Annual report 2014-1501 July 2015iEnergizer Ltd.('iEnergizer' or the 'Company' or the 'Group')ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2015iEnergizer, the technology services and media solutions leader for the digital age, reports annual results for the year ended March 31st 2015.Financial Highlights:· Revenue down 9.4% at $138.9m (2014: $153.7m)

· EBITDA down 22.5% at $25.5m (2014: $37.8m)

· Adjusted EBITDA $29.1m(1) (see note below)

· Profit before tax (PBT) down 58% at $8.6m (2014: $20.7m)

· Profit before tax margin down to 6.1% (2014: 13.3%)

· Reduced Net Debt to $95.5m (2014: $110.0m)

· Earnings per share of $0.04 (2014 $0.12)

· PBT significantly impacted by a number of restructuring measures (see * note below)

Operational Highlights:· Real Time Processing revenue grew 19% year on year (Y/Y) and now accounts for 13% of revenues (10% in 2014)

· Back Office Services revenues grew 12% Y/Y and now accounts for 28% of revenues (22% in

2014)

· Back Office Services segment Operating Profit Margin increased by 880bps.

Board changes:· With immediate effect, the Company announces the following changes to its Board:

o Sara Latham moving from Non-executive Chairperson to Executive Director;

o Marc Vassanelli becoming the new Non-executive Chairman of the Company; and

o Neil Campling, Chief Financial Officer, leaving the Company

(1)Non-recurring expenses relate to one off costs of US$ 3.6mn including a) Employee Severance and related legal/professional cost $1.67mn, b) Facility relocation costs $ 1.18mn, c) Aborted bond issue transaction costs $0.47mn and d) Software Development costs of $0.29mn.

Marc Vassanelli, Chairman of iEnergizer, commented:'We have spent the year reorganising the business from the ground-up and focusing on a go-to-market sales and services delivery model. The emphasis on profitable growth and targets is at the forefront of these changes and has taken time to implement. Combined with a number of industry and company specific headwinds the effect is a clear short-term drag on financial performance. Despite this I am convinced we have the investments, technologies and people to capitalise on the progress and opportunities we have in each of our key strategic areas.
'As expected fiscal 2015 has been a transitional year. While maintaining our focus on retaining and growing share with key customers the efforts have centred on ensuring both existing and new business will add to operating profits. The Company's focus is on higher margin work in non-voice based processes including legal process outsourcing, digital solutions, financials, entertainment gaming support and content technology. A significant reorganization of lower margin work and rolling off of unprofitable contracts, together with the winding down of two high margin projects has hit profits over the year. Our new global sales initiative in the content delivery division has been established with a clear focus on delivering multi-year, recurring revenue contracts complimentary to our existing business services. This has reached critical mass and will continue to accelerate over the years to come. Fiscal 2016 will be a year in which our new, leaner structure, together with executing on significant opportunities in enterprise and continuing momentum in Back Office Services and Real Time Processing can set the company back on a path of renewed revenue growth and operating profit leverage. The foundations have been laid to expand our offering profitably and, in turn, deliver long-term value for our shareholders.'
For further information regarding iEnergizer, please call:iEnergizer Ltd.Chris de Putron
Mark De la Rue
+44 (0)1481 242233FTI Consulting - Communications adviserEdward Westropp, Jonathon Brill, Eleanor Purdon
+44 (0)20 3727 1000Arden Partners-Nominated adviser and brokerSteve Douglas, James Felix
+44 (0)20 7614 5900

Company Overview

iEnergizer is an AIM listed independent, integrated software and service pioneer. iEnergizer is a digital age publishing and technology leader set to benefit from the dual disruptive waves of big data and the cloud. The shift to the digital world is at a tipping point. iEnergizer has a unique position with cutting edge technology to serve as an enabler to its clients to help facilitate this transformation.
iEnergizer provides services across the entire customer lifecycle and offers a comprehensive suite of Content & Publishing Process Outsourcing Solutions (Content Services) and Customer Management Services (Back Office Services and Real Time Processing) that include Transaction Processing, customer acquisition, customer care, technical support, billing & collections, dispute handling and market research
& analytics using various platforms including voice - inbound and outbound, back-office support, online chat, mail room and other business support services.
Our award-winning content and publishing services provide complete, end-to-end solutions for information providers and all businesses involved in content production. Our differentiation is in focusing on solutions and services that enable customers to find new ways to monetize their content assets, measurably improve performance, and increase revenues across their entire operation. From digital product conception, content creation and multichannel distribution, to post-delivery customer and IT support, we align ourselves with our customers as they streamline their operations to maximise cost- efficiencies and improve their ROI while connecting them with new, digitally savvy audiences.
Chairman's StatementThe financial performance of iEnergizer in 2015 is reflective of a number of challenges which escalated through the year. A number of significant and very profitable projects came to a natural end which could not be replaced quickly. However, we have made significant progress in realigning costs, for which the benefits will be reaped in future financial performance and a refocused strategy on differentiated services is designed to ensure long-term value creation for our shareholders.
The underlying businesses in two of our three divisions have performed exceptionally well. Unfortunately the Content services division, which has historically contributed significantly to group profits has borne a number of project conclusions during the financial year. This, in turn, had a significant bearing on financial results. First project conclusion was the rapid decline of the highly profitable XBRL project as announced at the time of interim results. In addition, revenues from smaller shared service customers in BFSI didn't grow at the pace anticipated or at a rate able to soften the decline. Second, a digital solution customer in Content services was the subject of a takeover, which led to the movement of business to their own captive solution. Third, a highly promising legal process outsourcing customer, again within our Content services business, decided to exit the legal deposition summary industry. All told, the decline in revenues and reduction in volumes of workload has had a significant impact on profits. While the company has been able to replace some of the revenues in the short term with other contracts, it has been at a lower margin, and not of the magnitude to prevent a year on year revenue decline. In particular, the XBRL customer has contributed significantly in the latter stages of the financial year historically. Unfortunately, for the reasons cited above, this didn't transpire in FY 2015.
The RTP (Real Time Processing) division posted revenue growth of 19%, outperforming our own expectations as key clients continued to increase workload volumes throughout the year. This growth accelerated from the 17% achieved in 2014, which in itself was above expectations. The BOS division continued to post best-in-class margins enjoying 880bps of margin expansion, and returned to growth with top line growth of 12%.
The management team has simplified reporting structures and streamlined management positions. There is now one group COO and one Head of Sales having eliminated duplicated functions across divisions. The year has been spent investing in technology differentiation, identifying significant opportunities in complimentary processes and diversifying into new verticals (e.g. healthcare) to drive future, profitable growth.
The overall outsourcing global market continues to expand, but increasingly the functions of outsourcing are changing dramatically. The number of preferred vendors in any given contract is consolidating and the functions outsourced are becoming increasingly sophisticated. iEnergizer is well positioned to benefit from this trend as an essential long-term-partner that delivers high quality, complex processes. The Company has developed end-to-end Lifecycle Management (LCM) solutions, so that as companies streamline and consolidate their operations, iEnergizer can act as a preferred vendor and sin gle partner who can meet all of these needs while providing maximum cost-efficiencies.PeopleI would like to thank each and every one of our colleagues for their hard work and commitment to iEnergizer. It has been a tough year but the focus on execution remains outstanding.The BoardNeil Campling has resigned from the Board, Executive and company in order to return to a position in the investment community. We would like to thank Neil for his efforts in restructuring the company and taking out the necessary costs to position the company to return to profitable growth strategies of the future.

I would like to thank our management team for their strength of leadership who have helped iEnergizer grow over the last decade. The entrepreneurial approach of the management team has been a true asset to the Company. It has enabled us to identify new markets in addition to providing high quality service to our existing clients.

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