Interim Results

MoneySwap Plc

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

19 December 2013

Interim results for six months ended 30 September 2013

MoneySwap (AIM: SWAP), the provider of payment solutions to both online and point of sale merchants licenced by China UnionPay ("CUP" also known as "UnionPay") for the UK, is pleased to announce the Company's results for the six months ended 30 September 2013.

Highlights from Period

· Launch of UnionPay payment solutions in the UK:

o Point of sale and online services enabling UK merchants to accept payments from UnionPay, China's largest bank card payment processor

o UnionPay MoneyExpress service enabling funds to be sent from outside China directly to UnionPay debit and credit cardholders within China

· Targeting agreements with sales partners with established UK merchant customer bases as well as directly with several large merchant groups in the UK - discussions on-going

· Six-month revenues totalled US$270,000 (2012: US$14,000) - the majority generated through MoneySwap's CUP payment services from legacy relationships with merchants in territories outside the UK

· Loss for period of US$2.7 million (2012: US$4.1 million - which included exceptional loss of US$1.7 million)

Richard Proksa, Chief Executive Officer of MoneySwap, said:

"With the recent simplification of applying for a visa for Chinese visitors to enter the UK, we expect spending to increase beyond the £302 million spent by Chinese tourists during 2012. The launch of our UnionPay point of sale and online gateways along with the appointment of our UK sales team, puts MoneySwap in a strong position to tap into the growing need for UK merchants to be able to service the expected growth in the number of Chinese visitors to the UK, for whom the UnionPay card is the bankcard of choice. "

For further information, please contact:

About MoneySwap(www.moneyswap.com)

MoneySwap provides payment solutions and gateways to merchants which allow both online and point of sale transactions to be settled using UnionPay cards. In addition, UnionPay has licensed MoneySwap for its MoneyExpress service which enables overseas persons to send funds directly to UnionPay cardholders in China. The Group also offers prepaid card services working with partners such as Corner Bank, Switzerland and Visa and offers an online peer to peer platform for currency exchange and payments. The Company's shares are traded on the London Stock Exchange's AIM market (AIM: SWAP). More information can be found at www.moneyswap.com.

CHIEF EXECUTIVE OFFICER'S STATEMENT

In April and May 2012, MoneySwap secured licences for UnionPay, China's largest bankcard payment processor, to act as a merchant acquirer covering both online and point of sale (POS) transactions in the United Kingdom. Under the terms of our licences, for every transaction processed using our payment gateways, MoneySwap receives a fee.

With tried and tested payment solutions in place and a highly experienced UK sales team appointed during July and August 2013, we implemented a three-pronged growth strategy. Firstly, MoneySwap offers a one stop solution for UnionPay services which encompasses both point of sale and online payment solutions. This benefits merchants who not only have a bricks and mortar presence but also want to sell goods and services online. Secondly, to accelerate our route to market, we are discussing partnerships with major sales partners, specifically payment service providers and independent sales organisations, who have large established merchant bases. Utilising their in-house sales resources, we intend to work with them to offer MoneySwap's UnionPay services to their existing customer base. In tandem with this, the third leg of our strategy involves working directly with tier one merchants with large chains in the UK, a significant number of which are not currently able to accept payment via UnionPay bankcards. Here again, we offer both POS and online solutions which are particularly applicable to these tier one merchants.

In support of our strategy, during the period we fine-tuned our CRM system based on the Microsoft Dynamic CRM and Microsoft SharePoint systems to allow potential sales partners and merchants to work seamlessly with MoneySwap, providing two-way access to information and facilitating communication between us, our sales partners and our merchants. In addition, these collaborative systems incorporate and automate the comprehensive range of administrative processes that are involved in merchant acquisition, such as online application forms, electronic signatures and sharing of relevant information. The Company has also prepared marketing materials specific for the UK market and has been looking at ways to promote the products and services offered by the UK merchants acquired by MoneySwap to Chinese visitors.

In addition, MoneyExpress continues to be an exciting opportunity for MoneySwap. This is a remittance service we are licensed for by UnionPay and which enables a person outside of China to remit funds in real time directly to a UnionPay card held by a cardholder in China. MoneyExpress is a unique service which covers a large segment of the population in China and is fully compliant with remittance regulations in China. Our innovative implementation of MoneyExpress is now live and with China being the second largest market for inward remittances, exceeding US$60 billion1 , we expect a strong demand for this convenient, fast and secure solution.

Financial Review

The six month period ended 30 September 2013 saw revenues increase to US$270,000 compared with US$14,000 during the six months ended 30 September 2012, and almost double the US$130,000 revenues achieved for the year ended 31 March 2013. During the period, UnionPay products recorded revenues of US$237,000, while prepaid cards and SMEs and international remittance revenues were US$33,000 for the period. UnionPay related revenues were not generated from MoneySwap's UnionPay licences covering the UK market but from legacy relationships with merchants in territories outside the UK, meaning that the revenues cannot be viewed as recurring. Operating expenses increased for the period to US$2.8 million compared with US$2.4million for the six months ended 30 September 2012.

Outlook

We are encouraged by the interest among large prospective sales partners in the UK to work with MoneySwap as we look to roll-out our UnionPay offering. We share the same values as these sales partners in terms of focusing on providing an excellent customer experience which include responsiveness, transparency and value added services to the merchant. On-going discussions are currently taking place between MoneySwap and a number of these potential partners, as we look to provide functionality that will enable them to offer their customers a more complete payment solution and, in the process, provide the growing Chinese visitor market in the UK with more accessible payment options. We expect meaningful revenue as a result of these discussions in the first calendar quarter of 2014.

The need for UK merchants to be able to offer Chinese visitors to the UK as easy a payment experience as possible is becoming all the more pressing not only as a result of the increasing numbers visiting the UK but also following recent moves by the UK Government to simplify the visa application process for Chinese travellers to the UK. We anticipate this will result in the accelerated growth in the number of Chinese visiting the UK. We believe it is therefore key for UK merchants to be able to accept payment for transactions using UnionPay cards and MoneySwap is well placed to take advantage of these favourable market dynamics along with our comprehensive product offering, flexible and responsive approach with sales partners and merchants, and our ability to execute on our tested strategy. In order to support its strategy for growth in the UK, MoneySwap is also considering options such as equity or debt fundraising.

We are committed to continue building our team and infrastructure in the UK to support our sales partners and merchants. Our team is motivated to execute on our strategy which we believe will reward the support and patience of all those associated with MoneySwap. Finally, I would like to thank all our shareholders for their continued support.

Richard V. Proksa

Chief Executive Officer

Date: 19 December 2013

Source:

1 http://go.worldbank.org/XMV2A66DC0 World Bank 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013

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 19 December 2013. The consolidated financial statements for the year ended 31 March 2013 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 2013.

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 2013. These policies are consistent with those adopted in the Group's consolidated financial statements for the year ended 31 March 2013 and those which will be adopted in the Group's consolidated financial statements for the year ending 31 March 2014.

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:

- Prepaid cards ("PP cards")

- Merchant acquisition for China UnionPay ("Merchant acquisition")

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

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 is neither possible nor meaningful to distinguish aggregate amortisation and depreciation, other administrative and operating 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 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 it is more likely than not 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 2013, 30 September 2012 and 31 March 2013 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 2013, the Group acquired assets with a cost of approximately US$700 (six months ended 30 September 2012: US$106,000; year ended 31 March 2013: US$56,000).

7 Goodwill

The goodwill relates to the excess of consideration paid over the net assets acquired in MoneySwap Limited and MoneySwap FX Limited. The directors consider that it is neither possible nor meaningful to distinguish segmental net assets and liabilities between the business segments.

The goodwill is tested annually for impairment and the last goodwill impairment test was carried out as at 31 March 2013, 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 with a growth rate of 2% from 2014 onwards and a discount rate of 13%. The discount rate is the average of selected comparable companies' weighted average cost of capital.

As at 30 September 2013, 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:

The directors believe that no impairment allowance is necessary in respect of the trade receivables and consider that the carrying amount as at 30 September 2013 of trade receivables approximates to their fair value.

9 Capital and reserves

Share capital and share premium