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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, 2006 |  | 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 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   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, |           |   | December 31, |  
|                                            |  | 2006     |           |   | 2005         |  
|ASSETS                                      |  |          |           |   |              |   |           |  
|Cash and temporary investments              |  | $        | 27,382    |   |              | $ | 59,310    |  
|Marketable securities                       |  |          | 4,989,498 |   |              |   | 5,073,403 |  
|Receivables, Net                            |  |          | 29,365    |   |              |   | 13,134    |  
|                                            |  |          |           |   |              |   |           |  
|Total assets                                |  | $        | 5,046,245 |   |              | $ | 5,145,847 |  
|                                            |  |          |           |   |              |   |           |  
|LIABILITIES AND STOCKHOLDERS EQUITY        |  |          |           |   |              |   |           |  
|Liabilities:                                |  |          |           |   |              |   |           |  
|Accounts payable and accrued expenses       |  | $        | 32,607    |   |              | $ | 96,862    |  
|Deferred tax liability                      |  |          | 465,158   |   |              |   | 475,158   |  
|                                            |  |          |           |   |              |   |           |  
|                                            |  |          | 497,765   |   |              |   | 572,020   |  
|                                            |  |          |           |   |              |   |           |  
|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                           |  |          | 1,332,087 |   |              |   | 1,351,705 |  
|Accumulated other comprehensive income      |  |          | 1,655,038 |   |              |   | 1,655,038 |  
|Less investment in Twenty Services Holding  |  |          | (60,000   | ) |              |   | (60,000   | )
|Treasury Stock                              |  |          | (273,537  | ) |              |   | (267,808  | )
|                                            |  |          |           |   |              |   |           |  
|Net stockholders equity                    |  |          | 4,548,480 |   |              |   | 4,573,827 |  
|                                            |  |          |           |   |              |   |           |  
|Total liabilities and stockholders equity  |  | $        | 5,046,245 |   |              | $ | 5,145,847 |  
|                                            |  |          |           |   |              |   |           |  



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TWENTY SERVICES, INC.

STATEMENT OF OPERATIONS

(Unaudited)



|                                                     |  |                                       |           |   |         |   |           |      |  |   |           |   |  |   |           |  
|---------------------------------------------------- |  | ------------------------------------- | --------- | - | ------- | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                     |  | Three Months Ending Six Months Ending |          
|                                                     |  | June 30                               |           |   | June 30 |  
|                                                     |  | 2006                                  |           |   | 2005    |   |           | 2006 |  |   | 2005      |  
|Revenues                                             |  | $                                     | 43,702    |   |         | $ | 49,150    |      |  | $ | 87,308    |   |  | $ | 81,237    |  
|                                                     |  |                                       |           |  
|Loss on sale of security                             |  |                                       | (15,049   | ) |         |   |          |      |  |   | (15,049   | ) |  |   |          |  
|                                                     |  |                                       |           |  
|Expenses:                                            |  |                                       |           |   |         |   |           |      |  |   |           |   |  |   |           |  
|General and administrative                           |  |                                       | (30,181   | ) |         |   | (28,980   | )    |  |   | (57,149   | ) |  |   | (60,376   | )
|                                                     |  |                                       |           |   |         |   |           |      |  |   |           |   |  |   |           |  
|                                                     |  |                                       |           |   |         |   |           |      |  |   |           |   |  |   |           |  
|Income (loss) from operations and net income (loss)  |  | $                                     | (1,528    | ) |         | $ | 20,170    |      |  | $ | 15,110    |   |  | $ | 20,861    |  
|                                                     |  |                                       |           |   |         |   |           |      |  |   |           |   |  |   |           |  
|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 EndedJune 30, |        
|                                                    |  | 2006                     |         |   | 2005 |  
|Cash flows from operating activities:               |  |                          |         |   |      |   |         |  
|Interest and dividends received                     |  |                          | 87,308  |   |      |   | 72,712  |  
|General expenses                                    |  |                          | (64,108 | ) |      |   | (64,376 | )
|                                                    |  |                          |         |   |      |   |         |  
|Net cash (used) provided by operating activities    |  |                          | 23,200  |   |      |   | 8,336   |  
|                                                    |  |                          |         |   |      |   |         |  
|Cash flows from investing activities:               |  |                          |         |   |      |   |         |  
|Sale (purchase) of securities, net                  |  |                          | 702     |   |      |   | (2,630  | )
|Preferred stock dividend                            |  |                          | (34,728 | ) |      |   | (34,728 | )
|Principal made on loans, net                        |  |                          | (15,373 | ) |      |   | 5,260   |  
|Purchase of Treasury Stock                          |  |                          | (5,729  | ) |      |   | (11,166 | )
|                                                    |  |                          |         |   |      |   |         |  
|Net cash provided (used) by investing activities    |  |                          | (55,128 | ) |      |   | (43,264 | )
|                                                    |  |                          |         |   |      |   |         |  
|Net increase (decrease) in cash                     |  |                          | (31,928 | ) |      |   | (34,928 | )
|                                                    |  |                         
|Cash and temporary investments, beginning of period |  |                          | 59,310  |   |      |   | 55,536  |  
|                                                    |  |                          |         |   |      |   |         |  
|Cash and temporary investments, end of period       |  | $                        | 27,382  |   |      | $ | 20,608  |  
|                                                    |  |                          |         |   |      |   |         |  



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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, 2006 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 $15,110 for the six months ended June 30, 2006 as compared to the net income of $20,861 for the corresponding
2005 period. The change is due primarily to a loss on sale of securities of approximately $15,049 in 2006.

REVENUES

Revenues for the six months ended June 30, 2006 of $87,308 compared to $81,237 for the corresponding 2005 period.

EXPENSES

General
and administrative expenses were $57,149 in 2006 as compared to $60,376 for the corresponding 2005 period.

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 Securities Holders                    |  | NONE
|        |  |                                                                         
|Item 5. |  | Other Information:                                                       |  | NONE
|        |  |                                                                         
|Item 6. |  | EXHIBITS AND REPORTS ON FORM 10-Q                                        |  |     
|        |  |                                                                         
|        |  | Exhibits:                                                                |  |     
|        | 
|        |  | 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.



|                |  |  |  |                                
|--------------- |  |  |  | -------------------------------
|August 11, 2006 |  |  |  | /s/ David J. Noble             
|Date            |  |  |  | David J. Noble                 
|                |  |  |  | Chairman/Director              
|                |  |  |  | And Principal Executive Officer



|                |  |  |  |                         
|--------------- |  |  |  | ------------------------
|August 11, 2006 |  |  |  | /s/ Jack C. Bridges     
|Date            |  |  |  | Jack C. Bridges         
|                |  |  |  | Executive Vice-President



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