Final Results

8 October 2013

IBEX Global Solutions Plc

("IBEX" or "the Company")

Preliminary Results for the year ended 30 June 2013

IBEX Global Solutions plc (AIM: IBEX), a leading provider of contact centre services and other business process outsourcing (BPO) solutions, is pleased to announce its maiden set of preliminary results following its successful admission to AIM on 28 June 2013.

Financial Highlights:

· Total Group revenue up 34% to $141.5m (2012: $105.4m)

· Adjusted EBITDA of $4.6m (2012: $0.9m)

· Net debt (cash and cash equivalents and net receivable of IPO proceeds, less third party borrowings) at the period end was $2.9 million (2012: $11.4 million)

· Successful IPO on AIM raised approximately £10.7m before expenses

Operational Highlights:

· Customer base enhanced through extension of existing relationships and new wins

· Completed in-house development of critical software platforms necessary for staffing optimisation and overall operational efficiency

· New site facilities opened in New Braunfels, Texas and Davao, Philippines within the last 30 days

· Strengthened management team, specifically within client services, human resources and technology

· Employee stock option plan launched, incentivising key staff throughout the Group

· Number of employees as of 30 June 2013 in excess of 8,000, up approximately 30% on the same period last year

Steve Kezirian, CEO of the Group, commented: "We have continued our strong growth and anticipate the rest of the year will provide more trading opportunities to deliver against our IPO plan. Our core clients value IBEX's employee-focused, client-centric approach to the BPO industry and have correspondingly rewarded IBEX with increasing levels of business given its sustained operational execution. Concurrently, our sales team remains confident that it will continue to deliver new client wins which will further accelerate our growth and diversify our revenue mix."

For further information, please visit www.ibexcorp.com or contact:

Chairman's Statement

I am pleased to present my maiden report as Chairman of IBEX Global Solutions Plc as a public company. Our initial public offering and admission to AIM on the London Stock Exchange was a watershed moment for the business, after a process of growth and transformation that has spanned a decade.

Thanks to the efforts of the Company's management team and its advisors, the offering was highly successful, raising net proceeds for the Company of £9.7 million and providing for ample resources as the business continues to execute against its rapid growth plan.

Financial Results

Highlighting the momentum in our business, IBEX performed significantly ahead of management's expectations in the year to 30 June 2013. Revenues were $141.5 million (2012: $105.4 million) and Adjusted EBITDA (earnings before interest, taxation, depreciation, amortisation, exceptional items and employee share options payments) was $4.6 million (2012: $0.9 million), reflecting growth of 34% and 384% respectively. Loss before tax was $17.0 million (2012: $4.1 million) after exceptional items incurred as a result of the reorganisation in preparation for the IPO. On an operating basis, the business is now significantly cash flow positive after on-going interest charges and capital expenditures.

The benefits of undertaking an IPO are already beginning to show through in our operations. As a result of the capital raised we are able to continue to fund our growth. Additionally, the realisation of a public offering has helped crystallise the value of equity participation in the minds of our management and staff and further aligns them with the shareholders of our business; June and July have been our lowest staff turnover months ever, despite strengthening economies in our core labour markets of the United States and the Philippines.

Outlook

Our core clients continue to deliver growing volumes of business to us and remain confident that our sales team will deliver new client wins that will aid in the diversification of our revenue streams as we had hoped.

I would like to thank the management and staff of our Company for their extraordinary efforts and accomplishments during 2013. In addition to delivering a transformative increase in revenues and client satisfaction, the team rebranded the business to its current identity of IBEX Global Solutions, and successfully executed an IPO. As a board we are grateful for their tireless efforts, and look forward to supporting management in its continued success in 2014 and beyond.

Zia Chishti

Chairman

Chief Executive's Review

I am pleased to present IBEX Global Solutions Plc's maiden results as a public company. Our company delivered a very strong performance in the year ended 30 June 2013 and has continued to make good progress in the early months of the new trading year.

On June 28, 2013 the company successfully completed its IPO, raising £9.7 million after expenses, and we are pleased to welcome the new shareholders to IBEX. At the time of our admission to AIM, we said that public status and the capital raised would be used to pay down debt, fund our continued growth and to provide transparent incentives for existing and future members of our team. In our maiden financial results since the IPO, we are very pleased to present a strong performance for the year and also to report that IBEX has made excellent progress against the goals outlined at IPO, post the period end. These included continued revenue growth, developing the operating leverage in the business and broadening our client base through new wins.

Financial Review

The principal Key Performance Indicators (KPIs) used by the board in measuring the performance of the company are Revenue, Cost of Sales, SG&A, earnings before interest, depreciation, amortisation and exceptional items (EBITDA) and net profit/(loss).

The KPIs above are in line with internal projections and tracking positively against forecasts.

Revenue for the period was up 34% to $141.5 million (2012: $105.4 million) driven primarily by increasing business from our established client base and additional new client wins. Adjusted EBITDA rose 384% to $4.6 million (2012: $0.9 million), principally due to the growth in revenue and the operating leverage in the business.

Loss before tax for the year was $17.0 million (2012: $4.0 million), up 321% on the prior period due to the exceptional items incurred as a result of the reorganisation in preparation for the IPO. Loss per share was 0.48 cents. Cash at bank and in hand was $10.7 million (2012: $1.9 million) as a result of the receipt of £9.7m net proceeds of the placing of new shares at IPO. Net debt (cash and cash equivalents and net receivable of IPO proceeds, less third party borrowings) at the period end was $2.9 million, down 75% (2012: $11.4 million).

Operational Review

The largest portion of the Company''s variable costs is attributable to agent labour expenses. Accordingly, efficient management of the cost of agent labour (including training costs) is key to IBEX's profitability. The Company attempts to strike a balance between a highly-skilled agent labour force driven by higher compensation levels and lowered attrition with the profitability needed to run a sustainable business.

Having established this balance between agent compensation and overall profitability, management uses client-specific metrics (including but not limited to customer satisfaction, sales conversion, and quality) as the guide to manage the operation. This client-centric approach drives decision-making related to agent scheduling, performance-management and coaching, and levels of investment across the enterprise. An alignment of goals unique to each client drives appropriate behaviours and further strengthens the relationships with the individual clients. The Directors believe that the Company is known for agent compensation levels that are above average and further believe that this is a key consideration in IBEX's revenue growth over the last two years.

Incentivising key staff

Traditionally, staff churn is a challenge for operators in our industry because the training of staff to make them effective can be both costly and time consuming. IBEX understands that retention and motivation of staff is absolutely crucial to our success. Attrition has a disproportionate impact on Company profitability both through the cost of replacement training and through foregone margin associated with a departing employee. We believe that employees with higher tenure are more likely to perform better, thereby improving client metrics and more easily growing the Company's share of the client's outsourcing spend.

To this end, we pay our employees more than the industry average in each country in which we have operations. In addition, our employees are afforded opportunities to progress their careers as we grow the business. We believe employee's career developments are inextricably linked to the success of the Company. In order to further enhance these principles, IBEX used the AIM admission to offer an equity incentivisation plan to its staff. The IBEX equity reward scheme is therefore not limited to the Board and senior management, but is also offered to nearly all manager-level individuals in the organisation. This represents a significant point of differentiation in the BPO marketplace and overall incentivisation package that will help safeguard the services we offer to our clients.

Customer base

We are acutely aware that our clients entrust IBEX with key customer support functions, outsourcing mission-critical parts of their business operations. Given the impact we have on our client's reputation, we know that customer service is a key differentiator in the marketplace, and represents a key aspect of how we manage our business. It is this difference in quality which has allowed the Company to expand its blue chip customer base. During the year, major customer wins included a contract with a leading UK leisure company, which will be delivered from our offices in the Philippines. In Pakistan, we grew our business through the addition of a large contract with a leading mobile telecoms operator. As well as new wins, the Company continued to strengthen its relationships with existing customers. For example, we began work with a subsidiary of an existing Fortune 500 customer, indicative of the trust they have in our performance. Therefore, after taking care of our workforce, we turn our attention to outperforming against client requirements. It is this approach, consistently applied, which differentiates us from the competition, and means that household names use us to protect and cultivate their relationships with their end customers. Overall, we want our clients to know that IBEX is dedicated to generating the best outcomes of customer satisfaction on their behalf. In each case, the metrics by which clients measure the value we add to their operations are examined daily. We are relentless when it comes to ensuring client satisfaction and the business is set up to improve constantly on our already proven successes. 

Outlook

Our IPO has helped prepare IBEX to capitalise on the exciting opportunities available to us in a fragmented global outsourcing market. Whilst the global economic environment remains challenging for companies operating in most sectors, IBEX is well positioned to help such businesses, providing critical resources and systems across a diversified global footprint in an efficient and scalable operating environment. The expertise of our staff and results-driven approach are driving measurable results for our clients.

IBEX owes its continuing success not just to the management team but also to our employees across all roles within the Company. The quality and dedication of our staff is what differentiates us from the competition and delivers the best, most well informed and professional service for our client base. I would therefore like to thank every member of the IBEX team for their on-going support and efforts. Galvanised by our successful IPO on AIM, we remain true to our core values: Integrity, Transparency, Excellence and Respect and look forward to a bright future

Statement of Comprehensive Income

The accompanying notes are an integral part of these consolidated financial statements.

Statement of Financial Position

The accompanying notes are an integral part of these consolidated financial statements

Statement of Changes in Equity

The accompanying notes are an integral part of these consolidated financial statements

Cash Flow Statement

Notes to the accounts

(1) Nature of the business

IBEX Global Solutions Plc (the Holding Company) was incorporated on 26 March 2013 as IBEX Global Solutions Limited and was re-registered as a public limited company on 4 June 2013. The Holding Company was incorporated under the Companies Act 2006 with a financial year end of 30 June. On 28 June 2013 the Holding Company was admitted to trade on the Alternative Investment Market (AIM), a market operated by the London Stock Exchange Plc.

IBEX Group (the Group) is a global portfolio of companies in the contact centre and related business process outsourcing (BPO) business, with operations in the United States, Philippines, United Kingdom, Pakistan and Senegal. Service offerings include customer care support, business and consumer inbound and outbound telesales and technical support services. IBEX Group also offers enabling technology solutions including Interactive Voice Response (IVR).

The IBEX Group consists of:

(2) Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (including International Accounting Standards (IAS)) "IFRS" and International Financial Reporting Interpretations Committee (IFRIC) interpretations as adopted by the European Union (IFRS as adopted by the EU) and the Companies Act 2006 applicable to companies reporting under IFRS.

In accordance with UK Companies law, a Company cannot file its first set of financial statements for a period of less than 6 months. As IBEX Global Solutions Plc. was incorporated on 26 March 2013, the first filing date will be 30 June 2014. As such, these are non-statutory financials statements.

The consolidated financial statements have been prepared under the going concern assumption.

The Resource Group International Limited (TRGI) incorporated IBEX Global Solutions Plc on 26 March 2013. On 31 March 2013 IBEX Global Solutions Plc. acquired 100% ownership of various subsidiaries (listed above - referred as "the Continuing Business Entities") from TRGI and issued its shares in exchange. Prior to this transaction TRGI directly controlled each of the Continuing Business Entities and by virtue of its controlling interest in IBEX Global Solutions Plc continues to control the Continuing Business Entities. As common control transactions are outside the scope of IFRS 3 (Business Combinations) the management has, as required by IAS 8 (Accounting Policies, Change in Accounting Estimates and Errors), used its judgement in developing and applying an accounting policy which reflects the economic substance of the transaction to account for the Continuing Business Entities.

The management considers pooling of interest method of accounting to be appropriate to account for the combination of various subsidiaries with the Holding Company. As a result, the Holding Company and its subsidiaries are presented as if they have legally been a group of companies for all periods presented. The following accounting principles are applied:

- the assets and liabilities of the Holding Company and its subsidiaries are recorded at book value

- intangible assets and contingent liabilities are recognised only to the extent that they were recognised by the acquiree in accordance with applicable IFRS and

- no goodwill is recorded.

These financial statements therefore represent a continuation of the financial statements of Continuing Business Entities with the Holding Company as the reporting entity. Comparatives for the year ended 30 June 2012 relate solely to the Continuing Business Entities. The financial statements for the year ended 30 June 2013 are the first financial statements prepared by the Company in accordance with IFRS. As such, they take account of the requirements and options in IFRS 1 (First-time Adoption of International Financial Reporting Standards) as they relate to the comparative financial information for the year ended 30 June 2012 included therein. The Company's transition date to IFRS was 1 July 2011.

(3) Exceptional items

On 30 March 2013, TRG Customer Solutions Inc. IBEX Philippines Inc. and IBEX Global Solutions (Philippines) Inc. wrote off its balances with other affiliates as follows:

(4) Capital risk management

The Company manages its capital considering shareholders' interests, and the value of the Group assets. This consists of cash and cash equivalents, debt balances (working capital line of credit, long term and short term lease liabilities) and equity attributable to equity holders. The following table summarises the Capital of the Company:

 IBEX's policy is to leverage a Working Capital Revolving Line of Credit to meet anticipated working capital funding requirements. These borrowings, together with cash generated from operations, may be loaned internally or contributed as equity to certain subsidiaries.

(5) Trade and other receivables

Trade and other receivables consist of the following:

* The Holding Company was admitted to AIM of the London Stock Exchange on 28 June 2013. The funds from the flotation were received subsequent to the date of these consolidated financial statements

Provision for doubtful debts

(6) Trade and other payables

(7) Finance costs

(8) Intangible assets

Allocation of amortisation charge in the statement of comprehensive income

The intangible assets that have an indefinite life are trademarks and are considered to have an indefinite life on the grounds of the proven longevity of the trademarks and the Company's commitment to maintaining those trademarks.

(9) Property, plant and equipment

Property, plant and equipment (continued)

Adjustments for grants received relate to government grants received for the reimbursement of expenditure on property, plant and equipment. In accordance with the Company accounting policies, this is deducted from the asset's carrying value.

Details of property, plant and equipment held under finance lease are as follows:

(10) Cash and cash equivalents

Cash and cash equivalents consist of the following:

(11) Earnings per share

(a) Basic

Basic loss per share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year.

Prior year EPS is computed on a pro forma basis, for the purpose of consistency.

(b) Diluted

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. As of 30 June 2013, the company had no dilutive potential ordinary shares.

(12) Cash (used in)/generated from operations