Half Yearly Report

24 March 2014

IBEX Global Solutions Plc

("IBEX" or "the Company" or "the Group")

Interim Results for the Six Months Ended 31 December 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 interim results for the six months ended 31 December 2013.

Financial Highlights:

Operational Highlights:

Steve Kezirian, CEO of the Group, commented: "In this current fiscal year, we have continued our extraordinary growth and delivered half year revenues ahead of what we had expected at the time of the IPO. The opening of three new facilities in the past six months demonstrates our clients' continued belief in IBEX's value proposition and overall level of service. We believe our employee-focused, client-centric approach to the BPO industry will continue to differentiate us in the marketplace and allow us to accelerate market share growth for the foreseeable future."

Chairman's Statement

I am pleased to present this interim report as Chairman of IBEX Global Solutions Plc. Buoyed by its admission to AIM and validated by its core client base, the Company has executed on its rapid growth strategy through the first six months of 2014. Thanks to the efforts of the Company's management and dedicated team of employees, IBEX has strengthened its client relationships and continued to deliver on the plan outlined at the time of the IPO.

Financial Results

IBEX maintained its powerful growth momentum during the six-month period to 31 December 2013 and experienced a significant increase in revenue and EBITDA performance compared to the same period in the prior fiscal year. Revenue was $91.0 million (2012: $67.3 million) and adjusted EBITDA was $4.5 million (2012: $2.1 million), reflecting growth of 35.4% and 116.3%, respectively. Profit before tax, excluding a one-time exceptional cost related to refinancing the Company's credit facility, was $0.5 million (2012: loss before tax of $0.2 million). The significant improvement in performance compared to the previous year was primarily due to an increase in operating profits as the professional relationships with several key accounts continue to deepen, with impressive program launches in the United States, Philippines and Pakistan. On an operating basis, the business continues to have positive cash flows after on-going interest charges and capital expenditures and is paying a dividend of $1.25 million to reflect its cash generation.

I would like to thank the management and staff of our Company for their extraordinary efforts and continued dedication to IBEX's clients. These efforts continue to deliver strong client satisfaction and, in turn, have resulted in industry-leading levels of revenue growth. As a board, we are grateful for our employees' tireless work, and I look forward to supporting the management in its continued success moving forward.

Zia Chishti

Chairman

Chief Executive Officer's Review

I am pleased to report IBEX's interim results for the first half of fiscal year 2014. Our Company delivered significant revenue growth, ahead of management's expectations, and continues to make good progress on improving the operating leverage in the overall business. Consistent with our plan outlined at IPO, we have developed further our relationships with existing clients and delivered new business wins essential for the long-term diversification of our revenue base. Major customer wins included a key contract with a leading global wireless technology and systems integrator, demonstrating the Company's ability to rapidly deploy a global solution across three countries and six locations. In addition, the Company leveraged its core expertise in performance marketing to broaden its reach into the healthcare vertical, launching a new program in the dental field for a leading customer acquisition platform.

Geographically, our core United States and Philippines service delivery locations have enjoyed continued growth during the period. Our clients continue to believe in a blended onshore-offshore delivery solution, allowing IBEX to accelerate its growth in our core US and Philippines markets. Stability in IBEX's other service delivery locations (Senegal, the UK and Pakistan) demonstrates the Company's ability to deliver high-quality service for discerning clients across a global footprint. IBEX MENA ("Middle East North Africa"), headquartered in Dubai and launched during the last quarter, has shown early signs of success, and we believe it will leverage our operational success globally and further differentiate IBEX within the industry.

The Company will continue to expand its geographic footprint, either organically or via best-fit acquisitions, to deepen its relationship with clients, extend its reach into new markets, and broaden its competitive advantages in the marketplace. Our clients value the Company's global footprint and believe IBEX is well-positioned to offer customised solutions in multiple languages and at varying price points.

In addition, it is my pleasure to welcome Michael Sternklar to the IBEX Leadership team as the Executive Vice President, Client Services. Michael is an experienced business leader with a track record of leading healthy, profitable operational organizations. He has 30 years of experience in the HR/Benefits Outsourcing industry, having most recently led Mercer's US Benefits Outsourcing business (a $300 million+ operation). Prior to joining Mercer, he spent five years at Fidelity Investments in a number of leadership roles, including EVP of Client Services, Sales and Communications for its HR services business and EVP, General Manager for its HR/Payroll Outsourcing business. Previously, he was COO and General Manager for Unifi Network, a division of PricewaterhouseCoopers which provides HR and benefits outsourcing services to the Fortune 500 market and ran the outsourcing business for Kwasha Lipton.

Financial Review

In measuring the performance of the Company, the Board uses the following principal Key Performance Indicators (KPIs): Revenue, Cost of Sales, Selling, General and Administrative Expenses (SG&A) and EBITDA.

Below is the comparison of the results between the six months ended 31 December 2013 and 2012.

Revenue for the period increased by 35.4% to $91.0 million (compared to 2012: $67.3 million), driven primarily by increasing business from our established client base. Adjusted EBITDA rose 116.3% to $4.5 million (2012: $2.1 million), principally due to the significant growth in revenue and operating leverage in the business. The Group was also able to increase its gross margin to 17.1% for the six months ended 31 December 2013, up from 15.9% in the same period last year.

Profit before tax, excluding a one-time exceptional cost related to refinancing the Company's credit facility, was $0.5 million (2012: loss before tax of $0.2 million). The significant improvement was primarily due to an increase in operating profits as professional relationships with several key accounts continue to be strengthened with impressive program launches in the US, Philippines and Pakistan. Loss per share was 0.009 cents compared to 0.006 cents in the same period last year. Cash in bank and on hand was $12.6 million as of 31 December 2013 (30 June 2013: $10.6 million) reflecting the cash generation in the business as well as its efficient collection of receivables. Net assets as at 31 December 2013 amounted to $22.3 million, which is unchanged from 30 June 2013. Net debt (cash and cash equivalents less third party borrowings) as of 31 December 2013 amounted to $10.9 million which is higher by $8.0 million than the net debt as of 30 June 2013 ($2.9 million). The increase in net debt was primarily driven by capital leases associated with facilities in the US and the Philippines.

Dividend

The Company has declared a dividend payment of $1.25 million corresponding to the reporting period, and reflects the Company's progressive dividend policy of paying dividends from recurring cash flows. The Company is strongly cash generative on an operating basis, and generates cash flow on a recurring basis in excess of its reported consolidated net income, given that its net income reflects several expenses that are non-cash or non-recurring in nature.

Outlook

As previously reported, the business has continued to see strong support from its existing client base and has been given several opportunities to grow specific client accounts beyond the Board's original expectations. To support this additional growth and capitalise on the successful execution across multiple relationships and geographies, the Company invested in physical infrastructure and workforce capacity in anticipation of servicing these contracts. Three new facilities (one in the US and two in the Philippines), coupled with expansion of a current facility in Metro Manila, provided IBEX with 2,000 additional workstations necessary to support this growth. Due to changes in timing related to certain program launches, the Board now expects these contracts to generate revenue in the first half of the next fiscal year rather than this year as previously anticipated.

The incremental costs borne by the Company this year, together with the delay in revenues into next year, will result in Group revenues and earnings being below the Board's expectations for the year ended 30 June 2014. Whilst the timing impact on full year results is unfortunate, the Board is pleased to have mobilized its resources as planned to service this additional business and is confident of further success with these and other clients in the future.

Our team continues to execute on the Board's growth strategy while continuing to meet the needs of existing clients and launching new client programmes across our global footprint. Companies in nearly every sector continue to feel the pressure of global macroeconomic issues, and look to IBEX for help in providing critical resources and systems at scale in the most efficient operating environment possible. Deploying our technology and human capital will continue to be the cornerstone of our strategy as we continue to develop in 2014 and beyond.

Steve Kezirian 

Chief Executive Officer

Independent review report to IBEX Global Solutions Plc

Introduction

We have been engaged by the Company to review the financial information in the half-yearly financial report for the six months ended 31 December 2013 which comprises the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and the related notes 1 to 19. We have read the other information contained in the half yearly financial report which comprises only the interim results announcement, chairman's statement and chief executive officer's review and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in Note 2.

Our responsibility

Our responsibility is to express to the Company a conclusion on the financial information in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the six months ended 31 December 2013 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 2.

GRANT THORNTON UK LLPAUDITOR

LONDON22 March 2014

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Notes to the Condensed Consolidated Financial Information

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 interim condensed consolidated financial information is for the six months ended 31 December 2013. This interim condensed consolidated financial information does not constitute statutory financial statements as defined in the Companies Act 2006. These half yearly financial statements have been prepared on a consistent basis and format with the Group's annual consolidated financial statements for the year ended 30 June 2013. These half yearly financial statements have been prepared under the going concern assumption.

On 31 March 2013, IBEX Global Solutions Plc acquired 100% ownership of various subsidiaries from The Resource Group International Limited (TRGI) and issued its shares in exchange. Prior to this transaction, TRGI directly controlled each of the subsidiaries and, by virtue of its controlling interest in IBEX Global Solutions Plc, continues to control the subsidiaries. Accordingly, the Holding Company and its subsidiaries are presented as if they have been legally been a group of companies for all periods presented.

3. Ultimate parent undertaking and controlling entity

The ultimate parent entity is TRGI incorporated in Bermuda. The parent company of the largest group to include the IBEX Group in its consolidated financial statements is TRGI and its financial statements are not publically available. The ultimate controlling party of the Group are the directors of TRGI.

4. Accounting policies

The interim condensed consolidated financial information has been prepared in accordance with the accounting policies applied in the Group's annual consolidated financial statements as of and for the year ended 30 June 2013. The Group financial statements for the year ended 30 June 2013 were prepared under International Financial Reporting Standards as adopted by European Union.

The policies have been consistently applied to all the periods presented, unless otherwise stated.

5. Finance costs

6. Exceptional items

7. Earnings per share

(a) Basic

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

Prior year lost per share is computed on a pro forma basis, for the purpose of consistency with the basis of preparation at note 2 and in accordance with the Group's accounting policies.

(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 31 December 2013, 31 December 2012 and 30 June 2013, the Holding Company had no dilutive potential ordinary shares due to its losses.

8. Property, plant and equipment

The gross carrying amounts and accumulated depreciation of property, plant and equipment are shown below.

The reconciliation of the carrying amounts of property, plant and equipment is shown below.

9. Other non-current assets

Other non-current assets consist of the following:

On 31 March 2013, IBEX Global Solutions Limited entered into a contract of Standard Terms and Conditions with SATMAP Incorporated ("SATMAP"), subsequently amended on 31 March 2013 and April 2013 (the contract and the two amendments collectively, "Agreement"). Under the Agreement, the Holding Company (a) issued additional share capital of $1,000,000 to TRGI, direct parent of the Holding Company and indirect parent of SATMAP; and (b) issued a note in the amount of $1,000,000 payable to SATMAP. In exchange, the Company received an asset of $2,000,000 in dedicated data services (up to 2000 call-center seats) from SATMAP to be amortised over 120 months. The asset represents an advance payment for the proprietary artificial intelligence and pattern recognition technology invented and developed by SATMAP ("SATMAP Services"). The SATMAP Services integrate with call-center telephony and agent staffing to connect in real time customers with agents most likely to produce improved performance and service in call outcomes for such customers. As of 14 October 2013, the Holding Company (with the consent of SATMAP) assigned all of its rights and obligations under the Agreement and the Note to TRG Customer Solutions, Inc. d/b/a IBEX Global Solutions ("IBEX US"), which assumed all such rights and obligations. The assignment and assumption of the Agreement and the Note enables IBEX US to use the SATMAP Services in its call centers. IBEX US deploys the SATMAP Services in its call centers to enhance performance and as a value-added differentiator for its clients, producing more revenue for both the clients and IBEX US. The total value (net of amortization) of this asset as of December 31, 2013 is $1,850,000, of which $1,650,000 is classified as a non-current asset ($825,000 each in long-term prepayment and long-term deferred expenses) and $200,000 is classified as a current asset. As of 30 June 2013, the total value of this asset (net of amortization) was $1,953,000, of which $1,182,000 was classified as a non-current asset and $751,000 was classified as a current asset.

10. 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 on 2 July 2013.

Provision for doubtful debts

11. Cash and cash equivalents

Cash and cash equivalents consist of the following:

12. Liabilities against assets subject to finance lease

Liabilities against assets subject to finance lease are secured by the related assets held under finance leases. Future minimum lease payments at 31 December 2013, 31 December 2012 and 30 June 2013 are as follows:

13. Other non-current liabilities

14. Working capital line of credit

On 8 November 2013, one of the subsidiaries of the Holding Company (the Company) signed a Revolving Credit and Security Agreement (Agreement) with PNC Bank, National Association (PNC) for a new $35,000,000 revolving line of credit (RLOC) to replace the Capital Source Bank (CSB) $20,000,000 RLOC. The Agreement has a 7 November 2016 maturity date and an interest rate of LIBOR +2.50% and or the PNC Commercial Lending Rate (as publically announced) +0.25%. The Company is subject to certain qualitative and quantitative financial performance covenants, including a minimum Fixed Charge Coverage Ratio to ensure continued access to the line of credit.

15. Trade and other payables

16. Contingencies and commitments

There have been no material changes in contingencies and commitments during the period.

17. Cash generated from / (used in) operations