Interim Results

11 March 2014

Kalibrate Technologies plc

("Kalibrate" or the "Group")

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2013

Kalibrate Technologies plc (AIM: KLBT), a provider of proprietary software-based products and services to the global petroleum retail industry, announces its unaudited Interim Results for the six months ended 31 December 2013.

Financial highlights:

· Revenue increased by 18% to $14.1 million (H1 2013: $12.0 million)

o Pricing revenue up 15% to $8.8 million (H1 2013: $7.6 million)

o Planning revenue up 22% to $5.3 million (H1 2013: $4.3 million)

o Recurring revenues of $19 million as at 31 December 2013, an increase of $3 million since 1 July 2013

· Underlying* EBITDA** increased by 53% to $1.9 million (H1 2013: $1.2 million)

· Underlying* profit before tax up by 70% to $1.6 million (H1 2013: $0.9 million)

· Net cash of $7.9 million as at 31 December 2013 (30 June 2013: net debt $0.5 million)

· Outstanding investor loan of $2.8 million repaid in full as planned

 * - Before exceptional items and business combination amortisation

** - Earnings before interest, tax, depreciation and amortisation

Operational highlights:

· IPO successfully completed in November 2013 raising net proceeds of $9 million

· Strong progress in North America and Japan driven by new client wins and robust growth with existing clients

· Successful entry into Malaysia with new planning contract secured

· South African operations broadened to include Mozambique with new multi-year planning contracts won in both countries

· Material multi-country managed services contract secured with global oil company

· Presentational currency changed from Pounds Sterling to US Dollars to reduce currency volatility given a majority of the Group's revenues and costs are US Dollar denominated

· New pricing perpetual license deal signed with a premier convenience store retailer in North America, after the period end

Commenting on the results, Bob Stein, CEO of Kalibrate Technologies, said:

"We have made strong progress in the first half, as is reflected in these results. When we joined the market in November 2013, we clearly laid out our growth strategy and I am delighted to report that we have already delivered upon a number of those objectives. The global petroleum market continues to experience significant structural change and both Kalibrate's pricing and planning products and services are well positioned to benefit from these positive market dynamics. The Group's managed services offering is now gaining good traction in the marketplace following the landmark multi-year agreement signed in December last year with a global oil company."

"Our focus remains on delivering on the objectives that we set out at the time of our flotation. The Board expects to see continued progress in the second half and remains confident that the Group is on track to achieve its targets for the current financial year."

For further information please contact:

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About Kalibrate Technologies plc

Kalibrate is the only global provider of both pricing and retail planning solutions to petroleum retailers worldwide. Based on its proprietary software and underpinned by an extensive library of petroleum market data, Kalibrate's products enable clients to devise new market entry strategies, plan and optimally invest in existing petroleum retail networks, and generate optimal petroleum product prices on a real-time and fully automated basis.

Chief Executive's Statement

Introduction and Overview

I am pleased to report our first set of results since Kalibrate was admitted to AIM on 29 November 2013. Prior to our flotation, Kalibrate had already achieved a market leading position servicing the retail petroleum industry, being the only global provider of both fuel pricing and retail network planning software and services. Based on our proprietary software and underpinned by an extensive library of retail market data, Kalibrate's products enable clients to devise new market entry strategies, plan and refine existing petroleum retail networks, and react to petroleum pricing changes on a real-time basis. We remain in a unique position to support our clients with both their strategic imperatives and their tactical requirements for pricing and planning.

The placing of new shares in the Company and Admission to AIM was undertaken to enable the Group to more effectively and more quickly pursue its growth strategy. As set out in our Admission Document, Kalibrate's growth strategy consists of five core activities:

· Grow core markets and cross-sell to existing clients

· Expand into new geographies

· Accelerate roadmap of complementary products

· Expand managed services offering

· Drive Software as a Service (SaaS) conversion

I am pleased to report that we have made solid progress this year towards a number of our stated objectives. This progress has already had a positive impact on our financial performance, with revenues increasing by 18% year-on-year to $14.1 million and underlying EBITDA increasing by 53% over the comparative period to $1.9 million. The Group's core markets comprise of North America, Europe, Japan and South Africa. During the period, the Group achieved good results in both North America and Japan driven by new client wins and strong growth with existing clients.

We have had a great deal of success in bringing additional revenue from our existing client base which has been achieved through cross selling our pricing and planning products as well as expanded services and data reselling. We remain focused on expanding our geographical presence, both through an ongoing direct sales effort and channel partners as well as by conducting market education programmes to help petroleum retailers understand the impact of deregulation on their business and to demonstrate how Kalibrate's products and services can support their business in a deregulated and more competitive market to enable future growth.

During the first half, we have maintained our focus on product development and have finalised a product roadmap to a) bring new business modules to support our core pricing and planning solutions; b) expand our capabilities, including mobile technology for our newly launched "Kalibrate Product Suite" which now combines pricing and planning functionality into one technology platform; and c) begin the process of introducing new products to complement the Group's pricing and planning services that will be of value to the petroleum retail industry.

Kalibrate owns a vast amount of retail market data in North America, Europe, Japan, South Africa and certain countries in Latin America and Asia. During the period, we have been focused on developing our offering and expanding our data reselling and supporting analytics tools to leverage this proprietary data. As a result of this, over the course of 2014, we will aim to expand our data analytics to our existing clients in the petroleum retail industry as well as new clients in other industries.

Historically, sales of our pricing product have been made by way of the sale of a perpetual licence to a client. With market trends of IT departments outsourcing niche solution offerings, it is our intent to seek to sell more SaaS deals in the future as well as convert existing clients to a hosted/subscription offering. During the first half of the financial year, we have made good progress to develop our SaaS offering with a new pricing client and the conversion of a few of our existing clients. We are also in the process of developing a SaaS offering for planning clients.

The global petroleum retail market that the Group operates in continues to experience significant structural change, including the deregulation of fuel pricing in certain countries and the continuing emergence of compliance frameworks. Kalibrate remains well positioned to benefit from these positive market dynamics. In Southeast Asia and Africa we are becoming aware of more countries that are preparing for price deregulation. Our approach remains to seek planning projects in advance of deregulation, an example of this being the new contract in Malaysia that we signed in this period. We are optimistic that these global trends to deregulate fuel pricing and open up competition may create opportunities for Kalibrate in both India and China.

Pricing

The Group's pricing solution is a complete end to end fuel pricing system that provides clients with critical historical price/volume and competitor data and tools to determine optimal wholesale and retail fuel pricing strategies. This advanced market intelligence enables retailers to achieve their financial goals and improve operational efficiencies, whilst at the same time ensuring regulatory compliance. The Group is able to price all forms of fuel that are distributed by petroleum retailing sites including unleaded, diesel, autogas, LPG and ethanol.

Revenues for our Pricing products rose by 15% to $8.8 million, contributing 62% of Group revenue in the period. This growth has been achieved as a result of new licence sales and selling into both new and existing clients through our three main geographies.

As stated in our Admission Document, at the time of the Group's flotation, Kalibrate was in the process of finalising a multi-year contractual commitment with one of its existing clients to provide managed services for the petroleum retailer's entire fuel pricing process and procedures. During the period, and as announced on 20 December 2013, the Group subsequently won a material multi-country managed services contract with a global oil company under which the client will outsource the management of their entire pricing infrastructure to Kalibrate, in conjunction with the Group's hosting partner, Rackspace. It is anticipated that the contract will generate approximately $2 million per annum over the multi-year term, starting in July 2014. This is the largest single contract by total monetary value in the Company's history and is testament to the quality of our managed services offering and the trust that our clients place in us to support their complete 24/7 pricing needs.

At the time of our flotation, we stated our belief that the Group had at least 100 existing pricing clients who would be suitable for a managed services offering. As at 31 December 2013, we had secured 12 managed services clients, up from 8 at the start of the current financial year. Our focus remains on continuing to convert existing clients as well as adding new clients to our managed services offering in order to grow a strong additional recurring revenue base. We are in the process of increasing operational and sales resources to support a growing managed services offering.

Planning

Our planning solutions provide Kalibrate's clients with in-depth market and demand analysis, capital investment scenario analysis, forecast changes in demand and rapid assessment of competition as well as forecast sales volumes of fuel, convenience stores, fast food restaurants and car washes often located on petroleum retail sites. More generally speaking, planning incorporates site evaluation, retail network planning and demand data.

Revenues for our Planning products increased by 22% to $5.3 million, driven by successful uptake of our planning solutions which included multi-year subscriptions in new territories such as South East Asia and in South Africa, where we have broadened our operations to include Mozambique.

Geographic Review

North America - 52% of Group revenue

In North America, the Group enjoyed a very strong first half with revenues up by more than 50% year-on-year. This has been mainly driven by growth in the Pricing business as we won a number of new client Pricing contracts, including an East-Coast, US-based 300 site petroleum retailer and new licenses from growth of our existing client base. We have also successfully continued to cross sell Planning products to existing Pricing clients during the period and have generated new revenue from additional pricing services and data reselling to existing clients.

Europe - 20% of Group revenue

Although revenues were down by 30% against the comparative period, the Group achieved a solid performance in Europe during the period. The decline was solely as a result of the Company signing the largest single perpetual license pricing deal in its history during the prior comparative period. However, taking out the impact of this license revenue, the business is substantially ahead of the prior period, due to increased pricing services and implementation services on past Pricing deals sold and new licenses from growth of our existing client base.

Rest of World - 28% of Group revenue

We have continued to see growing demand for both our Pricing and Planning product lines in the Rest of World. In the first six months of the financial year, we have increased revenues by more than 30%, driven by strong growth in Japan with existing clients, a new client win in Malaysia, the widening of our footprint in Africa into Mozambique and a new pricing deal in New Zealand.

Financial Performance

The Group has delivered a strong first half financial performance with double-digit growth across both the pricing and planning parts of our business. Revenues were $14.1 million for the period, an increase of 18% against the prior period which reported revenues of $12.0 million. Revenues for our Pricing products rose by 15% to $8.8 million following strong growth in our North American business and the addition of a number of new clients. Revenues for our Planning products increased by 22% to $5.3 million, driven by continued double digit growth in our Rest of World market, particularly in Japan and South East Asia.

The Group began the current financial year with $15.6 million in annualised recurring revenues. Kalibrate has a growing recurring revenue base and as at 31 December 2013, the Group had $18.8 million in annualised recurring revenue, an increase of $3 million. This increase is due to a number of new subscription and perpetual pricing deals growth in Pricetracker, our subscription fuel survey collection service in the US, and also includes our major managed services win, announced in December 2013, of which this contract will generate an additional $2 million in annual recurring revenue for the Group over the multi-year term from July 2014.

Underlying EBITDA, before exceptional items and business combination amortisation, for the period was $1.9 million, up 53% against the prior period, reflecting strong revenue performance and solid cost control during the period. As outlined at the time of our IPO, we will invest across the business over the coming year in order to execute the Group's growth strategy. We will invest to strengthen our sales and marketing efforts, increase product development resources as well as adding resources to support growth in our managed services business and, as such, our cost base will increase to reflect this. Despite this growth in our cost base, we expect to maintain profitability.

Underlying operating profit for the period was $1.7 million (2012: $1.1 million) an increase of 58%.

Underlying profit before tax was $1.6 million (2012: $0.9 million). Statutory loss before tax, after deducting the one-off costs of flotation, was $0.5 million (2012: profit of $0.7 million).

Exceptional costs and business combination amortisation totalled $2.1 million (2012: $0.3 million) in the period of which $1.9 million were related directly to the cost of our AIM flotation and the pre-flotation rebranding as Kalibrate.

Following the Company's flotation and equity fundraising at the end of November 2013, the Company received net proceeds of $9.0 million. As part of the use of proceeds, an outstanding investor loan of $2.8 million was repaid as planned. Net cash at the period end was $7.9 million (30 June 2013: net debt of $0.5 million), which provides the Group with liquidity and the confidence to invest in future growth.

Following a detailed review, the Board has taken the decision to change the presentational currency of the Group from Pounds Sterling to US Dollars. This decision was taken to reduce currency volatility as the vast majority of the Group's revenues and costs are now US Dollar denominated, and this trend is set to continue.

Current Trading and Outlook

The Board is pleased with the progress the Group has made in its first half year as a quoted company. Kalibrate has developed into a more diversified company, both by product and geography, and this together with the quality and experience of our staff, growing qualified pipeline, positive market conditions and trends of price deregulation gives us confidence in being able to serve our clients successfully in the future and increase revenue, retain existing clients and win new clients.

Post period end, the Group has continued to make solid progress and I am pleased to announce that we have signed a new Pricing perpetual license deal with a premier convenience store retailer in North America. In addition, we have maintained momentum as we have secured several new deals for both Pricing and Planning as well as signing new service contracts to further increase our recurring revenue base.

Our strategic priorities remain unchanged and our focus remains on delivering on the strategic objectives that we set out at the time of our flotation. The Board expects to see continued progress in the second half and remains confident that the Group is on track to achieve its targets for the current financial year.

Bob Stein

Chief Executive

11 March 2014

Consolidated Statement of Comprehensive Income

for the six-month period ended 31 December 2013

Consolidated Statement of Financial Position

at 31 December 2013

Consolidated Statement of Cashflows

for the six-month period ended 31 December 2013

Consolidated Statement of Changes in Equity

for the six-month period ended 31 December 2013

Notes to the Interim Report

for the period ended 31 December 2013

1. Legal status

Kalibrate Technologies plc (the "Company") is a public limited company incorporated and domiciled in the UK. On 25 November 2013, the Company's name was changed to Kalibrate Technologies plc (previously the Company was Knowledge Support Systems Limited). Subsequently, on 29 November 2013, the Company's shares were admitted to the AIM.

The Interim Report of the Company for the half year ended 31 December 2013 comprises the Company and its subsidiaries (the "Group").

2. Basis of preparation

This Interim Report for the six month period ended 31 December 2013 has been prepared in compliance with IAS 34 'Interim financial reporting' as adopted by the European Union. It does not constitute financial statements and does not include all the information and disclosures required for full annual financial statements.

The interim report should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2013, which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). Comparative figures are given for the six months ended 31 December 2012 and the year ended 30 June 2013.

The financial information presented does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 30 June 2013 have been filed with the Registrar of Companies. The auditors, KPMG LLP, reported on these accounts and their report was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

The interim report has been prepared on a basis which is consistent with the accounting policies adopted by the Group for the last financial statements and in compliance with IAS 34, except that the Group has adopted:

· Amendments to IAS 1 - 'Presentation of items of Other comprehensive income';

· Amendments to IFRS 13 - 'Fair Value Measurement'; and

· Amendments to IFRS 7 - 'Financial Instruments: Disclosures - Offsetting Financial Assets and Liabilities'.

None of the new standards had a material impact on the Group.

Presentational currency

This consolidated financial information is presented in US Dollars, which is now the presentational currency of the Group. The vast majority of the Group's revenues are now US Dollar denominated and, as there is also a growing majority of US Dollar denominated costs, it is more appropriate to present the Group's results with a lesser currency volatility.

Use of estimates and judgements

The preparation of financial information in conformity with IFRS as adopted by the EU requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing the Interim Report, 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 applied to the Consolidated Financial Statements of the Group for the year ended 30 June 2013.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

3. Segmental analysis

The segment results for the period ended 31 December 2013 are as follows:

The segment results for the period ended 31 December 2012 are as follows:

The segment results for the year ended 30 June 2013 are as follows:

The segment assets and liabilities at 31 December 2013 are as follows:

Unallocated assets and liabilities comprise net cash, deferred taxation assets and liabilities, goodwill and acquired intangible assets.

The segment assets and liabilities at 31 December 2012 are as follows:

The segment assets and liabilities at 30 June 2013 are as follows:

The parent company is domiciled in the UK. The Group's main business segments are based in the following locations:

· Pricing - North America, Europe and Rest of World

· Planning - North America, Rest of World and Europe

The geographical segments are based on an analysis of revenue by the location of the Group's customers as follows:

4. Exceptional items and business combination amortisation

Exceptional items consist of costs incurred in the preparation of the company for flotation (inclusive of the cost of the Group's change of name and related restructuring/rebranding) and the specific direct costs of the flotation. Prior period exceptional items consist of the final steps taken in the integration of Market Planning Solutions Inc. (MPSI), including the cost of modernising the professional services delivery function and subsequent final staff restructuring.

Business combination amortisation arises from the intangible assets recognised (other than goodwill) from the acquisition of MPSI.

5. Earnings per share

* In accordance with IAS 33 'Earnings per Share', the impact of dilutive shares have been excluded from the calculation as this would have reduced the diluted loss per share reported.

As explained in note 6, the company undertook an internal share capital restructuring (share split and bonus issue) in order to prepare itself for admission to AIM. In accordance with IAS 33 this has been treated as if it happened at the start of the period for the purpose of the earnings per share calculation.

6. Share capital

During the period, and in advance of the admission to AIM, the par value of shares in the Company was reduced from £0.01 to £0.002 per share. A further 24.5m bonus shares were issued to the then existing shareholders to meet the capital requirements for the Company's admission to AIM (£50,000 share capital, totalling 25 million £0.002 ordinary shares in issue).

On 29 November 2013, 8.2 million shares were issued at £0.79 each as part of a fundraising upon admission.

7. Share-based payments

As part of the change in capital structure relating to the Company's admission to AIM as explained in note 6, all options issued under the Company's existing unapproved share option scheme were adjusted to maintain dilutive position. Upon flotation of the Company, all existing share options vested and a proportion of these were exercised by certain of the Group's employees. Additionally, certain of the unexercised share options were exchanged for share options in the Company's new 2013 Enterprise Management Initiative (EMI) scheme. A further 1.75 million share options under the new EMI scheme were also issued to Directors and employees at the date of the flotation.

The Company now operates two equity separate settled share option schemes for qualifying employees of the Group; however no further share options are expected to be issued under the 2008 scheme.

Options in issue at the period-end are as follows.

2008 Unapproved share option scheme

2013 EMI share option scheme

The fair value of services received in return for the new share options granted under the 2013 share option scheme are measured by reference to the fair value of share options granted. The estimate of the fair value of services received is based on a Black Scholes share option pricing model. The key assumptions used in the model are as follows:

· interest rate - 2.0%;

· volatility - 40%;

· dividend yield - nil; and

· expected life of option - 3.5 years.

8. Dividends

No dividends were paid or proposed during the period (2012: $nil).

9. Forward-looking statements

Certain statements in these interim results are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by those forward-looking statements.

The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.