2ergo

Taking your business mobile

Preliminary Results for the Year Ended 31 August 2010

2ergo Group plc

("2ergo" or "the Group")

Preliminary Results for the Year Ended 31 August 2010

2ergo is a leading multi-national provider of mobile business strategy and sector specific solutions for organisations of all sizes, and has been a pioneer of enabling innovative mobile business solutions across multiple sectors and geographies since 1999.

The Group's clients range from multinational media and entertainment businesses to international telcos; and from financial services companies to global FMCG brands through to SMEs.

2ergo is pleased to announce its preliminary results for the year ended 31 August 2010 reflecting the programme of substantial investment for the long-term development of the Group announced in November 2009.

2010 
£000
2009
£000
Revenue 
21,423 32,565
Gross profit
10,616 
10,887 
Pre-tax (loss) / profit (1)
(534) 
3,813 
EBITDA (1)
1,366 
4,968 
Basic loss per share
(1.55)p 
(0.60)p

(1) figures stated before notional interest charge on deferred consideration in 2010 and before impairment of investment in Broca plc in 2009

Highlights
• Full year results in line with expectations.
• Transitioned business through extensive investment in period to maximise future growth.
• Investment already proving successful in Q1 2011, as evidenced by 34% growth in gross profit over Q1 2010.
• Awarded prestigious 4 year contract with Transport for London and many other blue chip client wins.
• Secured major blue chip contract wins in every region of operation.
• Integration of acquisitions progressing well.
• Continued innovation and development into award winning product set and technology.
• Enhanced development of the consumer analytical and behavioural insight profiling module, "mobileDNA".
• Integrated Vouchernet, 2ergo's mobile couponing software, with major EPOS suppliers.

Neale Graham, Joint Chief Executive of 2ergo, commented:

"The underlying progress made by the Group during the reporting period has been excellent. The Board concluded 12 months ago that the growth of the mobile data channel was at a tipping point and resolved to capitalise on the opportunity by committing to a period of investment. We are pleased with the early signs of the returns on that investment and believe that it has paved the way for significant growth over the coming years".

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