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19 November 2009

FFastFill plc

("FFastFill" or the "Company")

Interim Results

FFastFill (LSE: FFA), the leading provider of Software as a Service ("SaaS") trading technologies to the derivatives market, is pleased to announce interim results for the six months ended 30 September 2009, showing robust progress despite a difficult market background.

Financial Highlights

• Revenues up 3% to £7.04m (H1 08/09: £6.83m)

  • SaaS revenues up 27% to £5.11m (H1 08/09: £4.02m)

• 12 month SaaS Order Book stands at £10.51m (H1 08/09: £8.95m)

• Gross Profit up 17% to £5.86m (H1 08/09: £5.01m)

• Benefits of cost efficiencies being felt across the business

• Operating profit up to £0.5m (H1 08/09: loss of £0.4m)

• Strong cash position: £3.1m at 30 September 2009 (£2.2m at 31 March 2009)

• Excellent operating cash conversion before investment in core infrastructure and Asia

Operational Highlights

• Notable new client wins across the front, middle and back offices, including, Prudential Bache, Liquid Capital, Mako, Ignis and SVS 

• Continued investment in product development, in particular in our middle office solutions

• Phase One of the Asia expansion completed, linking our London and Chicago data centres to the Far East

Commenting on the results Keith Todd, Executive Chairman of FFastFill said:

"I am pleased to be able to report a robust performance in the half year to 30 September 2009. This performance was delivered in a market recovering from the financial storms of 2008 and resulted from the strength of our SaaS business model and the effect of the cost saving that we delivered. With renewed stability and confidence returning to our markets, we are cautiously optimistic that will be able to continue to grow strongly."

For further information please contact:

FFastFill plc	+44 (0)20 3002 1900
Keith Todd, Executive Chairman
Hamish Purdey, Chief Executive Officer
Canaccord Adams	+44 (0)20 7050 6500
Simon Bridges
Andrew Chubb
FinnCap	+44 (0)20 7600 1658
Charles Cunningham
Financial Dynamics (Financial PR)	+44 (0)20 7831 3113
James Melville-Ross / Matt Dixon / Emma Appleton

  Chairman's Statement

I am pleased to announce a robust performance in the half year to 30 September 2009. Particular highlights were the 27% growth in our core SaaS revenues offsetting declines in other revenue streams, and a significant increase in profitability delivering an operating profit of £0.5m (H1 2008/9: Loss £0.4m). Our closing cash balance was also strong at £3.1m (H1 2008/9: £1.37m).

This performance was delivered in a market recovering from the financial storms of 2008 and resulted from the strength of our SaaS business model and the effect of the cost saving that resulted from the cost efficiencies we delivered. 

There have been a number of notable new customers wins in the first half and we have strengthened our already strong position in the LME market despite increased competition. Our Asian Pacific expansion strategy, announced in November 2008, is starting to bear fruit and we have completed the implementation of phase one of our Asian infrastructure rollout, connecting our London and Chicago data centres to Singapore, Hong Kong and Tokyo. It continues to be a focus for us particularly given the fact that the Asian market is expected to grow faster than other regions in the years ahead, especially as it migrates its trading environment to a fully open, electronic world. The list of active local prospects is building and we look forward to a bright future in Asia Pacific, in addition to our prospects in Europe and the US.

The effect of the 2008 crisis will be felt through our current financial year - firms that have merged are still completing their integration programmes and new entrants, established to take advantage of the turmoil, are taking time to get going. We said that 2009 would be the calm after the storm and this has proved correct. However, we are now seeing the emergence of a more normal business environment and budgets for new initiatives which are now being put in place for 2010. This will help underpin our growth through 2010.  

The regulatory pressure on the 'over the counter' (OTC) market, led by the US administration, is intense and looks like it will lead to fundamental change in the OTC market. Significant parts of the market will be required to be centrally cleared through one of the International Clearing Houses. As this change process unfolds through 2010 into 2011, we expect FFastFill's addressable market will grow significantly, for in particular our middle and back office components. 

I am also pleased to confirm that the process to convert our share premium account to distributable reserves was successful and we are now in a position to consider dividend and share buyback programmes at the appropriate time.  

Following our robust performance in H1, our SaaS business model has proved to be highly effective through these challenging times. With stability and confidence returning to our markets, we are cautiously optimistic that we will continue to grow strongly. 

Keith Todd CBE

Executive Chairman

  Chief Executive Officer's Review

Introduction

The Company has continued to make good progress during the first half of 2009/10, as indicated by the increase in operating profit, despite the troubled economic conditions. We are confident in the future and believe that FFastFill is well positioned to take advantage of an improving economic environment. 

Contract Wins during the Year

In terms of new business, FFastFill continues to win SaaS mandates from major financial institutions. Wins during the half included, among others, Prudential Bache, Liquid Capital, Mako, Ignis and SVS. These solutions ranged from front office, through middle office and into the back office. Our new customers have been particularly impressed by our offering's flexibility, underlining the strategic rationale behind our focus on SaaS. The buy side continues to be a target for our technology solutions driving greater efficiencies into the trade cycle.

Throughout the half, we have also continued to phase out legacy software with conversions from Viewpoint to SEALS for many of our middle office customers. SEALS is providing an industry leading middle office solution and has beaten the incumbent provider in a number of competitive tenders.

Developing our End-to-End offer

We continue to improve our product offerings - from front through middle and back - in terms of functionality and scalability. The combination of the NG platform and the Eclipse back office platform lays a solid framework for future growth, using best of breed technology in both areas to deliver customer requirements.

Front Office

During the period, the front office platform has continued to grow in terms of functionality and capability. The NG platform is monitored and supported 24 hours a day with one service methodology and one service management platform. It provides functional benefits over competitive offerings and is significantly easier for brokers to deploy to their customers. LME continues to be a strong market place for us and FFastFill has benefited from LME's move towards electronic trading. However, there remains a significant number of firms who are yet to move towards electronic trading, and this provides us with great opportunity to further leverage our leading position within the LME market. 

Middle Office

The SEALS product integration continues and European and US customers are now benefiting from the SEALS workflow interface approach to their middle office requirements. The increased scalability that has arisen sets the product in good stead for increased ETD volumes as and when they occur. Conversions from Viewpoint continue to go live and the shift to the new technology base is a key focus in the second half of the year. We have also continued to invest in new markets and new connectivity to Eurex 12, EDX/OMX, Tokyo (TSE), Osaka (OSE) and the migration at Singapore (SGX) to SGXClear. Tokyo Futures Exchange (TFX) is in development with its release a key deliverable in the second half. 

Back Office

The Eclipse platform continues to expand and win new customers on both the buy and sell side. The increased focus on regulatory change especially in the USA will be most keenly felt for us in the back office arena and we are currently investing in developments for these OTC centrally cleared process changes. The conversion to one code base as well as the migration to a HP Intel Linux platform has provided significantly increased scalability and optionality in terms of deployment.

Risk

RiskPro has continued to grow during the period and integration to the different trade flows has improved. Real time P&L and intra day margin calculations are essential to all futures businesses and we have demonstrated to a number of customers the benefits of these metrics and our ability to deliver timely and accurate data. 

  

Asian Expansion

During the half, Phase One of the Asian infrastructure roll out has been successfully delivered. This has connected Hong Kong, Singapore and Tokyo to our global network and built the foundation on which we can build the ability for local participants to access global markets through a local connection. The technology employed makes very efficient use of bandwidth for wide area networks.

Service and Quality

We have continued to innovate in our service management methodologies and technologies. We have been able to leverage our hardware platform and network infrastructure to continue to provide more functionality and capability within the existing data centre footprint. Thus not needing to extend the number of data centres we use. Advances in technology and the migration to the HP Intel platform in the back office have been significant factors in these advances.

Internal Process

We have continued to invest in the integration of internal staff systems in order to increase productivity and efficiency. Our graduate recruitment program as well as some targeted staff relocation has enabled us to continue to recruit and train the right balance of staff in the right locations. We have added a new senior recruit to the North American business, who brings significant industry experience to the team. 

Operational Priorities

Our priorities for the second half of 2009/10 are fourfold. First, we will continue to work to integrate of the SEALS middle office functionality within the NG architecture, in order to allow greater functionality for our customers. Secondly, we will continue to build and deploy our Asian infrastructure to regional customers. Thirdly, our ongoing efficiency drive continues and finally, we will continue to invest in optimising our service delivery platform to ensure we provide the best possible service to our customers.  

With the renewed level of stability in the market, we believe the business is well placed to benefit from the steps we have taken to reduce cost as well as increase efficiency and output from our service platform. This combined with the Company's market position, progress in winning new business, extensive product suite and, the broadening of our sales pipeline together with our strong recurring model leaves the Company well placed for the future.  

Hamish Purdey

Chief Executive Officer

  Financial Review

Total revenue during the period grew 3.1% to £7.04m (H1 2008/09: £6.83m) within which core SaaS revenue grew by 27.12% to £5.11m. Third party cost revenue fell by £0.48m, which led to a better margin achieved on revenue. Revenue from SaaS related work accounts for 73% of total revenue (H1 2008/09 59%), thus underpinning the already high quality of our recurring revenue base (this excludes third party licence fees passing through our revenue). Our '12 month Order Book' now stands at £13.64m (H1 2008/09: £12.33m), with our SaaS Order Book increasing 17% to £10.51m (H1 2008/09: £8.95m).

Our top 20 customers account for 76% of total revenue (H1 2008/09: 81%), with the revenue of these top 20 now standing at £5.31m (H1 2008/09: £5.52m) at the close of the six month period and representing an annualised average of £0.53m per customer (H1 2008/09: £0.55m).

EBITDA for the period was £1.47m (H1 2008/09: £0.24m). The Company recorded an operating profit in the first half of £0.50m (H1 2008/09: Loss of £0.42m). This increase in profitability was achieved through growth in revenues, greater margin achieved on revenue and the benefits from the cost reduction programme, which was announced in March 2009.

The total operating expenses at £6.54m (H1 2008/09: £7.24m) include three elements; Cost of Sales, covering third party licences sold directly to a customer and cost of development of specific customer funded work; Amortisation and Depreciation; and Company overheads (Opex).

Amortisation and Depreciation increased during the period by £0.31m to £0.97m (H1 2008/09: £0.66m).

The Company's overheads decreased by £0.38m from £4.77m in H1 2008/09 to £4.39m in the period, following the implementation of the cost reduction programme announced in March 2009.

Cash at the half year was £3.08m (H1 2008/09: £1.37m). During the half year, £0.25m was repaid in borrowings and £0.15m was paid in relation to the acquisition of Exchange Technology Pty Limited.

     CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

for the period ended 30 SEPTEMBER 2009

	Notes	Six months ended  30 September 2009 (unaudited)	Six months ended  30 September 2008 (unaudited)	Year ended 31 March 2009 (audited)
		£'000	£'000	£'000
Revenue		7,038	6,828	14,384
Operating expenses		(6,537)	(7,244)	(14,125)
Profit/(loss) from operations		501	(416)	259
Finance income	4	8	23	33
Finance costs	5	(14)	(66)	(90)
Exceptional items	6	(33)	(60)	(643)
Profit/(loss) before tax		462	(519)	(441)
Income tax	7	(2)	(8)	34
Profit/(loss) for the year		460	(527)	(407)
Other comprehensive income, net of tax
Currency translation differences		112	(33)	152
Total comprehensive income for the year - attributable to equity holders of the parent		572	(560)	(255)
Basic profit/(loss) per share	8	0.12p	(0.14)p	(0.11)p
Diluted profit/(loss) per share	8	0.11p	(0.14)p	(0.11)p

  CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 SEPTEMBER 2009

	Notes	As at  30 September 2009 (unaudited)	As at  30 September 2008 (unaudited)	As at  31 March  2009 (audited)
		£'000	£'000	£'000
Assets Non-current assets
Goodwill		7,960	7,534	7,633
Other intangible assets		3,645	3,028	3,567
Property, plant and equipment		902	764	750
Trade and other receivables		145	145	145
Deferred taxation		1,494	1,505	1,494
Non-current assets		14,146	12,976	13,589
Current assets
Trade and other receivables		2,195	3,336	4,182
Cash and cash equivalents		3,076	1,369	2,159
		5,271	4,705	6,341
Total assets		19,417	17,681	19,930
Liabilities
Trade and other payables		(6,623)	(6,796)	(7,476)
Bank loans		(375)	(375)	(500)
		(6,998)	(7,171)	(7,976)
Net current liabilities		(1,727)	(2,466)	(1,635)
Total assets less current liabilities		12,419	10,510	11,954
Non-current liabilities
Trade and other payables		(354)	-	(367)
Bank loans		-	(375)	(125)
		(354)	(375)	(492)
Net assets		12,065	10,135	11,462
Equity
Called up share capital	9	3,967	3,810	3,965
Share premium account	12	5	31,724	32,544
Other reserves		235	235	235
Share-based payment reserve		250	179	226
Merger reserve		890	890	890
Translation reserve		152	(145)	40
Profit and loss account		6,566	(26,558)	(26,438)
Total equity attributable to equity holders of the company		12,065	10,135	11,462

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDING

30 SEPTEMBER 2009

	Share capital	Share premium account	Other reserves	Share based payment reserve	Merger reserve	Translation  reserve	Retained  earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
For the six months ended 30 September 2009
At 1 April 2009	3,965	32,544	235	226	890	40	(26,438)	11,462
Exchange differences on translating foreign operations	-	-	-	-	-	112	-	112
Profit for the period	-	-	-	-	-	-	460	460
Total recognised income and expense	-	-	-	-	-	112	460	572
Cancellation of share premium account	-	(32,544)	-	-	-	-	32,544	-
Share based payment	-	-	-	24	-	-	-	24
Share issues	2	5	-	-	-	-	-	7
At 30 September 2009 - attributable to the equity holders of the parent company	3,967	5	235	250	890	152	6,566	12,065
For the six months ended 30 September 2008
At 1 April 2008	3,705	31,093	715	114	890	(112)	(26,031)	10,374
Exchange differences on translating foreign operations	-	-	-	-	-	(33)	-	(33)
Loss for the period	-	-	-	-	-	-	(527)	(527)
Total recognised income and expense	-	-	-	-	-	(33)	(527)	(560)
Share based payment	-	-	-	65	-	-	-	65
Share issues	105	631	(480)	-	-	-	-	256
At 30 September 2008 - attributable to the equity holders of the parent company	3,810	31,724	235	179	890	(145)	(26,558)	10,135

 

  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDING 

30 SEPTEMBER 2009

	Share capital	Share premium account	Other reserves	Share based payment reserve	Merger reserve	Translation  reserve	Retained  earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Changes in equity for the year ended 31 March 2009
At 1 April 2008	3,705	31,093	715	114	890	(112)	(26,031)	10,374
Exchange differences on translating foreign operations	-	-	-	-	-	152	-	152
Loss for the year	-	-	-	-	-	-	(407)	(407)
Total recognised income and expense	-	-	-	-	-	152	(407)	(255)
Share based payment	-	-	-	112	-	-	-	112
Shares to be issued	-	-	(480)	-	-	-	-	(480)
Share issues	260	1,451	-	-	-	-	-	1,711
At 31 March 2009 - attributable to equity holders of the parent company	3,965	32,544	235	226	890	40	(26,438)	11,462

                 CONDENSED CONSOLIDATED CASH FLOW STATEMENT 

                 for the period ended 30 SEPTEMBER 2009

	Notes	Six months ended  30 September 2009 (unaudited)	Six months ended  30 September 2008 (unaudited)	Year ended 31 March 2009 (audited)
		£'000	£'000	£'000
Cash flows from operating activities
Cash flows from operations	A	2,501	217	926
Interest received		8	23	33
Interest paid		(14)	(66)	(90)
Tax (paid)/received		(4)	(8)	45
Net cash flows from operating activities		2,491	166	914
Cash from investing activities
Acquisition of subsidiary		(151)	(888)	(826)
Purchase of intangible assets		(797)	(749)	(1,752)
Purchase of property, plant & equipment		(403)	(289)	(502)
Net cash flows used in investing activity		(1,351)	(1,926)	(3,080)
Cash flows from financial activities
Net proceeds from issue of ordinary share capital		7	12	1,231
Advance of borrowings		-	750	750
Repayment of borrowings Finance lease principal payments		(250) -	- (103)	(125) (103)
Net cash (outflow)/inflow from financing activities		(243)	659	1,753
Net change in cash and cash equivalents		897	(1,101)	(413)
Exchange rate movement		20	46	148
Cash and cash equivalents at beginning of period		2,159	2,424	2,424
Cash and cash equivalents at end of period		3,076	1,369	2,159

                   NOTES TO THE CASH FLOW STATEMENT 

                 A.  Reconciliation of net loss to net cash flow from operating activities

	Six months ended  30 September 2009 (unaudited)	Six months ended  30 September 2008 (unaudited)	Year ended   31 March 2009 (audited)
	£'000	£'000	£'000
Profit/(loss) after tax	460	(527)	(407)
Finance income	(8)	(23)	(33)
Finance costs	14	66	90
Taxation	2	8	(34)
Depreciation	251	343	607
Amortisation of intangible assets	719	316	834
Share based payment	24	65	112
Foreign exchange translation differences	(86)	(79)	(63)
Decrease/(increase) in receivables	1,987	(547)	(1,393)
(Decrease)/increase in payables	(862)	595	1,213
Cash flows from operating activities	2,501	217	926

 

                 NOTES TO THE HALF YEARLY REPORT

                 1    Basis of Preparation 

                  The consolidated half yearly financial information has been prepared on a consistent basis with the accounting
                  policies that are expected to apply in the full year financial statements for the year ending 31 March 2010,
                  which will be prepared in accordance with International Financial Reporting Standards as adopted by the EU.  

                  The current and comparative periods have been prepared using the accounting policies and practices
                  consistent with those adopted in the annual financial statements for the year ended 31 March 2009 except the
                  adoption of IAS 1 Revised.

                  The Group's segment information has already been based on the management reporting structure and therefore
                  the operating segments are the same as previously reported.  

                  They were approved by the board and authorised for issue on 19 November 2009.

                  2    Significant Accounting Policies 

 

                  Revenue

                  Revenue, which excludes value added tax, represents the value of goods and services supplied. Where income
                  relates to future services or there are associated ongoing costs the income is spread over the life of the
                  provision of the service. All other income is recognised on delivery.

                  Share-based payments

                  The Group operates two share options schemes; the Enterprise Management Incentive Scheme and the 2003
                  Share Option Scheme (HM Revenue & Customs unapproved). The fair value of options is recognised as an
                  employee benefit expense with a corresponding increase in reserves over the vesting period. The proceeds
                  received net of any directly attributable transaction costs are credited to share capital (nominal value) and share
                  premium when the options are exercised.

                  Share option and warrants granted prior to 7 November 2002, have been excluded from the share-based
                  payment calculation, as permitted by IFRS 2 Share-based payment.

                  Internally generated intangible assets - software development expenditure

                  The Group considers that the regulatory, technical and market uncertainties inherent in the development of new
                  products and technologies means that the internal software development costs should not be capitalised as
                  intangible assets until the commercial viability of a project is demonstrable and appropriate resources are in
                  place to launch the product. Research and development expenditure prior to this point in time is expensed as
                  incurred.

                   An intangible asset arising from development is only recognised if all of the following conditions are met:

•       The intangible asset is considered to be technically feasible and the project to create it is sufficiently 
        resourced  to be capable of completion.
•       There is an intention to complete the asset and both the intention and ability to sell it.

  

                  NOTES TO THE HALF YEARLY REPORT

•        It is reasonably expected that the asset is likely to generate net future economic benefits.
•        Development costs in relation to the asset can be reliably measured. Where no internally generated
         intangible asset can be recognised, development expenditure is recognised as an expense in the
         period in which it is incurred.

                    Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.
                    The expenditure capitalised includes the cost of materials and direct labour. Amortisation is charged to the
                    income statement on a straight-line basis over the estimated useful lives of the products concerned. The
                    amortisation period for development costs incurred on the Group's development is five years.

                    3    Segmental Information

                    Geographical segment

                    The Group operates in one business; that of the provision of application services for use in the global financial
                    markets. The segmental analysis by region is presented below.

	European	US	Australia	Total
For six months ending 30 September 2009	£'000	£'000	£'000	£'000
Turnover by origin	5,787	913	338	7,038
Turnover by destination	5,821	649	568	7,038
Depreciation and amortisation	938	25	7	970
Operating profit/(loss)	751	(60)	(190)	501
Finance costs - net				(6)
Exceptional items				(33)
Profit before Tax				462
Capital expenditure on property,
plant and equipment	(364)	(34)	(5)	(403)
Expenditure on intangible assets	(797)	-	-	(797)
Segment assets	5,942	351	25	6,318
Goodwill	7,960	-	-	7,960
Intangible assets	3,645	-	-	3,645
Deferred tax asset	1,494	-	-	1,494
Total assets				19,417
Segment liabilities				7,352
Total liabilities				7,352

                 During the period to 30 September 2009, the group generated 11.45% of revenue from one customer.                   NOTES TO THE HALF YEARLY REPORT

                 3    Segmental Information (continued) 

	UK	US	Australia	Total
For six months ending  30 September 2008	£'000	£'000	£'000	£'000
Turnover by origin	5,336	1,407	85	6,828
Turnover by destination	4,559	1,748	521	6,828
Depreciation and amortisation	582	76	1	659
Operating (loss)/profit	(276)	(150)	10	(416)
Finance costs - net				(43)
Exceptional items				(60)
Loss before tax				(519)
Capital expenditure on property,
plant and equipment	(228)	(61)	-	(289)
Expenditure on intangible assets	(716)	-	(33)	(749)
Segment assets	3,711	900	1,003	5,614
Goodwill	7,534	-	-	7,534
Intangible assets	2,995	-	33	3,028
Deferred tax asset	1,505	-	-	1,505
Total assets				17,681
Segment liabilities				7,546
Total liabilities				7,546

                 During the period to 30 September 2008, the group generated 17.35% of revenue from one customer.                   NOTES TO THE HALF YEARLY REPORT

                 3    Segmental Information (continued) 

	European	US	Asia Pacific	Total
For the year ended 31 March 2009	£'000	£'000	£'000	£'000
Turnover by origin	11,143	2,702	539	14,384
Turnover by destination	10,594	2,702	1,088	14,384
Depreciation and amortisation	1,325	95	21	1,441
Operating profit/(loss)	513	(303)	49	259
Exceptional items	(613)	(30)	-	(643)
Finance costs - net				(57)
Loss before Tax				(441)
Capital expenditure on property, plant and equipment	468	23	11	502
Expenditure on intangible assets	1,572	-	184	1,756
Segment assets	5,219	464	1,553	7,236
Goodwill	7,633	-	-	7,633
Intangible assets	3,333	-	234	3,567
Deferred tax asset				1,494
Total assets				19,930
Segment liabilities				8,468
Total liabilities				8,468

                 During the year to 31 March 2009, the group generated 11.82% of revenue from one customer.                   NOTES TO THE HALF YEARLY REPORT

4	Finance income	Six months ended 30 September 2009 (unaudited)	Six months ended 30 September 2008 (unaudited)	Year ended 31 March 2009 (audited)
		£'000	£'000	£,000
	Bank interest	8	23	33

5	Finance costs	Six months ended 30 September 2009 (unaudited)	Six months ended 30 September 2008 (unaudited)	Year ended 31 March 2009 (audited)
		£'000	£'000	£'000
	Bank interest	2	5	8
	Loan interest	8	15	37
	On finance leases	-	2	2
	Other interest	4	44	43
		14	66	90

            6  Exceptional Items 

                 The exceptional item included in the half yearly accounts for period ending 30 September 2009, relates to costs
                 of integrating the two London offices.

                 As FFastFill reaches the end of this development phase, the advances that have been made in software and 
                 operational processes over the past few years are resulting in new productivity gains which have facilitated
                 several cost reduction opportunities. As a result of this FFastFill has been able to effect various cost saving
                 measures through some staff reductions and building and data centre consolidation. Included in the 
                 annual accounts year ended 31 March 2009 accounts, is an exceptional item of £0.6m to facilitate these
                 reductions.

                The exceptional item included the half yearly accounts for period ending 30 September 2008, relates to the
                reorganisation costs of integrating Exchange Systems Technology Limited (now known as FFastFill 
                Post-trade Processing Limited) into FFastFill plc and its subsidiary companies.

                NOTES TO THE HALF YEARLY REPORT

                 7    Taxation

		Six months ended 30 September 2009 (unaudited)	Six months ended 30 September 2008 (unaudited)	Year ended 31 March 2009 (audited)
		£'000	£'000	£'000
Research and development tax credit Overseas tax		(6)	-	(59)
		8	8	14

Deferred taxation	-	-	11
	2	8	(33)

                 Any profits made by thee group during the period, where offset against losses made in previous periods. 

                 8    Basic earnings per share and fully diluted earnings per share 

                 Profit/(loss) per share is calculated by dividing the loss attributable to ordinary shareholders for each period by
                 the weighted average number of ordinary shares in issue during each period, as follows:

	Six months ended  30 September 2009 (unaudited)	Six months ended  30 September 2008 (unaudited)	Year ended  31 March 2009 (audited)
Basic earnings per share
Profit/(loss) attributable to shareholders	£460,000	(£527,000)	(£407,000)
Weighted average number of shares	396,464,787	376,764,704	383,998,302
Diluted earnings per share
Weighted average number of shares	396,464,787	376,764,704	383,998,302
Share options	9,173,799	-	-
Fully diluted weighted average number of ordinary shares	405,638,586	376,764,704	383,998,302

                 Share options were non-dilutive for the period ended 30 September 2008 and for the year ended 31 March 2009,
                 as the Group incurred a loss.

                 NOTES TO THE HALF YEARLY REPORT

9	Called up share capital	As at   30 September 2009 (Unaudited)	As at  30 September 2008 (Unaudited)	As at  31 March 2009 (audited)
		£'000	£'000	£'000
	Authorised
	750,000,000 ordinary shares of £0.01 each	7,500	7,500	7,500
	Allotted, called up and fully paid
	396,664,787 (2008: 381,010,172, 2009: 396,464,787) ordinary shares of £0.01 each	3,967	3,810	3,965

                 10  Financial information

                 The financial information set out in this half yearly report does not constitute statutory accounts as defined in
                 section 434 of the Companies Act 2006. The financial information for the six month periods ended 30 September
                 2009 and 2008 is neither audited nor reviewed. Information relating to the year ended 31 March 2009 is derived 
                 from the statutory accounts for that period, which have been reported on by the company's auditors
                 and delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not
                 contain a statement under section 237(2) or (3) of the Companies Act 1985. 

                 11      Half yearly dividend

                 The directors do not intend to declare a half yearly dividend.

                 12 Share premium account 

                 On 16 September 2009 the Company received a High Court approval for the cancellation of its share premium
                 account as the Company had an accumulated deficit on its profit and loss account. The absence of distributable
                 profits meant that the Company was unable to pay dividends. The Resolution, which was proposed as a special 
                 resolution, approved the cancellation of the Company's share premium account, which as at 31 March 2009 
                 amounted to £32,544,145.

                 Accordingly the cancellation of the share premium account is now effective. This now enables the Company to
                 consider the payment of dividends in the future.

ENDIR UWOKRKURAAAA