Interim results: 6 months ended 30 September 2012

21 December 2012

MoneySwap Plc

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

Interim results for six months ended 30 September 2012

The Directors of MoneySwap Plc (AIM: SWAP), the Asia focused prepaid card and online payment services provider, are pleased to announce its interim consolidated financial statements for the six months ended 30 September 2012.

Operational highlights

·; Operating expenses down 25% against the equivalent period last year (US$2.4 million v. US$3.2 million for 2011);

·; US$1.5 million of unsecured loans received in period with further facilities of US$785,000 secured to-date post period;

·; Revenue generating trial projects for MoneySwap's three China UnionPay related products successfully progressing post period in Europe and Asia;

·; Management continues to pursue the collection of US$1.7 million of billed revenue on the Suisse Black Visa pre-paid card.

Richard Proksa, CEO of MoneySwap, commented:

"We are confident that with the loans and additional debt funding currently under discussion with investors, the Group has sufficient working capital to support its operations and launch MoneySwap's China UnionPay products. After these products are put into full operations, the Board anticipates that the Group will be funded internally from the revenues generated and repayment of the various loans will commence. "

The interim consolidated financial statements will shortly be available on the Company's web site, www.moneyswap.com.

For further information, please contact:

CHIEF EXECUTIVE OFFICER'S STATEMENT

The interim six month financial period ended 30 September 2012 was marked by the Group developing its products and procedures to launch its three licensed China UnionPay payment products. Revenue in the current period (US$14,000) was similar to the six months ended 30 September 2011 (US$17,000). It showed a decrease from the year ended 31 March 2012 (US$1.8 million) which was mainly due to the inclusion of revenues from sales of Suisse Black Visa of US$1.7 million. Provision was made against this US$1.7 million in the current period as discussed below.

During the period, sales of additional Suisse Black Visa prepaid cards of US$2.2 million were billed, however, collection is still pending. Thus the management has decided not to recognise these amounts in the current period's financial results, albeit management will continue to pursue the collection of these funds.

Indeed, the Company believes the relationship with Suisse Black Visa is strategically important to maintain as it will provide a unique selling feature to Chinese travellers when integrated with the China UnionPay suite of services available from MoneySwap.

Operating expenses decreased for the period, after excluding the effect of the US$1.7 million provision made against the trade receivables, to US$2.4 million (operating expenses for the six months ended 30 September 2011: US$3.2 million).

As the Group has not received the outstanding US$1.7m trade receivable, the Group has been required to secure debt funding in order to continue its business operations. During the period the Group received US$1.5 million of unsecured loans (the "Unsecured Loans"), which are repayable at the Group's discretion. Interest on the Unsecured Loans is payable at 5%. Subsequent to the period the Group announced on 19 December 2012 that it had secured additional funding of $350,000 through the issue of a convertible loan note. The Group has also received a further US$435,000 of Unsecured Loans on the same terms as those received during the period under review. The Directors remain in discussions with investors with the intention of seeking further debt funding and remain confident that, with these loans and additional funds, sufficient working capital is available to support the Group's operations and to launch MoneySwap's China UnionPay products. After the China UnionPay products are put into full operations, the Board anticipate that the Group will be funded internally from the revenues generated and repayment of these various loans will then commence.

Business review

Current Trading

The Company has been unable to collect the US$1.7 million trade receivable from selling of Suisse Black Card, reported in the audited financial report for the year ended March 2012. In light of this, operating expenses came under budget but overall business growth was not realized as the Group was unable to implement its planned investments in marketing and sales resources. The Group did however continue to develop its technology and procedures for MoneySwap's China UnionPay products. The Group has commenced revenue generating trial projects for these products post period end.

Expanding Marketing and Sales Coverage - Post Period

For the Suisse Black Card issued by Corner Bank, Switzerland in association with Visa we have added additional sales agents inside as well as outside of China. The ability of China UnionPay cardholders to transfer funds from their UnionPay card to their Suisse Black Card is a compelling and unique feature which the Directors believe will drive sales.

A number of international merchants are already integrating the MoneySwap UnionPay Online payment system into their websites, to enable cardholders of UnionPay in China to purchase goods and services online from non-China domiciled merchants. MoneySwap's online payment gateway was completed on time and incorporated a number of features requested by major potential merchants. MoneySwap holds a global license for this product and is working with payment partners such as DataCash UK, who already serve an existing community of online merchants with other payment gateways.

Meanwhile, MoneySwap's Point-of-Sale terminals, which accept UnionPay cards, have been installed in a limited number of stores in the United Kingdom and are receiving an increasing flow of transactions. Discussions are ongoing with owners of a large number of retail outlets across Asia for the installation of the terminals. In addition, MoneySwap is in the process of securing additional licenses from China UnionPay to serve additional countries, such as Australia and Thailand.

Separately, we have made excellent progress on the MoneyExpress product. MoneyExpress is an unique offering which enables funds to be remitted from abroad to cardholders of China UnionPay in China. Our MoneyExpress payment gateway has been the largest software development project undertaken by the Group since its IPO in August 2011. The product came in on time and under budget and with better than expected performance. Initial trials indicate that remittances are completed within an average of 60 seconds; far quicker than the time taken for remittances by traditional methods, which can take hours if not days. Initial trials will be with remittance partners in Hong Kong and other parts of Asia who have a large customer base of individuals who regularly remit funds to China.

Outlook

We believe we now have the people, products and strategy to drive revenue. Our challenge is to execute on our marketing strategy and generate revenues. I have every confidence in our team to do so. Thank you, the shareholder, for your continuing support.

Richard V. Proksa

Chief Executive Officer

21 December 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THESIX MONTHS ENDED 30 SEPTEMBER 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSENDED 30 SEPTEMBER 2012

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

1 Basis of preparation

The interim consolidated financial statements incorporate the results of MoneySwap Plc (the "Company") and entities controlled by the Company (its subsidiaries) (collectively the "Group").

The interim consolidated financial statements of the Group have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements.

The interim consolidated financial statements are unaudited, do not constitute statutory accounts within the meaning of Gibraltar Companies (Accounts) Act 1999, and were approved by the Board of directors on 21 December 2012. The consolidated financial statements for the year ended 31 March 2012 were prepared under International Financial Reporting Standards ("IFRS"). The auditors reported on the financial statements. Their report was unqualified and included reference to a matter to which the auditors drew attention by way of emphasis without qualifying their report.

The preparation of interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing the interim consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the consolidated financial statements as at and for the year ended 31 March 2012.

The accounting policies applied by the Group in the interim consolidated financial statements comply with each International Financial Reporting Standards that is mandatory for accounting for the six months ended 30 September 2012. These policies are consistent with those adopted in the Group's consolidated financial statements for the year ended 31 March 2012 and those which will be adopted in the Group's consolidated financial statements for the year ending 31 March 2013.

The principal risks and uncertainties of the Group have not changed since the last annual financial statements where a detailed explanation of such risks and uncertainties can be found.

2 Segmental information

In the opinion of the directors, the Group has three business lines as described below, which are managed separately as they require different strategies:

- Small and medium-sized entities ("SMEs")

- International remittance

- Prepaid cards ("PP cards")

For the Group's internal reporting process, operating performance for SMEs and International remittance are assessed together and therefore, their segmental results are combined.

The directors consider that it is neither possible nor meaningful to distinguish aggregate amortisation and depreciation, other administrative expenses and taxation between the business segments, nor segmental net assets and liabilities. As a result these amounts are not reported to the chief operating decision maker on a segmental basis.

The Group is organised around two main geographical areas and a split of the geographical segments is as follows:

The major changes in segment assets during the period mainly relate to the provision for impairment loss made on the trade receivables and decrease in cash and cash equivalents as used in daily operations.

3 Other income

4 Taxation

Taxation of the Company and its subsidiaries is recognised based on the rules and regulations of their respective countries of incorporation.

A deferred tax asset has not been recognised in respect of all tax losses available to carry forward against suitable future trading profits as the directors consider there is insufficient evidence that all the assets will be recovered. These assets can be recovered against suitable future trading profits.

5 Loss per share

Basic loss per share has been calculated by dividing the net results attributable to ordinary shareholders by the weighted average number of shares in issue during the period/year.

There are no dilutive potential ordinary shares as at 30 September 2012, 30 September 2011 and 31 March 2012 and thus, the diluted loss per share is the same as basic loss per share.

6 Property, plant and equipment

During the six months ended 30 September 2012, the Group acquired assets with a cost of approximately US$106,000 (six months ended 30 September 2011: US$56,000; year ended 31 March 2012: US$76,000).

7 Goodwill

The goodwill relates to the excess of consideration paid over the net assets acquired in MoneySwap Limited and MoneySwap FX Limited.

The goodwill is tested annually for impairment and the last goodwill impairment test was carried out as at 31 March 2012, where the recoverable amount of the cash-generating unit was determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets prepared by the directors of the Company covering a five-year period and a discount rate of 13% and a growth rate of 2% from 2017 onwards. The discount rate is the average of selected comparable companies' weighted average cost of capital. Apart from the existing businesses, the cash flow projections take into account the planned future new businesses, which will largely depend on the same cash-generating unit, that are expected to go live in the year ending 31 March 2013.

As at 30 September 2012, the directors did not consider there to be any impairment in respect of the goodwill.

Movement in goodwill during the period/year is as follows:

8 Trade receivables

All trade receivables are denominated in US dollars and Philippine Peso which are due upon billing. The ageing of trade receivables at the reporting date that were not impaired was as follows:

Provision was made for the trade debtors that are long outstanding for more than half year. The directors consider that the carrying amount of trade receivables approximates to their fair value.

9 Capital and reserves

Share capital and share premium