FXI.L Regulatory News (FXI)

Fusionex International plc

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

Interim results for the six months ended 31 March 2014

Fusionex, an award-winning and market leading international provider of enterprise software solutions, specialising in Business Intelligence and Big Data Analytics, is pleased to announce its interim results for the six months ended 31 March 2014.

Financial Highlights:

* EBITDA (MYR million) is derived from

PBT (2014: 8.18; 2013: 6.54) + amortisation of intangible assets (2014: 1.08; 2013: 0.48) + depreciation of property, plant and equipment (2014:0.44; 2013: 0.22) +interest expenses (2014: 0.35; 2013 0.14)

** weighted average number of ordinary shares during the period was 43,000,000 (6 months to March 2013: 39,571,000)

Operating Highlights:

· Continued deployment of Fusionex GIANT ("GIANT") following its launch in December 2013

o Successfully converted three pilot clients for GIANT to 'live' production clients

o Continue to drive product development and accelerate R&D roadmap to further enrich GIANT's functionality

· Progress made in establishing partner channel network with leading Big Data providers

o Partner channel network now includes Cloudera, Hortonworks and Revolution Analytics

o Also newly recruited Avnet, one of the world's largest IT distributors and listed on the NYSE into Fusionex's partner channel network

· Strong new customer traction during the first six months of current financial year

o New customer wins include a multi-million dollar deal with a client with global operations in the travel, leisure and hospitality sectors, a global hypermarket chain, and a number of contracts from clients within the aviation, retail, oil & gas, travel and hospitality sectors

o New business order book remains strong

§ An additional three GIANT contracts have been secured

§ 40 per cent of the revenue growth for the period coming from GIANT

· Won the 2013 highly coveted Asia Pacific ICT Alliance (APICTA) Award for Best Application & Platform

· Appointment of four experienced sales executives originating from IBM, Microsoft, Huawei and Citibank respectively

· Trading remains strong and in line with market expectations

Ivan Teh, Chief Executive of Fusionex commented:

"We are delighted to announce another set of strong results, underpinned by accelerating growth from new business wins for our new flagship product GIANT. We continue to invest in the best people and our product development strategy, to stay ahead of the curve and to be the leading big data analytics provider.

Our sales pipeline is increasing and we expect further momentum as the Group continues to expand its partner channel network with some of the leading companies. We are grateful for the support received from our investors and remain confident in both our products and the future trading prospects of the Group."

For further details:

Fusionex

Operational and Financial Review

Fusionex is pleased to report another strong six months of trading for the Group. Fusionex has continued to develop its products and market reach, highlighted by the launch of GIANT, its Big Data Analytics software, in December 2013. This coupled with the continuation of the Group's strong financial performance and the on-going development of its software solutions leaves the Group well placed to continue this success during the remainder of the current financial year.

Revenue during the period grew by 35% to MYR 25.0 million (2013: MYR 18.5 million), whilst EBITDA grew to MYR 10.1 million (2013: MYR 7.4 million).

As announced on 28 January, Fusionex declared a dividend of approximately MYR 4.79 million equating to MYR 0.11 per share to shareholders on the register as at 6 February 2014. The payment was made on 28 February 2014.

Operational and Financial Update

The Group continues to see strong levels of demand and traction for its products and offerings. The Group's revenue in the first half of its financial year increased substantially (+35%) compared to the same period last year, while the Group's PBT grew from MYR 6.5 million to MYR 8.2 million (+26%) over the same period. The slightly lower PBT margin (33% for H1 2014, compared to 35% for H1 2013) is due to the increased investment in marketing spend, product development and the Group's expansion into new territories.

New customer wins in the six months to 31 March 2014 included:

· Multi-million dollar deal with a client with global operations in the travel, leisure and hospitality sectors

· A contract with a large global hypermarket chain

· Further contracts and wider traction within the media and marketing sector

· A number of multi-year contracts with customers from the aviation, retail, oil and gas, travel and hospitality, utilities, financial services as well as property development and property management sectors

In addition to this strong new business momentum, the Group continued to gain market traction with its Big Data Analytics software solution GIANT. During the first 6 months of the current financial year, the Group has successfully converted all three of its pilot clients for GIANT to 'live' production clients. Furthermore, the company has won an additional three new GIANT mandates in the property, hospitality and media sectors.

Elsewhere, the Company continues to engage proactively with a number of existing customers regarding GIANT and is confident of gaining new clients in other sectors.

Recently, Fusionex has also established a strategic partnership with Avnet, a fortune 500 group listed on the NYSE to offer both on premise and a cloud based GIANT solution. The partnership focuses on a jointly beneficial approach where both parties will be able to bundle their respective products and packages, providing customers with peace of mind that the bundled package end product would be jointly certified by Fusionex and Avnet.

With global estimates of the Big Data global market place set to increase over the next 5 years, the demand for cloud services and Software-as-a-service (SaaS) will help to accelerate this growth.

Gartner reports that, with the global economy showing signs of a gradual recovery, worldwide IT spending is on pace to total USD 3.8 trillion in 2014. Gartner has also commented that growing interest in Big Data solutions will continue to positively impact Business Intelligence spending across Asia Pacific in 2014 and beyond.

With many current Big Data initiatives still focused on improving business processes and more importantly customer engagement, Fusionex's GIANT offering sits at the core of such initiatives. The recent growth in data coupled with the need for near real-time insights presents key decision makers with a tremendous challenge, thus the business benefit of Big Data analytics has never been greater.

Recruitment

The Group has further strengthened its Enterprise Sales Team through the hiring of four experienced sales executives originating from IBM, Microsoft, Huawei and Citibank respectively. These new hires will be focused on customer generation in both existing markets as well as developing new client opportunities in new markets and will further help support the Group as it moves into new geographies and scales up sales channels for its offerings.

The Group expects to further expand its sales channels during the current financial year as demand for its products increases.

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. Since Fusionex GIANT's launch in December 2013, the Group has continued with its accelerated R&D roadmap to further enrich Fusionex GIANT's functionality.

Fusionex has also won the 2013 highly coveted Asia Pacific ICT Alliance (APICTA) Award for Best Application & Platform in this period. APICTA is the largest ICT alliance in the Asia Pacific region, currently comprising of more than 15 key member economies. The awards are the most prestigious and highly rated ICT awards in the region.

During the period, the Group moved into its state of the art new office, an office designed by Fusionex colleagues. The office has been uniquely designed to inspire innovation and creativity. It reinforces the Group's position as a leading global software business and an employer of choice, enabling Fusionex to attract and retain high quality talent.

Growth Strategy

Fusionex operates from a well-established base within the Asia Pacific region.

Alongside the opportunities in the Asia Pacific region, the Group expects to build and maintain its business within the more mature markets in Europe and the United States.

Management is focused on product development in order to expand its software solutions portfolio as well as leverage new opportunities within Fusionex's existing client base by encouraging greater levels of cross-selling and up-selling.

In addition to its existing organic growth drivers which underpin the Groups strong sales momentum to date, management believes that further opportunities exist through its partner channel network. Therefore the Group has established key technology partnerships including with established and leading Big Data platform providers Cloudera and Hortonworks, as well as other leading organisations such as Revolution Analytics and Avnet. The Company plans to recruit additional channel partners over the coming months with the core aim of widening the Group's sales network and market reach.

Current Trading and Outlook

The last six months has seen the Group deliver a robust financial performance with demand for its products and offerings continuing to gather momentum.

The Board remains confident that the continued investment in sales as well as research and development teams will accelerate growth, and is confident that results for year ended 30 September 2014 will be at least in line with market expectations.

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 March 2014

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ended 31 March 2014

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 March 2014

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 March 2014

FUSIONEX INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 31 March 2014

FUSIONEX INTERNATIONAL PLC

Notes to the Condensed Consolidated Interim Financial Statements

For the six months ended 31 March 2014

1. Basis of preparation

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 and should be read in conjunction with the annual financial statements for the year ended 30 September 2013, which have been prepared in accordance with IFRS adopted by the European Union.

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 2014, the Group had net assets of RM89,831,565 (31 March 2013: RM70,831,422; 30 September 2013: RM86,516,479) 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. Income tax expense

Tax expense is recognised based on management's best estimate of the weighted average annual tax rate expected for the full financial year applied to the pre-tax income of the interim period. The Group's consolidated effective tax rate in respect of continuing operations for the six months ended 31.3.2014 was lower that the Malaysian statutory tax rate of 25% (six months ended 30.3.2013: 25%) caused mainly by the following factors:-

i) effects of lower tax rates in certain tax jurisdictions; and

ii) effects of certain income not subject to tax.

3. Earnings per share

The calculation for earnings per share, based on the weighted average number of shares, is shown in the table below:

4. Property, plant and equipment

Acquisitions

During the six months ended 31.3.2014, the Group acquired assets costing RM5,573,000 (31.3.2013: RM861,000; 30.9.2013: RM28,559,000).

5. Goodwill on consolidation

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

6. Intangible assets