Final Results

AVIA HEALTH INFORMATICS PLC

Unaudited Preliminary Results

for the year ended 31st March 2012

4th July 2012

Avia Health Informatics Plc ("Avia" or the "Company") announces its unaudited preliminary results for the year ended 31st March 2012.

Summary:

Financial

·; Revenues of £2.3 million (2011: £2.1 million)

·; Gross margin of 29% (2011: 41%)

·; Focus on cost control with an annualised reduction of £400k in staff costs

·; Loss after Tax for the year of £0.63m (2011: £0.65m)

·; Net current liabilities of £385k include deferred income of £390k

·; Net cash of £100k at 31 March 2012

·; Seeking to raise approximately £1m of new capital in the short term to both provide working capital to secure the business and to underpin the development of the business

Operational

·; PathFinderRF launched for Clinical Commissioning Groups ("CCG")

·; Successful piloting of Odyssey CareAssess in UK care homes

·; Odyssey FaceToFace launched in new emergency department and urgent care settings

·; Odyssey TeleAssess supplied to Swiss health insurance group

·; Non-exclusive partnership agreement with K3 Healthcare / the Institute of Remote Healthcare

·; Non-exclusive sales agent appointed in Illinois, USA, to sell Odyssey CareAssess software

·; Exclusive reseller appointed in Canada to sell the Odyssey software range

Commenting today, Barry Giddings, Chairman of Avia said:

"The financial year to 31 March 2012 was unquestionably a difficult and turbulent year for the Company. We had to manage a difficult financial situation following anticipated sales failing to materialise owing to circumstances beyond the Company's control. As such, we did not make sufficient progress in our strategy of reducing dependency on the UK domestic public healthcare sector and this remains a high priority for the Company.

More work is required over the next quarter to stabilise the financial situation of the Company and accordingly we are seeking to raise new capital. Our business agenda is tightly focused on profit. Odyssey remains an exceptionally strong brand and we believe its world-class clinical decision support content alongside our new PathFinderRF software continues to offer significant benefits, including cost savings, to healthcare globally. We are confident that through new partnerships and simplified delivery we will improve the performance of the Company in the coming year. There are a number of prospects and opportunities, which we believe can deliver significant growth. We have been busy developing our software and applications to take advantage of these. As a result we look forward with guarded optimism to the coming year".

Chairman's Report

Introduction

The unaudited consolidated results for the year ended 31 March 2012 show turnover for the year of £2.3 million (year ended 31 March 2011: £2.1 million), which resulted in an operating loss of £0.63 million (2011: operating loss £0.54 million). The gross profit margin in the year was 29 per cent (2011: 41 per cent). From April 2011 to April 2012 we reduced the payroll cost by c£400,000 on an annualised basis. The loss per share for the year was 9.81 pence (2011: loss of 12.25 pence per year). The Company's cash balance as at 31 March 2012 was £0.10 million (2011: £0.37 million).

Suspension

Trading in the Company's shares was suspended in August 2011 following a revenue shortfall impacting on the Company's financial position. Sales of Odyssey TeleAssess and Odyssey FirstAssess that had been anticipated in the UK failed to materialise owing to changes in NHS policy and funding and deployment issues in the prison sector.

Actions taken

·; Strengthened sales delivery structure

·; Launch of PathFinderRF software

·; Reduced costs by c£400,000

·; Creditor management including salary deferment of £200,000

The Company shares were readmitted to AIM on the 1st February 2012.

The financial performance of the Company over the first half of the financial year and the second half of the financial year by quarter is shown in the table below. The figures reflect the building of the Company for the anticipated NHS sales in the first half and the subsequent cost reduction once it became clear the sales would not materialise in the second half of the financial year.

Company Strategy

Avia intends to grow its business through selling Odyssey clinical decision support hosted, web and mobile applications and the PathFinderRF hosted solution, working with UK and international partners and resellers to increase their market penetration. Sales growth is being targeted through a direct sales force and the engagement of resellers and added value partners, the latter particularly being pursued in new international markets.

In June 2011 Avia's wholly owned subsidiary Plain Healthcare Ltd ("Plain") signed a contract with Nene Commissioning Group ("Nene") in Northamptonshire to acquire the intellectual property rights ("IPR") to sell and manage future development of their PathFinder software. PathFinderRF enables NHS Commissioning Groups and other Primary Care Organisations to more effectively manage referral decision making and documentation from GP surgeries to specialist and community services. Consideration for the acquired IPR will be paid solely in the form of sales royalties on the licences to use the PathFinderRF software, on a decreasing sliding scale over a five-year period. Avia will fund the continued development cost of the software.

UK

Technical and clinical developments delivered a range of new software that enabled the UK sales team to start to diversify from its traditional base into new areas, such as care homes. Odyssey CareAssess has been designed as a hosted or locally deployed service to meet the needs of nursing and residential care homes. It enables both clinical and non-clinically trained staff to offer care home residents high levels of care and support in the event of illness or injury. A successful pilot with care homes in Coventry demonstrated a substantially reduced level of referrals of residents to GPs and emergency departments.

Odyssey and PathFinderRF in new UK markets:

·; Odyssey FaceToFace in an Emergency Department ("ED") and Urgent Care

·; Odyssey CareAssess as a hosted service in Clinical Commissioning Groups ("CCG"), taking full advantage of the improved care provision and cost savings available through effective and efficient clinical assessments

·; Odyssey FirstAssess used in prisons

·; PathFinderRF supporting cost savings through effective referrals. Five CCGs using PathFinderRF

International

Our strategy for international expansion is to identify and work with distribution partners, technical partners who provide interoperability with other health IT systems and strategic partners that can provide access to global markets.

Developments within the Odyssey software hosted services and applications are being focused on designing appropriate decision support tools to enable clinicians, non-clinicians and patients to safely and quickly assess clinical needs, whether based in a clinic, a call centre or at a remote location. We continue to see significant growth potential for our software to be sold in diverse markets around the world.

·; Odyssey TeleAssess supplied and implemented with a new health insurance group client in Switzerland

·; Non-exclusive partnership agreement with K3 Healthcare / the Institute of Remote Healthcare to promote the Odyssey software range to providers of remote healthcare

·; New sales agent in Illinois, USA, to sell Odyssey CareAssess software to nursing homes and assisted living facilities in the United States

·; New Canadian reseller, The Stevens Company Limited, to sell the Odyssey range in Canada

Software Development

The Company has completed the development and launch of hosted services, which allows global delivery of its clinical content in a number of languages and in any setting. The use of Service Orientated Architecture allows expansion of revenues both from Odyssey and third party applications in all target sectors. The Company has refined the delivery of the Odyssey user-interface for use with iPad touchscreen technology to enhance the mobility of the application.

The Odyssey clinical knowledge and business logic is now available as a hosted service, enabling customers and users in countries and regions with connectivity through the internet to utilise Odyssey clinical content with a significant reduction in the cost of deployment. Delivering the clinical knowledge via the Cloud supported by Odyssey web services will enable our strategic partners, resellers and end users to access the clinical knowledge and business logic from any internet connected location in the world. This will increase our partner opportunities and reduce the time taken to deploy updates to the end user.

These developments will open up the international markets for the Company's solutions. Odyssey is now available via the internet, 3G/4G and the Cloud, for both static and mobile touchscreen, smartphone and keyboard devices.

Board Changes

Nigel Leavy FCA relinquished his role as part time Finance Director on 26th July 2011 and became a Non-Executive Director at that date, he subsequently retired from the Board on 31st January 2012. The Board wishes to thank Nigel for his services since the inception of the Company.

Management

Whist reducing payroll cost, the Company has strengthened its management structure further by the appointment of a Director of Technical Development, Director of Software Delivery and a Director of UK Marking and Sales. The management structure is now as follows:

Directors

·; Executive Chairman: Barry Giddings

·; Clinical Director: Professor Jeremy Dale (part-time)

·; Non-Executive Director: Roger Lane-Smith

Senior Management

·; Director of Marketing & Sales: Craig Verster

·; Director of Technical Development: Graeme Wells

·; Director of Software Delivery: Susan Todd

·; Financial Controller: Paul Preece

On the successful completion of the fundraising, referenced in the next paragraph, it is proposed to split the Executive Chairman role through the appointment of a CEO and a Finance Director (part time) to the Avia board.

I will continue as Chairman with responsibility for the Far East markets.

Funding

Net cash at 31 March was £0.1million and the current cash resources of the business remain constrained and as a result the business remains subject to adverse trading swings. Based on the Company's current cash position and management forecasts the Company is seeking to raise approximately £1.0million in equity and/or debt funding in the short term. Of this amount approximately £0.25m will be required to provide working capital for the business with the remainder used to support software and market development for existing and new markets. Once the funding is place a General Meeting will be called to obtain shareholder approve the funding proposal.

Current Trading and Outlook

The challenging market conditions experienced in our core UK markets are continuing. Although we see considerable opportunities for PathFinderRF and Odyssey sales as Clinical Commissioning Groups become fully established, the NHS is in a transition period in which IT purchasing decisions are being delayed. Although this is restraining our UK business, we anticipate growth from the Company's newly released software hosted services and applications, such as PathFinderRF, Odyssey CareAssess and Odyssey SelfAssess during the second half of the current financial year.

The major investment that the Company has continued to make, both in clinical and software development, is targeted at innovative cost-effective hosted, web and mobile delivered software solutions and applications in order to capitalise on new opportunities as they present themselves in the future.

While the current level of non-UK sales are still low, we are encouraged by the strength of interest shown from international markets and are optimistic that during the current financial year there will be a shift from the Company's dependence on the UK market towards major international growth markets.

Staff

I would like to thank all my colleagues and staff for their exceptional efforts and support both in terms of hard work and for their financial and operational contribution during 2011 and 2012.

Barry Giddings

Chairman

4th July 2012

AVIA HEALTH INFORMATICS PLC

(REGISTERED NUMBER: 6470277)

CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2012

2012 2011

Notes £ £

Revenue 2,275,607 2,097,504

Cost of `sales (1,623,513) (1,230,315)

GROSS PROFIT 652,094 867,189

Administrative expenses (1,280,258) (1,407,408)

OPERATING LOSS (628,164) (540,219)

Finance income 159 241

Income tax - (107,622)

LOSS FOR THE YEAR AND TOTAL

COMPREHENSIVE INCOME (628,005) (647,600)

Loss per share expressed

in pence per share:

Basic and diluted (9.81) (12.25)

AVIA HEALTH INFORMATICS PLC

(REGISTERED NUMBER: 6470277)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 MARCH 2012

2012 2011

£ £

ASSETS

NON-CURRENT ASSETS

Intangible assets 497,542 539,124

Property, plant and equipment 36,529 43,787

534,071 582,911

CURRENT ASSETS

Trade and other receivables 467,547 642,532

Cash and cash equivalents 99,853 366,423

567,400 1,008,955

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 562,522 348,378

Deferred income 390,312 466,846

952,834 815,224

NET CURRENT ASSETS (385,434) 193,731

NET ASSETS 148,637 776,642

SHAREHOLDERS' EQUITY

Called up share capital 124,185 124,185

Share premium 2,069,837 2,069,837

Reverse acquisition reserve (1,795,277) (1,795,277)

Merger reserve 1,488,489 1,488,489

Retained earnings (1,738,597) (1,110,592)

TOTAL EQUITY 148,637 776,642

AVIA HEALTH INFORMATICS PLC

(REGISTERED NUMBER: 6470277)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2012

Called up Profit

share and loss Share Other Total

capital account premium reserves equity

£ £ £ £ £

Balance at 31 March 2011 124,185 (1,110,592) 2,069,837 (306,788) 776,642

Changes in equity

Issue of share capital - - - - -

Reverse acquisition - - - - -

Total comprehensive income - (628,005) - - (628,005)

Balance at 31 March 2012 124,185 (1,738,597) 2,069,837 (306,788) 148,637

AVIA HEALTH INFORMATICS PLC

(REGISTERED NUMBER: 6470277)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2012

2012 2011

Notes £ £

Cash flows from operating activities

Cash absorbed by operations (192,322) (599,819)

Net cash absorbed by operating activities (192,322) (599,819)

Cash flows from investing activities

Purchase of intangible assets (56,994) (184,664)

Purchase of property, plant and equipment (17,413) (22,984)

Purchase of non-controlling interest in

subsidiary - -

Cash acquired on reverse acquisition - -

Interest received 159 241

Net cash absorbed by investing activities (74,248) (207,407)

Cash flows from financing activities

Proceeds from issue of share capital - 698,486

Net cash generated from financing activities 0 698,486

Decrease/(increase) in cash and cash equivalents (266,570) (108,740)

Cash and cash equivalents at 366,423 475,163

beginning of year

end of year

AVIA HEALTH INFORMATICS PLC

(REGISTERED NUMBER: 6470277)

LOSS PER SHARE

FOR THE YEAR ENDED 31 MARCH 2012

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

The weighted average number of shares for the period ended 31 March 2011 and 31 March 2012 is based on the number of shares of Avia Health Informatics plc in issue during the period.

As there are no dilutive factors earnings per share is equivalent to the basis loss per share.

2012

Weighted

average

number Loss

Earnings of per-share

£ shares pence

Basic EPS

Effect of dilutive securities - - -

Diluted EPS

Adjusted earnings (628,005) 6,399,023 (9.81)

2011

Weighted

average

number Loss

Earnings of per-share

£ shares pence

Basic EPS

Effect of dilutive securities - - -

Diluted EPS

Adjusted earnings (647,600) 5,285,226 (12.25)

Notes

1. Statement of compliance

The financial information set out above does not constitute the Company's statutory report and accounts for the year ended 31 March 2012 or the year ended 31 March 2011. Statutory Accounts for 2011 have been delivered to the registrar of companies. The auditor's report in respect of the 2011 accounts was unqualified but include reference to matters to which the auditor drew attention by way of emphasis of matter or contain a statement under section 489(2) or 498(3) of the Companies Act 2006. The results for the year ended 31 March 2012 are unaudited.

The information contained in this preliminary announcement has been approved by the Board of Directors.

2. Basis of preparation

The financial statements have been prepared on a historical cost basis.