GBO.L Regulatory News (GBO)

Final results - replacement

In the announcement of final results (reference 1392F) published at 0700hrs earlier today, the Chairman's Statement:said: "Net debt has remained virtually unchanged at €9.9 million". It should have said: "Net debt at 31 December 2010 was €10.4 million". The announcement was correct in all other respects and the full correct version is given below.

GLOBO plc

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

Globo plc ("Globo", the "Group" or the "Company"; LSE-AIM: GBO), the international IT, mobile solutions and SaaS provider, is pleased to announce its audited results for the year ended 31 December 2010.

Financial Highlights

·; Revenues increased by 31 per cent to €30.91m (2009: €23.49m).

·; EBITDA increased by 39.31 per cent to €12.58m (2009: €9.03m).

·; Operating cash flows remained healthy at €4.35m (2009: €9.25m)

·; Operating margins slightly increased to 18.97 per cent (2009: 18.62 per cent).

·; Profit before tax increased by 44.69 per cent to €4.63m (2009: €3.20m).

·; Over-subscribed £17.25m share placing in February 2011 will fund continuing international expansion

Operational Highlights

·; 2010 financial performance reflects strong organic and profitable growth with a significant initial contribution from international mobile applications.

§ CitronGO! won contracts with 13 Mobile Network Operators (MNOs) with further orders, announced yesterday, from 2 Middle East MNOs and 6 master distribution agreements with resellers in Africa, Middle East, India, SE Asia, Europe and Latin America.

§ Significant growth during 2010 achieved in E-Business and WiFi which, post year end, has continued into 2011. First international WiPLUS franchise agreement announced today.

On outlook, the Chairman, Brett Miller stated:

"Following an excellent financial performance last year and the post year end equity issue Globo has started 2011 well positioned to accelerate its growth and development in all areas and with the strongest balance sheet in the group's history.

"We have demonstrated that we have a robust technology platform and plan to build on our initial success in the international mobile applications and services market.

"Our order pipeline is growing which, in addition to benefiting revenue and profit for the current year, will further strengthen our platform for future development.

"Management has a clear strategy and, following the successful placing earlier in the year, we have the financial resources to pursue our expansion plans.

"Overall, we are confident that 2011 will be a year of significant strategic progress and profitable growth for the company."

CONTACTS

CHAIRMAN'S STATEMENT

Introduction

2010 was another year of strong growth for Globo resulting in record revenues and profits. This was achieved despite tough economic conditions although we did see some improvement compared to 2009 and at least a partial or temporary resolution of the debt crisis in our home market in Greece.

Throughout 2010 and so far in the current year, Globo has continued to develop its portfolio of products and services, focusing on its mobile business and international expansion. We have continued to benefit from healthy demand for the Group's products and services. In 2010, revenues originated almost entirely from the private sector (2009: 71.6 per cent) with public sector business being insignificant (2009: 28.4 per cent).

As anticipated, our expansion into the international mobile market through the launch of CitronGO! contributed significantly to growth in revenue and profit. International revenues accounted for 20 per cent of the total for last year having been insignificant in 2009. This success reflects the significant traction achieved by CitronGO! which, to date, has signed contracts with 13 Mobile Network Operators, from 20 countries around the world with a total of 205 million subscribers.

Through CitronGO! we have demonstrated that our technology is robust and has all the functionality attractive to mobile users. At the same time, we have established excellent relationships with partners and customers, further strengthening our platform for future development. We continue to invest significantly in the development and growth of our mobile applications and believe this area will continue to be a strong driver of growth.

In February 2011 at the Mobile World Congress in Barcelona, we launched GO!Enterprise Server, an enterprise software which uses the same technology platform that drives CitronGO!, to target businesses of all sizes in the US, UK, Europe and Australia. This is a very exciting development, which we believe offers enormous upside potential for Globo, and we will be commercially launching the product in the second half of the year.

Results and Finance

In February 2011, the Group raised approximately £17.25 million before expenses via a placing with UK and international investors which was strongly supported and significantly over-subscribed. The net proceeds of £16.33 million will be used to fund the Group's continuing international expansion, software and technology development, working capital and growth. Following the placing the Group was net cash positive. The Board would like to thank its shareholders for their ongoing support.

For the year to 31 December 2010 revenue increased by 31 per cent to €30.91 million (2009: €23.49 million). Operating margins increased slightly to 18.97 per cent (2009: 18.62 per cent) with profit before tax up by 44.69 per cent to €4.63 million (2009: €3.20 million). Profit after tax rose to €4.39 million (2009: €2.83 million) with basic earnings per share of 2.8 cents (2009: 2 cents).

Cash generated from operations fell to €4.35 million (2009: €9.25 million). 2009 was the year in which the Group collected a large amount of its receivables due from public sector projects for both 2008 and 2009. Therefore, 2009 was an exceptional year in terms of trade receivable collections for the Group. Net debt at 31 December 2010 was €10.4 million (2008: €9.83 million). Since the year end, as a result of the placing mentioned above, the net debt position has been replaced by net cash on our balance sheet.

Globo had cash deposits of €2.9 million at the year end (2009: €3.1 million) together with unutilised banking facilities of €7.5 million.

At the year end outstanding Greek public sector receivables were €1.98 million (€5.5 million at 31 December 2009). We expect that full settlement will be received by the end of the current year.

Outlook

Following an excellent financial performance last year Globo has started 2011 well positioned to accelerate its growth and development in all areas.

We have demonstrated that we have a robust technology platform and plan to build on our initial success in the international mobile applications and services market.

Our order pipeline is growing which, in addition to benefiting revenue and profit for the current year, will further strengthen our platform for future development.

Management has a clear strategy and, following the successful placing earlier in the year, we have the financial resources to pursue our expansion plans. Moreover, the Company continues to strive to incorporate best practice corporate governance under the guidelines for AIM-quoted companies.

Overall, we are confident that 2011 will be a year of significant strategic progress and profitable growth for the company.

Brett Miller

Non-executive Chairman

CHIEF EXECUTIVE OFFICER'S REPORT

Introduction

During 2010, Globo continued its successful track record, achieving several strategic, financial and operational goals and building a solid platform for substantial future development. Our strong growth in revenue and profit across the Group, in a challenging environment, reflects an initial contribution achieved following our drive into international mobile markets as well as our focus on the private sector where our mobile technology products and expertise continue to experience strong demand.

The Group has successfully continued to build upon its S.a.a.S business model which now supports e-business software, mobile value added services, WiFi connectivity and telecom services. We are steadily increasing the S.a.a.S contribution, thereby improving margins, cash flow and sustainable recurring revenues, by converting existing business to software service operations.

So far in 2011, trading momentum has continued with Globo winning new contracts in all areas of the business.

Globo's strengths and substantial growth potential in international markets have been recognised by institutional investors who strongly supported a £17.25 million placing in February 2011. This represents a major milestone for the Group which now has the financial resources to continue to invest in the business and pursue our strategy to become one of the top global mobile software solutions providers.

Last year, recognition from satisfied customers, was reflected in awards received including a Top 500 growth company in Europe award from the European Commission and the Top UK and global R&D performing company awarded by the UK Ministry of State for Science and Innovation.

Overall, we are confident that 2011 will be another year of profitable growth, with expansion in international mobile markets continuing.

Operations

Mobile Applications and Services (including Enterprise Solutions)

Following the commercial launch of CitronGO! and GO!Social in 2009, the Group rolled out a range of business development activities in Latin America, North America, South East Europe, Middle East, India, China and South East Asia.

As a result, during 2010 Globo secured contracts from 13 Mobile Network Operators ("MNOs"), with a combined 205 million subscriber base in 20 countries.

We provide value added services and platforms to a number of MNOs through our subsidiary, ReachFurther Communications Ltd, and plan to expand this activity by offering its products and services to contracted CitronGO! customers.

We have recently won contracts, for our CitronGO! social messaging and social networking service, with two MNOs in the Middle East and 6 master distribution agreements with resellers in Africa, Middle East, India, SE Asia, Europe and Latin America.

The agreements with the MNOs in the Middle East are based on the CitronGO! S.a.a.S offering for which Globo will receive a fixed service fee per month per active user.

At the Mobile World Congress in Barcelona in February 2011, Globo announced its launch into the the enterprise market with a new Mobile Software product, GO!Enterprise Server.

GO!Enterprise Server uses Globo's proprietary technology platform which also drives CitronGO! and GOSocial!. It is an enterprise software application that enables employees to access company applications, files and emails using any mobile device across any network. It is user-friendly and compatible with all mobile devices and technologies (including iPhone, Blackberry, Android, Windows Mobile, Java ME, Symbian and WAP), as well as most mail and collaboration servers.

E-Business Software and S.a.a.S

During 2010 the Group won and delivered several projects for private sector clients in Greece with public sector sales being minimal.

In addition, we have recently won several contracts with banks and private sector customers resulting in strong visibility for 2011.

WiFi Broadband Networks

The Group increased coverage of its WiPLUS service (Wi-Fi operations), adding new premium hotspot locations which now total 479 sites (end of 2009: 438) which continue to contribute a profitable and recurring revenue stream.

In addition we have recently won 31 new contracts for WiPlUS with a number of large hotels. These are now being deployed along with the first International WiPLUS franchising agreement with a Telecom Operator in SE Europe.

The WiPLUS WiFi Service is based on a fully managed service offering to hotels, airports, marinas and similar locations, with Globo receiving a share of revenues generated by internet usage of visitors.

The WiPLUS franchising agreement is also based on revenue sharing but with Globo receiving a smaller share as the result of offering the software technology platform only with installation and operating costs being the responsibility of franchisees.

Globo has continued to invest in expanding its international footprint and sales and marketing team. In addition to a physical presence in USA, Singapore, Dubai, Indonesia and Cyprus, it is active in more than 20 other countries.

Markets and Growth Drivers

Mobile Applications and Services (including Enterprise Solutions)

The global mobile market continued to grow significantly during 2010, with new entrants targeting all aspects of mobile provisioning, from games to mobile applications and mobile advertising networks.

Globo's focus is on leveraging and maximizing the potential of CitronGO! and GO!Social software services, targeting 'non smartphone' consumers who today represent the majority of mobile subscribers globally, especially in developing countries.

Globo is focusing on the enterprise mobile market through GO!Enterprise Server which will be commercially available during the second half of 2011.

GO!Enterprise Server targets businesses of all sizes in the US, UK, Europe, Australia, as well as in developing economies. It will be offered either as software licences with maintenance contracts or as 'Software as a Service' through mobile networks, including existing customers, software and systems integrators and hosting providers.

The main drivers of growth for Globo in the mobile arena will be as follows.

·; CitronGO! and GO!Social offer a comprehensive service to provide truly ubiquitous computing on a single screen on any mobile phone. This aggregated service enables MNOs to generate data and additional service revenues from one application and through a single service provider (i.e. Globo), thereby maximising return and efficiency on advertising budgets.

GO!Enterprise Server aims to be the most cost efficient platform for secure mobile messaging, intranet and business applications whilst providing all functionality currently available. A major unique selling point is that it provides cross platform smart phone support.

·; Our SaaS and revenue share models, rather than software licensing, meets the current needs of MNOs, most of which wish to limit their investment in new services that traditionally have required large capital expenditure.

·; We plan to expand into new geographic areas and to develop relationships with MNOs in different regions which we can leverage by providing and cross-selling other mobile products and services.

·; Globo's sales and marketing capacity is expanding alongside existing business development arrangements and partnership and certification programs for software vendors, system integrators, hosting providers and resellers, to establish a solid platform for rapid business growth in all international markets.

WiFi Broadband Networks

We see a significant opportunity to expand our WiFi technology in international markets, alongside our mobile business, as the importance of WiFi access increases with smartphones consuming ever more broadband capacity.

Having established a solid business model supported by a sound technology for WiFi infrastructure development and operation, our WiPLUS service is already experiencing a strong demand in both 'captive markets' (hotels, marinas, airports) and public areas.

This demand is being driven by the combination of increasing penetration of laptops as prices fall, and heavy internet usage through smartphones. Statistics generated from internally generated data show a total increase in usage of 55 per cent for year 2010 with an increase in mobile connections of 235 per cent compared to 2009.

We increased coverage of our WiPLUS service (Wi-Fi operations), adding new premium hotspot locations which now total 479 sites (end 2009: 438) and continue to contribute a profitable and recurring revenue stream.

In addition we have recently won 31 new contracts for the WiPlUS Wifi offering with large hotels, which are now being deployed, as well as the first international WiPLUS franchising agreement with a telecom operator in SE Europe.

We believe we can grow our WiPLUS service substantially through franchising agreements with selected international partners, providing them with the technology and business model to develop WiPLUS hot spot networks around the world. We expect to achieve attractive returns from franchising WiPLUS, taking into account the absence of any investment and operating costs for Globo.

E-Business Software and Services

The E-Business market continues to grow as more private and government organisations recognise the value of such systems for operating and managing complex tasks and planning.

Globo's corporate offering is based on our CITRON-branded suite of e-business applications which have won new contracts with key customers where our strong relationships are providing visibility for future revenue growth. Growing customer familiarity with our SaaS business model is resulting in the utilisation of new services, increased customer loyalty and recurring recurring.

Products and Service Development

Globo believes that sustainable future growth will come from innovative mobile products and services that satisfy user needs for either business or personal lifestyle.

Mobile Applications and Services (including Enterprise Solutions)

Globo continued its investments in its suite of mobile products by enhancing new characteristics in the CitronGO! and GO!Social mobile offerings.

Substantial resources are being deployed in the development of GO!Enterprise Server as this product is addressing a sophisticated and demanding market with experienced users. Key software development work for GO!Enterprise Server includes:

·; Security

High levels of security for business data exchange and storage are achieved using strong encryption algorithms following the latest technology standards. Additionally, GO!Enterprise Server utilises all enterprise security policies on a group and employee profile level.

·; Device Portability

GO!Enterprise Server enables access via any mobile device including the most well known mobile operating systems including iPhone, Blackberry, Android, Java and iPad.

·; Business Application Integration and Mobile Porting

GO!Enterprise Server provides an open environment with standardised APIs to connect and mobilise any internal business application, such as CRM, ERP and intranet. Connecting cross mobile platform applications to the company's internal system is achieved using GO!Application Development Studio.

·; Messaging

GO!Enterprise Server provides full access to e-mail for Microsoft Exchange, IBM Lotus Domino and all global email providers, including Google, Yahoo and WindowsLive.

It enables instant messaging between employees, colleagues, partners or friends on their mobile devices using well known IM providers such as MSN, GTalk and Yahoo Messenger.

Efficient compression minimises bandwidth costs and the impact on battery longevity.

·; Productivity Tools

These keep employees connected with the office through calendars, contacts, notes and tasks being accessible.

·; Folders and Files Access

Users are able to access a company's intranet file system as well as online folders for storing and sharing files of any type and any size. Files can be attached to messages and read on the move.

·; IM & Social Networking

Employees can use instant messaging and most social networking providers (Facebook, LinkedIn, MSN, GTalk) on any mobile device. By using the embedded GO!IM and GO!Community environments, businesses can create their own IM and Social Networking places to improve teamwork, collaboration and information sharing.

E-Business Software and Services

We have further developed the Citron E-Business suite, adding new functionality and modules to the existing product in order to fulfill customer requests and satisfy market trends.

In particular, we are responding to the growing need for digital assets archiving and processing functionalities as businesses seek to improve the management of increasing volumes of digital material. Following our investment in digitisation products and services, we anticipate significant demand from both private and public customers.

Key Tasks for 2011

We believes that 2011 will be a year of further development across all technologies and markets on which we are focusing and key tasks for the year include:

·; winning new contracts from international MNOs, handset manufacturers and value added service providers for Globo's mobile applications and service offerings;

·; launching GO!Enterprise Server, a mobile communication server for medium and large organisations wanting to provide their employees with ubiquitous connectivity to enterprise messaging, collaboration and intranet, through a single point of mobile access across the business and legacy applications;

·; strengthening Globo's international presence by expanding operations in existing offices in Dubai (U.A.E), Singapore and Atlanta (USA), as well as setting up offices in Latin America and India;

·; expanding our in-house software development team by setting up a software development facility in India, employing local people who will be managed by Globo's own technology department. This will increase the Group's software development capacity to support the continuous development of innovative products whilst maintaining tight control over costs.

·; establishing a presence in the UK from which to expand operations in Western Europe, as well as taking advantage of the business development opportunities with MNOs, handset manufacturers and other targets based in the UK;

·; supporting the further demand anticipated in Greece for Globo's products and services as a result of the €20.4 billion 4th Support Framework (2007-2013);

·; achieving steady growth in our traditional activities, applying our diversified business model (license, project, service), as business and other organizations continue to move into e-business;

·; expanding our successful WiPLUS Service by offering an open connectivity layer to selected business partners wanting to exploit their local markets through Globo's proven broadband access technology; and

·; continuing to increase customer familiarity with our S.a.a.S business model with a view to increasing the utilisation of new services, customer loyalty and recurring revenue.

We are confident about our technology and business model which have proven their strength in both local and international markets and we are optimistic about Globo's prospects for 2011 and beyond.

Costis Papadimitrakopoulos

Chief Executive Officer

FINANCIAL REVIEW

During 2010, Globo delivered a strong financial performance with substantial growth in revenue, strong profitability and positive operating cash flow.

Revenue increased by 31 per cent to € 30.91 million compared to 2009 (€23.49 million). This was the result of organic growth in the private sector, accounting for 99.76% of total revenue, with the most important driver for 2010 being the Group's decision to focus on the international mobile applications markets. International revenues rose dramatically to €6.18 million (2009: €0.1 million), representing 20 per cent of total revenues for 2010.

Gross profit increased by 38 per cent to € 11.43 million (2009: € 8.29 million) with gross margin for the year up to 36.98 per cent (2009: 35.31 per cent). This reflects the high proportion (98 per cent) of total revenues being derived from the Group's own products and services rather than third party products.

Operating expenses, excluding depreciation and amortisation, were €18.98 million, an increase of 6.99 per cent on 2009 (€17.74 million) supporting revenue growth. Depreciation of tangibles and amortisation of intangibles was € 6.72 million (€4.66 million in 2009) reflecting the significant product development undertaken in both 2009 and 2010. Operating profit increased by 34.10 per cent to € 5.86 million (€4.37 million in 2009), with operating margin improving to 18.97 per cent (2009: 18.62 per cent), while EBITDA increased by 39.31 per cent to € 12.58 million (2009: € 9.03 million).

The net interest charge for the year was €1.23 million, an increase of €0.06 million resulting from increased working capital requirements.

Profit before tax for 2010 was € 4.63 million, an increase of 44.69 per cent over 2009 (€3.20 million). The taxation charge for the year was €0.24 million (2009: €0.37 million) and relates predominantly to deferred taxation with the Group taking advantage of special tax relief incentives provided by the Greek Government for certain investments.

Basic earnings per share increased to €0.028 (2009: 0.020).

Total assets grew to €59.89 million at 31 December 2010 (2009: €50.69 million) of which €19.12 million were held in non current assets, €32.38 million were held in trade debtors, prepayments and other current assets, and €2.90 million were cash and cash equivalents. Equity increased by 47.69 per cent to €26.29 million and total liabilities increased by 2.13 per cent to €33.60 million.

Receivables from the Greek government have been significantly reduced to €1.98 million (2009: €5.5 million) after collecting a total of €3.52 million during 2010. The Group expects to receive the balance during the current year.

Cash generated from operations remained healthy at €4.35 million (2009: € 9.25 million). As noted in the Chairman's Statement, 2009 was an exceptional year in terms of trade receivable collections for the Group. Net cash flow, after interest and tax payments, was € 2.74 million (2009: € 8.03 million). Net cash investment during 2010 was €7.64 million reflecting the significant expenditure on product development and infrastructure. Financing activities during the year included share placings to raise a total of £3.63 million before expenses.

In February 2011, the Group raised approximately £17.25 million before expenses via a placing with UK and international investors which was strongly supported and significantly over-subscribed. The net proceeds of £16.33 million are being used to fund the Group's continuing international expansion, software and technology development, working capital and growth. Following the placing, the Group was net cash positive and will save significant finance costs in the current year.

Dimitris Gryparis

Finance Director

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2010

CONSOLIDATED BALANCE SHEET

At 31 December 2010

STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2010 (€'000)

Attributable to equity holders of the Company

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2010

NOTES TO THE FINANCIAL STATEMENTS

1. General Information

The Consolidated Financial Statements ("the Financial Statements") of Globo plc ("the Company") consists of the following companies; Globo plc, Globo Technologies S.A., Profitel Communications S.A., Globo Mobile S.A., Globo IT and Telecom Services SRL, ReachFurther Communications Limited, Globo Holdings Ltd, Gylenhall Investments Ltd, Globo Services (CY) Ltd, Oumpalumpa Ltd and Globo Mobile Technologies International FZ - LLP ("the Group").

The Parent Company, Globo plc, formerly Israeli Acquisitor 1 plc, was incorporated in July 2005 in the United Kingdom under the Companies Act 1985 and was admitted to trading on the PLUS Market in September 2005. On 14 December 2007, the Company changed its name from Israeli Acquisitor 1 plc to Globo plc and listed on the AIM Stock Market in London. Its registered office address is 3 Vaughan Avenue, Tonbridge, Kent, TN10 4EB.

(a) Globo Technologies S.A. and Profitel Communications S.A.

Globo Technologies S.A. is engaged in the provision of e-Business and TelecomSoftware Solutions and related professional services to the public and private sector, primarily in Greece. Globo Technologies S.A.'s registered office is located in Athens, at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece. Globo Technologies S.A. is a private company, incorporated in Greece in November 2000. Globo Technologies S.A. owns 100 per cent of Profitel Communications S.A.

Profitel Communications S.A. provides business communication services. Profitel Communications S.A purchases software applications from Globo Technologies S.A. in the form of "Software as a Service" (S.a.a.S.) and, together with central infrastructure services, integrates them with third party telecom services. Profitel Communications S.A.'s registered office is located in Athens, at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece. Profitel Communications S.A. is a private company, incorporated in Greece in October 2005.

Prior to 14 December 2007, Globo Technologies S.A. was the ultimate parent company of the Group. On 15 November 2007, Globo Technologies S.A. entered into an Acquisition Agreement with the shareholders of Globo plc, in the form of a binding memorandum of understanding under Greek law. This agreement was to acquire the entire issued share capital of Globo Technologies S.A. by means of a contribution in kind by each shareholder of their shares in Globo Technologies S.A., in exchange for a total of 110,000,000 new ordinary shares in Globo plc, being the Consideration Shares. On 14 December 2007, Globo plc became the ultimate parent company of the Group through a share exchange and was admitted to the AIM stock market in London.

(b) Globo Mobile S.A. and Globo IT and Telecom Services SRL

Globo Mobile S.A. and Globo IT and Telecom Services SRL were formed on 18 November 2008 and 16 July 2008 respectively.

Globo Mobile S.A. executes the mobile global strategy of the Group through the commercialization of the CitronGO! and GO!Social service together with platforms and services related to mobile projects through its extensive network of partners and Mobile Network Operators.

Globo Mobile S.A.'s registered office is located in Athens, at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece. Globo Technologies S.A. owns 100% of Globo Mobile S.A.

Globo IT and Telecom Services SRL is engaged in the provision of computer programming, consulting and related activities. Globo IT and Telecom Services SRL's registered office is located in Sos. Bucuresti-Ploiesti No 1A, Bucharest Business Park, Intrarea A. et.1, Birou 125, sector 1 Bucuresti, Romania. Globo Technologies S.A. owns 99% and Profitel Communications S.A. owns 1% of Globo IT and Telecom Services SRL.

(c) ReachFurther Communications Limited

35 per cent of the equity shares of ReachFurther Communications Limited were acquired on 31 December 2008. ReachFurther Communications Limited is a content/service aggregator/enabler with an extensive content/service portfolio that caters to the entire mobile and fixed telecommunications market and was established in 2004 by a team of telecommunications professionals with many years experience in the field of management and advisory of telecommunications operators in selected European & Middle Eastern countries.

ReachFurther Communications Limited's registered office is located in 31 Evagorou Street, 4th Floor, Office 43, 1066 Nicosia, Cyprus. Globo Mobile S.A. owns 35 per cent of ReachFurther Communications Limited.

(d) Globo Holdings Ltd

Globo Holdings Ltd was incorporated in the British Virgin Islands on 23 April 2010 as a limited liability company.

The company was acquired by Globo Plc on 29 July 2010.

The principal activity of Globo Holdings Ltd is the holding of investments. Globo Holdings Ltd's registered office is located in Tortola, at Road Town, Nerine Chamber, Quastisky Building, British Virgin Islands. Globo plc owns 100% of Globo Holdings Ltd.

(e) Gylenhall Investments Ltd

Gylenhall Investments Ltd was incorporated in Cyprus on 16 February 2008 as a limited liability company.

The company was acquired by Globo Holdings Ltd on 29 July 2010.

The principal activity of Gylenhall Investments Ltd is the holding of investments. Gylenhall Investment Ltd's registered office is located in Limassol, at Agias Fylaxeos & Zenonos Rossides 2, Cyprus.

Globo Holdings Ltd owns 100% of Gylenhall Investments Ltd.

(f) Globo Services (CY) Limited

Globo Services (CY) Limited was incorporated in Cyprus on 14 June 2010 as a limited liability company.

The principal activity of Globo Services (CY) Limited is the provision of e-business and software products and related services. Globo Services (CY) Limited's registered office is located in Nicosia, at Corner of Prodromos str.& Zinonos Kitieos, Cyprus.

Globo plc owns 100% of Globo Services (CY) Limited.

(g) Oumpalumpa Ltd

Oumpalumpa Ltd was incorporated in Cyprus on 18 February 2008 as a limited liability company. The company was acquired by Globo Holdings Ltd on 29 July 2010.

The principal activity of Oumpalumpa Ltd is the holding of investments. Oumpalumpa Ltd's registered office is located in in Limassol, at Agias Fylaxeos & Zenonos Rossides 2, Cyprus.

Globo Holdings Ltd owns 100% of Oumpalumpa Ltd.

(h) Globo Mobile Technologies International FZ - LLC ("Globo Mobile Dubai")

Globo Mobile Technologies International FZ - LLC was established on 17 August 2010.

Globo Mobile Dubai has been formed as a Free Zone Authority, under commercial license no.18609 issued by Media Free Zone Authority. The principal activities of Globo Mobile Dubai are software developer, solution and support service provider, consultancy and customer service. Globo Mobile Dubai's registered office is located in Dubai, at Al Thuraya Tower No1, Office No 201, United Arab Emirates.

Oumpalumpa Ltd owns 66.66% and Gylenhall Investments Ltd owns 33.33% of Globo Mobile Dubai.

NOTES TO THE FINANCIAL STATEMENTS

2. Basis of Preparation

The Financial Statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"), IFRIC interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have been prepared under the historical cost convention.

The preparation of Financial Statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial information, including the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

3. Segment Information

The following segments are based on the management reports received by the Board of Directors (who are the chief operating decision makers) which are used to make strategic decisions. The Directors consider the business from a product perspective. The main segments are:

Third party goods: The Group resells third party goods, to its customers, mainly comprising hardware to complement a software project.

Software products and services: The main activity of the Group is to sell its own software products and services to its clients both in the private and public sector.

Telecom services (S.a.a.S): The Group combines telecom services with its own software products that are then sold on a "software as a service" basis.

Mobile products and services: The new activity of the Group is to sell its own mobile software products and services to its clients (mobile network operators, value added service providers, handset manufacturers etc.).

Transactions between segments are recorded at cost.

The Directors assess the performance of the operating segments based on revenue from external customers and gross profit. The segment information provided to the Directors for the reportable segments for the year ended 31 December 2010 is as follows:

The segment information provided to the Directors for the year ended 31 December 2009 is as follows:

4. Earnings per Share

Basic earnings per share are calculated by dividing the profit after tax attributable to equity holders by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share in the year ended 31 December 2009 assumes that options and warrants outstanding at 31 December 2009 were exercised at 1 January 2009, for options and warrants where the exercise price was less than the average price of the ordinary shares during the period. A calculation is done to determine the number of shares that could have been acquired at fair value based on the monetary value of the subscription rights to outstanding share options. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of the options and warrants plus the issue of the shares as part of the deferred consideration for the acquisition of a subsidiary undertaking. On this basis, the calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders divided by 135,511,474.

Following the expiry of the warrants exercisable at 10p per ordinary share and the elimination of the shares to be issued as part of the deferred consideration during the year ended 31 December 2010, none of the outstanding share options and warrants were dilutive. Consequently there is no difference between basic and diluted earnings per share for the year ended 31 December 2010.

Since the year end, the Company issued 115 million ordinary shares together with warrants to subscribe for 1,449,988 ordinary shares of 1p each, exercisable at 15p each which may result in the dilution of the earnings per share in the future.

5. Cash Generated from Operations

Group