Interim Results

15 March 2016

Kalibrate Technologies plc

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

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

Kalibrate Technologies plc (AIM: KLBT), the provider of strategy and technology services to the global fuel and convenience retail industry, is pleased to announce its unaudited interim results for the six months ended 31 December 2015.

The results demonstrate continued progress across all parts of our business and also reflect a continued shift toward SaaS-based engagements, which in the long term offer greater earnings security and visibility. The Board of Kalibrate (the "Board") remains confident in the Group's ability to meet expectations for the full year.

Financial highlights:

· Revenue increased by 2% to $15.9 million (H1 2015: $15.6 million), driven by a significant increase in planning revenue offset by a reduction in pricing revenue as three pricing deals closed in H2 rather than H1 as originally scheduled

· Improved recurring revenue pipeline, with $1.0 million added in the first half alone, giving annualised recurring revenues of $22 million as at 31 December 2015, an increase of 5% (FY 2015: $21m)

· Underlying* EBITDA** $1.4 million (H1 2015: $2.3 million), reflects:

o delays of pricing deals which moved into H2 and have now been signed

o change in mix between Pricing and Planning

o investment in infrastructure to meet future SaaS demand

· Underlying* operating profit before tax of $0.5 million (H1 2015: $1.8 million)

· Profit before tax $0.1 million (H1 2015: $1.2 million)

* - Before exceptional items, business combination amortisation, finance costs and other comprehensive expense or income

** - Earnings before interest, tax, depreciation and amortisation, exceptional items, business combination amortisation, finance costs, share based payments and other comprehensive expense or income

Operational highlights:

· New business in Latin America (Mexico and Chile) and India

· 20% increase in Planning revenue compared with H1 2015

· 100% client retention during H1 2016

· Increased recurring revenue and order book

· Kalibrate Cloud now houses all solutions for motor fuel pricing, retail network planning and market data intelligence within single cloud-based platform

· Merchandise Pricing and Promotion now in a beta testing phase with existing clients. Initial results of this are encouraging

· Strong performance in Europe with new clients added in France, Belgium and the Netherlands

· Successful cross-selling with another significant client using both Pricing and Planning solutions, bringing the total to 32 from 31 at the beginning of the year

Post period end highlights:

· Three strategic perpetual pricing licence deals signed since 31 December 2015

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

"The results demonstrate that Kalibrate is delivering on its strategy and we remain confident in our ability to meet market expectations for the full year. We are continuing to see good demand for our Pricing and Planning solutions, both in core and new geographies. The Group is benefiting from the continued move to SaaS contracts which brings with it revenue visibility and secure, long-term recurring revenues."

"The addition of Merchandise Pricing and Promotion to our offer is an important move and will let us service not only our existing client base that have convenience retail operations, but will also enable us to engage with convenience retail only operators."

For further information please contact:

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About Kalibrate

For over 20 years, Kalibrate (LSE: KLBT) has advised fuel and convenience retailers throughout the world on how to be best-in-class operators in the fast changing marketplace. Kalibrate's global footprint and local presence are the result of a merger between two market leaders: KSS Fuels, the forerunner in fuel pricing automation, and MPSI, recognized leaders of retail network planning. Clients gain fuller visibility, truer insight and more effective control over what matters most - total site profitability. Headquartered in Manchester, United Kingdom and Florham Park, New Jersey, Kalibrate has centers of excellence in Mumbai, India; Tulsa, Oklahoma; and Melbourne, Australia as well as offices in 10 other countries. For more information, visit kalibrate.com.

Chief Executive's statement

Introduction and overview

I am pleased to report our results for the six months ended 31 December 2015. During the period, Kalibrate has continued to build on its position as the worldwide leader in providing comprehensive demand management solutions to the fuel and convenience retail industry through its pricing automation and optimization tools and market planning solutions. At our admission to AIM in 2013, we outlined 6 key strategies for growth which we continue to follow. During the first half of this fiscal year, we continued to deliver against each by: (i) growing our core markets and cross-selling to our existing clients; (ii) expanding our business into new geographic markets; (iii) expanding and enhancing our product suite particularly through the introduction of Merchandise Pricing and Promotion; (iv) expanding our managed service offering; and (v) continuing to drive the conversion of our business to a Software as a Service (SaaS) offering.

Continued delivery against our growth strategy has led to further improvements in our financial performance with Group revenue increasing by 2% year-on-year to $15.9 million (H1 2015: $15.6 million). It is pleasing that we have been able to achieve this revenue growth at a time when more and more clients requested SaaS deals and several perpetual licence deals that were anticipated to close in H1 moved to the second half of the current fiscal year. The Group continues to show increased revenue performance in each of its half year and full year results over the corresponding prior year periods which validates the effectiveness of our strategy. Whilst dedicating our cross-selling efforts in all regions around the globe, we continue to expend particular resources on our more mature markets of North America, Europe, and South Africa. We continue to create add-on products to our Pricing and Planning solutions at the same time as launching new products, such as the new Merchandise Pricing and Promotion solution. This new Merchandise Pricing and Promotion offering allows the Company to provide both pricing and promotion data analytic solutions to convenience stores which aids retailers that operate both motor fuel and convenience operations. This also opens the market for convenience only retailers to work with our products. As a result of our cross-selling initiatives, another significant client now utilizes both our Pricing and Planning solutions, bringing the total using both to 32 clients. In addition to these sales efforts, we are pleased to report that our top priority of providing first class, in-depth client support allowed us to continue our 100% client retention record.

The globalization of our products continues to be the highest priority for the Group with our products and services currently have been sold in 68 countries. In addition to that, our sales resources are focused on expanding our geographical presence through both an ongoing direct sales effort and channel partners, where applicable. We have also been active in providing consultation and education programmes to companies that operate in countries planning to undergo, or are currently undergoing, the process of government deregulation of motor fuel pricing. Last year India, Mexico and Kenya announced that they plan to deregulate the operating control of motor fuel procurement and resale in their respective markets. We are keenly focused on all active deregulation processes and all potential areas of deregulation to ensure that we are involved in all potential opportunities. We are actively pursuing clients in certain countries in Southeast Asia and Africa in advance of the deregulation announcements that are anticipated to occur within the next two years. We are uniquely positioned to provide expertise to fuel retailers so that they can understand the impact of the new deregulation on their business. In addition, we can also offer Kalibrate's suite of products and services to support their business growth in a competitive environment both during the deregulation transition and also for ongoing business management into the future.

We previously introduced the Kalibrate Cloud ("KCloud") platform which houses all of our solutions in a single cloud-based platform to allow the Group to provide a SaaS offering and in so doing increase the recurring revenue stream of the business. We remain committed to following our product roadmap that includes: (i) creating new business modules to support our core Pricing and Planning solutions; (ii) expanding our capabilities; and (iii) introducing new products that complement the Group's Pricing and Planning services, to include Merchandise Pricing and Promotion, and possible business to business solutions.

We not only are able to provide industry leading consultative approach to implementation and use of our product set, but through our dedicated Kalibrate Strategic Advisory Group, we also provide business advice, particularly around the effects and process of government deregulation of motor fuel infrastructure in countries worldwide. Through our 20+ years of providing industry leading services, we have amassed a data set that can be invaluable to our clients together with our ability to provide thought leadership for the industry. In addition, we have been marketing Kalibrate's 7 Elements for Fuel and Convenience Retail Success ("7E"). This is a strategic analytic process that enables fuel and convenience retailers to understand and optimize performance across the entire consumer experience. The 7E process uses a combination of proprietary modeling, extensive global market and site data sets and a profound understanding of fuel and convenience retailing in order to define a 7E score for each retailer in a market. That market can be a single city, a whole country or across continents. 7E combines information that we have amassed in our data warehouse to measure and provide a score upon which retailers can benchmark the seven elements that make retailers successful in their marketplaces: Pricing; Location; Brand; Facility; Operations; Merchandising; and Market. This benchmarking score, combined with our Kalibrate Strategy Group, enables us to provide strategic consultative advice alongside Kalibrate Cloud that support fuel and convenience retailers' strategic plans. 7E remains the cornerstone upon which we foster Kalibrate's growth and it provides a roadmap for most of our future business development and/or merger and acquisition activity as we improve upon our ability to provide enhanced technical solutions around each element of 7E.

The by-product of providing market Planning services throughout North America, Europe, Japan, South Africa and certain countries in Latin America and Asia afforded us the opportunity to amass data that we can utilize to support our clients within the 7E process or allow us to sell this data to other third parties. Most notably, the Group maintains up-to-date traffic statistics at over 4 million traffic points in North America and in various countries around the globe. We have successfully resold this robust global data and continue to focus our efforts on finding new markets to sell this data to support our Planning business.

A key strategic objective outlined in Kalibrate's admission document was the conversion of the Pricing licensing model from an upfront perpetual licence model to a SaaS recurring subscription model, giving the Group greater visibility of revenue and earnings. As we continue to develop and enhance the Kalibrate Cloud, more clients and potential new clients are expressing an interest in moving to an outsourced solution for their Planning and Pricing solutions. This move to SaaS is in line with the market trends of IT departments outsourcing niche solution offerings. It is our intention to seek to sell more SaaS deals in the future as well as convert existing clients to a hosted/subscription offering. While we are making significant progress to transform more clients to the SaaS model, the introduction of Kalibrate Cloud and other offerings will further enhance our position as a SaaS provider. As at 31 December 2015, the Group had $22 million in annualised recurring revenue, an increase of $1.0 million or 5% in the first six months of this fiscal year which validates continued demand for SaaS deals and our emphasis on transitioning clients to the managed services model.

The Group operates within the global fuel and convenience retail marketplace which has recently experienced a significant decline in the market price of petroleum products. During the period of August 2014 to December 2015, the price of Brent Crude Oil decreased from $106 per barrel to a low of $28 per barrel which caused the average retail price of motor fuel to drop commensurately. In times of prolonged price drops such as this, the integrated refiner/retailers can experience capital pressures which may lead to delays in capital spending. To date, the Group has not experienced any demonstrable effects on its business as a result of the lower crude prices, however, we continue to monitor the situation closely. We believe that our business has been sheltered from possible negative effects from the petroleum price swings principally because: (i) our client base comprises retail and diversified oil companies, convenience stores, grocery and hypermarkets, many of which do not participate in the operations upstream from retail. Indeed, for many of our retail clients lower oil prices have a positive effect on their businesses since, by virtue of the fact that the actual amounts being spent by consumers refuelling their vehicles is less, so too are the commissions that those retailers are required to pay to credit card companies meaning that retailers are able to retain more of the mark-up they make on fuel sales; (ii) clients who do not have refining or further upstream operations typically perform better and generate more capital for use in their business when petroleum prices fall; (iii) our Pricing platform is a longer term business process that is not easily replaced by a new process and our business does not generally feel the effects of shorter term market changes; (iv) the volatility in fuel prices creates a greater need for companies to utilize our products and services so that they may better navigate the changes; and (v) with the continued trends of countries deregulating fuel prices there will be a need for automated and sophisticated solutions for Pricing and Planning.

Pricing

The Group's end-to-end Pricing solution provides clients with critical historical price/volume and competitor data and tools to determine optimal wholesale and retail fuel pricing strategies and fully automates the fuel pricing process. 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, auto gas, LPG and ethanol.

Revenues for our Pricing solutions declined by 7.2% to $9.4 million (H1 2014: $10.2m), contributing 59% of Group revenue in the period. This decline was related to the timing of closing several perpetual pricing licence deals that were slated for this half of the year but have been pushed to the second half of the year along with a reduction in our non-core PriceTracker business line. Since 31 December 2015, we have closed three of these deals with a healthy pipeline of deals remaining for the second half of the year and beyond.

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 2015, we have secured new managed services clients and our total managed service client base stands at 32. 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 have increased operational, infrastructural and sales resources to support this 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 the competition, as well as forecasting sales volumes of fuel, convenience stores, fast food restaurants and car washes often located on petroleum retail sites. More generally speaking, Planning solutions incorporate site evaluation, retail network planning and demand analytics.

Revenues for our Planning solutions increased by approximately 20% to $6.5 million (H1 FY 2015: $5.4m), driven by significant increases in revenue from the European market and in-roads made into the newly deregulated markets of India and Latin America. The Planning business will be instrumental in assisting companies that operate in either newly deregulated or soon to be deregulated countries as the planning business typically leads the deregulation cycle as well as industry consolidation that is a trend in Europe and North America.

Geographic review

North America - 46% of Group revenue

In North America, the Group closed several pricing deals as SaaS rather than perpetual licences which are positive from a recurring revenue perspective. There was also a timing effect of closing a significant perpetual pricing licence deal which slipped into H2 and has since been signed. There was also a reduction in the Group's PriceTracker business. The Planning business experienced a 2% increase due to the signing and implementation of several new market studies. Overall, the net effect caused the revenue to decline by 4.8% in the period to $7.4 million (H1 FY 2015: $7.7m).

Europe - 33% of Group revenue

Revenue in Europe was approximately 16% higher than the prior year period due in part to the successful implementation of the significant market planning business. The new Planning deals allowed the Group to re-enter the markets of France, Belgium and the Netherlands. The Pricing business was down in this half of the year compared to the prior first half of the year due to fewer perpetual and SaaS pricing deals signed in H1, but the pipeline for H2 remains strong in both Pricing and Planning.

Rest of World - 21% of Group revenue

The revenue for the Rest of World was flat year-on-year as we saw increases in business related to the newly deregulated Mexico and India markets and increases in Southeast Asia offset by decline in the Japanese and African markets. With the deregulation trends continuing in various countries throughout the world, we continue to see growing demand for both our Pricing and Planning solution lines in the Rest of World. The Group experienced fairly rapid receptivity to its products in the newly deregulated Mexican market where new to market and existing retailers are adjusting to the new deregulation landscape. While the Group experienced increased revenue in the India market, the overall marketplace is being more measured in its approach to deregulation and therefore the Group has experienced great interest in its products and services but the process is moving at a slower pace than Mexico. The Japanese market experienced a decline in revenue mostly related to one of our major clients placing its orders on hold for this half of the year as it completes its merger with another Japanese business. The markets of Africa and Japan have seen softness in revenue related to the negative currency valuation trends wherein the Rand and the Yen have seen continued declines compared to the US Dollar and GB Pound over the past 3 years making the Group's products seemingly more expensive in those markets.

Financial performance

Since its floatation on AIM, the Group has delivered increased year over year revenue growth for each of its half year and full year reports and the first half of the year was no exception with total revenue 2% higher year-on-year to $15.9 million. Revenues for our Planning solutions rose by approximately 20% to $6.5 million (H1 FY 2015: $5.4m) following strong growth in Europe and Latin America. Revenues for our Pricing solutions declined by approximately 7% to $9.4 million (H1 FY 2015: $10.2m). This was caused by the delay in closing of 3 pricing deals that were moved from H1 to H2. All 3 have subsequently been signed. These deals have already made a positive contribution to H2 revenue and EBITDA.

The Group began the current financial year with $21.0 million in annualised recurring revenues. In line with our strategy, Kalibrate has a growing recurring revenue base. As at 31 December 2015, the Group had $22 million in annualised recurring revenue, an increase of $1.0 million or 5% in the first six months of this fiscal year which validates continued demand for SaaS deals and our emphasis on transitioning clients to the managed services model. Our order book continued to improve thanks to ongoing demand for SaaS. As at 31 December 2015, our order book stood at $42 million compared with the total order book of $41.4 million at the end of FY 2015.

Underlying EBITDA, before exceptional items, share based payments and business combination amortisation, for the period was $1.4 million compared with $2.3 million in the six months ended 31 December 2014. This lower EBITDA margin reflected:

o delays of pricing deals which moved into H2 and have now been signed;

o a change in mix between Pricing and Planning; and

o investment in operational infrastructure to meet future SaaS demand and sales and related support necessary for its future global growth.

While we are pleased with the increase in the Planning business this changed the overall mix of the Group's revenue, where the Planning revenue increased to 41% (up from 35% in the prior year). The Planning business holds a lower initial gross profit during the start-up phase of a Planning project because of the labour expense associated with the data collection, model set up and analytic modelling associated with some of the market studies and as such, the overall EBITDA margin was negatively affected in this half of the year. The Group has a robust pipeline of Pricing deals for H2, in addition to more Planning deals, which, if closed, could provide gross profit performance similar to prior periods.

We invested to strengthen our sales and marketing efforts particularly related to dedicating resources to support the deregulation opportunities around the globe, increased product development resources as well as added operational infrastructure to support growth in our managed services business. These expenditures were identified at the time of the Group's floatation in 2013 and many of the initiatives were commenced during fiscal year 2015 and as such, this H1 2016 bore the full run-rate effect of these expenditures compared with the ramp-up period in H1 2015. In addition, the Group also invested in its new Merchandise Pricing and Promotion platform, an additional offering through which the Group can sell to its existing client base and attract new clients.

Underlying operating profit for the period was $0.5 million compared with the $1.8 million for the first half of the year ended 31 December 2014. This decrease in operating profit compared with the lesser decrease in underlying EBITDA reflected the Group's continued investment in new development projects which increased our non-cash amortisation and depreciation expenses as well as the decline in gross margins caused by a greater mix of Planning versus Pricing business.

Profit before tax was $130,000 (H1 FY 2015: $1.2m) resulting in a profit for the period (before foreign currency translation differences) equal to $40,000 (H1 FY 2015: $1.1m).

Exceptional costs and business combination amortisation totalled $0.4 million ($0.5 million in the prior year). The exceptional items in this half of the year relate to a downsizing of certain legacy areas of the business in order to invest new resources into the higher growth areas.

Net cash at the period end was $3.4 million ($4.6 million as at 30 June 2015). This reduction in cash principally derives from: (i) $0.9 million of cash flow from operational activities; less (ii) $1.9 million investment in capitalized development and capital expenditures; plus (iii) $0.2 million generated from financing activities mostly related to the exercise of stock options.

Current trading and outlook

We continue to make progress against our key strategic objectives and during the period under review, we launched our new Merchandise Pricing and Promotion platform with pilots underway. During the second half of the current financial year, we plan to commence marketing our Merchandise offering to both existing and potential clients.

We continue to target growth opportunities in new geographic markets to meet the demands of worldwide government deregulating markets. As a stated objective of increasing visibility over our revenue, we are now positioned to be a global partner for our large accounts by having a 24/7 hosting capability, which allows us further opportunity to increase our recurring revenue.

Based upon the Kalibrate Cloud, end-to-end platform that we have created and the strategic initiatives that we continue to execute, we remain optimistic about our future organic growth prospects. Since 31 December 2015, the Group has successfully closed 3 pricing deals that moved from H1 to H2 which have already made a positive contribution to revenue and EBITDA. As we enter the second half, our deal pipeline is strong and the Board remains confident that based upon our progress, the Group is on track to meet expectations for the year as a whole.

Robert B. Stein, Jr.

Chief Executive Officer & President

14 March 2016

Consolidated Statement of Comprehensive Income

for the six-month period ended 31 December 2015

Consolidated Statement of Financial Position

at 31 December 2015

Consolidated Statement of Cashflows

for the six-month period ended 31 December 2015

Consolidated Statement of Changes in Equity (unaudited)

for the six-month period ended 31 December 2015

Notes to the Interim Report

for the period ended 31 December 2015

1. Legal status

Kalibrate Technologies plc (the "Company") is a public limited company incorporated and domiciled in the UK.

The Interim Report of the Company for the half year ended 31 December 2015 comprises the Company and its subsidiaries (the "Group").

2. Basis of preparation

This Interim Report for the six month period ended 31 December 2015 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 2015, 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 2014 and the year ended 30 June 2015.

The comparative figures for the financial year ended 30 June 2015 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) 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 IAS34.

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 2015.

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 2015 are as follows:

The segment results for the period ended 31 December 2014 are as follows:

The segment results for the year ended 30 June 2015 are as follows:

3. Segmental analysis

The segment assets and liabilities at 31 December 2015 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 2014 are as follows:

The segment assets and liabilities at 30 June 2015 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, Europe and Rest of World

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 primarily of staff restructuring. Prior period exceptional items consist of the 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), specific direct costs of the flotation and subsequent staff restructuring.

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

5. Earnings per share

6. Share capital

7. Share-based payments

The Company 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 - 1.0%;

· volatility - 30%;

· dividend yield - nil; and

· expected life of option - 3 years.

The share-based payment charge included within the Consolidated Statement of Comprehensive Income for the six month period ended 31 December 2015 is $83,000 ($88,000 for the six month period ended 31 December 2014).

8. Trade & other receivables

9. Cash and cash equivalents

Within the cash and cash equivalents balance is an amount of $323,350 relating to funds which are held in a restricted account as collateral for a performance bond until February 2016 (2014: nil). Subsequent to 31 December 2015, these funds have been released back to the Group as scheduled.

10. Dividends

No dividends were paid or proposed during the period (2014: $nil).

11. 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.

12. Related party disclosure

There has been no significant change to the nature and size of related party transactions, including the remuneration paid to key management personnel, from that disclosed in the 2015 annual report.

Independent review report to Kalibrate Technologies PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 December 2015 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Cashflows, the Consolidated Statement of Changes in Equity and the related explanatory notes. We have read the other information contained in the half-yearly report 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 the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this 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 conclusions we have reached.

Directors' responsibilities

The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. 

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly 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 UK. 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 condensed set of financial statements in the half-yearly report for the six months ended 31 December 2015 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the AIM Rules.

Will Baker, for and on behalf of KPMG LLP 

Chartered Accountants

1 St. Peter's Square

Manchester

M2 3AE

14 March 2016