Sigmaroc. Regulatory News (SRC)

Messaging International Plc / Market: AIM / Epic: MES / Sector: Technology

29 September 2011

Messaging International Plc

('Messaging International' or 'the Company')

Interim Results

Messaging International Plc, the AIM traded company and provider of converged messaging products and services, announces its results for the six months ended 30 June 2011.

Highlights

·; Strengthened global market position as a leading provider of innovative messaging services

·; Pre and post tax profit of £170,401 for 6 months to 30 June 2011 (2010: loss £25,628)

·; Total revenues for the period totalled £1,684,354 (2010: £1,234,842)

·; Steady trading resulting in 36% increase in gross revenue

·; Expanding geographic footprint - established new clients in North America for 'Text to Landline' messaging products

·; Growth in revenues from our new 'Massaging Gateway' either directly or through our customers in North America and Israel

Chairman's Statement

Trading has been solid for Messaging over the last six months as we continue to focus on developing converged messaging services, through our subsidiary TeleMessage, to improve the way users and operators send messages across various communication mediums. We have close relationships with our blue-chip client base, a highly creative R&D team and innovative messaging solutions which ensure that the Company retains its place as a leading provider in this sector. 

Our converged messaging products and services are provided to carriers and enterprises to deliver text, voice, video and multimedia messages to and from any communication device. Users can send, receive, and manage SMS, MMS, voice, fax and e-mail messages from the Internet, fixed or mobile phones and application programming interfaces ('APIs'). 

Our clients include, among others, companies such as Sprint in the US, Rogers Wireless, Bell Mobility and Telus in Canada, USI in Russia and T-Mobile in Macedonia. We ensure stable revenues by either hosting messaging services for a per-message fee or by selling software licences, which are usually linked to the number of messages that can be sent through the system or to the number of active users. 

Sales of our Messaging Gateway product, which offers a range of interfaces for content providers, enterprises and Facebook developers, continue to increase. The product enables enterprises to send out messages (mainly SMS/MMS, but also voice, fax and email) to customers and employees on a wide scale and uptake is gaining impetus particularly as more clients understand its convenience and cost-saving benefits.

Our hard working Israeli based R&D team continues to develop existing products and create new ones to ensure that we maintain our position in the market and continue to the supplier of choice for our partners. Our products conform to Open Network Enabler API standards so that our converged messaging services can be integrated across multiple operators. These include a range of new Facebook applications and API devices, which allow developers to integrate SMS, MMS, voice, conferencing, fax and video messaging within their own applications.

Financial Results

As demonstrated by our financials, Messaging continues to demonstrate growth and maintain profitability. For the period ended 30 June 2011, we are reporting a profit before tax of £170,401 on the back of revenues of £1,684,354 (2010: £1,234,842)

The Company's cash position at 30 June 2011 was £393,311 (December 2010: £357,319).

Outlook

Our focus remains on increasing our presence within the telecom sector both geographically and technologically. We are a profitable company with an expert technical team that has again proven its ability to provide innovative messaging services that add value to our blue chip customers, thus positioning the Company for continued growth.

I would like to thank our team for their hard work and dedication over the past year, and our shareholders for their continued support. I look forward to reporting another successful period of trading at our interims.

H Furman

Chairman

27 September 2011

**ENDS**

For further information visit www.telemessage.com or contact:

Consolidated statement of comprehensive income for the six months ended 30 June 2011

Consolidated statement of changes in equity for the six months ended 30 June 2011

Consolidated Statement of financial position as at 30 June 2011

Consolidated cash flow statement for the six months ended 30 June 2011

Notes to the interim report

For the six months ended 30 June 2011

1. Basis of preparation and consolidation

The financial information contained in the interim results has been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. It has been prepared in accordance with IAS 34 - Interim Financial Reporting and does not include all of the information required for full annual financial statements.

The financial information contained in these interim results for the six months ended 30th June 2011 and 30th June 2010 are un-audited. The comparative figures for the year ended 31st December 2010 do not constitute statutory financial statements of the group within the definition of S434 of the Companies Act 2006. Full audited accounts of the group in respect of that financial period prepared in accordance with IFRS, which we received an unqualified audit opinion have been delivered to Registrar of Companies.

The accounting policies and methods of computation used in the interim statement are consistent with those used in the financial statements for the year ended 31 December 2010 and are in accordance with International Financial Reporting Standards.

The statement of comprehensive income, statement of changes in equity and financial position include the financial statements of the company and its subsidiary undertakings up to 30 June 2011.

The consolidated interim financial statements do not include all the information required for full annual financial statements and therefore cannot be construed to be in full compliance with IFRS.

The consolidated interim financial statements were approved by the board and authorised for issue on 27 September 2011.

2. Turnover

3. Taxation

No provision has been made for taxation as the group has losses available to carry forward against future trading profits. No deferred tax asset has been recognised in accordance with International Accounting Standard 12.

4. Basic and diluted loss per share

For the six months ended 30 June 2011 and 30 June 2010, basic earnings per share has been calculated on the group's profit attributable to owners the company of £170,401 (2010: £25,628) and on the weighted average number of shares in issue during the year, which was 235,880,000.

Diluted earnings per share has been calculated on the group's profit of £170,401 which in addition to 235 million ordinary shares in issue, takes into account £100,000 worth of warrants and 23 million options to subscribe for ordinary shares.

For the year ended 31 December 2010, basic earnings per share has been calculated on the group's profit attributable to owners of the company of £357,245 and on the weighted average number of shares in issue during the year, which was 235,880,000.

Diluted earnings per share has been calculated on the group's profit for the year ended 31 December 2010 of £357,245 which in addition to 235 million ordinary shares in issue, takes into account £100,000 worth of warrants and 23 million options to subscribe for ordinary shares.