Audited Results for year ended 31 March 2012

28 September 2012

MoneySwap Plc

("MoneySwap", the "Group" or the "Company")

Audited Results for year ended 31 March 2012

The Directors of MoneySwap Plc (AIM:SWAP), the Asia focused prepaid card and payment services provider, are pleased to announce the Company's audited results for the 12 months ended 31 March 2012.

Highlights from Period

·; Successful Admission onto AIM in August 2011 - US$5 million (£3.1 million) raised;

·; Management team strengthened and back-end operations stream-lined;

·; The Suisse Black Card successfully launched targeting Chinese travelling overseas;

·; Revenue growth of 260% achieved with revenue for period of US$1.78 million - 28% ahead of expectations (2011: US$495,000);

·; Loss for period of US$4.92 million (2011: US$4,570,119).

Post Period Highlights

·; MoneySwap the first company to be approved by China UnionPay Ltd ("CUP"), China's largest bank card payment processor, as a payment provider for all three of CUP's services - online, point of sale and money transfer;

·; Co-operation agreement signed with DataCash, a MasterCard company;

·; Strong sales pipeline now being developed off the Company's positioning.

A copy of the annual report and accounts will shortly be posted to shareholders and made available shortly on the Company's website, www.moneyswap.com, in accordance with AIM Rule 20.

Richard Proksa, Chief Executive Officer, commented:

"I am delighted with the progress the Company has made to date. In our first year as a public company, we have successfully built a compelling product offering now able to tap into the large consumer market in China. We are confident that we will be able to increasingly monetorise and develop this position in the coming years."

ENDS

For further information, please contact:

About MoneySwap 

MoneySwap PLC has it operational headquarters in Hong Kong. Primarily focused on the Asia market, the Group offers prepaid card services and also operates an online peer to peer foreign exchange and payment platform. The Group offers prepaid card services working with partners such as Corner Bank, Switzerland and Visa. MoneySwap is also a merchant acquirer for China UnionPay providing payment gateways for both online and point of sale merchants. In addition, China UnionPay has licensed MoneySwap for its MoneyExpress service which enables people abroad to send funds directly to UnionPay cardholders in China. Its shares are traded on the London Stock Exchange's AIM market (AIM:SWAP.L). More information can be found at: www.moneyswap.com

CHIEF EXECUTIVE OFFICER'S STATEMENT

Dear Shareholder,

The financial year ended 31 March 2012 was a successful year for MoneySwap Plc ("MoneySwap" or the "Company"). It was marked by a public listing, record financial results and strategic realignment in order to position the Company for high growth. During the fiscal year, MoneySwap raised US$5 million (£3.1 million) on its admission to the AIM market of the London Stock Exchange (AIM: SWAP) which took place on 31 August 2011 and saw revenues grow 260% to US$1.78 million, exceeding expectations by over 28%. At the same time MoneySwap realigned its business focus on new products and markets which included prepaid cards.

Overview of Company Strategy

At MoneySwap we have a steadfast commitment to developing innovative solutions that meet market requirements. As such this has led us firstly to develop a range of prepaid card solutions and secondly to create a suite of MoneySwap platform based services that interlink with China's dominant card processor, China Union Pay, so as to best service:

·; Chinese students, tourists and business people wishing to buy products when abroad;

·; European merchants wishing to access Chinese consumers online;

·; Chinese nationals travelling or working overseas wishing to transfer funds to China; and

·; Global clients who wish to exchange currencies and make transfers on a peer to peer basis as well as wire funds internationally.

Business Review (April 2011/2012)

(i) Products

The Suisse Black Card issued by Corner Bank, Switzerland in association with Visa, was launched during the year. This card primarily serves Chinese traveling abroad including business people, students and tourists. A key convenience for the user is their ability to use their China UnionPay card to top up their Suisse Black Card. The China UnionPay card dominates the Chinese market and this card-to-card, top-up feature makes it secure, easy and convenient for the cardholder.

(ii) Management team and operational excellence

The Company attracted a number of seasoned sector professionals from within Asia to strengthen its management team during the period. Lincoln Chang joined as Group Business Development Director and Seng Rhee as Managing Director Philippines and Korea. Both have worked at successful companies in the financial services sector and bring with them an influential contacts network within Asia.

At the same time, the Company was reorganised along product lines ensuring that the entire product cycle from initial concept to operations is managed with the relevant domain knowledge and execution expertise. We believe that we have built a strong core of product management, marketing, operations and customer support teams. A number of technologies including customer relationship management and project management software have been implemented with the view of promoting teamwork, communication and effectiveness. In addition, we enlisted the services of a major global hosting services provider to ensure that our services remain secure, available and reliable. To take advantage of cost savings and high availability of sector professionals, the Group also commenced relocating its operational services such as customer support, IT development and banking operations to the Philippines. With a strong core team and robust infrastructure, the directors believe the Group is poised for further growth.

As at 31 March 2012, there were 3,447 individuals and 72 corporates registered as users of the Company.

Emphasis of Matter - Recoverability of Trade Receivable and Going Concern

The audit opinion for the Group's results for the year ended 31 March 2012 contains an emphasis of matter in relation to an unrecovered trade receivable balance of US$1,752,866 relating to one transaction with a single customer as well as the Group's ability to continue as a going concern primarily as a result of various trade receivables subsequent to the year end totalling US$2.2 million which have not yet been received.

Notwithstanding this, after careful review of the Group's budget for the financial year ending 31 March 2013, its medium-term plans, liquid resources and all relevant matters, the directors are confident that the Company and the Group have adequate financial resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. The Directors also understand that the trade receivable balance is currently in the process of being transferred to the Group and expect it to be received shortly and, in that regard, have been provided with evidence of bank transfer instructions.

Post Period Trading and Outlook

We are encouraged by a solid sales pipeline which we believe points to strong revenue growth for our Suisse Black prepaid card product. Equally exciting, post-period end China UnionPay Ltd ("CUP"), China's largest bank card payment processor, approved MoneySwap as a payment provider for all three of its card payment services - online, point of sale and MoneyExpress. The MoneySwap payment gateways will enable international merchants to accept payments from any of the over 800 million1 CUP cardholders either online or at point of sale in return for which MoneySwap will receive a fee for every transaction.

To that end we launched the following services to targeting the market segments outlined earlier as a result of the agreements signed with China Union Pay:

·; UnionPay Online Payments

·; UnionPay POS Payments

·; UnionPay MoneyExpress

To put the markets being targeted into perspective, in 2011 the size of online shopping transactions in China exceeded RMB770 billion (approximately £75 billion), a year-on-year growth of 67.8%2. At the same time, a report by the University of London's School of Oriental and African Studies titled "How the rise of Chinese tourism will change the face of the European travel industry", published in October 2011 (the "Report"), found that the number of Chinese visitors to Europe is estimated to increase to 4.5 million by 2015 and to around 8.6 million by 2020. Already in 2010, the Report found that Chinese outbound travelers spent £30.4 billion, equivalent to an average expenditure of £530 per person-visit. The Report expects this figure to rise by around 14.6% in 2011 to reach £34.8 billion. Against this backdrop, the Directors believe that China is one of the most compelling emerging markets for international merchants.

Further with MoneyExpress, the Directors anticipate that MoneySwap will be able to tap into the US$57 billion market of inward remittances to China3. This service remits funds from abroad directly to UnionPay cardholders in China. It is faster and, the Directors believe, more convenient than traditional methods of international transfer. For all three CUP services each merchant will have a MoneySwap account on www.moneyswap.com where they can also benefit from our online foreign exchange and wire transfer services.

More recently, DataCash - a MasterCard company and provider of multi-channel payments gateway solutions - has signed a cooperation agreement in connection with MoneySwap's appointment by China UnionPay as one of its overseas merchant acquirers for the UnionPay Online Payment Program. The Agreement will enable DataCash merchants to accept China UnionPay cards issued both inside and outside of China as a form of payment. The Directors believe this will accelerate the number of merchants in the United Kingdom using the MoneySwap ePayment gateways.

MoneySwap is therefore in the unique position of being the only company approved and licensed to provide all three CUP payment solutions. International merchants will only have to look to MoneySwap for all their CUP payment needs. We are confident that each one of our CUP payment solutions represents significant revenue growth as it is intricately linked to the purchasing power of Chinese consumers for goods and services they buy abroad. For investors, the Group believes MoneySwap is an opportunity to "tap into the spending of millions of Chinese consumers".

All these results are as a result of the talent and hard work of our team and I thank them for their dedication and bringing value to our customers. I also thank our board of directors and you our shareholders for another year of support. Our team and infrastructure were never more solid and our product offering never more compelling. We believe that we are well poised for revenue growth and our future has never been brighter.

Richard V. Proksa

Chief Executive Officer

Date: 27 September 2012

1 http://en.unionpay.com

2. iResearch data published on www.iresearchchina.com on 20 January 2012

3. Migration and Development Brief 17 published on the official website of the World Bank on 1 December 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

FOR THE YEAR ENDED31 MARCH 2012

The notes form part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2012

The notes form part of these financial statements.

COMPANY STATEMENT OF FINANCIAL POSITION 

AS AT 31 MARCH 2012

The notes form part of these financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2012

The notes form part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2012

The notes form part of these financial statements.

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2012

The notes form part of these financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2012

1 General

MoneySwap Plc (the "Company") and its subsidiaries (together the "Group") are principally engaged in currency exchange and matching, settlement and clearing operation which facilitates pay-ins and pay-outs through the global SWIFT network and sales of prepaid cards.

The Company is a public limited company incorporated and domiciled in Gibraltar. The Company's shares were listed on the Alternative Investment Market ("AIM") of the London Stock Exchange on 31 August 2011.

2 Significant accounting policies

The consolidated financial statements of the Group have been prepared in accordance with International Financial Report Standards ("IFRSs") as adopted by the European Union ("EU"). IFRSs are subject to amendment and interpretation by the International Accountancy Standards Board ("IASB") and the IFRSs Interpretations Committee and there is an ongoing process and review and amendment by the European Commission.

These accounting policies comply with each IFRSs that were mandatory for accounting for the period ended 31 March 2012.

The consolidated financial statements also comply with Gibraltar Companies (Accounts) Act 1999, the Gibraltar Companies (Consolidated Accounts) Act 1999 and the Gibraltar Companies Act 1930 (as amended).

The principal accounting policies adopted by the Group in the preparation of its financial statements for the year ended 31 March 2012 with comparatives for the year ended 31 March 2011, are set out below. The accounting policies have been consistently applied to all periods provided.

Going concern

The Group has prepared a budget covering 12 months from the date of this report. The critical assumptions made in this budget are that the Group would successfully collect the trade receivable of US$1.7 million outstanding as at 31 March 2012 and subsequent trade receivables of US$2.2 million arising from post year end sales. For details regarding the US$1.7 million, please refer to note 13. Payment of the US$2.2 million which is overdue, has been initiated by the customers and settlement is in process.

After careful review of the Group's budget, its medium-term plans, liquid resources, the assumption that both the US$1.7 million and the US$2.2 million are recovered and all relevant matters, the directors are confident that the Company and the Group have adequate financial resources to continue in operational existence for 12 months from the date of approval of this report. In the event that the US$1.7 million or the US$2.2 million are not received, the directors will seek alternative funding arrangements. They have therefore continued to adopt the going concern basis in preparing the financial statements.

Basis of consolidation

The consolidated financial statements incorporate the results of the Company and entities controlled by the Company (its subsidiaries).

These financial statements consolidate the results and statement of financial position of the Company and those entities treated as subsidiaries using the acquisition method of accounting.

Subsidiaries are entities where the Group has power to govern the financial and operating policies, generally accompanied by a share of more than 50 per cent. of the voting rights. All inter-company balances have been eliminated in the consolidated financial statements.

Non-controlling interests

Non-controlling interests represent the equity in a subsidiary not attributable directly or indirectly to the Company. They are presented in the consolidated statement of financial position within equity based on the share of net assets, separately from equity attributable to the equity holders of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of comprehensive income.

Changes in the Group's interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognised as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the equity holders of the Company.

Goodwill

Goodwill is the difference between the cost of an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities. Positive goodwill is capitalised on the consolidated statement of financial position.

At each balance sheet date goodwill is reviewed for impairment. If any indications of impairment exist then an impairment loss is recognised if the carrying amount of the goodwill exceeds its estimated recoverable amounts.

Investment in associate

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in the financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group's share of the net assets of the associate, less any impairment in the value of individual investments.

Losses of an associate in excess of the Group's interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate) are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

Where a group entity transacts with an associate of the Group, profits and losses are eliminated to the extent of the Group's interest in the relevant associate.

Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation less any recognised impairment losses. Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the costs can be measured reliably. All other costs, including repairs and maintenance costs, are charged to the income statement in the period in which they are incurred.

Depreciation is provided on all property, plant and equipment other than freehold land and is calculated on a straight-line basis as follows:

Office and computer equipment - 20%

Leasehold improvements - 20%

Depreciation is provided on cost less residual value. The residual value, depreciation methods and useful lives are annually reassessed.

The carrying values of property, plant and equipment are reviewed for impairment annually and when events or changes in circumstances indicate that the carrying value may be impaired. Any impairment is taken direct to the income statement.

Intangible assets

Intangible assets consist of development expenditure incurred in respect of software for the Group's electronic exchange platform and is recognised as an intangible asset in accordance with the provision of IAS 38 "Intangible Assets". Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses. Amortisation of these assets is charged to the income statement on a straight-line basis over the expected useful economic life of the asset.

Amortisation is charged against assets from the date at which the asset becomes available for use and is calculated on straight line basis as follows:

Development costs - 20%

Where no intangible asset can be recognised, development expenditure is treated as expenditure in the period in which it is incurred.

Impairment of non-financial assets

At each balance sheet date, the directors review the carrying amounts of the Group's tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

Equity

Equity comprises the following:

·; "Share capital" represents amounts subscribed for shares at nominal value.

·; "Share premium" represents amounts subscribed for share capital, net of issue costs, in excess of nominal value.

·; "Share-based payment reserve" represents amounts credited for share option expenses, until exercise or lapse of share options, when the amounts are taken into share capital and premium or retained earnings.

·; "Foreign exchange translation reserve" represents the exchange differences arising from the translation of the financial statements of the parent company into the Group's presentational currency and the translation at the closing rate of the net investment in the subsidiaries.

·; "Combination reserve" represents amounts arising from the difference between the cost of the acquisition and the fair value of the assets to be recorded to the account for the share for share exchange.

·; "Retained earnings" represents the accumulated profits and losses attributable to equity shareholders.

Financial instruments

Financial assets and financial liabilities are recognised in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Trade and other receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest method. A provision is established when there is objective evidence that the Group will not be able to collect all amounts due. The amount of any provision is recognised in the income statement.

Trade and other payables are initially measured at fair value, and are subsequently measured at amortised cost using the effective interest rate method.

Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

Revenue recognition

Revenue comprises sales of prepaid cards and commissions received on the execution of foreign exchange and fund transfers on behalf of the clients. Other income mainly comprises bank interest income and government subsidy received.

·; Commissions from remittance are recognised on an accruals basis following execution of the transactions.

·; Sales income from prepaid cards is recognised when the significant risks and rewards of the ownership have been transferred to the customers, which is taken as the time when the customers acknowledge or settle the invoices.

·; Bank interest income is recognised as it accrues using the effective interest method.

·; Government subsidy is recognised at fair value when there is reasonable assurance that the Group will comply with the conditions attaching to them and the subsidy will be received.

Foreign currency translation

The presentational currency for the Group's consolidated financial statements is United States dollars. Foreign currency transactions by Group companies are recorded in their functional currencies at the exchange rate at the date of the transaction. Monetary assets and liabilities have been translated at rates in effect at the balance sheet date, with any exchange adjustments being charged or credited to the income statement.

On consolidation the assets and liabilities of the subsidiary companies with non-United States dollars functional currency are translated into the Group's presentational currency at the exchange rate at the balance sheet date and the income and expenditure account items are translated at the average rate for the period.

For the purpose of foreign currency translation, the net investment in a subsidiary is determined inclusive of foreign currency intercompany balances for which settlement is neither planned nor likely to occur in the foreseeable future.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (translation reserve) in equity. If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests.

In the statement of cash flows, cash flows denominated in foreign currencies are translated into the presentational currency of the Group at the average exchange rate for the year or at the prevailing rate at the time of the transaction where more appropriate.

The exchange rate applied at the statement of financial position date was US$1.5990 per £1 sterling (2011: US$1.6033).

Employment benefits

Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries, including non-monetary benefit and annual leave obliged to be settled within 12 months of the balance sheet date, are recognised in accruals.

The grant-date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment awards is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Share-based payments

The Group measures the cost of equity-settled share-based payments by reference to the fair value of the equity instruments at the date at which they are granted.

Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Current tax

Current tax for each taxable entity in the Group is based on the local taxable income at the local statutory tax rate enacted or substantively enacted at the balance sheet date and includes adjustments to tax payable or recoverable in respect of previous periods.

Deferred tax

Deferred taxation is calculated using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, if the deferred tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred tax is determined using tax rates and laws that have been enacted (or substantially enacted) by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax liabilities are provided in full.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.

IFRSs in issue but not yet effective

At the date of authorisation of these consolidated financial statements, the following Standards and Interpretations were in issue but not yet mandatorily effective and have not been applied in the financial statements:

·; IFRS 9 - Financial Instruments - effective for annual periods commencing on or after 1 January 2015

·; IFRS 10 - Consolidated Financial Statements - effective for annual periods commencing on or after 1 January 2013

·; IFRS 11 - Joint Arrangements - effective for annual periods commencing on or after 1 January 2013

·; IFRS 12 - Disclosure of Interests in Other Entities - effective for annual periods commencing on or after 1 January 2013

·; IFRS 13 - Fair Value Measurement - effective for annual periods commencing on or after 1 January 2013

·; IAS 27 (Revised) - Separate Financial Statements - effective for annual periods commencing on or after 1 January 2013

·; IAS 28 (Revised) - Investments in Associates and Joint Ventures - effective for annual periods commencing on or after 1 January 2013

·; Amendments to IFRS 7: Disclosures - Transfers of Financial Assets - effective for annual periods commencing on or after 1 July 2011

·; Amendments to IFRS 7: Disclosures - Offsetting Financial Assets and Financial Liabilities - effective for annual periods commencing on or after 1 January 2013

·; Amendments to IAS 1: Presentation of Items of Other Comprehensive Income - effective for annual periods commencing on or after 1 July 2012

·; Amendments to IAS 12: Deferred Tax: Recovery of Underlying Assets - effective for annual periods commencing on or after 1 January 2012

·; Amendments to IAS 32: Offsetting Financial Assets and Liabilities - effective for annual periods commencing on or after 1 January 2014

The directors anticipate that the adoption of these standards and interpretations will not have a material impact on the consolidated financial statements in the period of initial adoption.

3 Critical accounting estimates and judgements

In preparing the consolidated financial statements, IFRSs requires management to exercise its judgement in the process of applying the Group's accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The critical accounting estimates and judgments made by the Group regarding the future or other key sources of estimation uncertainty and judgment that may have a significant risk of giving rise to a material adjustment to the carrying values of assets and liabilities within the next financial year are:

Share-based payments

The Group measures the cost of share options granted by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a Binomial model, with the assumptions detailed in note 17. The accounting estimates and assumptions relating to these share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

Impairment of goodwill

The Group determines whether goodwill is impaired on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units, using value-in-use calculations, to which the goodwill is allocated. These value-in-use calculations require the Group to estimate the future cash flows expected to arise from the cash-generating units and a suitable discount rate in order to calculate the present values. The assumptions used in this estimation of recoverable amount and the carrying amount of goodwill are discussed in note 11.

Development expenditure

The Group's accounting policy for development expenditure results in certain items of expenditure being capitalised where it is considered likely to be recoverable by future revenue generated from sales achieved by the Group. This policy requires management to make certain estimates and assumptions as to future events and circumstances. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to the income statement. 

Impairment of development expenditure

In accordance with the Group's accounting policy, each asset (or cash generating unit) is evaluated every reporting period to determine whether there are any indications of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that carrying amount exceeds recoverable amount. The recoverable amount of an asset (or cash generating group) of assets is measured at the higher of fair value less costs to sell and value in use.

Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. Value in use is also generally determined as the present value of the estimated future cash flows, but only those expected to arise from the continued use of the asset in its present form and its eventual disposal. Present values are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in the asset. Future cash flow estimates are based on expected sales volumes and prices (considering current and historical prices, price trends and related factors), operating costs and future capital expenditure. This policy requires management to make these estimates and assumptions which are subject to risk and uncertainty. Hence, there is a possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the capitalised development expenditure. In such circumstances, some or all of the carrying value of the asset may be impaired and the impairment would be charged against the income statement.

Useful economic life of intangible assets

For intangible assets which have a finite life, the directors revisit their estimate of useful economic life at each period end and revise accordingly. The directors take into consideration the intangible asset and related sales volume (including historic and projected).

4 Segmental information

In the opinion of the directors, the Group has four reportable operating segments as described below, which are managed separately as they require different strategies:

- Small and medium-sized entities ("SMEs")

- International remittance

- Prepaid cards ("PP cards")

- Casinos and online gaming ("Casinos")

For the Group's internal reporting process, operating performance for SMEs and International remittance are assessed together and therefore, their segmental results are combined.

The directors consider that is neither possible nor meaningful to distinguish aggregate amortisation and depreciation, other administrative expenses and taxation between the business segments, nor segmental net assets and liabilities. As a result these amounts are not reported to the chief operating decision maker on a segmental basis.