Final Results

GLOBO plc

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011

Globo plc ("Globo", "the Company" or "the Group"; LSE-AIM: GBO), the international Mobile Solutions, S.a.a.S and IT group, is pleased to announce its final results for the year ended 31 December 2011.

Financial Highlights

·; Strong financial performance with revenue and profit ahead of market expectations:

o Revenue up 46.6 per cent to € 45.31 million (2010: €30.91 million)

o EBITDA up 63.5 per cent to € 20.6 million (2010: €12.6 million)

o Profit before tax up 160.3 per cent to € 12.05 million (2010: € 4.63 million)

·; Growth driven by international revenues which increased by 254.6 per cent to €21.88 million (2010: €6.17 million), representing 48.3 per cent of total Group revenues.

·; Significant improvement in margins:

o Gross margin for 2011 of 45.9 per cent (2010: 37 percent) Operating margin up 53.2 per cent to 29.06 per cent (2010: 18.96 per cent).

·; Operational cash flow up 49.0 per cent to €6.48 million (2010: €4.14 million).

·; Proceeds from over-subscribed £17.25 million share placing in February 2011 successfully utilised to accelerate international expansion and fund the rollout of GO!Enterprise Server.

Operational Highlights

·; 2011 financial performance reflects strong organic and profitable growth with mobile applications, products and services contributing €17.2 million to gross profit representing 82.65 per cent of the total for the Group.

·; Strong demand for mobile consumer products CitronGO! and GO!Social, now being offered in 18 countries, reflected in 151 per cent growth in total active subscriber base to approximately 1.4 million at 31 December 2011 (31 December 2010: approximately 550,000).

·; Mobile enterprise product GO!Enterprise Server, launched in November 2011, generating substantial interest from potential partners and end-users around the world and contributed approximately €2 million to revenues for 2011.

·; In the light of anticipated growth and expansion plans, Group HQ re-located to 2,700 square metres of purpose-built offices, including a carrier grade Data Centre, incorporating the latest technology and telecom equipment, to host part of Globo's S.a.a.S and telecom offering.

·; In November 2011, Globo opened its UK office in London to support the rollout of GO!Enterprise Server in the UK and Western Europe.

·; Acquired the remaining 65% shareholding in ReachFurther Communications Limited, the Cyprus-based value added service provider and content aggregator, which is now a wholly owned subsidiary.

·; During February 2012, acquired Dialect Technologies Inc. ("Dialect", www.godialect.com), a New York-based specialist provider of IP telecom technologies and services to international telecom operators and businesses in the US. In addition to enhancing Globo's enterprise mobile product portfolio, the acquisition strengthens the Group's presence in the US market.

·; In September 2011, Barry Michael Ariko joined the Board as non-executive Chairman. He has extensive senior management experience with a range of companies, including Autonomy Corporation plc, Netscape Communications Corp., AOL, Oracle Corp, and Extricity Inc, as well as having a successful career with software companies throughout their growth phases.

On outlook, the Chairman, Barry Ariko stated:

"Management has a clear strategy for addressing the emerging enterprise mobility markets in the US, UK and Western Europe where we plan to build a leading global market position. Overall, current trading is strong and we are confident that 2012 will be a year of significant strategic progress and profitable growth for the Group."

CONTACTS

CHAIRMAN'S STATEMENT

Introduction

During 2011, Globo achieved excellent growth resulting in record revenues and profits. Despite tough economic conditions within the Eurozone markets, the Group continued to diversify away from its traditional e-business operations through the expansion of its mobile activities which now contribute 82.65 per cent of total gross profits. Globo's mobile applications are driving the Group's international expansion, where the Group is experiencing strong demand in both the consumer and enterprise sectors which is generating opportunities for substantial growth.

Mobile consumer applications, CitronGO! and GO!Social, were the main drivers of growth in international revenues which accounted for 48.3 per cent of the Group total compared to 17 per cent in 2010. The success of CitronGO! and GO!Social, which first contributed to revenues in 2010, has been achieved across many geographic areas and today are being offered in 18 countries in Europe, Africa, Latin America, North America, Asia and Middle East through Mobile Network Operators ("MNOs") and Value Added Services Providers ("VASPs").

In mobile enterprise applications, the commercial launch of GO!Enterprise Server in November 2011 has generated substantial interest from potential partners and end-users around the world and resulted in a contribution of approximately €2 million to revenues for 2011. This is a very exciting development, and early demand supports our belief that the potential for Globo offered by GO!Enterprise Server could be enormous.

The acquisition of the 65% shareholding in Cypriot entity Reach Further Communications, now a wholly-owned subsidiary, during 2011 and of New York-based Dialect Inc. in February this year, reflect Globo's commitment to expanding the Group's international reach and product portfolio.

Throughout 2011 and so far in the current year, Globo has continued to develop its portfolio of products and services, focusing on its mobile business and international expansion. We have continued to benefit from healthy demand with 100 per cent of revenues for 2011 originating in the private sector.

Results and Finance

In February 2011, the Group raised approximately £17.25 million before expenses via a placing with UK and international investors which was strongly supported and significantly over-subscribed. The net proceeds have been utilised to fund the Group's continuing international expansion, software and technology development, and launch of GO!Enterprise Server.

For the year to 31 December 2011 revenue increased by 46.6 per cent to €45.31 million (2010: €30.91 million), ahead of market expectations. Operating margins significantly improved by 53.2 per cent to 29.06 per cent (2010: 18.96 per cent). Profit after tax rose by 102.23 per cent to €8.88 million (2010: €4.39 million) with basic earnings per share of 3.2 cents (2010: 2.8 cents), an increase of 14.3 per cent.

Cash generated from operations increased by 56.5 per cent to €6.48 million (2010: €4.14 million). After investment and increased working capital requirements as a result of expansion, total borrowings at the end of the year were reduced to €8.5 million (31 December 2010: €13.29 million). Cash deposits of €9.3 million at 31 December 2011 give an overall net cash position of €0.8 million.

Outlook

Following an excellent financial performance last year, Globo is well positioned to accelerate its growth and development during 2012 in all areas of the international mobile business.

GO!Enteprise Serverhas stimulated substantial interest in the market and our order pipeline is growing rapidly, strengthening our commercial platform for future development.

Management has a clear strategy for addressing the emerging enterprise mobility markets in the US, UK and Western Europe where we plan to build a leading global market position. Overall, current trading is strong and we are confident that 2012 will be a year of significant strategic progress and profitable growth for the Group.

Barry Ariko

Non-Executive Chairman

CHIEF EXECUTIVE OFFICER'S REPORT

Introduction

During 2011, not only was Globo successful in achieving strong growth in revenue, profit and customer base growth, we also made substantial progress in transforming the Group into a major international mobile applications business. International mobile revenues generated 68 per cent of total gross profit for the year. During 2011, Globo continued its successful track record of achieving its strategic, financial and operational goals whilst building a solid platform for substantial future development. Our strong growth in revenue and profit across the Group, in the most challenging of phases in the history of the Eurozone, reflects Globo's ability to react and diversify with speed and efficiency whilst focusing on our strengths.

Having established strong momentum in the Mobile Consumer Applications Market, with demand for CitronGO! and GO!Social remaining buoyant, we have entered the emerging Mobile Enterprise Applications Market through the successful commercial launch in November 2011 of GO!Enterprise Server which made an initial contribution of approximately €2 million to total revenue for the year.

The Group has continued to build its S.a.a.S business model which now supports e-business software, mobile value added services, WiFi connectivity and telecom services.

Following a positive performance in 2011, trading momentum has continued with Globo winning new business and securing significant partnerships, including with the international system integrators who we believe will play a significant role in rolling out projects based on our GO!Enterprise Server platform.

Overall, we are confident that 2012 will be another year of profitable growth, with further expansion in emerging markets from CitronGO! and GO!Social and also in developed markets (Western Europe, U.K. and United States) as GO!Enterprise Server achieves the traction we are expecting.

Industry recognition

During 2011, industry recognition of Globo's technology and products continued with significant awards including "Best Telecoms Innovation in Western Europe" (World Finance Telecoms Awards 2011), "Innovative product of the year" (Infocom Conference 2011) "Tech Pioneer - Tech Excellence Awards" (T3 & PC Magazine) as well as the "Kouros 2011" in the category of Innovation and Entrepreneurship; both the Company and its CEO also received nominations in AIM market related ceremonies.

Globo participated in numerous industry events such as the GSMA in Barcelona, GITEX exhibition in Dubai, InfoCom World in Athens and AppsWorld in London.

Operations

Mobile Applications and Services (Consumer and Enterprise Solutions)

Following the commercial launch and initial contribution to revenues in 2010, 2011 saw a further strong performance by CitronGO! and GO!Social with their customer base increasing by 151 percent to approximately 1.4 million active users (2010: approximately 550,000 active users).

A significant contributor to this success was the focus on rolling out CitronGO! and GO!Social services on a S.a.a.S basis through VASPs and MNOs through their subscription application and content offerings. As a result, CitronGO! and GO!Social are now being offered in 18 countries in Europe, Africa, Latin America, North America, Asia and the Middle East, with Globo receiving a fixed service fee per month per active user.

In addition, we continue to provide value added services and platforms to a number of MNOs through our wholly owned subsidiary, ReachFurther Communications Ltd.

The performance of GO!Enterprise Server since it was officially launched during the Appsworld London Show in November 2011 has been very encouraging with initial revenues of approximately €2 million during 2011 and interest leading to demand growing so far in 2012, from customers of all sizes.

GO!Enterprise Serverruns on Globo's proprietary GO!3D technology platform and provides a powerful, easy to use, cost efficient solution to mobilise any business operation and build applications that can run on any mobile device. It can be used by employees or customers, with comprehensive enterprise level security. Through GO!Enterprise Server, businesses can now mobilise and access all mainstream, vertical or customised software, business tools and applications, using any handset or tablet across any operating system (Android, iPhone, Windows Phone, Blackberry, J2ME, WAP, HTML5) or network (GPRS, 3G, HSPA, WiFi).

Software products and services

During 2011 the Group won and delivered several projects, all for private sector clients. Revenues generated from software products and services fell by 19.9 per cent to €17.5 million (2010: €21.9 million) as a result of the impact of the economic crisis in Greece.

So far in 2012, we have won several new contracts with banks and private sector customers resulting in strong visibility which is also supported by the €20 billion EU-sponsored government funding programme (the fourth National Strategic Reference Framework).

Telecom Services and S.a.a.S

The Group continues to expand its S.a.a.S customer base and WiPLUS service (Wi-Fi operations), adding new premium hotspot locations which now total 523 sites (end of 2010: 479) which continue to contribute a profitable and recurring revenue stream.

The WiPLUS WiFi Service consists of a fully managed service provided to hotels, airports, marinas and similar locations, with Globo receiving revenues from venue owners

Globo has continued to invest in expanding its product offering within this segment and is now well positioned to accelerate growth.

Markets and Growth Drivers

Mobile Applications and Services (Consumer and Enterprise Solutions)

The global mobile market continued to grow significantly during 2011, with new entrants targeting all aspects of mobile provisioning, from games to mobile applications and mobile advertising networks.

Our continuing focus in Mobile Consumer Application Platforms ("MCAP") is on leveraging and maximising the potential of CitronGO! and GO!Social, targeting 'non smartphone' consumers who today represent the majority of mobile subscribers globally, especially in developing countries.

In Mobile Enterprise Application Platforms ("MEAP"), the launch of GO!Enterprise Server has added a new dimension to Globo's business, providing an opportunity for substantial growth in the developed economies of Western Europe, UK, US, Canada and Australia.

MCAP and MEAP can be used for secure, enterprise grade, mobile messaging offerings as well as m-Banking, m-Government and services which target very large consumer markets.

TechNavio, the well-known market intelligence analysts, forecasts that the value of the MEAP market will reach $1.6 billion by 2014. This broadly accords with the market analyss IDC which, in its forecast of 2009 for the "Mobile Middleware" segment, estimated growth of approximately 14 per cent per annum (compound) from 2007 to 2013.

The key driver of this growth is the "Bring your own device" (BYOD) trend whereby employees want to use their own mobile devices with their own data plans, sometimes subsidised by enterprises. This can substantially reduce cost for enterprises whilst providing additional services and applications not currently available. Competitors primarily focus on email, contacts and calendars mobile offering, whistle Globo's GO!Enterprise Server adds mobile access to office files and folders and the GO!Development Studio enables numerous applications to be mobilised.

Forrester Research, Inc. publication "Forrester: Enterprise and SMB Networks and Telecommunications Survey, North America and Europe (Q1 2010)" stated that "a quarter of employees in knowledge-based businesses bring a personal mobile device to work, despite a lack of corporate support". The same report identified a number of benefits to enterprises of mobilising their business operations, the top ones being 'increased worker productivity', 'increased employee responsiveness and decision-making speed' and 'customer issues resolved faster'.

GO!Enterprise Servertargets businesses of all sizes in the US, UK, Europe and Australia, as well as in developing economies. It is offered as an annual (or monthly) license per device through mobile networks, including existing customers, software and systems integrators and hosting providers.

The main drivers of growth for Globo in the mobile arena will be as follows.

·; CitronGO! and GO!Social will continue to create significant interest as they offer a comprehensive service to provide truly ubiquitous computing on a single screen on feature phones. This aggregated service enables MNOs and VASPs to earn revenues from one application and through a single service provider (i.e. Globo), thereby maximising return and efficiency on advertising budgets.

·; Our S.a.a.S and revenue share models, rather than software licensing, meets the current needs of MNOs, which mostly wish to limit their investment in new services that traditionally have required large capital expenditure.

·; BYOD trend is generating substantial opportunity for GO!Enterprise Server which aims to be the most cost efficient platform for secure mobile messaging, intranet and business applications whilst providing all functionality currently available. A major unique selling point is that it provides cross-platform, smart phone support.

·; GO!Enterprise Server is capable of expansion into new geographic areas (including US, UK and Western Europe), and developing new relationships with MNOs and Global Software Vendors and Integrators, leading to significant financial benefit.

·; Globo's sales and marketing capacity is expanding alongside existing business development activities, partnership and certification programs for software vendors, system integrators, hosting providers and resellers, to establish a solid platform for rapid business growth in all international markets.

Software products and services

The E-Business software market continues to grow as more private and government organisations recognise the value of such systems for operating and managing complex tasks and planning.

Globo's corporate offering is based on our CITRON-branded suite of e-business applications which have won new contracts with key customers where our strong relationships are providing visibility for future revenue growth. Growing customer familiarity with our S.a.a.S. business model is resulting in the utilisation of new services, increased customer loyalty and recurring revenues.

Telecom Services and S.a.a.S

In the WiFi offering, we see demand being driven by the combination of increasing penetration of smartphones and tablets as they become "must have" gadgets for a wide audience.

We believe we can grow our WiPLUS service substantially through franchising agreements with selected international partners, providing them with the technology and a business model to develop WiPLUS hot spot networks around the world. We expect to achieve attractive returns from franchising WiPLUS, taking into account the absence of any investment and operating costs for Globo.

In the pure S.a.a.S telecom offering for SMEs, we see demand coming from more intelligent services like Cloud hosting, backup and applications.

To this extent, Globo has invested in enlarging its Data Center capacity and enriching its product portfolio with new services that follow current market trends.

Products and Service Development

Globo is focused on securing sustainable revenues from innovative mobile products and services that satisfy user needs for either business or personal lifestyle.

Substantial resources are being deployed in the development of GO!Enterprise Server as this product is addressing a sophisticated and demanding market with experienced users. Key software development work for GO!Enterprise Server includes:

·; Security

High levels of security for business data exchange and storage are achieved using strong encryption algorithms such as AES 256bits, 3DES and SSL following the latest technology standards. Additionally, GO!Enterprise Server utilises all enterprise security policies on a group and employee profile level.

Security audits and certification will be a key task for 2012 in order to validate the levels of security and attract more "security sensitive" customers.

·; Devices Support

GO!Enterprise Serverenables access via any mobile device including the most well-known mobile operating systems and web standards including iOS, Blackberry, Android, Windows Phone, J2ME, HTML5 and WAP.

During 2012, Globo will release a desktop product (Windows and Apple) which will enable users to connect remotely and securely from desktop PCs and Laptops, a key need for many organisations seeking solutions through complex VPN, Citrix and similar implementations. Although this cannot completely substitute a pure remote desktop experience, it can provide a secure and easy way for businesses to offer elements of desktop use via mobile, remote desktop or laptop to their employees, a tool that our competitors do not currently offer.

·; Business Application Integration and Mobile Porting

GO!Enterprise Serverprovides an open environment with standardised APIs to connect and mobilise any internal business application, such as CRM, ERP and intranet. Connecting cross mobile platform applications to the company's internal system is achieved using GO! Development Studio.

During 2012, Globo is focused on partnering with Software Vendors to develop GO!Apps that will allow the integration into enterprise systems such as SAP, Siebel, Microsoft Dynamics and Salesforce.

Further development in extending the functionality of the GO!Development Studio and underlying server core to support new services such as Barcode and QR code recognition, real time data transmission, Near Field Communication (NFC) and others is planned.

·; Messaging & Productivity Tools

GO!Enterprise Serverprovides full access to e-mail for Microsoft Exchange, IBM Lotus Domino and all global email providers, including Google, Yahoo and WindowsLive.

Access to calendars, contacts, notes and tasks keep employees connected with the office.

It also enables one-to-one and group messaging between employees, colleagues, partners their mobile devices.

Efficient compression minimises bandwidth costs and the impact on battery longevity.

During 2012, Globo will release a cloud offering of GO!Enterprise Server ("GO!Internet Service") to focus on secure mobile messaging for smartphone users of SMEs.

·; Folders and Files Access

Users are able to access a company's intranet file system as well as online folders for storing and sharing files of any type and any size. Files can be attached to messages and read on the move.

During 2012, Globo will enrich its "GO!Internet Service" with access to Cloud storage services such as iCloud, Google docs and Dropbox.

Key Tasks for 2012

We believe that 2012 will prove to be a cornerstone year for Globo's global positioning in the MEAP market which the Group is now addressing through its GO!Enterprise platform.

Globo's success is being driven by strong growth in international mobile revenues which now account for the majority of Group profits and has substantially marginalised the impact of the current economic difficulties and market uncertainties within the EuroZone.

The Board is confident in Globo's prospects and that the Group can deliver a financial performance at least in line with market expectations for the current year, 2012.

Against this background, the Board has embarked on a review of the options for divesting the Greek related operations, considering relevant factors including impact on revenue, funding and personnel requirements. The Board is actively considering opportunities to acquire international mobile software and services businesses with a view to continuing to accelerate the profitable expansion of the Group.

We will continue our development across all technologies and markets on which we are focusing and key tasks for the year include:

·; winning new contracts from international MNOs, VASPs and distribution partners for Globo's mobile applications and service offerings;

·; establishing a presence in the East and West coast of the US to expand operations and sales of GO!Enterprise Server, as well as pursuing commercial partnerships with global software vendors, service providers and mobile equipment vendors headquartered in the US.

·; launching new products around GO!Enterprise Server such as the GO!Internet Service (a cloud offering of GO!Enterprise Server messaging to be offered through MNOs to SMEs and SOHO users), the GO!Enterprise Voice System (a system that brings employee desk phones on to smartphones by integrating GO!Enteprise Server with the company's PBX) and GO!Mobility Cloud (a version of GO!Enterprise Server for small businesses that want to develop a mobile offering without investing in infrastructure and licences).

·; enriching our GO!Developers network and applications offering by partnering with independent software vendors who will develop applications to drive user demand over GO!Enterprise Platform.

·; continuing to increase customer familiarity with our S.a.a.S business model with a view to increasing the utilisation of new services, customer loyalty and recurring revenue.

·; achieving steady growth in our traditional activities, applying our diversified business model (license, project, service), as business and other organisations continue to move into e-business and mobility.

We are excited about the opportunities that our mobile product line brings to the Group and we are committed to positioning Globo as a global player in both the MEAP and MCAP markets. Our technology and business model have proven their strength and we are optimistic about Globo's prospects for 2012 and beyond.

Costis Papadimitrakopoulos

Chief Executive Officer

GLOBO PLC FINANCIAL REVIEW

During 2011, Globo delivered a strong financial performance with substantial growth in revenue, strong profitability and positive operating cash flow.

Revenue increased by 46.59 per cent to € 45.31 million compared to 2010 (€30.91 million). This was the result of strong organic growth in the mobile segment of the Group, accounting for 55.9 per cent of total revenue (2010: 17.0%), with the most important driver for 2011 being the Group's focus on the international mobile applications markets. International revenues rose very strongly to €21.88 million (2010: €6.17 million), representing 48.3 per cent of total revenues for 2011. The international mobile revenues for the year increased by 294.1 per cent to 20.77 million compared to 2010 (€5.27 million), accounting for 94.9 per cent of total international revenue and 45.8 per cent of the total revenue.

Gross profit increased by 82.1 per cent to €20.81 million (2010: €11.43 million) with gross margin for the year up to 45.9 per cent (2010: 36.98 per cent). This reflects the high proportion (99.4 per cent) of total revenues being derived from the Group's own products and services rather than third party products. Furthermore, gross profit from the mobile segment of the Group accounted for the 82.65 per cent of the total gross profit.

Depreciation of tangibles and amortisation of intangibles was €7.47 million (€6.72 million in 2010) reflecting the significant product development undertaken in both 2010 and 2011. Operating profit increased by 124.74 per cent to €13.17 million (€5.86 million in 2010), with operating margin improving to 29.06 per cent (2010: 18.96 per cent) mainly because of the increased margins achieved in the mobile segment, while EBITDA increased by 64.07 per cent to €20.64 million (2010: €12.58 million).

The net interest charge for the year was €1.11 million, a decrease of €0.12 million resulting from interest received from the Group's bank deposits.

Profit before tax for 2011 was €12.05 million, an increase of 160.25 per cent over 2010 (€4.63 million). The taxation charge for the year was €3.17 million (2010: €0.24 million) and relates predominantly to deferred taxation. The Group continues to take advantage of special tax relief incentives provided by the Greek Government for certain investments.

Basic earnings per share increased to €0.032 (2010: €0.028).

Total assets grew to €82.57 million at 31 December 2011 (2010: €59.89 million) of which €24.84 million were non-current assets, €48.39 million were trade debtors, prepayments and other current assets, and €9.34 million were cash and cash equivalents. Equity increased by 110.80 per cent to €55.42 million and total liabilities decreased by 19.21 per cent to €27.15 million.

Cash generated from operations remained healthy and increased by 56.5% to €6.48 million (2010: € 4.14 million). Net cash flow, after interest and tax payments, was €5.01 million, (2010: € 2.74 million). Net cash investment during 2011 was €12.96 million reflecting the significant expenditure on product development and infrastructure. Financing activities during the year included share issues, new borrowing and debt repayment resulting in a total net inflow of €14.39 million.

Dimitris Gryparis

Finance Director

Copies of the Annual Report and Notice of AGM will be sent to shareholders and uploaded to the Company web site prior to the AGM

GLOBO PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2011

GLOBO PLC CONSOLIDATED BALANCE SHEET

At 31 December 2011

GLOBO PLC CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2011

GLOBO PLC NOTES TO THE FINANCIAL STATEMENTS

1. General Information

The Consolidated Financial Statements ("the Financial Statements") of Globo plc ("the Company") consists of the following companies: Globo plc, Globo Technologies S.A., Profitel Communications S.A., Globo Mobile S.A., Globo IT and Telecom Services SRL, ReachFurther Communications Limited, Globo Holdings Ltd, Gylenhall Investments Ltd, Globo Services (CY) Ltd, Oumpalumpa Ltd, Globo Mobile Technologies International FZ - LLP and Globo International LLC ("the Group").

The registered office address is 3 Vaughan Avenue, Tonbridge, Kent, TN10 4EB.

2. Basis of Preparation

The Financial Statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"), IFRIC interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have been prepared under the historical cost convention.

The preparation of Financial Statements in conformity with IFRS requires the use of 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 information, including the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

3. Segment information

The following segments are based on the management reports received by the Board of Directors (who are the chief operating decision makers) which are used to make strategic decisions. The Directors consider the business from a product perspective. The main segments are:

Third party goods: The Group resells third party goods, to its customers, mainly comprising hardware to complement a software project.

Software products and services: The main activity of the Group is to sell its own software products and services to its clients both in the private and public sector.

Telecom services (S.a.a.S): The Group combines telecom services with its own software products (e-business and wifi services) that are then sold on a "software as a service" basis.

Mobile products and services: The Group sells its own mobile software products and services to its clients.

Transactions between segments are recorded at cost.

The Directors assess the performance of the operating segments based on revenue from external customers and gross profit. The segment information provided to the Directors for the reportable segments for the year ended 31 December 2011 is as follows:

A further analysis of the Group's revenue for the year 2011, is shown below:

The segment information provided to the Directors for the year ended 31 December 2010 is as follows:

A further analysis of the Group's revenue for the year 2010 is shown below:

4. Earnings per Share

Basic earnings per share is calculated by dividing the profit after tax attributable to equity holders by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share in the years ended 31 December 2011 and 31 December 2010 assumes that options and warrants outstanding at 31 December 2011 were exercised at 1 January 2011, for options and warrants where the exercise price was less than the average price of the ordinary shares during the period. A calculation is done to determine the number of shares that could have been acquired at fair value based on the monetary value of the subscription rights to outstanding share options. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of the options and warrants plus the issue of the shares as part of the deferred consideration for the acquisition of a subsidiary undertaking. On this basis, the calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders divided by 277,668,873 shares (31 December 2010 - 153,468,784 shares).

5. Cash Generated from Operations

Group