SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549
                         ----------------------
                            FORM 10-KSB
             Annual Report Pursuant to Section 13 or 15(d) of
                   the Securities Exchange Act of 1934

For the fiscal year ended    April 30, 2003   Commission File No. 0-8512
                          -------------------
                          MONARCH SERVICES, INC.
              (Name of small business issuer in its charter)

           MARYLAND                410-254-9200           52-1073628
----------------------------   --------------------  -------------------
(State or other jurisdiction   (Issuer's telephone    (I.R.S.Employer
    of incorporation or         number, including    Identification No.)
       organization)               area code)

       4517 Harford Road, Baltimore, Maryland            21214
------------------------------------------------------------------------
      (Address of principal executive offices)         (Zip code)


      Securities registered pursuant to Section 12(g) of the Act:
                     Common Stock, $.001 par value
                        (Title of each class)

      Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past
twelve 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 90 days. Yes [ X ]   No [  ]

      Check if disclosure of delinquent filers in response to Item 405 of
Regulation S-B  is  not contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB.   [  ]

     The issuer's revenues for the fiscal year ended April 30, 2003 are
$4,436,000.

      As of July 16, 2003, the aggregate market value of the Issuer's common
stock held by non-affiliates was $1,243,998.

      As of July 16, 2003, the number of shares outstanding of the Issuer's
common stock was 1,619,620.

                  DOCUMENTS INCORPORATED BY REFERENCE

     Portions of the definitive proxy statement to be filed under Regulation
14A for the annual meeting to be held in October, 2003 are incorporated by
reference into Part III.

     Transitional small business disclosure format (check one):
                    Yes [   ]        No [ X ]









                          PART I

Item 1.   DESCRIPTION OF BUSINESS

Monarch Services, Inc. ("Monarch Maryland") was incorporated on September
22, 2000.  On November 30, 2000, Monarch Services, Inc., a Delaware
corporation ("Monarch Delaware") that was incorporated December 20,
1976, merged into Monarch Maryland with Monarch Maryland as the surviving
entity.  As used herein, references to the "Company" refer to Monarch
Delaware prior to November 30, 2000 and Monarch Maryland, on and after
November 30, 2000.  The primary purpose of the merger was to change the
state of incorporation of the Company from Delaware to Maryland and make
certain changes in the organizational documents of the Company.

In 1993, the Company established a wholly-owned subsidiary, Girls' Life,
Inc. which commenced substantial operations with the sale of Girls' Life
magazine in August 1994.

On October 27, 1998, the Company sold substantially all the assets of its
former games division to a subsidiary of Hasbro, Inc. for $6,000,000 in cash.
The assets sold included trademarks, copyrights and other intellectual
property rights, inventory and tooling.

On August 20, 1999, the Company closed its former printing and envelope
division due to increased losses since the previous year's sale of the
games division.

On November 2, 1999, all remaining machinery and equipment from the games
division and remaining inventories and machinery and equipment from the
printing and envelope division was sold at auction.

The Company's primary operations during fiscal 2003 was the publication
of "Girls' Life" magazine and the operation of "Adam Leaf and Bean"
tobacco and coffee shop. During fiscal 2002 the Company invested
some resources and management effort in developing and marketing Adam
Magazine and Girls Life Living restaurant and analyzing the feasibility
of a discount cigarette and liquor store. After analysis of the results
of the first three issues of Adam Magazine and the performance of Girls
Life Living restaurant during its first seven months of operation, the
Board of Directors terminated the publication of Adam Magazine in June
2002 and closed the Girls Life Living restaurant in July 2002. After
analysis of the cigarette and liquor business plan, the Board made the
determination to focus the Company's resources and management effort on
its core business of Girls' Life Magazine, its new business of Adam Leaf
& Bean coffee/smoke shop and its proposed business of Peerce's Plantation
GL. Accordingly, the Company did not pursue the cigarette and liquor
store opportunity.  The properties that were acquired for the cigarette
and liquor stores were sold during fiscal 2003.

The Company is continually exploring new ways to expand its publishing
operation and diversify into other operations while using its established
brand name "Girls' Life".

Publishing Business

Girls' Life, Inc. publishes a bi-monthly magazine for young girls age ten to
fifteen.

"Girls' Life" is intended to be an intelligent, non-condescending and easy-
to-read magazine.  The philosophy behind the graphic presentation and every
article presented is that girls are important, independent, and intelligent
people with opinions of their own.  Each article seeks to reinforce that
message and inspire confidence in a girl's thoughts, opinions, and feelings.
Editorial material is created by the magazine's staff as well as through
outside writers.  The magazine is printed through one large national printing
service company.

The revenues of the Company's publishing business are seasonal in nature.
Girls' Life magazine is published six times per year normally, two issues
are published in the second and fourth quarters and one issue is published
in each of the first and third quarters.

During fiscal 2001, management began exploring the feasibility of publishing
"Adam", a magazine for young men between the ages of 21 and 34.  Management
decided to proceed with the publication of the magazine and the February
/March 2002 premiere issue went on the newsstand for sale in January 2002.
The April/May 2002 issue went on the newsstand for sale in March 2002 and the
June/July 2002 issue went on the newsstand for sale in May 2002.  "Adam"
magazine had no sales during the third quarter of fiscal 2002 and minimal
sales during the fourth quarter of fiscal 2002 and during the first quarter
of fiscal 2003. Despite some success in increasing the distribution of
"Adam" magazine through retail outlets, management was unable to generate
significant interest from advertisers due to what management believes was an
industry-wide slowdown in the demand for advertising in the United States.
Without advertising interest, management believed that "Adam" Magazine was
not viable at that time.  As a result, the publication of "Adam" Magazine
was terminated effective with the June/July 2002 issue.


Retail Business

During fiscal 2001, the Company leased a property adjacent to the Company's
headquarters in Baltimore, Maryland.  The Company established a Girls' Life
theme food court on this property called "Girls' Life Living" designed to
attract girls in the target market of Girls' Life magazine and their
families.  "Girls Life Living" started doing business in December 2001.
Despite some success in attracting the target market, the restaurant was
unable to generate significant or steadily increasing revenues in its
first eight months of operations.  Without increasing revenues, management
determined that Girls Life Living was not viable at that time.  As a
result, the Company closed Girls Life Living in July 2002. Costs associated
with Girls Life Living during fiscal 2002 have been reclassified as
discontinued operations.  Costs associated with the disposal of assets
and improvements were classified as discontinued operations for fiscal
2002.  Equipment that was not used in the Company's other operations
were classified as held for sale as of April 30, 2002.  Costs related
to the closing of Girls Life Living were accrued as of April 30, 2002.

In June 2001, the Company purchased three adjoining parcels of real estate
located in Baltimore County, Maryland for $1.991 million in cash.  The
acquisition included "Peerce's Plantation GL", a 350 seat fine dining
restaurant and bar with liquor license, off premise sales, an adjoining
6,000 square-foot house and 14.74 acres with a horse stable zoned for
residential development. Management considered various uses for the
property which included formal dining and entertainment. Renovation of
Peerce's Plantation GL began in the spring of 2002. Structural damage
in certain parts of the restaurant building were more extensive than we
originally believed and have delayed our opening.  We currently expect
that the restaurant will open in the second quarter of fiscal 2004.
Additional difficulties with the renovations including additional
structural damage, permitting issues, weather related delays or other
issues could result in additional delays in our expected opening date.
The restaurant and bar will maintain the same original configuration
but some areas are being expanded to improve the flow of customers
through the restaurant and bar areas. We have hired a general manager
and executive chef to operate the restaurant and bar.  A director of
catering has also been hired to coordinate catered affairs.  Restaurant
and catering menu's are based on traditional Maryland fare with a
European flavor and prices for entrees and other items are being set
to be competitive in the upscale restaurant market place in central
Maryland. As of April 30, 2003, we have capitalized $704,000 in
improvements and $83,000 in equipment for Peerce's Plantation GL.
Depreciation and amortization on real and personal property associated
with Peerce's Plantation GL will commence upon the facilities opening.
Management estimates that $438,000 in additional capital and operating
expenditures will be necessary before the restaurant opens.  The
additional capital includes $220,000 for improvements, $39,000 for
equipment, $49,000 for food and beverage inventory and $130,000 for
operating expenses including payrolls.


MARKETING

Girls' Life magazine subscriptions are sold through traditional sources such
as direct-mail solicitation, insert cards and subscription agents.  The
magazine is also sold on newsstands and subscriptions can be obtained or
renewed through the internet on the Girls' Life website.  Newsstand copies
are distributed nationally and internationally by Warner Publisher Services,
Ingram Periodicals, Inc. and Worldwide Media Services, Inc.

The subscription price of a one-year Girls' Life subscription is between
$14.95 and $17.85 however the amount realized by the Company may be less
if a subscription service is used.  The suggested newsstand price of a
single issue of Girls' Life in the United States is $3.50.

The average number of magazines sold for six issues during the twelve
months of fiscal year 2003 are set forth in the following table.

    Distribution Channel            Number of Magazines Distributed
    --------------------            -------------------------------

         Newsstand Sales                          50,000

         Subscription Sales                      310,000
                                               ----------
            Total Paid Circulation               360,000


         Complementary Copies                      1,000


The following table sets forth the average number of magazines sold in the
domestic and international markets for six issues during the twelve months
of fiscal year 2003.

    Geographic Distribution         Number of Magazines Sold
    -----------------------         ------------------------

         United States                     306,000

         International                       4,000



COPYRIGHTS AND TRADEMARKS

The Company's magazine is generally protected by registered trademarks and
copyrights in the United States and foreign countries to the extent that such
protection is available.


COMPETITION

Competition in the publishing industry is intense with numerous other
publishers, as well as other media, competing for readers and advertising
revenue.  Most of our competitors in the publishing business have broader
and better recognized product offerings and greater experience, depth of
management and creative and financial resources than we have. Given these
factors, there can be no assurance that we will be able to continue to
compete successfully in the publishing industry and the failure to do so
may have a material adverse effect on our results of operations.

Competition in the retail cigar industry is intense with numerous other
outlets for cigar sales located in the Baltimore, Maryland metropolitan
area competing for customers.  There is also competition from Internet-
based retailers.  There can be no assurance that we will be able to
compete successfully in the retail cigar industry and the failure to
do so may have a material adverse effect on our results of operations.

Competition in the upscale restaurant industry is intense with numerous
other restaurants located in the Baltimore, Maryland metropolitan area
competing for customers including individual and chain restaurants with
broader and better recognized names, greater experience, depth of
management and financial resources than we have.  These competing
restaurants may also have established reputations, rankings by restaurant
guides and other media and be supported by advertising campaigns.


EMPLOYEES

At April 30, 2003, the Company employed 38 executive, administrative,
clerical and maintenance personnel. Approximately 13 of the Company's
employees work part-time.  None of the Company's employees are
represented by a union. The Company believes its relations with its
employees are good.


Item 2.  DESCRIPTION OF PROPERTY

The Company leases and owns property at the following locations for the
following purposes:

1.  4517 Harford Road, Baltimore, Maryland 21214. This property contains
the Company's offices and warehouse facilities. The property is leased
through 2007.

2.  4511-4515 Harford Road, Baltimore, Maryland 21214.  This property
contained the food court that operated under the name "Girls' Life Living".
The property was leased through 2005 but due to the closure of Girls' Life
Living, the lease was terminated as of July 2002 with no further payments
required by the Company.

3.  4313 Harford Road, Baltimore, Maryland 21214.  The proposed use of this
property was to accommodate existing business and new lines of business, if
any.  This property was not leased, but owned by the Company.  This property
was sold in February 2003.

4.  4627 Harford Road, Baltimore, Maryland 21214. The proposed use of this
property was to accommodate existing business and new lines of business, if
any. This property was not leased, but owned by Adam Corp, a subsidiary of
the Company.  This property was sold in January 2003.

5.  1407 York Road, Lutherville, Maryland 21093.  This property contains the
tobacco and coffee shop that operates under the name "Adam Leaf and Bean".
The property is leased through October 2004.

The Company leases the 4517 Harford Road property from A. Eric Dott who
is the Chairman and a major stockholder of the Company. Although not
negotiated at arms length, management believes the terms of the lease
with Mr. Dott are comparable to lease terms for like properties in the
same geographic area.

In June of 2001, the Company purchased three adjoining parcels of real
estate located in Baltimore County, Maryland for $1.91 million in cash.
The acquisition includes Peerce's Plantation GL, a 350 seat fine dining
restaurant and bar with liquor license, a 6,000 square foot house, and
14.74 acres with a horse stable zoned for residential development. The
property is not currently used in the Company's operations and no portion
of the property is leased to a tenant.  The Company is currently renovating
a portion of this property to prepare for the opening of the proposed
Peerce's Plantation GL, an upscale restaurant.  Any additional delays in
opening Peerce's Plantation GL will have an additional negative effect
on our results of operations.  The Company believes that the property is
adequately covered by insurance. Since the property is not yet in service,
there was no depreciation expense recorded on this property for fiscal 2002
or fiscal 2003.  The method of depreciation and life of the property has
not been determined since no cost allocation has been performed to determine
what part of the property is depreciable or not depreciable.  As of April
30, 2003, we have capitalized $704,000 in improvements, $83,000 in
equipment and $240,000 have been charged to expense during fiscal 2003
for Peerce's Plantation GL.


Item 3. LEGAL PROCEEDINGS

Companies in the publishing industry and the retail industries are, in the
ordinary course of business, made the subject of actions alleging copyright
infringement and other actions.  Such actions may allege large damages.
The Company has, on an infrequent basis, had such claims made against it.


Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
        NONE


                                PART II

Item 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS


Common Stock Market Prices and Dividends

The Company's common stock is traded on the Nasdaq SmallCap Market under the
symbol MAHI.  The number of stockholders of record on July 16, 2003 was
approximately 524.

High and low closing sale prices for the last two years were:

                         Fiscal 2003                Fiscal 2002
Quarter                     Price                      Price
Ended                  High        Low            High        Low
                     -------     -------        -------     -------
July 31                2.00        2.00           2.95        2.95
October 31             1.35        1.35           2.88        2.88
January 31             1.22        1.22           2.48        2.48
April 30               1.30        1.30           2.26        2.26


Such prices reflect inter-dealer prices, without retail mark-up, mark-down or
commissions and may not represent actual transactions. The Company has not
paid any cash dividends since April 1987. Although the board of directors
will continue to consider the resumption of dividends, there can be no
assurance as to the timing or amount of any future dividends.


                   EQUITY COMPENSATION PLAN INFORMATION
----------------------------------------------------------------------------
                                                              Number of
                                                              securities
                                                              remaining
                              Number of                      available for
                             securities to    Weighted-     future issuance
                              be issued        average        under equity
                                upon           exercise       compensation
                             exercise of       price of          plans
                             outstanding     outstanding      (excluding
                               options         options         securities
                            warrants and       warrants       selected in
                               rights        and rights       column (a))
                                (a)              (b)              (c)
----------------------------------------------------------------------------
Equity compensation plans
approved by security
holders                       250,000          $ 3.32           50,000
----------------------------------------------------------------------------
Equity compensation plans
not approved by security
holders                         -0-              -0-              -0-
----------------------------------------------------------------------------

        Total                 250,000          $ 3.32           50,000
----------------------------------------------------------------------------



Item 5A. CERTAIN CAUTIONARY INFORMATION

In connection with the Private Securities Litigation Reform Act of 1995
(the "Litigation Reform Act"), we are hereby disclosing certain cautionary
information to be used in connection with written materials (including this
Annual Report on Form 10-KSB) and oral statements made by or on behalf of our
employees and representatives that may contain "forward-looking statements"
within the meaning of the Litigation Reform Act.  Such statements consist
of any statement other than a recitation of historical fact and can be
identified by the use of forward-looking terminology such as "may", "expect",
"will", "anticipate", "estimate" or "continue" or the negative thereof or other
variations thereon or comparable terminology.  You are cautioned that all
forward-looking statements are necessarily speculative and there are numerous
risks and uncertainties that could cause actual events or results to differ
materially from those referred to in such forward-looking statements.  The
We highlight below some of the more important risks that we have identified,
but you should no assume these to be the only factors that could affect our
future performance.  Included in these risks is our new business lines,
history of losses, our fluctuations in operating results, competition and
other risks set forth herein and in other reports we have filed. you are
cautioned that we do not have a policy of updating or revising forward-
looking statements and thus you should not assume that our silence over
time means that actual events are bearing out as  estimated in such
forward-looking statements.


CAUTIONARY LANGUAGE REGARDING NEW BUSINESS LINES

We are currently working on certain new lines of business including the tobacco
and coffee shop called "Adam Leaf and Bean" and the upscale family restaurant
called "Peerce's Plantation GL". As disclosed below under the caption "Results
of Operations," we have invested a portion of our capital in developing these
new business lines and we expect to continue investing our capital in exploring
these and other business lines in the future.  As we commence or continue
operations with these new business lines, we expect that they will require
additional capital investment and management attention.  We expect any new
business will incur significant expenses for personnel and marketing, among
other items and that such expenses will precede revenues. If we decide not to
go forward with these new business lines, we do not expect to recover our
invested capital. Due to limited resources, we have not commissioned third-
party scientific marketing or other studies of the viability of these or other
business lines, nor do we have the capacity to conduct such studies internally.
In lieu of such studies, we have relied on the experience of our management
team and internal analysis by our management and staff in evaluating new
lines of business. Our analysis may be incomplete or based upon incomplete
or incorrect data. In light of the risks of any new business enterprise and
the limited analysis permitted by our resources, we cannot be sure that
"Adam Leaf and Bean" and "Peerce's Plantation GL" or other business lines
that we may consider, will be profitable and we may lose our entire
investment in such business lines. We intend to continue to consider
additional business lines and, accordingly, we expect to continue to
incur expenses for exploring new business lines for the foreseeable
future.


PEERCE'S PLANTATION GL

Renovation of Peerce's Plantation GL began in the spring of 2002. Structural
damage in certain parts of the restaurant building were more extensive than
we originally believed and have delayed our opening.  We currently expect
that the restaurant will open in the second quarter of fiscal 2004. Additional
difficulties with the renovations including additional structural damage,
permitting issues, weather related delays or other issues could result in
additional delays in our expected opening date. We have hired a general
manager and executive chef to operate the restaurant and bar.  A director
of catering has also been hired to coordinate catered affairs.  As of
April 30, 2003, we have capitalized $704,000 in improvements, $83,000 in
equipment and $240,000 have been charged to expense during fiscal 2003
for Peerce's Plantation GL.  Any additional delays in opening Peerce's
Plantation GL will have an additional negative effect on our results of
operations.


HISTORY OF OPERATING LOSSES

We have reported losses from continuing operations in three of the past
five years and net losses in three of the past five years.  There can be
no assurance that our business strategies and tactics will be successful
and that we will be profitable in future periods.


COMPETITION

Competition in the publishing industry is intense with numerous other
publishers, as well as other media, competing for readers and advertising
revenue.  Most of our competitors in the publishing business have broader
and better recognized product offerings and greater experience, depth of
management and creative and financial resources than we have. Given these
factors, there can be no assurance that we will be able to continue to
compete successfully in the publishing industry and the failure to do so
may have a material adverse effect on our results of operations.

Competition in the retail cigar industry is intense with numerous other
outlets for cigar sales located in the Baltimore, Maryland metropolitan
area competing for customers.  There is also competition from internet-
based retailers  There can be no assurance that we will be able to compete
successfully in the retail cigar industry and the failure to do so may
have a material adverse effect on our results of operations.

Competition in the upscale restaurant industry is intense with numerous
other restaurants located in the Baltimore, Maryland metropolitan area
competing for customers including individual and chain restaurants with
broader and better recognized names, greater experience, depth of
management and financial resources than we have.  These competing
restaurants may also have established reputations, rankings by restaurant
guides and other media and be supported by advertising campaigns.


LIMITED MARKET FOR GIRLS LIFE MAGAZINE

The Girls' Life magazine is targeted to girls ages ten to fifteen.  Since
Girls' Life's target audience is limited by age and gender, Girls' Life,
unlike other magazines that appeal to broader age groups, must replace a
large portion of its readership each year due to maturing of its audience.
Accordingly, Girls' Life's promotional expenses that are designed to replace
and expand its readership may be higher than other magazines with comparable
circulation.  There can be no assurance that Girls' Life will be able to
replace its existing readers and expand its circulation going forward.  Any
decrease in Girls' Life's circulation, due to demographic or other factors,
can be expected to have a material adverse effect on the revenues of our
publishing business.


CONTROL BY PRINCIPAL STOCKHOLDERS

A. Eric Dott and, his son, Jackson Y. Dott, the Company's Chairman and
President, respectively, beneficially own an aggregate of approximately
41% of our outstanding voting securities.  Accordingly, these stockholders
have the ability, acting together, to exercise significant control over
fundamental corporate transactions requiring stockholder approval, including
without limitation the election of Directors, approval of merger transactions
and sales of all or substantially all of our assets.


ANTI-TAKEOVER PROVISIONS COULD MAKE A THIRD-PARTY ACQUISITION OF US
DIFFICULT.

Maryland corporate law restricts transactions between a corporation and
its affiliates and potential acquirers.  The applicability of these
provisions and other provisions set forth in our organizational documents
may discourage bids for our common stock at a premium over the market
price and may adversely affect the market price and the voting rights
of our common stock.  These provisions may discourage changes in control
of our company.

ANNUAL MEETING

The 2003 Annual Meeting of Stockholders is currently scheduled to be
held at 10 A.M. on October 21, 2003, at Peerce's Plantation GL,
12460 Dulaney Valley Road, Phoenix, Maryland 21131.


Item 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

We have two operating subsidiaries. Girls' Life, Inc., publishes a
magazine and Adam Leaf and Bean, Inc. sells tobacco, coffee and related
products on a retail basis.

For the purpose of management's discussion of the results of operations
of fiscal 2003 compared to fiscal 2002, references to fiscal 2003 are to
the 12 months ending April 30, 2003, and references to fiscal 2002 are to
the 12 months ending April 30, 2002.


RESULTS OF OPERATIONS FISCAL 2003 COMPARED TO FISCAL 2002

Publishing sales of Girls' Life decreased $605,000, or 14%, to $3,834,000
in fiscal year 2003 from fiscal year 2002.  The net decrease in sales relates
primarily to a decrease in subscription and advertising revenue as partially
offset by an increase in newsstand revenue and revenue from editorial services
from third parties.  Subscription revenue decreased by $148,000, or 7%, to
$1,907,000 in fiscal year 2003 from fiscal year 2002. The decline in
subscription revenue is attributable to lower remittances from subscription
agencies. Girl's Life uses subscription agencies to expand its subscription
base. Revenue from subscriptions sold through subscription agencies is less
than the revenue received from subscriptions sold directly to the customer.
Advertising revenue decreased by $434,000, or 32%, to $909,000 in fiscal
year 2003 from fiscal year 2002. We believe that advertising revenue is
still adversely affected by an industry-wide decline in the demand for
advertising due to the current economic slowdown in the United States.
Newsstand revenue increased by $6,000, or 1.5%, to $438,000 in fiscal year
2003 from fiscal year 2002. Revenue from editorial services to third parties
increased by $85,000, or 17%, to $572,000 in fiscal year 2003 from fiscal
year 2002.

Sales of the retail operations, Adam Leaf and Bean tobacco and coffee shop,
increased $458,000, or 316%, in fiscal year 2003 from fiscal year 2002.
The increase in sales is due to fiscal year 2003 having a full year of
sales while fiscal 2002, which began operations in November 2001, had
only six months of sales.  Cigar sales increased $350,000 or 418%, to
$434,000 in fiscal year 2003 from fiscal year 2002. Sales of coffee and
drinks increased 30% in fiscal 2003, however management has determined
that the sales volume did not justify the cost of labor needed to staff
the coffee operations and is investigating ways to better utilize the
existing 600 square feet of space.  Consideration is being given to
reconfiguring the space in an attempt to increase sales.

Adam Leaf and Bean sales have increased each quarter since opening; however;
this trend may not continue in future periods.

Combined sales for publishing and the one retail operation decreased
$147,000 or 3%, to $4,436,000 for fiscal year 2003 from fiscal year 2002.

Total cost of goods sold, as a percent of total sales was 94% in fiscal year
2003 compared to 76% in fiscal year 2002. Cost of goods sold for publishing,
as a percent of sales was 90% in fiscal year 2003 compared to 73% in fiscal
year 2002. The percentage increase in the cost of goods sold for publishing
was primarily attributable to increased costs in connection with our book
publishing efforts, costs of direct mail promotion and printing costs
associated with third party editorial services.

Cost of goods sold for the retail sales, as a percent of sales was 115% in
fiscal year 2003 compared to 153% in fiscal year 2002.  There were no retail
sales or costs in the first six months of fiscal year 2002.

Cost of goods sold includes certain direct overhead costs that are fixed and
do not fluctuate as a result of the sales volume.  Certain other costs are not
fixed and do fluctuate with the sales volume.  As sales increase, we expect
the fixed costs to decrease as a percentage of sales.

Selling, general and administrative expenses as a percentage of sales were
38% in fiscal year 2003 compared to 36% in fiscal year 2002. Actual selling,
general and administrative expenses increased $23,000 in fiscal year 2003
compared to fiscal year 2002. The increase in actual expenses for fiscal year
2003 was primarily due to the additional selling, general and administrative
costs associated with Adam Leaf and Bean and Peerce's Plantation GL. Direct
and indirect costs in the amount of $240,000 associated with Peerce's
Plantation GL have been classified as selling, general and administrative
expenses in fiscal year 2003. The costs are comprised primarily of $157,000
in salaries, $22,000 in promotion and $18,000 in personal property taxes on
the property.  Promotional expenses for Girls' Life magazine increased
$159,000, or 67%, for fiscal year 2003 compared to fiscal year 2002.
Promotional expenses for Peerce's Plantation GL and Adam Leaf and Bean
were $22,000 and $6,000 for the fiscal year 2003, respectively.  Although
these expenses are recognized in the current period, we are expect them to
benefit future periods. We expect to continue our strategy of promoting
Girls' Life Magazine, Peerce's Plantation and Adam Leaf and Bean in future
periods.

Revenues and costs associated with "Adam" magazine and "Girls' Life Living"
food court have been classified as discontinued operations for fiscal years
2003 and 2002.

Both of the two properties classified as held for sale were sold during the
third and fourth quarters of fiscal year 2003.  Gross proceeds from the
sales were $106,000 resulting in a loss after tax benefits of $11,000.


Other income decreased $175,000 in fiscal year 2003 to $148,000 from
$323,000 in fiscal year 2001. The fiscal year 2003 decrease was primarily
due to the decrease in interest income in the amount of $176,000 as a
result of lower balances of cash invested in certificates of deposit
and lower interest rates and an increase in other miscellaneous income
in the amount of $1,000.

As a result of the Job Creation and Worker Assistance Act of 2002 (the "2002
Act") that was signed by President Bush in March 2002, entities with net
operating losses are allowed to carryback those losses five years.  Prior
to the 2002 Act, loss carrybacks were only permitted for two years.  The
Company has only recorded tax benefits to the extent carryback claims are
available and has not recorded any tax benefit associated with the future
realization of operating losses. These carryback claims are for federal
income tax purposes only. Income tax benefits attributable to continuing
operations was $259,000 for 2003 compared to $64,000 for 2002.  The income
tax benefit associated with discontinued operations was $7,000 for 2003
and $265,000 for 2002.  The Company's effective rate for the fiscal year
2003 was (20)% compared to (29)% in 2002.

Income tax benefits recognized in the financial statements for 2003 and
2002 were to the extent that the Company had carryback claims available.
The Company has exhausted all available federal carryback claims and has
a state carryback claim in the amount of $16,000 as of April 30, 2003.

The Company has approximately $2,092,000 in federal net operating loss
carryforwards as of April 30, 2003.  These loss carryforwards expire in
2022 and 2023.  Realization depends on generating sufficient taxable
income before the expiration of the loss carryforward periods.  Deferred
tax assets are recognized for future deductible temporary differences
and tax loss carryforwards if their realization is "more likely than
not".  Accordingly, a valuation allowance has been established for the
entire net deferred tax assets.  The amount of loss carryforward
available for any one year may be limited if the Company is subject
to the alternative minimum tax.


APPLICATION OF CRITICAL ACCOUNTING POLICIES

These consolidated financial statements are prepared in accordance with
accounting principles generally accepted in the United States.  Application
of these principles requires management to make estimates, assumptions,
and judgments that affect the amounts reported in the financial statements
and accompanying notes.  These estimates, assumptions, and judgments are
based on information available as of the date of the financial statements;
accordingly, as this information changes, the financial statements could
reflect different estimates, assumptions, and judgments.  Certain policies
inherently have a greater reliance on the use of estimates, assumptions,
and judgments and as such have a greater possibility of producing results
that could be materially different than originally reported. We believe
that our most critical accounting policies relate to revenue and expense
recognition associated with magazine subscriptions.  We currently recognize
income on magazine subscriptions over the expected life of the subscription.
Costs incurred to attract new subscribers are expensed as incurred.


LIQUIDITY AND SOURCES OF CAPITAL

At April 30, 2003, we had cash and cash equivalents of approximately
$524,000 an increase of $645,000 compared to a cash overdraft of
approximately ($121,000) as of April 30, 2002. We received $2,079,000
in cash from the redemptions of certificates of deposit during fiscal
2003. As of April 30, 2003, we had investments in certificates of deposit
in the amount of $2,590,000. As we enter into new lines of business there
results a need for greater capital investment.  In June 2001, we purchased
improved real estate, what is now referred to as "Peerce's Plantation GL"
for $1.991 million in cash. Since that time, we have capitalized approx-
imately $704,000 of improvements and $83,000 in equipment associated with
"Peerce's Plantation GL. We experienced a net decrease in our accounts
receivable of $51,000 from last year primarily due to lower advertising
sales. Prepaid expenses decreased $63,000 compared to the prior year
primarily because prior year prepaid postage was expensed in the current
period for Girls' Life and because of an increase in prepaid insurance and
property taxes for the current year. The decrease in income taxes receivable
over the prior year represents the federal carryback claim being received.
Deferred subscription revenue increased as recent marketing efforts have
resulted in the addition of new subscribers as well as the renewal of existing
subscribers.  Deferred subscription revenue is also affected by the timing of
renewals, which can be affected by the timing of direct mail advertising. The
sale of two buildings previously classified as assets held for sale resulted
in net proceeds of $106,000.

At April 30, 2003, the Company had no debt with third-party lenders other
than the cash overdraft.

During fiscal 2003, cash and cash equivalents ranged from a cash overdraft
of approximately ($121,000) to $524,000. The Company's cash and cash
equivalents are subject to variation based upon the timing of receipts
and the payment of payables.

Management believes that existing cash and cash equivalents, and certificates
of deposit together with cash generated from operations and investing
activities, will be sufficient to meet the Company's liquidity and capital
needs for the next 12 months.


IMPACT OF INFLATION AND CHANGING PRICES

The price of paper is a significant expense of the Company's publishing
business. Paper price increases may have an adverse effect on the Company's
future results. Postage for the magazine distribution is also a significant
expense of the Company. The Company uses the U.S. Postal Service for
distribution of its magazine.  Postage costs increase periodically and can be
expected to increase in the future.  No assurances can be given that we
can pass such cost increases through to our customer.

<TABLE>
Item 7.     FINANCIAL STATEMENTS

Consolidated Statement of Financial Condition
<CAPTION>
------------------------------------------------------------
April 30,                                          2003
------------------------------------------------------------
                                             (000's Omitted)
<S>                                              <C>
ASSETS

CURRENT ASSETS
   Cash and cash equivalents                      $  524
   Certificates of deposit                         2,590
   Accounts receivable, net                          379
   Marketable securities available
       for sale, net                                  32
   Inventory                                         201
   Prepaid expenses                                   54
   Income taxes receivable                            16
                                                 -------
                   TOTAL CURRENT ASSETS            3,796

PROPERTY AND EQUIPMENT
   Leasehold improvements                            367
   Machinery, equipment, furniture and
      fixtures                                       479
                                                  -------
                                                     846
   Less accumulated depreciation                    (571)
                                                  -------
                                                     275
   Investment in Peerce's Plantation GL            2,779
                                                  -------
            TOTAL PROPERTY AND EQUIPMENT           3,054
                                                  -------
   Trademarks - net                                    9
                                                  ------
                  TOTAL ASSETS                    $6,859
                                                  =======

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                               $  261
   Accrued expenses                                   82
   Deposits held in escrow                             7
   Deferred subscription revenue                   1,482
                                                  -------
                  TOTAL CURRENT LIABILITIES        1,832
                                                  -------
STOCKHOLDERS' EQUITY
   Common Stock-par value $.001 per share:
      Authorized - 10,000,000 shares;
      shares outstanding 1,619,620                     2
   Capital surplus                                 3,781
   Retained earnings                               1,253
   Accumulated other comprehensive income (loss)      (9)
                                                  -------
                   TOTAL STOCKHOLDERS' EQUITY      5,027
                                                  -------
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $6,859
                                                  =======
<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Item 7.             FINANCIAL STATEMENTS (Continued)

Consolidated Statements of Operations
<CAPTION>
-----------------------------------------------------------------------
Years Ended April 30,                            2003        2002
-----------------------------------------------------------------------

                               (000's Omitted, except share information)
<S>                                          <C>          <C>
Net Sales - publishing                        $ 3,833      $ 4,438
Net Sales - retail                                603          145
                                              ----------------------
                                                4,436        4,583

Cost of goods sold - publishing                 3,467        3,245
Cost of goods sold - retail                       691          222
                                              ----------------------
                                                4,158        3,467
                                              ----------------------
Gross profit from continuing
   operations                                     278        1,116
                                              ----------------------
Selling, general and administrative
   expenses                                     1,680        1,657
                                              ----------------------
Loss before other income and
   income taxes                                 (1,402)       (541)

Other income:
   Investment and interest income                 143          319
   Other                                            5            4
                                              ----------------------
                                                  148          323
                                              ----------------------
Loss from continuing operations
   before income tax benefit                   (1,254)        (218)

Income tax (benefit)                             (259)         (64)
                                                --------------------
Net loss from continuing operations              (995)        (154)

Discontinued Operations:

   Operating loss from "Adam" magazine
      (net of income tax benefit of
      ($7 and $158) for the years
       ended April 30, 2003 and
       2002, respectively                         (27)        (382)

   Operating loss from "Girls Life
      Living" food court (net of
      income tax benefit of $69 for
      for the year ended April 30,
      2002                                          0         (168)

   Gain (loss) on disposal of assets
      from "Girls Life Living" (net
      of income tax expense (benefit)
      of $3 and $(38)) for the years
      ended April 30, 2003 and 2002,
      respectively                                 13          (91)

   Loss on assets held for sale
      (net of tax benefit of $3)
       for the year ended April
       30, 2003.                                  (11)           -

                                             -----------------------
Loss from discontinued operations                 (25)        (641)
                                             -----------------------
Net loss                                     $  (1,020)    $  (795)
                                             =======================
Net loss per common share -
      basic and diluted:

Loss from continuing
     operations per share                    $  (.61)      $  (.09)

Loss from discontinued operations               (.02)         (.40)
                                             -----------------------
Net loss per common share -
      basic and diluted                      $  (.63)      $  (.49)
                                             =======================
Weighted average number of shares
     outstanding - basic                     1,619,620     1,619,820
                                             -----------------------
Weighted average number of shares
     outstanding - diluted                   1,619,620     1,619,820
                                             -----------------------
<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>

Item 7.                FINANCIAL STATEMENTS (Continued)

Consolidated Statements of Changes in Stockholders' Equity
<CAPTION>
------------------------------------------------------------------
Years Ended April 30, 2003 and 2002
------------------------------------------------------------------

                   (000's omitted, except shares outstanding data)

                                                               Total
                    Common  Paid in  Retained Comprehensive Stockholders'
                    Stock   Capital  Earnings Income (loss)   Equity
                  --------- -------  --------  ------------ ------------
<S>                <C>     <C>      <C>       <C>            <C>

Balance
April 30, 2001         2    3,781    3,068      (14)          6,837

Other comprehensive
income - unrealized
gain on marketable
securities avail-
able-for sale                                     5               5

Net loss                              (795)                    (795)
                                                            --------
Total comprehensive
   income (loss)                                               (790)
                   -----  -------  -------   -------        --------
Balance,
April 30, 2002     $   2  $ 3,781  $ 2,273   $   (9)       $  6,047

Other comprehensive
income - unrealized
loss on marketable
securities avail-
able-for sale                            -                        -

Net loss                            (1,020)                  (1,020)
                                                            --------
Total comprehensive
   income (loss)                                             (1,020)
                   -----  -------  -------   -------        --------
Balance,
April 30, 2003     $   2  $ 3,781  $ 1,253   $   (9)      $   5,027
                   =================================================

Shares Outstanding:  April 30, 2002    1,619,820
                     April 30, 2003    1,619,620

<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Item 7.               FINANCIAL STATEMENTS (Continued)

<CAPTION>

Consolidated Statements of Cash Flows
-------------------------------------------------------------------
Year Ended April 30,                              2003         2002
-------------------------------------------------------------------
                                                 (000's Omitted)
<S>                                           <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss                                      $ (1,020)      $ (795)
   Adjustments to reconcile net loss
   to net cash used by operating
   activities:
     Depreciation and amortization                   58          104
     Gain on disposal of assets, net                 (2)         158
     Obsolete inventory                               0           40
     Bad debt expense                                18           26
     Deferred income taxes                         (230)         (32)
     Increase/decrease in operating
       assets and liabilities:
        Accounts receivable, gross                   51         (187)
        Inventory                                    50         (291)
        Prepaid expenses                             63          (67)
        Accounts payable                           (138)         114
        Accrued expenses                              5           10
        Income taxes receivable                     277         (181)
        Deferred subscription revenue                86          (93)
        Deposits held in escrow                       7            -
                                                 --------------------
Total cash used by operating
      activities                                   (775)      (1,194)
                                                 --------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sale of assets                      137            -
  Purchases of property and equipment              (794)      (2,381)
  Trademark costs                                    (2)          (6)
  Maturity/redemption of certificates
     of deposit                                   2,079        2,338
                                                 --------------------
    Total cash provided (used) by
      investing activities                        1,420          (49)
                                                 --------------------
NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS                                645       (1,243)

CASH AND CASH EQUIVALENTS (OVERDRAFT)
  BEGINNING OF YEAR                                (121)       1,122
                                                 --------------------
CASH AND CASH EQUIVALENTS (OVERDRAFT)
  END OF YEAR                                  $    524     $   (121)
                                                =====================
Non-cash investing activities:
   Transfer of property and equipment
      to assets held for sale                  $      0      $   136
                                                =====================
<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION: The consolidated financial statements include the
accounts of Monarch Services, Inc. and its wholly owned subsidiaries,
Girls' Life, Inc., Girlslife.Com, Inc.,  Adam Leaf and Bean, Inc. and
the discontinued Adam Magazine and Girls Life Living, Inc. ("collectively
the Company"). Consolidation has resulted in the elimination of all
significant intercompany balances and transactions. Certain reclass-
ifications have been made to amounts previously reported to conform with
the classifications made in 2003. The limited sales and costs of Girlslife.
Com, Inc. has been included with Girl's Life, Inc.  The limited sales and
all costs of Adam Magazine and Girls Life Living, Inc. have been reclassified
as discontinued operations.

Monarch  Services, Inc. ("Monarch") on November 30, 2000, became a Maryland
corporation.  The Company was previously incorporated in the State of
Delaware.

Girls' Life, Inc. ("Girls' Life") was incorporated in December 1993 in the
State  of  Maryland and publishes a magazine for girls age ten to fifteen.
Magazines are sold nationally and internationally through distributors and
directly by Girls' Life through one, two and three year subscriptions.

Girls Life Living, Inc. was incorporated on March 12, 1997 in the State of
Maryland. During 2001, this subsidiary began limited activity developing a
model for a theme restaurant called "Girls Life Living".  "Girls Life Living"
started doing business in December 2001.

Adam Leaf and Bean, Inc. was incorporated on June 11, 1997 in the State of
Maryland.  "Adam Leaf and Bean", a tobacco and coffee shop, started doing
business in December 2001.

Adam Magazine, Inc. was incorporated on June 11, 1997 in the State of
Maryland. During 2001, this subsidiary began limited activity developing
a new magazine for young men called "Adam".

Girlslife.com, Inc. was incorporated on January 24, 2000 in the State of
Maryland. Sales for this subsidiary were minimal in fiscal year 2003.  Sales
for Girlslife.com have been included in the total sales of Girl's Life
magazine for the fiscal year 2003.

Adam Corp. was incorporated on November 16, 2001 in the State of Maryland.
This subsidiary holds the property that was planned to become "Adam Discount
Cigarettes and Liquors".

USE  OF ESTIMATES: The preparation of financial statements in conformity
with accounting  principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

REVENUE RECOGNITION: The Company recognizes revenue in accordance with
Securities and Exchange Commission's Staff Accounting Bulletin No. 101
Revenue Recognition in Financial Statements ("SAB 101") whereby revenue
related to subscriptions for its magazines is recognized upon shipment
of the magazine to the subscriber.  Deferred subscription revenue
represents amounts collected for subscriptions of the magazine not
yet issued.  Costs incurred to attract new subscribers are expensed
as incurred.

CASH  EQUIVALENTS:  For the purpose of reporting cash flows, the Company
considers all highly liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.

ACCOUNTS RECEIVABLE: Girls' Life sells its magazine through distributors  and
direct individual subscriptions. Receivables consist of advertising income
and sales of magazines through the distributors for issues released prior to
April 30.  Services for publishing and editing are also included in accounts
receivable.  Adam Leaf and Bean sells tobacco products to the general public
as cash or charge sales.  Receivables consist of charge sales that were not
received as of April 30, 2003.

TRADEMARKS: Direct costs associated with obtaining trademarks are amortized
using the straight-line method over periods estimated to be benefited.

PROPERTY  AND  EQUIPMENT: Property and equipment is carried at cost and
depreciation  is  computed by the straight-line method over estimated  useful
lives ranging from three to forty years.  The investment in "Peerce's
Plantation GL" is carried at cost.  Buildings and other assets held for
sale are carried at the lower of cost or estimated fair value, less
disposal costs.

FINANCIAL  INSTRUMENTS: The current carrying value of current assets and
current liabilities is a reasonable estimate of their fair value due to the
short-term nature of such accounts.

MARKETABLE  SECURITIES: The Company accounts for its investments in equity
securities under the accounting and reporting provisions of Statement of
Financial Accounting Standards No. 115 ("SFAS No. 115").  The Company has
classified its investments as available-for-sale based on its intended use.
As such, unrealized holding gains and losses are included as other
comprehensive income, a separate component of stockholders' equity.

RESEARCH  AND DEVELOPMENT COSTS: The Company had no research and development
costs during the fiscal year 2003.

COSTS ASSOCIATED WITH START-UP ACTIVITIES: The Company accounts for start-up
costs in accordance with the American Institute of Certified Public
Accountants' Statement of Position 98-5 Reporting on the Costs of Start-up
Activities, which requires such costs to be expensed in the period incurred.

INCOME  TAXES:  The  Company provides for income  taxes  using Statement  of
Financial Accounting Standards No. 109, "Accounting for Income Taxes," ("SFAS
No. 109") which requires an asset and liability  approach to financial
accounting and reporting for income taxes (see Note F). Under SFAS No. 109,
deferred tax assets and liabilities are provided for differences between the
financial statement and tax bases of assets and liabilities that will result
in  future taxable income or deductible amounts. The deferred tax assets and
liabilities are measured using enacted tax laws and rates applicable to the
periods in which the differences are expected to affect taxable income.

Income tax expense is computed as the tax payable or refundable for the
period  plus or minus the change during the period in deferred tax assets or
liabilities. Income tax benefits are recognized to the extent that carryback
claims are available.

EARNINGS  PER  SHARE: Basic earnings per share is computed by dividing net
earnings (loss) available to common stockholders by the weighted average
number of common shares outstanding during the year.  Diluted earnings (loss)
per share is computed by including the average common stock equivalents
outstanding, if any, to the weighted average number of common shares
outstanding during the period.

STOCK-BASED  COMPENSATION ARRANGEMENTS:  The Company applies APB Opinion No.
25 and related interpretations in accounting for stock based compensation
arrangements. Accordingly, no compensation expense has been recognized.  For
disclosure purposes, pro-forma results have been determined based on the fair
value method consistent with  SFAS  No. 123,  "Accounting for Stock-Based
Compensation" and SFAS No. 148 "Accounting for Stock-Based Compensation
- Transition and Disclosure".  No stock-based employee compensation cost
is reflected in the statement of operations, as all options granted under
those plans had an exercise price equal to the market value of the under-
lying common stock on the date of grant.  The following table illustrates
the effect on net loss and net loss per share if the Company had applied
the fair value recognition provisions of SFAS No. 123, "Accounting for
Stock-Based Compensation", to stock-based employee compensation for the
two years ended April 30.

(In thousands, except per share data)                 2003        2003
-----------------------------------------------------------------------
Net loss, as reported                              $ (1,020)   $  (795)
Less proforma stock-based employee compensation
  expense determined under fair value based
  method, net of related tax effects                   (106)      (125)
                                                   --------------------
Pro forma net loss                                 $ (1,126)   $  (920)

Net loss per share:
  Basic - as reported                              $  (0.63)   $ (0.49)
  Basic - pro forma                                $  (0.70)   $ (0.57)
  Diluted - as reported                            $  (0.63)   $ (0.49)
  Diluted - pro forma                              $  (0.70)   $ (0.57)


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

ACCOUNTING FOR STOCK-BASED COMPENSATION: In December 2002, the Financial
Accounting Standards Board issued Statement of Accounting Standards

("SFAS") No. 148, "Accounting for Stock-Based Compensation - Transition
and Disclosure", which provides guidance on how to transition from the
intrinsic value method of accounting for stock-based employee compensation
under APB 25 to SFAS 123's fair value method of accounting, if a company
so elects.

NOTE B - DISCONTINUED OPERATIONS:

DISCONTINUED PUBLICATION OF ADAM MAGAZINE:

Effective with the June/July 2002 issue of "Adam" magazine on sale in May
2002, the Company terminated the publication of Adam Magazine.  All sales
and costs associated with Adam magazine have been reclassified as Discontinued
Operations for the year ended April 30, 2002 and 2001.

Net sales and loss from discontinued operation of "Adam" magazine are as
follows (in thousands):

                                         Years Ended April 30,
                                           2003        2002
---------------------------------------------------------------------
Net sales                                 $    0      $  9

Loss from discontinued
   operations (net of tax)                   (27)     (382)


Estimated salary and other termination and exit costs were adjusted
during the twelve months ended April 30, 2003 upon settlement of those
obligations.  This adjustment (net of tax) resulted in $27,000 of
expense to be recognized during the twelve months ended April 30, 2003.

DISCONTINUED OPERATIONS OF GIRLS LIFE LIVING:

Effective July 2002, "Girls Life Living" food court was closed.  All
sales and costs associated with Girls Life Living have been reclassified
as Discontinued Operations for the year ended April 30, 2003 and 2002.

Net sales and loss from discontinued operation of "Girls Life Living"
food court is as follows (in thousands):

                                         Years Ended April 30,
                                           2003        2002
---------------------------------------------------------------------
Net sales                                 $    8      $ 17

Loss from discontinued
   operations (net of tax)                     0      (168)

Gain (loss) on disposal of assets
   (net of tax)                               13       (91)


Based upon information available at the time, the Company estimated a loss
on the disposal of certain assets of $91,000 as of April 30, 2002.  Upon
actual disposition of the assets, an adjustment to the accrued loss resulted
in a gain of $13,000 (net of tax) to be recognized during the twelve months
ended April 30, 2003.


NOTE C - ACCOUNTS RECEIVABLE

Accounts receivable consist of the following at April 30, 2003 (in thousands):

Accounts Receivable - publishing     $  426
Accounts Receivable - retail              3
                                     -------
                                        429
Less:
  Allowance for doubtful accounts      ( 50)
                                     -------
      Accounts receivable, net       $  379
                                     =======

Bad debt expense charged to operations was $18,440 and $26,000 for the years
ended April 30, 2003 and 2002, respectively.


NOTE D - CERTIFICATES OF DEPOSIT

As of April 30, 2003, investments in certificates of deposit consisted of
the following (in thousands):

       Rate                Maturity                Amount
      ------              ----------            ------------

       4.40%               11/20/06              $ 2,590

                                                ============

The certificates of deposit are in excess of federal insurance limits.

NOTE E - MARKETABLE SECURITIES AVAILABLE-FOR-SALE

At April 30, 2003, the cost and estimated fair value of marketable
securities, available-for-sale is as follows (in thousands):

                                Unrealized      Unrealized     Estimated
                       Cost       Gains            Loss        Fair Value
                     ------------------------------------------------------
Equity Securities      $ 48       $  -            $ 16           $ 32
                     ======================================================

NOTE F - INCOME TAXES

A  reconciliation of the effective tax rate for income taxes in the financial
statements to the federal statutory rate is as follows:

-----------------------------------------------------------------------------
Years Ended April 30,                                         2003      2002
-----------------------------------------------------------------------------

Federal income tax (benefit) expense at statutory rate        (34)%      (34)%
Non-deductible items                                            1          1
State income taxes, net of federal benefit                      -          -
Limitation of previously unrecognized tax benefits
  due to availability of loss carryback claims                 13          -
Other                                                           -          4
                                                              ----       ----
                                                              (20)%      (29)%
                                                              ====       ====

The  deferred  tax  assets (liabilities) result from the following temporary
differences (in thousands):
--------------------------------------------------------------
April 30,                                           2003
--------------------------------------------------------------
Deferred tax assets:
  Financial statement accruals, net              $   11
  Allowances for accounts receivable                 19
  Unrealized loss on marketable securities
    available-for-sale                                6
  Net operating loss carryforward                   711
                                                 --------
       Total deferred tax assets                    747

       Vaulation allowance                         (732)

Deferred tax liabilities:
    Property and equipment                          (15)
                                                 --------
Net deferred tax assets                          $   -
                                                 ========

Income tax benefits in the financial statements for 2003 and 2002 were
recognized to the extent that the Company had carryback claims available.
The Company has exhausted all available federal carryback claims and has
a state carryback claim in the amount of $16,000 as of April 30, 2003.

The Company has approximately $2,092,000 in federal net operating loss
carryforwards as of April 30, 2003.  These loss carryforwards expire in
2022 and 2023.  Realization depends on generating sufficient taxable
income before the expiration of the loss carryforward periods.  Deferred
tax assets are recognized for future deductible temporary differences
and tax loss carryforwards if their realization is "more likely than
not".  Accordingly, a valuation allowance has been established for the
entire net deferred tax assets.  The amount of loss carryforward
available for any one year may be limited if the Company is subject
to the alternative minimum tax.

Cash payments for state income taxes were $16,238 and $0 for the years
ended April 30, 2003 and 2002, respectively.

NOTE G - PROFIT-SHARING PLAN

During fiscal year 2002, the original  profit sharing plan was changed to a
401(k) defined contribution plan that allows employees to make contributions
to their individual 401(k) plan through payroll deductions.  The Company made
no contributions to the original profit sharing plan or the new 401(k) plan
in fiscal years 2003 and 2002.

NOTE H - STOCK OPTION PLANS

The Company's Omnibus Stock Option Plan (the  "Omnibus Plan") provides for the
granting of certain types of qualified and nonqualified stock options to
directors, executive officers and key employees on a periodic basis at the
discretion of the Company's Board of Directors.  The Company has reserved
300,000 shares of common stock under the Omnibus Plan.

Options for 40,000, 10,000 and 200,000 shares of common stock were granted
during the years ended April 30, 2003, April 30, 2001 and 2000, respectively.
The options begin to vest at an annual rate of 25% after the completion of
one year of service following the date of grant.

                              Stock Options
   -------------------------------------------------------------------------
                                     2003                  2002
   -------------------------------------------------------------------------
                                             Weighted              Weighted
                                    Number   Average      Number   Average
                                      of     Exercise       of     Exercise
                                    Shares    Price       Shares    Price

     Balance, beginning of year     210,000    $3.73      210,000    $3.73

     Granted                         40,000     1.20          -         -

     Cancelled                          -         -           -         -

     Exercised                          -         -           -         -
                                    -------               -------
     Balance, end of year           250,000    $3.32      210,000    $3.73
                                    =======               =======

     Weighted average fair value of
       options granted during the year         $0.75                 $ -
                                               =====                 =====



                             Options Outstanding       Options Exercisable
                             -------------------       -------------------
                             Weighted    Weighted                    Weighted
                     Number   Average     Average       Number        Average
    Range of           of    Remaining   Exercise         of         Exercise
    Exercise Price   Shares  Life(years)   Price        Shares         Price

        $3.58        120,000    l.8        $3.58        90,000         $3.58
        $3.94         80,000    1.8        $3.94        60,000         $3.94
        $3.81         10,000    2.3        $3.81         5,000         $3.81
        $1.20         40,000    2.3        $1.20           -           $1.20
                     -------                           -------
                     250,000    1.9        $3.32       155,000         $3.73
                     =======                           =======


The fair value of  the options granted that began to vest during 2003 and
2002 were estimated using the Black-Scholes option-pricing model and used
the following assumptions for the 2002 and 2001 grants:

                               2002 Grants    2001 Grants
                               -----------    -----------
Dividend yield                      0%             0%
Expected volatility                75%            74%
Risk-free interest rate          4.93%          4.99%
Expected lives (in years)           5              5


NOTE I - COMMITMENTS AND CONTINGENCIES

LEASES: The Company leases office and warehouse and other facilities.
The lease for the office and warehouse facilities currently in use was
extended for a term of 10 years commencing July 1997, and ending June
2007. The lease for the food court facilities was for a term of 5 years
commencing in November 2000, and ending October 2005. Due to the closing
of the food court facilities in July 2002, the lease for the food court
facilities was terminated in July 2002 with no further payments by the
Company. The Company generally must pay for property taxes, insurance
and maintenance costs related to the property.  The lease for the property
previously used by the games division was terminated in December 1999.
Total rental expense for 2003 and 2002 was approximately $213,000 and
$210,000, respectively.

The  future  annual minimum rental commitments for the current non-cancelable
operating leases as of April 30, 2003 are $127,000 annually through 2007 for
the office and warehouse facilities and $69,000 annually through 2004 for
the tobacco and coffee shop facilities.

The office and warehouse facilities are leased through 2007 for approximately
$140,000 annually from the Chairman of the Company and a member of his family.
The lease for the food court facilities which originally was to be leased for
approximately $70,000 annually through 2005, was terminated in July 2002 due
to the closing of Girls Life Living with no further payments due from the
Company. The tobacco and coffee shop facilities are leased through 2004 for
approximately $69,000 annually.  The lease agreements provide for escalation
of rent based on certain indexes.

Expected lease payments under the above operating leases are as follows:


                                      2004    2005    2006    2007
                                     ------  ------  ------  ------
                                            (in thousands)

Property: Office and Warehouse       $ 127   $ 127   $ 127   $ 127
Property: Tobacco and Coffee shop       69       -       -       -
                                     -----   -----   -----   -----
      Total lease payments           $ 196   $ 196   $ 127   $ 127


LITIGATION: The Company is involved, from time to time, in legal actions
arising in its normal course of operations.  As of April 30, 2003, there
was no pending litigation against the Company.


NOTE J - SEGMENT INFORMATION

The Company currently operates in two industry segments. The Company's
primary operations during fiscal years 2003 and 2002 was the publication
of "Girls' Life" magazine in the publishing segment and "Adam Leaf and
Bean" tobacco and coffee shop in the retail segment.

                   Segment Information for fiscal 2003
                   -----------------------------------
                          (in thousands)

                                 Publishing Retail Restaurant Other   Total

Revenues from external customers  $ 3,833   $ 603   $   -     $   -  $ 4,436
Intersegment revenues                   -       -       -         -        -
Interest Income                         -       -       -       143      143
Depreciation and amortization          18      13       -        27       58
Segment profit (loss) before tax     (302)   (135)   (240)     (577)  (1,254)
Expenditures for segment assets        11       5     740        40      796



                   Segment Information for fiscal 2002
                   -----------------------------------
                          (in thousands)

                                 Publishing Retail Restaurant Other   Total

Revenues from external customers  $ 4,438   $ 145   $    -    $   -  $ 4,583
Intersegment revenues                   -       -        -        -        -
Interest Income                         -       -        -      319      319
Depreciation and amortization          33       4        -       67      104
Segment profit (loss) before tax      673    (109)     (16)    (766)    (218)
Expenditures for segment assets        28      89    2,039      231    2,387


Independent Auditors' Report

To the Audit Committee of the Board of Directors and the Stockholders
of Monarch Services, Inc.

We have audited the accompanying consolidated statement of financial
condition of Monarch Services, Inc. and Subsidiaries as of April 30,
2003 and the related consolidated statements of operations, changes in
stockholders' equity, and cash flows for each of the two years in
the period ended April 30, 2003. These financial statements are the
responsibility of the Company's management.   Our responsibility is
to express an opinion on these financial statements based on our
audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are  free of  material  misstatement. An audit includes
examining, on a test  basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of
Monarch  Services, Inc. and Subsidiaries  as of April 30, 2003, and the
results of their operations  and their cash flows for each of the two
years in the period ended April 30, 2003 in conformity with accounting
principles generally accepted in the United States of America.


/s/  Stegman & Company
------------------------
Stegman & Company
Baltimore, Maryland
July 11, 2003



Item 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURE

          NONE

                                PART III

     Information required in Part III, Items 9-12 and 15 is incorporated
     by reference to the Company's proxy statement to be filed in
     connection with the 2003 Annual Meeting of Stockholders.


Item 9.   DIRECTORS,  EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
          PERSONS, COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
          ACT

          The information required by Item 9 is incorporated by
          reference from the information set forth under the heading
          "Election of Directors--Directors and Officers" and "Section
          16(A) Beneficial Ownership Reporting Compliance" in the
          Company's definitive proxy statement for its 2003 annual
          meeting of stockholders.

Item 10.  EXECUTIVE COMPENSATION

          The information required by Item 10 is incorporated by reference
          from the information set forth under the heading "Election of
          Directors--Executive Compensation" in the Company's definitive
          proxy statement for its 2003 annual meeting of stockholders.

Item 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

          The information required by Item 11 is incorporated by reference
          from the information set forth under the heading "Ownership of
          Voting Securities--Principal Stockholders" in the Company's
          definitive proxy statement for its 2003 annual meeting of
          stockholders.

Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

          The information required by Item 12 is incorporated by reference
          from the information set forth under the heading "Election of
          Directors--Certain Relationships and Related Transactions" in
          the Company's definitive proxy statement for its 2003 annual
          meeting of stockholders.

Item 13.  EXHIBITS AND REPORTS ON FORM 8-K
          (a) Listing of Exhibits:
            3.(a) The Company's Articles of Incorporation dated
                  September 22, 2000 (incorporated by reference
                  to Exhibit 3A.1  to the Company's Form 8-K
                  filed December 29, 2000).

              (b) The Company's Articles Supplementary dated
                  December 21, 2000 (incorporated by reference
                  to Exhibit 3A.2 to the Company's Form 8-K
                  filed December 29, 2000).

              (h) The Company's By-Laws dated July 25, 2001
                  (filed herewith).

          10. (a) Lease Agreement dated July 2, 1973 between the
                  Company as Lessee and A. Eric Dott and Esther J.
                  Dott as lessors (incorporated by reference to
                  Exhibit 10(a) to the Company's Form 10-KSB for
                  the fiscal year ended April 30, 1995).

              (b) Lease renewal and Amendment of Lease Agreement
                  dated July 1, 1983 between the Company and A.
                  Eric Dott and Esther J. Dott, renewing and
                  amending terms of the Lease Agreement in
                  Exhibit 10(a) (incorporated by reference to
                  Exhibit 10(b) to the Company's Form 10-KSB
                  for the fiscal year ended April 30, 1995).

              (c) Lease renewal and Amendment of Lease Agreement
                  dated July 1, 1997 between the Company and A. Eric
                  Dott and Esther J. Dott, renewing and amending
                  terms of the Lease Agreement in Exhibit 10(a)
                  (incorporated by reference to Exhibit 10(b) to
                  the Company's Form 10-QSB for the quarter ended
                  October 31, 1998).

              (d) Monarch Services, Inc. Omnibus Stock Plan incorporated
                  by reference to Ex. 4 to the Company's Form S-8
                  (file no. 333-31536) as filed with the Securities
                  and Exchange Commission on March 2, 2000.

           21.    Subsidiaries of the Registrant (incorporated
                  by reference to Exhibit 21 to the Company's
                  Form 10-QSB for the quarter ended October 31,
                  2002).

           23.1   Consent of Stegman & Company(filed herewith).


Item 14.   CONTROLS AND PROCEDURES

Based on an evaluation of the Company's disclosure controls and procedures as
of a date within 90 days prior to the filing date of this annual report,
each of the chief executive officer and the chief financial officer of the
Company has concluded that the Company's disclosure controls and procedures
are effective.

There were no significant changes in the Company's internal controls or in any
other factors which could significantly affect those controls subsequent to the
date of the most recent evaluation of the Company's internal controls,
including any corrective actions with regard to any significant deficiencies
or material weaknesses.


                           S I G N A T U R E S

In accordance with Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


                                         MONARCH SERVICES, INC.


                                         By:  /s/   A. Eric Dott
                                              ----------------------
                                              A. Eric Dott, Chairman
                                                   and Director







In  accordance with the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.



Date   July 29, 2003                     /s/     Jackson Y. Dott
     ----------------                    -------------------------------
                                         Jackson Y. Dott, President
                                        (Principal Executive Officer),
                                           Treasurer and Director


Date   July 29, 2003                     /s/    David F. Gonano
     ----------------                    -------------------------------
                                         David F. Gonano, Director



Date   July 29, 2003                     /s/   Helen Delich Bentley
     ----------------                    -------------------------------
                                         Helen Delich Bentley, Director



Date   July 29, 2003                     /s/   Kenneth C. Holt
     ----------------                    -------------------------------
                                         Kenneth C. Holt, Director



Date   July 29, 2003                     /s/    A. Eric Dott
     ----------------                    -------------------------------
                                         A. Eric Dott, Chairman and
                                            Director



Date  July 29, 2003                      /s/    Marshall Chadwell
    ----------------                    -------------------------------
                                         Marshall Chadwell, Controller
                                        (Principal Financial Officer),
                                         Principal Accounting Officer




CERTIFICATIONS

I, Jackson Y. Dott, certify that:


1.  I have reviewed this annual report on Form 10-KSB of Monarch Services,
    Inc.;

2.  Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3.  Based on my knowledge, this annual report does not contain any untrue
information included in this annual report, fairly presents in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4.  The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a)  designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this annual report is being prepared;

b)  evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and

c)  presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.  The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

a)  all significant deficiencies in the design of operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b)  any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls.

6.  The registrant's other certifying officer and I have indicated in this
annual report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

/s/    JACKSON Y. DOTT

Jackson Y. Dott
Chief Executive Officer
Date:  July 29, 2003





CERTIFICATIONS

I, Marshall Chadwell, certify that:


1.  I have reviewed this annual report on Form 10-KSB of Monarch Services,
    Inc.;

2.  Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3.  Based on my knowledge, this annual report does not contain any untrue
information included in this annual report, fairly presents in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4.  The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a)  designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this annual report is being prepared;

b)  evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the "Evaluation Date"); and

c)  presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.  The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

a)  all significant deficiencies in the design of operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b)  any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls.

6.  The registrant's other certifying officer and I have indicated in this
annual report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

/s/    MARSHALL CHADWELL

Marshall Chadwell
Chief Financial Officer
Date:  July 29, 2003




EXHIBIT INDEX

Exhibit Number
--------------


     23.1      -        Consent from Stegman & Company

     99.1      -        CEO Certification of SEC compliance

     99.1      -        CFO Certification of SEC compliance