Xps Pensions Regulatory News (XPS)

EXPANSYS PLC

("EXPANSYS" or the "Company" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2013

EXPANSYS plc (AIM: XPS), a global provider of end-to-end ecommerce and fulfilment solutions in the consumer electronics and wireless sectors, announces interim results for the six months ended 31 October 2013.

Financial Headlines

- Turnover up 32% to £60.2m (H1 2012: £45.6m)

- Adjusted profit before tax £0.3m (H1 2012: £0.4m)

- Loss before tax £2.4m (H1 2012: loss of £2.1m)

- Exceptional charges of £2.2m (H1 2012: £2.3m)

Trading Headlines

o US SIM business going through substantial change but has suffered an exceptional charge of £2.2m

o DSNS UK in line with management expectations

o Growth in turnover from retail business of 23%

o Reduction in losses in the retail business of £700k to circa £150k

o Growth in turnover from Partner division of 37%

Bob Wigley, Chairman of EXPANSYS, commented:

'It is disappointing that some encouraging trading in the first half of the year has been adversely affected by an exceptional charge related to our US SIM business.'

Enquiries:

CHAIRMAN'S STATEMENT

EXPANSYS announces its results for the six months ended 31 October 2013.

Financial Review

Total turnover for the Group in the period increased by 32% to £60.2 million compared to the same period last year (H1 2012: £45.6 million). Revenue growth has come mainly from the Retail divisions.

The profit before tax as adjusted for share-based payments, foreign exchange and exceptional items was £0.3 million (2012: £0.4 million).

After share-based payments, foreign exchange and exceptional items the loss before tax for the period was £2.4 million (H1 2012: loss of £2.1 million).

Cash at the end of October 2013 was £7.2 million (H1 2012: £2.3 million), however we do not expect a significant variance to market expectations at the year end.

Divisions

DSNS

Turnover in the US SIM business grew strongly in the period. However in building this business significant credit was extended to a trading partner to support the sales activities and a substantial receivable of c. £2.2 million was created. Changes in the business model impacted our partner's business and resulted in the debt becoming overdue. On the basis of recent discussions the Board has prudently concluded that there is sufficient doubt about the recoverability of the debt to require a provision in full. Because of the amount involved this has been treated as an exceptional item.

DSNS USA is going through substantial changes as we evolve strategically from being a SIM distributor to a Network and SIM solutions provider for resellers, distributors and Mobile Network Operators.

As part of this planned change our US SIM business has recently been awarded an exclusive three year contract with T-Mobile in the USA, to become their prepaid top-up solution provider to the independent wholesale channel. This migration in business model has the potential to significantly improve the quality and scale of our business in the USA, and we are working with T-Mobile to develop the opportunity.

The SIM business model in the UK is now predominantly based upon revenue share from our network/MVNO suppliers and we have concentrated upon developing higher quality retail channels for the distribution of our SIMs. We will look to continue to develop our position in this channel, as well as provide differentiated services.

During the period, we have made the small acquisition of a 50% stake in SIMS4U, a UK based SIM distributor into the independent retail channel, and will look to leverage this incremental footprint of up to 40,000 locations through our channel experience and network relationships.

EXPANSYS.com

Revenues from EXPANSYS's own websites grew by 8% in the first half of the year, and B2B revenues grew strongly by 58%. Growth in Asia has been particularly strong with revenue from our own websites up by more than 40%. We have established local market presence in both Taiwan and China and we expect to see the benefits of this investment in H2. To continue to realise the growth potential of this region we have recently moved to a new, greater capacity fulfilment and office facility in Hong Kong, to service our fast growth Asian website and partner businesses.

Having reduced costs materially in FY 13 and generated revenue growth of 39%, the European operation has returned to profitability in this period. The US region has also delivered a contribution to profit in the period, a turn-around from the losses in the first half last year.

Partners

Our partner strategy is to leverage our unique global infrastructure to support technology brands and network operators through a variety of end-2-end solutions (from ecommerce to fulfilment to customer support) thereby enabling them to sell their products directly to consumers and businesses across international markets. This is a more consistent and stable business model for us and with additional value added to our partners it offers higher and better quality returns than our core retail business.

We continue to look for new partnerships and are encouraged by our discussions with new potential partners.

PJ Media

PJ Media has performed below expectations during the first half and as a result we have significantly reduced costs. We expect to see a stronger second half compared to the first half and we will continue to develop our sales pipeline, including in Asia. PJ Media has diversified its offering but the board recognises that a more focused sales approach is required to maximise the opportunities that it has.

Current trading and outlook

Trading during the November and December periods has been in line with expectations, with continuing momentum in the retail and partner businesses.

Bob Wigley

Chairman

8 January 2014

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 31 October 2013

* The Directors believe that reporting adjusted measures provides a more useful comparison of business performance and reflects the way in which the business is controlled. The method of calculating adjusted earnings is detailed in note 3.

GROUP STATEMENT OF FINANCIAL POSITION

GROUP STATEMENT OF CHANGES IN EQUITY

For the 6 months ended 31 October 2013

*Exchange differences relate to the retranslation of net assets of subsidiary undertakings.

GROUP CASH FLOW STATEMENT

For the 6 months ended 31 October 2013

NOTES

1. Basis of preparation and accounting policies

The financial information comprises the unaudited results for the six months ended 31 October 2013 and 31 October 2012.

The condensed consolidated financial statements for the six months ended 31 October 2013 should be read in conjunction with the annual financial statements for the year ended 30 April 2013 which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The Auditors' Report on those statements was unqualified and did not contain any statements under section 498 of the Companies Act 2006.

The Group's principal accounting policies used in preparing this information are as stated in the financial statements for the year ended 30 April 2013, which have been filed with the Registrar of Companies, and are available on our website www.EXPANSYS.com .

2. Exceptional items

3. Adjusted measures

The Directors believe that reporting adjusted measures provides a more useful comparison of business performance and reflects the way in which the business is controlled.

The tables below illustrate how the key adjusted measures are calculated.

Calculations for adjusted earnings per share use adjusted profit for the half year attributable to equity holders of the parent company (shown above) and are detailed in note 4.

4. Earnings per ordinary share

Basic earnings per share amounts are calculated by dividing earnings/(loss) for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share for the year amounts are calculated by dividing the loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

The following reflects the income and share data used in the basic and diluted earnings per share computations:

Where ordinary shares are issued at a discount to the market price, the weighted average number of shares should reflect that the discount is effectively a bonus given to shareholders for no consideration. The weighted average number of shares in the current year and prior year reflect this.

The amounts for earnings per share are as follows:

Adjusted earnings per ordinary share

The Directors believe that reporting adjusted measures provides a more useful comparison of business performance and reflects the way in which the business is controlled.

To this end, basic and diluted earnings per share are also presented on this basis below.

Adjusted profit for the half year attributable to equity holders of the parent is calculated in note 3 above, and is as follows:

The amounts for adjusted earnings per share using this adjusted profit for the half year attributable to equity holders of the parent are as follows:

5. Approval by the Board of Directors and Audit Committee

The interim statement was approved by the Board of Directors and the Audit Committee on 7 January 2014 and is neither audited nor reviewed by the Group's auditors.

The Directors of EXPANSYS plc are listed in the EXPANSYS plc Annual Report for 30 April 2013. A list of current directors is maintained on the EXPANSYS plc website www.EXPANSYS.com .