Interim Results

Fusionex International plc

("Fusionex" or "the Company" or "the Group")

Interim results for the six months ended 31 March 2013

Fusionex, an award-winning and market leading international provider of enterprise software solutions and related services, is pleased to announce maiden interim results for the six months ended 31 March 2013.

Financial Highlights:

* weighted average number of ordinary share during the period was 39,571,000 ( 6 months to March 2012: 35,000,000)

Operating Highlights:

·; Successful listing on AIM in December 2012

o Raised £12 (MYR 58.8m) million before expenses supported by institutional investors and private individuals in the UK

o Net proceeds of the Placing to fund product development, expand sales capabilities and provide additional working capital

o The Group is already benefiting from the impact of our listed status and strengthened balance sheet

·; Expanded into Hong Kong and increased presence in Malaysia

·; Solid start to current financial year

o Strong visibility, recurring revenue of over 60%

o New customer wins included a global media client in Australia, two large global retail chains, one of Malaysia's largest property developers and a large regional travel and hospitality group

o Average contract size significantly increased compared to H1 2012

·; Appointment of Regional Director for the Asia Pacific region with more than 20 years' experience in the IT sector

·; Trading remains strong and in line with market expectations

Ivan Teh, Chief Executive of Fusionex commented:

"We are delighted to be announcing maiden interim results for the 6 months ended March 2013 which, at this stage, already demonstrates positive financial growth. Our listing on AIM in December 2012 has provided the Group with the strong base from which to execute our strategic growth targets. The positive response from shareholders since our listing provides the Company with yet another positive endorsement of our business model and market opportunity.

"We have started the first six months of the current financial year well supported by a number of key customer wins and continued progress on expanding our geographical footprint. Our business remains well positioned to take further advantage of the significant opportunities that exist in the business intelligence marketplace and most notably in the field of Big Data."

For further details:

Fusionex

Operational and Financial Review

Introduction

During the last six months Fusionex has achieved much, highlighted by the successful listing of the Company on AIM in December 2012. This coupled with the continuation of the Group's strong financial performance and the on-going development of Fusionex's software solutions leaves the Group well placed to continue this success during the current financial year.

Revenue during the period grew by 32% to MYR 18.473 million (2012: MYR 13.998 million). Both the Group's business segments, the core transactional systems and business intelligence division, delivered a strong performance and made a positive contribution to its results. EBITDA grew to MYR 7.383 million (2012: MYR 6.472 million) and Profit after tax reached MYR 5.757 million (2012 MYR 4.981 million).

As announced on 4 January, Fusionex declared a dividend of approximately MYR4.3 million equating to 2 pence per share to shareholders on the register as at 4 January 2013. The payment was made on 28 January 2013.

Business Background

Fusionex is a leading developer of software solutions focusing on two sectors - core transactional systems and business intelligence.

Core Transactional Engine ('CTE')

The Groups CTE is a proprietary software solution which serves as the application backbone of an enterprise's IT system and runs core processes which allow companies to carry out their business operations more efficiently.

The Fusionex CTE contains a broad range of functionalities including security management, messaging, logging and audit trail, dynamic user interface rendering, payment gateway, identification management and multi-language support. The CTE was designed to be industry agnostic and with some customisation may be applied across all industry sectors. The product can be further customised according to customer specific requirements and its flexible design means that the Group can and does provide solutions to multiple sectors.

The Fusionex CTE has been engineered to work with a number of mainstream operating system, such as Windows (Microsoft), Linux, AS 400 (IBM), IOS (Apple) and Android (Google), as well as recognised databases including MS SQL Server (Microsoft), Oracle and IBM, so that it may be implemented into a customer's existing infrastructure without the requirement for additional costs and inconvenience. It is capable of working in multiple environments including on customer premises, data centres and the Cloud.

Business Intelligence Centre ('BI Centre')

The Group's second business unit, the BI Centre, is a proprietary software solution which permits a user to leverage the potentially vast quantity of data by connecting to a wide variety of data sources ranging from in-house databases, line-of-business applications and Microsoft Excel files through to social media tools such as Facebook and Twitter to provide users with detailed analysis. This is designed to provide deeper insight and enable better informed strategic, operational and financial decision making. The BI Centre extracts and processes structured and unstructured data and renders the cleansed, aggregated and summarised data via a channel (e.g. broadband, intranet/internal networks, 4G) to a device of the user's choice and through whichever user interface best suits the customer.

The BI Centre can connect to multiple platforms so that a customer may leverage its current IT investment and avoid the need to change platforms and the additional costs associated with such a change. It also focuses on advanced data integrity checking and intelligent exception handling and actioning. The BI Centre supports unicode, so that it is able to store and display characters from multiple languages and hence is suitable for both domestic and multinational organisations. The analysis is also proactive and not just reactive and backward looking. It provides actionable recommendations along with predictive analysis. Once processed, results may be rendered into a format (including motion bubbles, tables, charts, maps and radars, amongst others) and through a user interface (e.g. Microsoft Excel, PowerPoint or the user's browser) of the customer's choice. In addition, the results can be displayed on a wide variety of devices (e.g. tablets, PCs, smartphones).

The entire process from connection, through processing to rendering and presenting the data is automatic, and works without any need for manual data crunching or time consuming manual operations such as report preparation.

Similar to the Fusionex CTE, the BI Centre is capable of working in multiple environments including on premise, data centres, and the Cloud, and is currently being developed to be operable within an in memory multi-parallel processing environment.

Operational and Financial Update

The Group's two key revenue drivers continue to see strong levels of demand for their products and services. The increased spend on branding and market awareness throughout the period, coupled with the Group's public listing has helped drive these revenues further.

Whilst its core transactional systems, the Fusionex CTE, continues to service both the Group's ever growing clientele and generate growth from existing customers, Fusionex has in the recent months placed a strong emphasis on its Business Intelligence Centre. Whilst both products are designed to be sector agnostic, the Directors have seen significant demand from sectors including financial services, hospitality and leisure and media, which is thought to be a result of the large volumes of data available within these sectors and the requirement for quick and accurate reporting. Increased consumer spending within the retail sector in the ASEAN region has also driven increased demand within this space.

The Group's revenue in the first half of its financial year increased substantially (+32%) compared to the same period last year, while the Group's PBT grew from MYR5.73m to MYR6.54m (+14.3%) over the same period. The slightly lower PBT margin (35.4% for H1 2013, compared to 40.9% for H1 2012) is attributed to the MYR1.4 million investment made in sales and marketing and geographical expansion. This remains in line with the Group's IPO strategy to increase its branding and market penetration by leveraging on its newly listed status. Management remains confident that these expenses serve as a necessary means to solidify the Group's platform for expansion in new and existing markets, ultimately resulting in a stronger pipeline for the second half of the year.

During the period, the Group expanded into Hong Kong and increased its presence in Malaysia with the acquisition of a new office space to support its increased R&D and sales and marketing efforts.

New customer wins in the six months to 31 March 2013 included a media client in Australia, two large global, retail chains, one of Malaysia's largest property developers and a large regional travel and hospitality group. In addition, the Group secured a multi-million dollar maintenance contract as well as a million dollar contract with a client from the financial services industry based in Asia.

Demand for Fusionex's solutions remains strong. Gartner has reported that analytics and business intelligence remains as the number one technology priority for CIOs, and that the top four business priorities are increasing enterprise growth, delivering operational results, reducing enterprise costs and attracting and retaining new customers. These priorities are what the Fusionex BI Centre and the Fusionex CTE are designed to address.

Recruitment

Fusionex has appointed Mr Edward Lim as the new Regional Director for the Asia Pacific region. Mr Lim has more than 20 years of experience in the information technology sector, having worked in senior positions at Accenture Singapore, Sage and IDA prior to joining Fusionex. Mr Lim will play a key part in developing the Group's presence in this region.

The Group has also strengthened its Enterprise Sales Team through the hiring of two new sales people, one person based in Malaysia and the other in Singapore. These new hires will be focused on customer generation in existing markets as well as new markets with a specific emphasis on the Asia Pacific region.

Research and Development

Research and development remains a key business driver for the Group as it seeks to maintain its competitive advantage in delivering software solutions ahead of the market. The on-going development of the Group's Big Data software product remains on track and is expected to launch by the end of the year. During the period Fusionex successfully increased its Product R&D team by thirty percent.

Growth Strategy

Fusionex currently operates from a well established base within the Asia Pacific region, a market which continues to demonstrate high levels of growth in IT spend.

Alongside the opportunities in the Asia Pacific region, the Group continues to build its business within the more mature markets in Europe and the United States, where it has generated strong revenues to date.

Following the successful listing on AIM, the Company is pursuing the following drivers of growth:

·; Focus on product development in order to expand its software solutions portfolio by building out the functionality and features surrounding the Fusionex CTE and BI centre

·; Target new customers in existing markets by developing aggressive sales and marketing strategies and by providing further investment in sales executives and branding activities

·; Expand Fusionex's talent pool by recruiting skilled personnel for enterprise sales, marketing and R&D.

·; Expand product reach within Fusionex's existing client base by encouraging greater levels of cross and up selling

·; Focus on geographic expansion by strengthening its presence in Singapore and Thailand and establish a presence in Hong Kong, Indonesia, Cambodia, Vietnam, Philippines, China and Australia.

·; Increasing operational footprint in Malaysia

·; Complement organic growth opportunities with selective synergistic bolt-on acquisitions

Current Trading and Outlook

The last six months has seen the Group deliver a strong financial performance with demand for its core transactional systems and business intelligence solutions continuing to gather momentum. The Group's recent listing on AIM has provided the funding to enable the Company to pursue a number of key strategic growth drivers, some of which are now well underway.

Demand for the Group's products remain high with the current order book and new business pipeline significantly ahead of last year which has delivered a strong financial performance across the Group. The investment in Fusionex's Malaysian office space and the recent expansion into Hong Kong provides a clear indication of the Group's ambition and drive to further grow its market share in key territories.

The Board remains confident that the continued investment in sales and research and development teams will continue to accelerate growth, and management is confident that results for year ended 30 September 2013 will be in line with market expectations. The Board was also pleased to have paid a dividend of MYR4.3 million to shareholders on 28 January 2013.

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The condensed consolidated statement of financial position of the Group as at 31 March 2013 is set out below:

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The condensed consolidated statements of comprehensive income of the Group for each of the two periods ended 31 March 2013 and 2012 are set out below:

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The condensed consolidated statement of changes in equity of the Group for each of the two periods ended 31 March 2013 and 2012 are set out below:

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Notes to the Condensed Consolidated Interim Financial Statements

1. Basis of preparation

Fusionex International Plc was incorporated in Jersey on 1 October 2012. On 14 November 2012, the businesses transferred to Fusionex International Plc were not previously held by a single legal entity. However, these entities were ultimately controlled and managed by the same parties before and after the transfer to Fusionex International Plc and that control was not transitory (common control).

The condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").

The Interim Financial Statements are unaudited and have been prepared in accordance with AIM Rules for Companies and IAS 34 'Interim Financial Reporting' as adopted by the EU. The financial information set out in this Interim Financial Statements does not constitute the statutory accounts for that period prepared under the Company's (Jersey) Law 1991. The comparative figures for the financial period ended 31 March 2012 are unaudited and are not the Group's statutory accounts for that financial period. These IFS were approved for issue by the Board of Directors on 20th May 2013.

These IFS should be read in conjunction with the Part III (b) of the Admission to Trading on AIM and Placing Documents dated 18 December 2012 and the accompanying explanatory notes attached to the Interim Financial Statements.

The individual financial information of each entity is measured and presented in the currency of the primary economic environment in which the entity operates (its functional currency). The Interim Financial Statements of the Group are presented in Ringgit Malaysia (RM), which is the presentation currency for the Interim Financial Statements. The functional currency of each of the individual entity is the local currency of each individual entity.

Going concern

As at 31 March 2013, the Group had net assets of RM70,831,430 (30 September 2012: net assets of RM18,668,186) as set out in the Interim Financial Statements above. Following the admission of the ordinary shares to trading on AIM, Fusionex International Plc has considerable financial resources. As a consequence, the Directors believe that Fusionex International Plc and the Group are well placed to manage its business risks successfully and the Directors have reasonable expectations that the Group have sufficient working capital available for its present requirements that is for the next 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the historical financial information.

2. Seasonality of operations

The business of the Group was not affected by any significant seasonal or cyclical factors in the quarter under review.

3. Property, plant and equipment

Acquisitions

During the six months ended 31.3.2013, the Group acquired assets costing RM861,000 (30.9.2012: RM410,000).

4. Goodwill on consolidation

During the financial period, the Group assessed the recoverable amount of the goodwill and determined that no additional impairment is required.

5. Intangible assets