,187,109 |   |                  |   | 1,219,440 |  
|Accumulated other comprehensive income      |  |              | 108,608   |   |                  |   | 407,303   |  
|Less investment in Twenty Services Holding  |  |              | (60,000   | ) |                  |   | (60,000   | )
|Treasury Stock                              |  |              | (293,108  | ) |                  |   | (292,488  | )
|                                            |  |              |           |   |                  |   |           |  
|Net stockholders equity                    |  |              | 2,837,501 |   |                  |   | 3,169,147 |  
|                                            |  |              |           |   |                  |   |           |  
|Total liabilities and stockholders equity  |  | $            | 2,919,105 |   |                  | $ | 3,265,101 |  
|                                            |  |              |           |   |                  |   |           |  



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TWENTY SERVICES, INC.

STATEMENT OF OPERATIONS

(Unaudited)



|                                                     |  |                           |           |   |      |   |           |  
|---------------------------------------------------- |  | ------------------------- | --------- | - | ---- | - | --------- | -
|                                                     |  | Six Months EndingJune 30, |          
|                                                     |  | 2009                      |           |   | 2008 |  
|Revenues                                             |  | $                         | 65,240    |   |      | $ | 62,243    |  
|Expenses:                                            |  |                           |           |   |      |   |           |  
|General and administrative                           |  |                           | (97,571   | ) |      |   | (76,842   | )
|                                                     |  |                           |           |   |      |   |           |  
|(Loss) from operations and net loss                  |  | $                         | (32,331   | ) |      | $ | (14,599   | )
|                                                     |  |                           |           |   |      |   |           |  
|Weighted average number of Common shares outstanding |  |                           | 1,283,068 |   |      |   | 1,283,068 |  
|                                                     |  |                           |           |   |      |   |           |  
|Earnings per share *                                 |  |                           |           |   |      |   |           |  
|Net income                                           |  | $                         | .00       |   |      | $ | .00       |  
|                                                     |  |                           |           |   |      |   |           |  



|* | After giving effect on a pro-rata basis to anticipated preferred dividends of $0.07 per share per annum on 505,110 shares.
|- | --------------------------------------------------------------------------------------------------------------------------



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TWENTY SERVICES, INC.

CONDENSED STATEMENT OF CASH FLOWS

(Unaudited)



|                                                    |  |                          |         |   |      |   |         |  
|--------------------------------------------------- |  | ------------------------ | ------- | - | ---- | - | ------- | -
|                                                    |  | Six Months EndedJune 30, |        
|                                                    |  | 2009                     |         |   | 2008 |  
|Cash flows from operating activities:               |  |                          |         |   |      |   |         |  
|Interest and dividends received                     |  |                          | 65,240  |   |      |   | 62,243  |  
|General expenses                                    |  |                          | (97,571 | ) |      |   | (76,842 | )
|                                                    |  |                          |         |   |      |   |         |  
|Net cash (used) provided by operating activities    |  |                          | (32,331 | ) |      |   | (14,599 | )
|                                                    |  |                          |         |   |      |   |         |  
|Cash flows from investing activities:               |  |                          |         |   |      |   |         |  
|Net sale (purchase) of securities :                 |  |                          | 524,876 |   |      |   | (14,599 | )
|Preferred stock dividend                            |  |                          | (34,728 | ) |      |   | (34,728 | )
|Principal made on loans, net                        |  |                          |        |   |      |   |        |  
|Purchase of Treasury Stock                          |  |                          | (290    | ) |      |   | (6,003  | )
|                                                    |  |                          |         |   |      |   |         |  
|Net cash (used) by investing activities             |  |                          | 489,858 |   |      |   | (55,330 | )
|                                                    |  |                          |         |   |      |   |         |  
|Net increase (decrease) in cash                     |  |                          | 457,527 |   |      |   | 52,618  |  
|Cash and temporary investments, beginning of period |  |                          | 53,461  |   |      |   | 66,369  |  
|                                                    |  |                          |         |   |      |   |         |  
|Cash and temporary investments, end of period       |  | $                        | 510,988 |   |      | $ | 118,987 |  
|                                                    |  |                          |         |   |      |   |         |  



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MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

During the six months ended June 30, 2009 the Registrants liquidity remained stable. The Company has no notes payable nor long term debt and
does not anticipate the need for borrowing in the near future. The Registrant has sufficient cash and temporary cash investments to meet its short term liquidity needs. Should long term liquidity needs exceed cash and temporary cash investments,
then the Registrant would dispose of marketable securities as it deems appropriate. Current trends and known demands and commitments do not create a need for liquidity in excess of the Companys current liabilities to generate liquidity.

The Company anticipates that its operating activities and its investing activities will generate net cash flows and that its financing activities will
continue to use cash flows.

RESULTS OF OPERATIONS

The
Registrant reported a net loss of $32,331 for the six months ended June 30, 2009 as compared to the net loss of $14,599 for the corresponding 2008 period. The increase in loss was due primarily to an increase in compliance expenses.

REVENUES

Revenues for the six months ended June 30, 2009 of
$65,240 were comparable to $62,243 for the corresponding 2008 period.

EXPENSES

General and administrative expenses increased to $97,571 in 2009 from $76,842 for the corresponding 2008 period. The increase was due primarily to an increase in compliance expenses. The above financial statements
include all the adjustments which, in the opinion of Management, are necessary for a fair presentation of such financial information in conformity with generally accepted accounting principles. All adjustments are of a normal recurring nature.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

SFAS
No. 157 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or
liability. As a basis for considering market participant assumptions in fair value measurements, SFAS No. 157 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from
sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entitys own assumptions about market participant assumptions (unobservable inputs classified within
Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company
has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and
liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3
inputs are unobservable inputs for the asset or liability, which are typically based on an entitys own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is
based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its
entirety. Twentys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurement. As discussed above, SFAS No. 157 defines fair value, establishes a
framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective for the Companys financial assets and liabilities on January 1, 2008. In
February 2008, the FASB reached a conclusion to defer the implementation of the SFAS No. 157 provisions relating to non-financial assets and liabilities until January 1, 2009. The FASB also reached a conclusion to amend SFAS
No. 157 to exclude SFAS No. 13 Accounting for Leasesand its related interpretive accounting pronouncements. SFAS No. 157 is not expected to materially affect how the Company determines fair value. We have adopted SFAS
No. 157 effective January 1, 2008 for financial assets and financial liabilities and do not expect this adoption to have a material effect on our consolidated results of operations or financial position but will enhance the level of
disclosure for assets and liabilities recorded at fair value.



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|                   |  |                                                             
|------------------ |  | ------------------------------------------------------------
|                   |  | Fair ValueMeasurements atReporting Date Using               
|                   |  | Quoted Prices in ActiveMarkets for IdenticalAssets (Level l)
|                   | 
|Description        |  | 06/30/2009                                                  
|                   | 
|Available-for-sale |  | $2,297,604                                                  
|                   |  |                                                             
|Total              |  | $2,297,604                                                  
|                   |  |                                                             



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FINANCIAL DISCLOSURE AND INTERNAL CONTROLS

Twenty Services, Inc. maintains internal controls over financial reporting, which generally include those controls relating to the preparation of the
consolidated financial statements in conformity with accounting principles generally accepted in the U.S. As a small public company Twenty Services, Inc. is subject to the internal control reporting and attestation requirements under
Section 13(a)-15 and 15(d)-15 of The Securities Exchange Act of 1934.

Twenty Services, Inc. has established processes to ensure
appropriate disclosure controls and procedures are maintained. These controls and procedures as defined by the SEC are generally designed to ensure that financial information required to be disclosed in reports filed with the SEC is reported within
the time periods specified in the SECs rules and regulations, and that such information is communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as appropriate, to
allow timely decisions regarding required disclosure.

Twenty Services, Inc.s senior management is involved in the day-to-day
operations of the Company. Managements interaction and monitoring activities evaluate recent internal and external events to determine whether all appropriate disclosures have been made in reports filed with the SEC. The Forms 10-K and 10-Q
are presented to the Board of Directors for approval. Financial results and other financial information are also reviewed with the Audit Committee annually.

As required by applicable regulatory pronouncements, the CEO and CFO review and make various certifications regarding the accuracy of Twenty Services periodic public reports filed with the SEC, as well as the
effectiveness of disclosure controls and procedures and internal controls over financial reporting. Twenty Services, Inc.s stock is not listed or traded and, therefore, not required to comply with corporate governance listing standards.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES:

In accordance with Rule 13a-15(b) of the Securities Exchange Act of 1934 (the Exchange Act), as of the end of the period covered by this Annual Report on Form 10-K, the Companys
management evaluated, with the participation of the Companys Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the Companys disclosure controls and procedures (as defined in
Rule 13a-15(e) under the Exchange Act). Based on their evaluation of these disclosure controls and procedures, the Companys Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures
were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act.

MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act Rule of 13a-15(f). The Companys internal control
system is designed to provide reasonable assurance to the Company management and the board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well
designed, have inherent limitations. Therefore, even those systems determined effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also projections of any evaluation of effectiveness to
future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedure may deteriorate.

The Companys management assessed the effectiveness of the Companys internal control over financial reporting as of June 30, 2009 based
upon criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management determined that we maintained effective internal control over
financial reporting as of June 30, 2009 based on those criteria.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in the Companys internal control over financial reporting that occurred during the quarter ended June 30,
2009 that have materially affected, or are reasonable likely to materially affect, the Company internal control over financial reporting.



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PART II

OTHER INFORMATION



|                                                                  |  |     
|----------------------------------------------------------------- |  | ----
|Item 1.       Legal Proceedings                                   |  | None
|                                                                  | 
|Item 2.       Changes in Securities                               |  | None
|                                                                  | 
|Item 3.       Defaults Upon Senior Securities                     |  | None
|                                                                  | 
|Item 4.       Submission of Matters to a Vote of Security Holders |  | None
|                                                                  | 
|Item 5.       Other Information:                                  |  | None
|                                                                  | 
|Item 6.       Exhibits and Reports on Form 8-K                    |  |     

EXHIBITS:



|     |  |                                                                                                                                                                            
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 |  | CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER
|31.2 |  | CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 OF EXECUTIVE VICE-PRESIDENT                         
|32.1 |  | CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER                                                                                                         
|32.2 |  | CERTIFICATION OF EXECUTIVE VICE-PRESIDENT                                                                                                                                  



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TWENTY SERVICES, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned there unto duly authorized.



|                    |  |  |  |                                
|------------------- |  |  |  | -------------------------------
|                    |  | 
|                    |  |  |  | /s/ David J. Noble             
|Date August 6, 2009 |  |  |  | David J. Noble                 
|                    |  |  |  | Chairman/Director              
|                    |  |  |  | And Principal Executive Officer
|                    |  | 
|                    |  |  |  | /s/ Jack C. Bridges            
|Date August 6, 2009 |  |  |  | Jack C. Bridges                
|                    |  |  |  | Executive Vice-President       



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