Datum International Ltd

January 18, 2011 02:00 ET

Unaudited Half Year Report

                                  DATUM INTERNATIONAL PLC
                                        (PLUS-quoted (DATP))


The Board of Datum International Plc ("Datum" or "the Company") today announces the Company's unaudited
Interim Results for the half year ended 31st October 2010.

Financial Highlights

- Revenue from continuing operations up by 166% to £1.1m (2009: £407k)

- EBITDA up by 200% to £245k (2009: £82k)

- Normalised EBITDA up by 210% to £254k (2009: £82k)*

- Basic EPS up by 64% to 0.41 pence per share (2009: 0.25 pence)

-  Net current assets excluding deferred income £127k (2009: net current liability £228k)

-  Balance sheet reserves restructured resulting in £634k balance in retained earnings

*excluding share based payments

Operational Highlights

- Successful operational and product integration of Root 3

- First 'joint' customer win at ABS, a supplier of Business Process Outsource (BPO) services to the
automotive sector

- £325k contract win with the Association of Certified Chartered Accountants (ACCA)

- Renewal of 23 out of a possible 24 existing customer contracts including, Birmingham City Council,
Office of National Statistics, Mouchel, Comet Group, Prudential, Thales, Hospira and Severn Trent Services

- New reseller partnership signed with Lakeview, a provider of ERP software, resulting in initial revenues
of £100k

- Additional partnership opportunities at a mature stage with major resellers and distributors which should
enable Datum to rapidly scale its SaaS business

Datum International plc                                          TEL: 01438 347110
David Hornsby, Chief Executive

finnCap                                                          TEL: 020 7600 1658
Marc Young/Ed Frisby (corporate finance)
Stephen Norcross (corporate broking)
Chief Executive's Statement

I am pleased to announce our interim results for the half year. The Company has continued the momentum from
last  year,  and has made exciting progress both strategically and financially in the first six  months  of
this year. The Company is very well placed to enjoy further growth this year and beyond.

The  Company's strategic objective is to become the leading supplier of ECM solutions to the UK Mid Market.
ECM  is  focused  on  the  capture, storage, retrieval and distribution of unstructured  information  which
typically  accounts  for  80% of all data within an organisation. The Mid Market  can  be  defined  as  SME
enterprises up to approximately 2000 employees or departments within larger enterprises. The UK Mid  Market
is  extremely  fragmented with no dominant ECM supplier; the Company believes that  consolidation  in  this
sector will offer attractive opportunities in the next few years.

The  Company  intends  to  execute  its strategy through a combination of  organic  growth  and  'bolt  on'
acquisitions,  and  performance since April 2009 demonstrates the ability of the  new  management  team  to
execute  its  objectives.  The  Company benefits from a team with a  consistent  track  record  of  revenue
generation  and  sales  execution.  This, coupled with 'KnowledgeWorker', our market leading  ECM  software
platform, should continue to drive organic growth.

The  acquisition  of Root 3 has been a considerable success having added major customers,  solid  recurring
revenues  and  world class technology to the group. The ability to intelligently capture data has  extended
the  Company's  'value proposition' significantly and has enabled us to win deals that we  were  previously
unable to bid for. The Company, having integrated and developed the Root 3 business, is now well placed  to
make further, similar acquisitions in the short and medium term.

Current Trading & Outlook

Since the half year two significant events have taken place.

Firstly,  the Company is pleased to announce that it has completed its conversion to a plc with the  change
of name now effective. This conversion will enable the Company to further its acquisition strategy.

Secondly,  as announced on 17 December 2010, the Company appointed Darren Spillane as Group Sales  Director
from  Kofax plc where he was the UK Sales Director. Darren's role is to manage the Company's sales strategy
and  execution.  Currently the sales pipeline is rapidly increasing; both in terms of the  number  and  the
value of transactions, and our customer win ratio is significantly above the industry average.

The Board is therefore confident that our full year results will meet market expectations.

David Hornsby
Chief Executive

 Datum International Plc - Unaudited Income Statement to October 31st 2010

                                2010            2009

                                £000            £000

Revenue                 1,083.7         407.0

Cost of sales                    (177.1)         (8.9)

Gross profit                        906.6        398.1

Administrative expenses  (652.8)         (316.3)

Share based payment costs (8.5)             0.0

Depreciation & amortisation       (35.8)          (3.6)

Profit from operations           209.5           78.2

Interest payable         (2.4)           (3.7)

Profit before tax        207.1           74.5

Taxation                0.0               0.0

Profit for the period            207.1           74.5

Basic Earnings per share (p)      0.41            0.25

Diluted Earnings per share (p)    0.39            0.24

Datum International Plc - Unaudited Group Statement of Financial Position to October 31st 2010

                                         2010                        2009
                                         £000                        £000
Non-Current Assets                         1,500.2                     
Current Assets                               866.4                       218.2
Total Assets                               2,366.6                       238.0
Current liabilities                       -1,048.4                      -556.2
Non-Current liabilities                        0.0                       -85.0
Total liabilities                         -1,048.4                      -641.2
Net                                        1,318.2                      -403.2
Share capital                                508.6                       301.5
Share premium                                  0.0                     2,152.7
Shares to be issued                          150.0                         0.0
Share option reserve                          25.5                         0.0
Retained earnings                            634.1                    -2,857.4
Total Equity                               1,318.2                      -403.2


Datum  International  plc is   the author and publisher of the SaaS based Enterprise  Content    Management
(ECM) application KnowledgeWorker® which helps companies manage their unstructured content   and   automate
their  business   processes.  Root 3 is one of the UK's leading "Intelligent" scanning  and  data   capture
companies  providing  high volume and complex OCR and ICR solutions to some of the UK's premier  commercial
and   public  sector  organisations.  Together, the group is  able  to  provide  unrivalled  expertise  and
capability   providing end to end solution to control the entire life cycle of information   from   initial
capture through to transformation, workflow, storage, retrieval, archiving and disposition.

Contact Information

  • Datum International Ltd