Half Yearly Report

24 September 2013

RapidCloud International plc

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

Interim results for the six months ended 30 June 2013

RapidCloud International plc (AIM:RCI), the computing services, web hosting and web solutions provider based in Southeast Asia, announces its half year results for the six months ended 30 June 2013.

Financial Highlights

· Revenue growth of 38% to RM 4.8 million (approximately £0.95 million) (H1 2012: RM 3.5 million)

· Gross profit margin of 73% achieved (H1 2012: 58%)

· Operating profit growth (excluding circa RM 0.35 million costs associated with the Company's IPO) of 156% to RM 2.3 million (approximately £0.46 million) - (H1 2012 RM 0.8 million)

· Profit before tax margin of 39% (H1 2012: 23%)

· Profit after tax growth of 115% to RM 1.9 million (H1 2012: RM 0.9 million)

· RM 2.3million cash (approximately £0.46 million) generated from operations before working capital changes (H1 2012: RM 1.1 million)

· Trade receivable days 84, down from 142 at 31 December 2012 - rolling trade receivable days 76

Operational Highlights (including post-period end highlights)

· Launch of Mobile Website Builder and Mobile Website with e-Commerce enabling customers to build smartphone and tablet compatible websites and link with payment gateways such as PayPal

· Release of new version of core product SME WebCombo+ incorporating a variety of new features

· Launch of e-Commerce Combo, a new suite of web products including shopping cart features and payment gateway services

· MSC (Multimedia Super Corridor) status and pioneer status awarded in June 2013 allowing Emerge Systems (M) Sdn Bhd, a subsidiary of the Group, to enjoy a further 5 + 5 years' of tax breaks in Malaysia

· Successful AIM IPO completed in August 2013 raising RM 4.9 million from UK investors to fund product development, geographic expansion and strengthen sales capabilities

Raymond Chee, Chief Executive of RapidCloud, commented: "We are delighted with our performance for the six months under review, during which time we achieved considerable growth in revenues, margins and profitability. In addition, the award of "MSC" status for a second time will have a significant positive impact on our earnings over the next decade.

"Healthy cash generation, combined with the successful IPO fund raise, has given us the resources to accelerate our penetration of the cloud services market within South East Asia. We are increasing investment in our sales force, skills, product offering and infrastructure to deliver a customer-centric range of cloud services and look forward to expanding our footprint in existing and new territories over the coming months.

"Traditionally the second half of the calendar year is stronger, accounting for circa. 60 per cent. of the year's revenues and we expect this trend to continue. We currently have a healthy and expanding pipeline and we look forward to the remainder of the year with confidence."

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

About RapidCloud

RapidCloud provides computing services, web hosting and proprietary web solutions, such as web-site building and e-commerce solutions. The Company is based in Southeast Asia and is one of the few solutions providers in the region to deliver its offerings through all three available Cloud Computing segments, i.e. Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service.

Formed in 1999 the Company has a well-established cloud offering with a customer base of over 36,500. These are predominantly SMEs but also include blue-chip clients such as Deloitte, BAE Systems and Canon, for which RapidCloud's extensive R&D department creates bespoke software solutions.

RapidCloud currently has operations in Malaysia, Thailand and the Philippines and has plans to expand into Indonesia. According to industry research from Frost & Sullivan, the Cloud Computing industry in Asia Pacific is expected to grow at a CAGR of 49.6% between 2013 and 2015, giving a market size of US45.6 billion by 2015.

RapidCloud International plc was admitted to AIM on 14 August 2013.

Chairman's Statement

At the time of RapidCloud's IPO on AIM in August this year, the Company indicated that it had a major growth opportunity in South East Asia. This confidence was based on the growth that has been borne out in our results for the 6 months ended 30 June 2013 when revenues grew by 38% year-on-year.

In addition, these results demonstrate our continued financial growth in terms of cash generation and profitability. Cash generation from operating activities before working capital changes was up 104% from H1 2012 while profit after tax increased 115% on the same period last year.

RapidCloud has a proven management team with a well-established business model, operates in a fast growing part of the world, and is delivering innovative Web-based software solutions to over 36,500 SMEs. It is these key investment points that led to our successful IPO, and these are the foundations for our on-going performance expectations.

The Company has many exciting opportunities ahead and our listing on AIM provides us with a strong platform on which to carry out our organic growth strategy. Our aim is to achieve this growth through geographical expansion into new territories in South East Asia, whilst looking for value enhancing acquisitions to accelerate our footprint in existing territories.

The successful move to AIM has further boosted the Company's industry reputation, generating interest in the UK and Asia, strengthening existing relationships with customers and partners, and accelerating the development of new opportunities. We look forward to updating our shareholders on these developments at the appropriate time.

Lastly, I would like to congratulate not only the Board, Consultants and Senior Management, who worked so hard to make this IPO a success, but also the staff of RapidCloud who maintained their focus on developing the business during this especially busy period. In addition, we would of course like to thank our many thousands of clients who continue to look to RapidCloud as their preferred Web- based solutions partner.

David Cotterell

24 September 2013

Chief Executive's Statement

I am pleased to report an excellent set of maiden interim results for RapidCloud. As one of Malaysia's leading hosting and cloud service providers, Government agencies, Multi-national corporations and medium and small enterprises continue to use RapidCloud for the provision of services across the cloud spectrum.

The IPO gives us an opportunity to accelerate our overseas organic expansion plans, whilst solidifying our reputation as a leading provider, thereby creating new acquisition opportunities.

In our home territory the cloud services industry is still at a relatively early stage, typically characterised by rapid growth. Increasing broadband speed and penetration coupled with Government initiatives and the continued increase in the number of registered businesses in the region provides a firm base for this growth.

In Asia Pacific, Frost & Sullivan (2013) estimate that the market will more than double in size by 2015, from $2.5bn to $5.6bn. Our aim is to capture an increasing proportion of this enlarged market.

Results Analysis

Our 38% revenue growth is attributable to a combination of a growing sales force and continuing strong demand for our core products. Our research and development team is continually refining our existing offering and developing bespoke software for a changing market place.

Even with a growing sales force we have seen a decrease in cost of sales compared with the first half of 2012, predominately due to data centre rental costs continuing to fall in this over populated and highly competitive sub-sector.

Operating profit has grown 134% to RM 1.9 million (H1 2012: RM 0.8 million) and this figure is inclusive of circa. RM 0.35 million of one-off costs specific to the AIM admission process.

Profit after tax is a solid 39% representing a 115% growth on comparative 2012 period.

A healthy RM 3.6 million cash was generated from operations, supported by the cash collection from a number of large projects which completed at the later end of the previous year. Further, as a result of this cash collection, trade receivable days are at 84, down from 142 at the 31 December 2012.

Operational Developments

During the six months under review we launched several new products to market while adding numerous features to some of our existing products. These developments reflect the continuous work our in-house R&D department performs in response to our clients' feedback, which has resulted in the generation of a substantial quantity of intellectual property to date.

In January of this year we launched Mobile Website Builder System, a new system allowing our customers to build mobile websites that are compatible with smartphones and tablets. This has been an important development for the Company as improvements to the broadband infrastructure in South East Asia has given rise to a rapid increase in mobile internet usage. The widespread introduction of 4G networks within the region is expected to further drive growth in this respect.

We also released a new version of our best-selling product suite, SME WebCombo+, incorporating a variety of new features including a mobile website builder, a Facebook integration module and QR (Quick Response) code generators.

In February of this year we launched our Mobile Website with e-Commerce offering. This is a mobile website design service that includes integration to mobile payment gateway services from our partners such as PayPal and iPay88. This was followed in March by the launch of E-Commerce Combo, an advanced suite of web products that includes payment gateway and "shopping cart" services and also includes features to cater for mobile commerce website development.

Our Real Estate Portal solution was launched in April 2013, which is a new web solution catering for real estate companies allowing them to manage their property portfolios. The solution also includes tools to assist estate agents in accessing and posting property information online.

In addition, the Company has benefited from participation in two Malaysian government schemes aimed at promoting the use of cloud services and online enterprise.

In May 2013 we participated in GMBO, an initiative by the Malaysian Communications and Multimedia Commission ('MCMC'). Under this initiative, small enterprises are able to engage our services to build their websites and they are then able to claim up to RM 1,000 from the MCMC in the form of a grant. The Company is confident that this will accelerate sales of our services to small enterprises within Malaysia.

Also, in June of this year, we were awarded MSC (Multimedia Super Corridor) status and pioneer status, allowing Emerge Systems (M) Sdn Bhd to enjoy five years, plus an additional five years, of tax breaks in Malaysia. We anticipate this award will have a positive impact upon our earnings for the next decade.

Post the period end, in August 2013, we successfully completed our AIM IPO raising RM 4.9 million from UK investors. These funds will be used toward product development, geographic expansion and strengthening our sales capabilities. The admission to AIM is also expected to enhance our perceived credentials with existing and potential customers and support the development of our brands in South East Asia.

Outlook

We are delighted with our performance for the six months under review, during which time we achieved considerable growth in revenues, margins and profitability. In addition, the award of 'MSC' and pioneer status for a second time will have a significant positive impact on our earnings over the next decade.

Healthy cash generation, combined with the successful IPO fund raise, has given us the resources to accelerate our penetration of the cloud services market within South East Asia. We are increasing investment in our sales force, skills, product offering and infrastructure to deliver a customer-centric range of cloud services and look forward to expanding our footprint in existing and new territories over the coming months.

Traditionally the second half of the calendar year is stronger, accounting for circa. 60 per cent of the year's revenues and we expect this trend to continue. We currently have a healthy and expanding pipeline and we look forward to the remainder of the year with confidence.

Raymond Chee

24 September 2013

Consolidated Interim Statement of Comprehensive Income

for the Six months ended 30 June 2013

Consolidated Interim Statement of Financial Position

As at 30 June 2013

Consolidated Interim Statements of Cash Flows

Six months ended 30 June 2013

Consolidated Interim Statements of Changes in Equity

Six months ended 30 June 2013

Notes to the financial information

Six months ended 30 June 2013

1. Accounting policies

The consolidated financial information presented is for RapidCloud Asia Berhad ('RCAB') and its subsidiaries (together the 'RCAB Group'). The group reconstruction, in which RapidCloud International plc ('RCI'), a company registered and incorporated in Jersey 15 March 2013, acquired the entire share capital of RCAB, occurred prior to admission to the AIM market on 7 August 2013 and therefore subsequent to 30 June 2013, the reporting date of these results. The financial information contained in these results therefore does not include RCI. Further detail is given in note 8 to this financial information.

The financial information of RCAB group for the year ended 31 December 2012 set out in this half yearly report does not constitute statutory financial statements. The figures for the year ended 31 December 2012 represent the historical financial information for the RCAB Group and have been extracted from Part IV(a) of the AIM Admission Document.

This consolidated half yearly financial information, which is unaudited for the half-year ended 30 June 2013, has been prepared in accordance with the accounting policies which the RCI group expects to adopt in its next annual report and is consistent with those adopted in the preparation of the historical financial information included in Part IV(a) of the AIM Admission Document and in accordance with IAS 34 'Interim Financial Reporting'. These accounting policies are based on the International Financial Reporting Standards as adopted by the European Union ('IFRS') issued by the International Accounting Standards Board ('IASB'). The financial information has been prepared on the historical cost basis.

2. Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses. IFRS 8 'Operating Segments' requires disclosure of the operating segments that are reported to the Chief Operating Decision Maker ('CODM'). The CODM at the end of the financial period under review has been identified as the Board of RCAB Directors, and following the group reconstruction, is the Board of RCI Directors, who have responsibility for planning and controlling the activities of the Group. The Group's reportable segment has been identified as the provision of Cloud Computing services. Across the Group there is considered to be a commonality in the nature of services, the type of customer, the methods used to provide services and the regulatory environment.

All operations of the Group are carried out in South East Asia. All revenues therefore arise within South East Asia. No single external customer amounts to 10 per cent or more of the Group's revenues.

As the Group only has one reportable segment, no further segmental information is disclosed.

3. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following:

The convertible preference shares in issue are dilutive for the purposes of calculating earnings per share. However, as the condition for conversion, being a successful admission to the AIM Market, is also linked to a share reorganisation and the issue of new shares and at the 30 June 2013 the number of shares that would be issued is uncertain (as explained further in note 7) the inclusion would not provide a meaningful calculation and has not been presented.

4. Property, Plant and Equipment

4. Property, plant & equipment (continued)

4. Property, plant & equipment (continued)

At 30 June 2013, included within property, plant & equipment are motor vehicles acquired under hire purchase agreements with carrying values of RM670,975 (31 December 2012: RM312,126, 30 June 2012: RM96,001).

5. Software development assets

Software development assets comprise capitalised development work on software products. These costs are internally generated wages and salaries costs arising from the Group's software developments and are recognised only if all the following conditions are met:

· an asset is created that can be identified;

· it is probable that the asset created will generate future economic benefit; and

· the development cost of the asset can be measured reliably.

Once development has been completed the software development intangible assets are amortised on a straight-line basis over their useful lives, which is assessed annually and is currently considered to be 5 years.

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

There have been no impairments in the period under review.

6. Trade and other receivables

The Group's normal trade credit terms range from 30 to 60 days. Other credit terms are assessed and approved on a case-by-case basis. The Group has no significant concentration of credit risk that may arise from exposure to a single debtor. The Directors consider that the carrying amount of trade and other receivables approximates to their fair values. All of the Group's trade receivables have been reviewed for indicators of impairment. There was no impairment of trade receivables for the six months to 30 June 2013 (31 December 2012: RM 26,000; 30 June 2012: RM Nil).

Trade receivables above include amounts that are past due at the year-end but against which no allowance for doubtful receivables has been made because there has not been any significant change in credit quality and the amounts are still considered recoverable.

7. Convertible preference shares

On 12 April 2013 redeemable convertible preference shares were allotted raising RM 2,200,000 (the 'A Shares'). On 15 April 2013 redeemable convertible preference shares were allotted raising a further RM 900,000 (the 'B Shares').

The convertible preference shares were convertible on admission to the AIM Market for a variable number of the groups equity instruments equivalent to 115 per cent and 110 per cent of the subscription price, for the A Shares and B Shares respectively, calculated based on the issue of the Ordinary Shares. Under the terms of issue, the A Shares were redeemable at the option of the holder should admission not take place by 31 July 2013 and the B Shares redeemable at the option of the holder should admission not take place by 31 August 2013.

On 7 August 2013 the conversion of the 2,200,000 A Shares resulted in the issue of 956,157 Ordinary Shares of RCAB at the placing price, and the conversion of the 900,000 B Shares resulted in the issue of 374,149 Ordinary Shares of RCAB at the placing price.

At 30 June 2013 the cash relating to the convertible preference shares is considered restricted cash and is included within the cash and cash equivalents balance in the Statement of Financial Position.

8. Subsequent events

On 14 August RCI was admitted to the AIM Market.

Prior to admission, a number of events took place on 7 August 2013 resulting in a share reorganisation and the acquisition of the entire RCAB Ordinary Share capital in exchange for 15,286,468 Ordinary Shares in RCI.

The events are detailed below:

On 7 August 2013, RCAB consolidated its issued share capital on the basis of 10 existing shares for

one new share. At the same time, the nominal value of the shares was changed to MYR0.01.

On 7 August 2013, RCAB raised RM960 through the issue of 96,073 new Ordinary Shares to Chee

Han Wen.

On 7 August 2013, the 3,100,000 redeemable convertible preference shares were converted to 1,330,306 RCAB Ordinary Shares.

On 7 August 2013, RCI issued and allotted 15,286,468 ordinary shares in consideration for the transfer of the entire issued and paid up capital of RCAB.

On 14 August 2013 and upon admission to AIM, RCI raised RM4,900,245 by issue of 1,851,948 placing shares. The net proceeds raised are RM2,959,225, after the estimated cash expenses of Admission of approximately RM2,043,545. A further RM610,050 of expenses are to be settled by the issue of 230,553 new ordinary shares.