MobileWave Group plc

Previously Fieldbury plc

("MobileWave" or "the Company")

Preliminary Results for the period ended 28 February 2011

MobileWave is pleased to announce audited preliminary results for the period ended 28 February 2011. 

Highlights of the period include

·      Acquisition of MobileWave Limited

·      Recruitment of highly experienced and talented management team

·      Made significant changes to the development of the product in line with interested customer feedback

·      Continuing review of potential acquisitions which are complementary to our existing business

Commenting on the outlook for the year, Rory Stear, Chairman, said:

"The period saw a significant change in the business with the acquisition of Mobilewave Limited.  Your Board is focussed on the development of the Mobilewave business and are also continuing to explore a number of strategic options concerning the Group's future development".

-Ends-

Chairman's Statement

I am pleased to present the results for MobileWave Group plc for the period ended 28 February 2011.  The Board is encouraged by the progress made during the period. The early part of the financial year, from March through to July 2010, was spent conducting due diligence into various companies and businesses to acquire by Fieldbury PLC (as the company was then named).

In August 2010, the Company completed the acquisition of MobileWave Limited for a total consideration of 21,428,571 new ordinary shares of 5 pence each to the vendors.  Its core business comprises a mobile marketing platform with an innovative suite of consumer loyalty applications designed to deliver measurable, targeted mobile marketing campaigns. 

Review of Operations

Since acquiring the MobileWave business the Directors have carried out a full business review and have broadened the focus of the development of the MobileWave business, focusing in particular on emerging markets.

MobileWave's original product offering continues to be Oi'Rewards, a consumer facing downloadable application ("app") for mobile phones, designed to create a vehicle that integrates social networking, loyalty, market research, sales and promotion through an ongoing digital dialogue between brands and its consumers.  Primarily designed for brands and businesses which do not have a loyalty scheme, or which want to overlay a mobile loyalty scheme over their existing card-based loyalty scheme system, Oi'Rewards offers solutions for companies wishing to participate in the mobile content environment.  This can be achieved either by using the Oi brand or as a loyalty option using the client's own brand.

Since the Company acquired the MobileWave business, Oi'Rewards has expanded to include such features as a geo-location, a voucher engine and versions of the app for Android, (the operating system for mobile telephone devices, owned and operated by Google Inc).  The inclusion of the voucher engine in particular (which broadens the rewards offering), has enabled MobileWave to look beyond its original South African focus and expand into other markets, in particular Asia, the Middle East and the rest of Africa.

Since 2010 MobileWave has engaged a Silicon Valley marketing consultancy firm, Global Fluency, with the intention of expanding into North America and making its platform and message more relevant to enterprise marketers.  As a consequence of the relationship with Global Fluency, MobileWave has forged a strategic alliance with the Chief Marketing Officer Council (CMO), a non-profit network of approximately 6,000 marketing professionals engaged in developing best practice in customer relationship management, marketing automation and loyalty.  MobileWave has benefitted from this collaboration from introductions to CMO councils member organisations as well as from the credibility of being associated with this influential business network.

MobileWave's core solutions are designed to enhance the efficacy of a retailer, brand and enterprise marketer's loyalty promotions using the mobile and social mediums.  A key initiative for 2011 has been the development and beta testing of MobileWave's mobile and social loyalty platform which will be integrated into clients existing loyalty platforms and then specifically tailored to meet the clients' requirements.  This development is designed to facilitate clients with an activated loyalty campaign or promotion within a targeted date of two weeks from commencement of contract. MobileWave was built from inception to be a cloud computing based, performance marketing solution; hence clients will only be invoiced nominal set-up fees followed by a trail commission. The social media component of MobileWave's loyalty engine further augments the viral marketing potential for the client, thereby enhancing the overall value of the campaign both from a revenue and brand engagement standpoint.

MobileWave will operate primarily in Asia, Africa and the Middle East and is now in advanced discussions with numerous companies in these regions for the use of its mobile marketing platform. MobileWave's business model shift to enterprise loyalty opens up significant new opportunities for global and regional brands, retailers and enterprises to engage with its platform and creates several new revenue opportunities for MobileWave. The key performance measure of MobileWave's revenue growth will be the number of transactions going through its platform per client per month as this demonstrates end user traction.

As part of the process of expanding its reach, MobileWave has now moved its product development away from South Africa and has in place a development agreement with Ariose Software in Delhi, India.  A new chief technology officer is expected to be appointed shortly in India to lead the team there.  The new updated product offering is expected to be released by the end of August 2011, with a further version with greater functionality expected in December 2011.  The Board is encouraged by the initial response of targeted customers and is optimistic about the direction of current negotiations with certain prospective customers.

People

In August 2010 Christopher Staines was recruited as Chief Financial Officer and John Heath (founder of the MobileWave business) as Chief Technical Officer of MobileWave Limited, the Company's subsidiary carrying on the MobileWave business. Both are based in South Africa.

In January 2011 Kartik Ram was appointed as the Managing Director of MobileWave Limited. Previously Kartik was the senior vice-president of an Intel Capital telecom portfolio company, One97 Communications, engaged in the mobile cloud computing space.  He has spent fifteen years in digital media working at leading enterprises in Silicon Valley and Asia.  Kartik is a graduate of the London Business School MBA programme with former schooling at Stanford Graduate School of Business and Texas State University.

As at 31 March 2011, with the move of the Group's R&D operations to India, it was mutually agreed to terminate the employment of John Heath as CTO.

Since the period end MobileWave Group PLC have recruited Kurt Pakendorf as Group CEO and a board member of MobileWave Group PLC. Kurt is a highly experienced technology executive who has held significant leadership positions in technology companies based in Europe and the USA. Prior to this Kurt was an attorney practising corporate law in South Africa, the United Kingdom, and Belgium and with the United Nations in Kosovo.

Litigation update

As shareholders are aware, the Company has been pursuing Mr Devinder Raj Narang in respect of the deferred cash payment of US $1.5 million which was due on 31 December 2009, together with accrued interest following the disposal of the Freeplay business on 4 August 2008.

The Company has obtained judgment against Mr Narang in the UK which it is seeking to enforce in India.  The next hearing date for the matter in India is scheduled on 29 August 2011 and a further update will be provided at that time. 

In addition to vigorously pursuing Mr Narang for this debt, we are working, on a without prejudice basis, with a mediator who is known and trusted by both parties, in the hope of reaching a negotiated satisfactory settlement. Although the directors are confident of a favourable settlement in this matter it was considered prudent to provide in full for the debt principal and also not to accrue for any interest due.

Financial Review

MobileWave Group PLC has not traded during the 14 months ended February 2011, other than to make investments in exploring various investment opportunities and in maintaining the administrative functions of the company. MobileWave Limited, the Group's 100% owned operating subsidiary has invested in ongoing Research & Development, Market Research, Corporate Restructuring and the recruitment of personnel to fulfill its future objectives. Development and market research costs incurred during the period were $311,997.

During the period $297,761 was spent on abortive acquisition costs and the costs associated with the acquisition of MobileWave were $220,492. The acquisition of MobileWave resulted in negative goodwill of $775,813, and the bad debt provision in relation to the deferred cash consideration due on the disposal of the Freeplay Business is $1,500,000.

Outlook

In May 2011 the Company received shareholder approval for the issue of Convertible Preference Shares to raise £2m at a coupon of 15%. As at 1 June 2011 the sum of $300,000 has been received. The Company is in the process of securing the balance of the £2m and is currently in negotiation with a number of investors in this regard. It is expected that the 50% of the said amount will have been raised by 31 July 2011, with the balance in place by September 2011.

When the above funding is in place, MobileWave Group PLC will be well placed to take advantage of the numerous client leads it is now developing for its products, and expects to be generating revenues from September 2011 onwards.

R Stear

CHAIRMAN 

8 July 2011