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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-Q



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QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF
1934



|                                       |  |                           
|-------------------------------------- |  | --------------------------
|For the Six Months Ended June 30, 2005 |  | Commission File No. 0-8488



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TWENTY SERVICES, INC.

(Exact name of Registrant as specified in its Charter)



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|                                                               |  |                         
|-------------------------------------------------------------- |  | ------------------------
|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.



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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 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 30,2005 |           |   | December 31,2004 |  
|ASSETS                                      | 
|                                            |  |             
|Cash and temporary investments              |  | $            | 20,609    |   |                  | $ | 452,603   |  
|Marketable securities                       |  |              | 4,574,895 |   |                  |   | 4,177,227 |  
|Receivables, Net                            |  |              | 60,345    |   |                  |   | 54,751    |  
|                                            |  |              |           |   |                  |   |           |  
|Total assets                                |  | $            | 4,655,849 |   |                  | $ | 4,684,581 |  
|                                            |  |              |           |   |                  |   |           |  
|LIABILITIES AND STOCKHOLDERS EQUITY        | 
|                                            |  |             
|Liabilities:                                |  |              |           |   |                  |   |           |  
|Accounts payable and accrued expenses       |  | $            | 30,608    |   |                  | $ | 65,689    |  
|Deferred tax liability                      |  |              | 355,158   |   |                  |   | 355,158   |  
|                                            |  |              |           |   |                  |   |           |  
|                                            |  |              | 385,766   |   |                  |   | 420,847   |  
|                                            |  |              |           |   |                  |   |           |  
|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                           |  |              | 1,416,634 |   |                  |   | 1,398,119 |  
|Accumulated other comprehensive income      |  |              | 1,271,353 |   |                  |   | 1,271,353 |  
|Less investment in Twenty Services Holding  |  |              | (60,000   | ) |                  |   | (60,000   | )
|Treasury Stock                              |  |              | (252,796  | ) |                  |   | (240,630  | )
|                                            |  |              |           |   |                  |   |           |  
|Net stockholders equity                    |  |              | 4,270,083 |   |                  |   | 4,263,734 |  
|                                            |  |              |           |   |                  |   |           |  
|Total liabilities and stockholders equity  |  | $            | 4,655,849 |   |                  | $ | 4,684,581 |  
|                                            |  |              |           |   |                  |   |           |  



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TWENTY SERVICES, INC.



STATEMENT OF OPERATIONS



(Unaudited)



|                                                     |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|---------------------------------------------------- |  | --------------------------- | --------- | ---- | ------------------------- | --------- | ---- |  | ---- | --------- |  | - | --------- | -
|                                                     |  | Three Months Ending June 30 |           |      | Six Months Ending June 30 |          
|                                                     |  | 2005                        |           | 2004 |                           |           | 2005 |  | 2004 |          
|Revenues                                             |  | $                           | 49,150    |      | $                         | 27,353    |      |  | $    | 81,237    |  | $ | 67,024    |  
|                                                     |  |                             |           |     
|Expenses:                                            |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|General and administrative                           |  |                             | 28,980    |      |                           | 48,198    |      |  |      | 60,376    |  |   | 74,865    |  
|                                                     |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|Income (loss) from operations and net income (loss)  |  | $                           | 20,170    |      | $                         | (20,845   | )    |  | $    | 20,861    |  | $ | (7,841    | )
|                                                     |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|Weighted average number of Common shares outstanding |  |                             | 1,283,068 |      |                           | 1,283,068 |      |  |      | 1,283,068 |  |   | 1,283,068 |  
|                                                     |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|Earnings per share *                                 |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  
|Net income                                           |  | $                           | .00       |      | $                         | .00       |      |  | $    | .00       |  | $ | .00       |  
|                                                     |  |                             |           |      |                           |           |      |  |      |           |  |   |           |  

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|* | 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 Ended June 30, |         
|                                                    |  | 2005                      |          |   | 2004 |  
|Cash flows from operating activities:               |  |                           |          |   |      |   |         |  
|Interest and dividends received                     |  |                           | 55,240   |   |      |   | 63,204  |  
|General expenses                                    |  |                           | (60,376  | ) |      |   | (61,100 | )
|                                                    |  |                           |          |   |      |   |         |  
|Net cash (used) provided by operating activities    |  |                           | (5,136   | ) |      |   | 2,104   |  
|                                                    |  |                           |          |   |      |   |         |  
|Cash flows from investing activities:               |  |                           |          |   |      |   |         |  
|Gain on sale of securities                          |  |                           | 26,000   |   |      |   |        |  
|Sales (purchase) of securities, net                 |  |                           | (405,964 | ) |      |   | 11,639  |  
|                                                    |  |                           |          |   |      |   |         |  
|Net cash provided (used) by investing activities    |  |                           | (379,964 | ) |      |   | 11,639  |  
|                                                    |  |                           |          |   |      |   |         |  
|Cash flows from financing activities:               |  |                           |          |   |      |   |         |  
|Preferred stock dividends                           |  |                           | (34,728  | ) |      |   | (35,358 | )
|Purchase Treasury Stock                             |  |                           | (12,166  | ) |      |   | (4,109  | )
|                                                    |  |                           |          |   |      |   |         |  
|Net cash (used) by financing activities             |  |                           | (46,894  | ) |      |   | (39,467 | )
|                                                    |  |                           |          |   |      |   |         |  
|Net increase (decrease) in cash                     |  |                           | (431,994 | ) |      |   | (25,724 | )
|                                                    |  |                          
|Cash and temporary investments, beginning of period |  |                           | 452,603  |   |      |   | 71,968  |  
|                                                    |  |                           |          |   |      |   |         |  
|Cash and temporary investments, end of period       |  | $                         | 20,609   |   |      | $ | 46,244  |  
|                                                    |  |                           |          |   |      |   |         |  



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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, 2005 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 income of $20,861 for the six months ended
June 30, 2005 as compared to the net loss of $7,841 for the corresponding 2004 period. The change is due primarily to a gain on sale of securities of approximately $26,000 in 2005.



REVENUES



Revenues for the six months ended June 30, 2005 of $81,237 compared to $67,024 for the corresponding 2004 period due to the gain on sale of securities.



EXPENSES



General and administrative expenses were $60,376 in 2005 as compared to
$74,865 for the corresponding 2004 period. The decrease was due primarily to the timing of the cost of the shareholders meeting.



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.



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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:                                  |  |                                                                   
|        |  |                                                    
|Item 6. |  | EXHIBITS and Reports on Form 8-K                    |  |                                                                   
|        |  |                                                    
|        |  | EXHIBITS                                            |  |                                                                   
|        |  |                                                     | 
|        |  | 32.1                                                |  | CERTIFICATION OF EXECUTIVE VICE-PRESIDENT                          |  | 
|        |  |                                                     | 
|        |  | 32.2                                                |  | CERTIFICATION OF CHAIRMAN/DIRECTOR AND PRINCIPAL EXECUTIVE OFFICER |  | 



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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.



|                |  |                                 
|--------------- |  | --------------------------------
|                | 
|August 12, 2005 |  | /s/    David J. Noble           
|Date            |  | David J. Noble                  
|                |  | Chairman/Director               
|                |  | And Principal Executive Officer 
|                | 
|August 12, 2005 |  | /s/    Dr. A. J. Strickland, III
|Date            |  | Dr. A. J. Strickland, III       
|                |  | Vice-Chairman and Director      
|                | 
|August 12, 2005 |  | /s/    Jack C. Bridges          
|Date            |  | Jack C. Bridges                 
|                |  | Executive Vice-President        



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