Digital Payments Plc: Final results

DIGITAL PAYMENTS PLC
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

CHAIRMAN'S STATEMENT

I am pleased to be able to report on this my first year as Chairman of Digital Payments plc and on our
first year of trading for the year ended 31 December 2014.

In the year just ended, we have listed the Company on the Main Quote of the Danish GXG Market, completed on
two acquisitions and had three fund raisings.  A very busy start by any standards.

I am pleased with the way the acquisitions have integrated into the Group. We have a very good team.

On the 29 July 2014 we acquired Baytron Limited.  With Baytron came Signia Associates Ltd, a prepaid-based
payroll management company and the assets and software of White Eagle Global Payments, a company which
since its inception, had developed more than 40 prepaid card programs for clients across different
industries and geographies.  Signia Associates Limited owns the Globus Card brand, which was specifically
developed for European employers of migrant workers in Europe.

On the 7 August 2014 we completed our second acquisition which was of the entire issued share capital of
Muscato Group Inc. ("MGI") a USA, company, based in Florida.  MGI includes M2 Payment Solutions Inc. ("M2")
and all of its affiliates. MGI and M2 provide financial institutions, companies, and government agencies in
the United States, Latin America and Europe with the technology, transaction processing and infrastructure
needed to launch innovative payment products and services.

M2 continues to operate under its current brand and business structure; adding more functionality and
resources to build on its global market presence. Over the past 12 months M2 has released new products in
both multi-currency and loyalty management and expects to continue the path of new market products and
services to deliver to its customer base.

Within MGI we have a superb team of prepaid and payment industry people and I am proud that we are part of
the same team.  International acquisitions and operations bring unique difficulties.  With daily
communication we have been fortunate to have very few integration difficulties.

I would personally like to thank Brantley Muscato for taking on the role of Chief Executive of M2 and to
thank once again his team for all their hard work and effort this past year.

The completion of both acquisitions enables Digital Payments PLC to complete another step in our ambition
of being a global vertically-integrated payment company with worldwide processing capability.

We have not stood still and have spent time and resources to take the best from both acquisitions and
invested into substantial additional development resources to commence work on the next generation multi-
currency wallet platform, the formal release of which we are planning in the 4th quarter of 2015.

The Group turnover for the 5 months of post-acquisition integration is GBP731,000 of which the loss for the
year is GBP8,168,000.  Whilst it is always disappointing to report any loss, even in the first year of
trading, the figures contain significant expenditure on research and development and one off costs for the
acquisitions and admission to the GXG market.  The Company however will not be making a dividend payment
this year.

On 5 January 2015, I was delighted to appoint Michael Muscato to the board of Digital Payments plc.

Outlook

Our businesses has great opportunities in the forthcoming year together with strong and energetic
management in place to drive it forward. M2 has made a very encouraging start to the year and is set for
further growth.

We have also formed a number of strategic regional marketing partnerships, which will allow DPP to switch
from passive to proactive marketing model on a global scale.  Furthermore DPP is negotiating a controlling
stake in a Maltese company, which will be using DPP's new platform and has already applied for an E-money
license in Malta.

I am very encouraged both by our business opportunities and the start we have made to the current year.

Mikhail Raskin
Director

29 May 2015

The Directors of the Issuer accept responsibility for the contents of this announcement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Mikhail Raskin
Director
Digital Payments Plc
Telephone: [phone]
Email: [e-mail]

GXG Corporate Advisor
Nick Michaels and Jon Isaacs
Alfred Henry Corporate Finance Limited
www.alfredhenry.com
Tel: [phone]

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2014
                                                                                         Period ended
                                                                                          31 December
                                                                                                 2014
                                                                                              GBP'000

Continuing operations                                                                                
Revenue                                                                                           731
Cost of sales                                                                                   (192)

Gross profit                                                                                      539

Administrative expenses                                                                       (1,508)

Operating loss                                                                                  (969)

Impairment of intangibles                                                                     (9,208)
Other income                                                                                      101
Loss on ordinary activities before taxation                                                  (10,076)

Income tax credit                                                                               1,908

Loss for the period attributable to the owners of the parent                                  (8,168)

Loss per share (expressed in pence per share)                                                 (2.28)p

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014
                                                                                   As at 31 December
                                                                                                2014
                                                                                             GBP'000
Assets                                                                               
Non-current assets                                                                                  
Intangible assets                                                                             11,615
Property, Plant & Equipment                                                                       33
Investments                                                                                      181
                                                                                              11,829

Current assets                                                                                      
Trade and other receivables                                                                      432
Cash and cash equivalents                                                                         63
                                                                                                 495

Total assets                                                                                  12,324

Equity and liabilities                                                                              
Equity attributable to owners of the parent                                                         
Ordinary shares                                                                                5,596
Share premium                                                                                 11,468
Retained losses                                                                              (8,168)
Total equity                                                                                   8,896  

Liabilities                                                                                         
Current liabilities                                                                                 

Trade and other payables                                                                       1,090
Borrowings                                                                                        21
Total liabilities                                                                              1,111

Non-current liabilities                                                                             
Deferred tax liability                                                                         2,317
                                                                                               2,317

Total equity and liabilities                                                                  12,324

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2014

                                                                                         Period ended
                                                                                          31 December
                                                                                                 2014

                                                                                              GBP'000

Net cash generated from operating activities                                                       90

Cash flows from investing activities                                                                 
Acquisition of subsidiaries                                                                   (4,985)
Cash acquired on purchase of subsidiaries                                                          37
Purchases of intangible assets                                                                   (27)
Purchase of investments                                                                         (181)
Net cash flows from investing activities                                                      (5,156)

Cash flows from financing activities                                                                 
Issue of ordinary share capital                                                                 5,129
Net cash flows from financing activities                                                        5,129

Net increase in cash and cash equivalents                                                          63
Cash and cash equivalents at the beginning of the period                                            -
Cash and cash equivalents at end of period                                                         63

NOTES TO RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2014

1.      The  financial information set out above does not constitute statutory accounts for the purpose  of
Section  240  of the Companies Act 1985.   The financial information has been extracted from the  statutory
accounts  of Digital Payments Plc and is presented using the same accounting policies, which have  not  yet
been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 29  May
2015.

2.     Earnings per share

Basic  earnings per share are calculated by dividing the earnings attributable to ordinary shareholders  by
the  weighted  average number of ordinary shares during the period. The weighted average number  of  equity
shares in issue was 358,882,684 and the loss after tax was GBP 8,168,065.

Digital Payments plc