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For immediate release 07.00: 1 December 2009

BGLOBAL PLC

("Bglobal" or "the Company" or "the Group")

HALF-YEARLY FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

Bglobal plc (AIM: BGBL), the leading provider of smart metering solutions to the energy market is pleased to announce its half-yearly financial report for the six months ended 30 September 2009.

Commenting on the results Peter Kennedy, Chairman said: "The first six months of the current financial year have seen Bglobal make significant strides forward and the business has turned a corner. We have rapidly increased monthly installations in the second quarter of the year to nearly 4,000 smart meters in a single month and have demonstrated the capability to deliver profitability on a monthly basis."

Highlights:

• Revenue of £5.82million (2008: £2.70 million)

• Loss before taxation of £0.67million (2008: £2.02 million)

• Gross margins increased to 33.5% (H1 2008: 26.3%)

• Monthly installation rate above breakeven level for September

• Increased smart meter installation orders from existing large energy supply customers

• New contracts won with direct customers and a new entrant to the electricity market

Tony Barnes, Group Chief Executive Officer, added: "The Group has emerged leaner and stronger after the difficulties of the last 12 months and has now installed almost 75,000 smart meters in the UK non-half hourly business metering market, confirming our position as the market leader in this important segment.

"With strong customer demand for our services, a steadily increasing order book and continuing efficiency gains being realised driving higher gross margins, we are confident that the Group is in a strong position to capitalise on the opportunity ahead."

- ends -

For further information, please visit www.bglobalplc.com or contact:

Tony Barnes	Mark Taylor / Freddy Crossley	John West
CEO	Charles Stanley Securities	Simon Compton
Bglobal plc	Nominated Adviser	Tavistock Communications
Tel: 01254 819 600	Tel: 020 7739 8200	Tel: 020 7920 3150

BGLOBAL PLC

HALF-YEARLY FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

CHAIRMAN'S STATEMENT

The last six months have seen a marked turn around in the operational and financial performance of the Group which puts it in an excellent position to capitalise on significant market opportunities ahead and despite funding difficulties in the first quarter we have maintained a strong growth rate.

Results

Turnover increased by 116% to £5.82 million (H1 2008: £2.70 million) as contracts won by the Group were converted into meter installations. 

In the first quarter of the year installations remained slightly slower than expected mainly due to the lack of resolution on meter asset finance for some of our smart meter service customers. This was resolved in July with the introduction of a facility provided by Barclays Sales and Asset Finance alongside our longstanding facility with Macquarie Bank of Australia and since then installation activity has increased substantially. Gross margins increased to 33.5% (H1 2008: 26.3%) as a result of increased operational efficiency and the increase in meter installation rate. In addition, the Board has reduced costs throughout the Group whilst recognising the need to retain a strong operational capability and investment in the systems and infrastructure which are required to meet increased installation activity.  

As a result of these factors, the loss from operations for the period was reduced to £0.62 million (H1 2008: £1.90 million) and broadly meets with the Board's expectations. After net finance costs, the loss before tax was £0.67 million (H1 2008: £2.02 million) and the loss per share was 0.75p (H1 2008: 3.18p).

The Group's cash balance at 30 September was £0.98 million and at November 30 it was £2.43million following the recent placing which raised gross proceeds of £2.25 million.

Dividend

The Board is not recommending a dividend, as all funds are needed at this stage to be invested in the development of the business.

Business and Market Developments

The Government will announce shortly its intention for metering in the residential sector and it is our view that our newly announced Smart1 electricity meter will meet the needs of this market which accounts for some 27million electricity meters. 

With an increasing number of new electricity suppliers coming into the market we are expecting to see increased competition in the SME sector. We believe that smart metering is a key enabler for new entrants and our recent contract signing with Gazprom is evidence of this. 

We are also seeing an increase in energy awareness among many large UK businesses and they are approaching us directly to find out what smart metering can do for their Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) targets. Superdrug is one such company and Vodafone announced recently that it has saved £2million annually on an expenditure of £20 million using our smart metering solutions.

Service Revenues have increased by 95% year on year and these are significant revenue streams that are expected to deliver an income of approximately £1.5milion by the end of our financial year. 

Board

The Board announces that Tony Stiff will be stepping down from the Board with immediate effect and that he will leave the Company on 31 December 2009. Tony has served over five years on the Board, most recently as Commercial Director. The Board would like to thank Tony for his entrepreneurial flair and valued contribution. 

We are pleased to announce that Tim Jackson-Smith will be taking the role of Commercial Director and General Counsel in January. Tim, a corporate partner at Halliwells LLP in Manchester, is currently a Non Executive Director. We believe Tim will give us a cutting edge as we drive the business forward.  

Nick Kennedy has also been appointed CFO with immediate effect. Nick qualified as a Chartered Accountant with Deloitte and subsequently worked in Corporate Finance with Grant Thornton before joining Bglobal four years ago.

As announced earlier this year we are delighted that David Gammon has joined the Company as an independent Non Executive Director. David brings a wealth of businesses acumen and experience to the role, which will be hugely beneficial to our future growth strategies.

Outlook

The second half of this year will be an important period for the Group. Earlier in November the Company raised £2.25million through a placing of shares with new and existing institutional investors and these funds will provide the Company with sufficient funding to accelerate the roll-out and delivery of meters to our committed customers. The Group continues to experience an increase in demand for its services. Our performance in the last quarter has been a milestone with regard to our development and I remain confident for the Group's prospects for the current year. 

  

Peter B Kennedy

Chairman

1st December 2009

BGLOBAL PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009

CHIEF EXECUTIVE'S STATEMENT

During the first half of this financial year, the Group has secured new orders from both existing and new customers and has realised efficiency gains leading to an improvement in gross margins. Additionally the Group installed almost 11,500 meters in aggregate in September, October and November.

Meter installations

The number of meter installations performed by Bglobal has nearly doubled year on year and the Group has significantly improved its operational efficiency. Orders for smart meters from Bglobal's major customers have increased some 94% in the second quarter over the previous quarter leading to a rapid acceleration of installation activity. During September the company installed 3,981 meters, delivering a total of 17,678 units billed for the half year to date (9,492 units H1 FY2008). The higher level of installation activity was achieved with a lower overhead expenditure of £2.57 million (H1 2008: 2.61 million) which amply demonstrates efficiency gains whilst simultaneously driving higher performance.

Smart metering is now clearly delivering real benefits to both our energy supply customers and to the UK business sector in general. It is a foundation infrastructure requirement of the Government's new Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES). Consequently orders from all our major customers have increased in the second quarter of the financial year. We are in detailed discussions with our major energy supplier customers about increasing both our order book and our capacity to meet this increased demand.

Data services

The Group's accredited data collector and data aggregation revenue has also improved. The Group's nationally measured settlement data performance for our major customers continues to be among the very best in the UK, well above the industry average and the performance of the majority of our competitors. 

Consequently service revenues have increased to £0.78million (H1 2008 £0.40million) which now represents 17% of turnover. This is attributable to more revenue being derived from a higher number of installed meters and also from a range of new data services that Bglobal has been able to develop for its customers.

Market and Innovation

In response to the continued opening up of the smart metering market in both SME and future residential sectors Bglobal has developed an innovative technical metering solution, the Smart1, a radical new design of smart meter. Bglobal has already received the first batch of the new meters which are currently going through formal industry compliance testing. The Group aims to begin installing Smart1's exclusively for its contracted energy supply customers early next year.

The Smart1 is a full specification, communications-agnostic smart electricity meter designed to meet the service requirements and regulatory needs of UK energy suppliers. The product has been designed to protect against changes in communications technologies whilst delivering compelling cost saving advantages in the installation process through its innovative design features.

Additionally Bglobal is signalling its intent to enter the half-hourly electricity market. An application to Elexon is in progress with the aim of becoming fully accredited to provide half-hourly data services to customers in the early part of our next financial year.

Outlook

In October Bglobal installed its 70,000th smart meter in the UK non-half hourly business metering market, more than our nearest competitor, again confirming our position as the market leader in this important segment. By late November we had installed nearly 75,000 meters.

New orders for AMR installations in excess of 22,000 meters have been placed by two separate large energy retailers. Bglobal is currently working on deployment plans for both orders to ensure they are installed as quickly as possible beginning in the New Year.

Bglobal, in association with Npower, recently announced that it has developed a ground-breaking end-to-end service for the energy supplier's micro-generation customers. The roll-out will begin late in December 2009 for customers who export electricity back to the grid via solar PV, wind, micro CHP or hydro methods. Bglobal will deliver and install the smart meters, collect the data and feed it back to the customer and Npower. This is a first in the UK market and we believe demonstrates the Company's ability to work in partnership with a major customer to deliver innovative solutions. 

The number of direct customer contracts continues to grow with new orders for AMRs and data services placed recently by Littlewoods, the Government's Department for Environment, Food and Rural Affairs (DEFRA) and fashion retailer Ted Baker.

With strong customer demand for our services, a steadily increasing order book and continuing efficiency gains being realised driving higher gross margins, we are confident that the Company is in a strong position to capitalise on the opportunities ahead.

Tony Barnes

Chief Executive Officer

1st December 2009

Bglobal plc

Consolidated statement of Financial Position at 30 September 2009

		30 Sept 09   Unaudited £	30 Sept 08 Unaudited £	31 Mar 09 Audited £
ASSETS
NON CURRENT ASSETS
Property, plant & equipment		284,348	286,265	265,691
Intangible assets		353,957	672,014	513,135
Deferred tax assets		1,980,050	2,005,015	1,980,050
		2,618,355	2,963,294	2,758,876
CURRENT ASSETS
Inventories		1,159,003	1,421,613	1,726,745
Trade and other receivables		1,455,023	2,036,358	1,668,641
Cash and cash equivalents		979,483	1,785,500	526,506
		3,593,509	5,243,471	3,921,892
TOTAL ASSETS		6,211,864	8,206,765	6,680,768
EQUITY AND LIABILITIES
EQUITY
Share capital		741,061	741,061	741,061
Share premium		10,542,386	10,542,386	10,542,386
Share based compensation		209,808	84,269	115,845
Merger reserve		792,128	792,128	792,128
Retained deficit		(9,887,282)	(7,044,045)	(9,330,502)
TOTAL EQUITY		2,398,101	5,115,799	2,860,918
NON CURRENT LIABILITIES
Financial liabilities		1,000,000	-	1,000,000
CURRENT LIABILITIES
Trade and other payables		2,813,763	3,040,966	2,819,850
Financial liabilities		-	50,000	-
		2,813,763	3,090,966	2,819,850
TOTAL LIABILITIES		3,813,763	3,090,966	3,819,850
TOTAL EQUITY AND LIABILITIES		6,211,864	8,206,765	6,680,768

  

Bglobal plc

Consolidated statement of comprehensive income for the period ended 30 September 2009

	Note	6 Months ended  30 Sept 09   Unaudited   £	6 Months ended 30 Sept 08 Unaudited £	Year ended 31 Mar 09 Audited £
REVENUE		5,821,297	2,695,436	6,641,224
Cost of sales		(3,870,924)	(1,986,914)	(5,081,743)
Gross profit		1,950,373	708,522	1,559,481
Administration expenses		(2,570,155)	(2,612,501)	(5,632,674)
LOSS FROM OPERATIONS		(619,782)	(1,903,979)	(4,073,193)
Finance costs		(47,357)	(123,123)	(225,042)
Finance income		347	11,025	20,665
LOSS BEFORE TAXATION		(666,792)	(2,016,077)	(4,277,570)
Income tax	3	110,012	-	(24,964)
LOSS FOR THE PERIOD		(556,780)	(2,016,077)	(4,302,534)
Other comprehensive income		-	-	-
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD		(556,780)	(2,016,077)	(4,302,534)
Loss per share - basic (pence)	4	(0.75)	(3.18)	(6.27)
Loss per share - diluted (pence)	4	(0.75)	(3.18)	(6.27)

The results for the period are derived from continuing activities.

Bglobal plc

Consolidated statement of cash flows for the period to 30 September 2009

		6 Months ended 30 Sept 09 Unaudited £	6 Months ended 30 Sept 08 Unaudited £	Year ended 31 Mar 09 Audited £
Cash flow from operating activities
Loss before taxation		(666,792)	(2,016,077)	(4,277,570)
Share based compensation		93,963	40,846	72,422
Finance costs		47,357	123,123	225,042
Finance income		(347)	(11,025)	(20,665)
Depreciation		46,100	47,714	92,852
Amortisation		186,230	181,429	364,293
Decrease/(increase) in inventories		567,742	258,250	(46,882)
Decrease/(increase) in trade and other receivables		213,618	(407,753)	(40,036)
Decrease/(increase) in trade and other payables		(6,087)	527,058	305,943
Cash generated from operations		481,784	(1,256,435)	(3,324,601)
Taxation		110,012	-	-
Net cash used in operating activities		591,796	(1,256,435)	(3,324,601)
Investing activities
Payments to acquire tangible assets		(64,757)	(35,682)	(60,245)
Payments to acquire intangible assets		(27,052)	(16,266)	(40,252)
Finance income		347	11,025	20,665
Cash used in investing activities		(91,462)	(40,923)	(79,832)
Financing
Net proceeds on issue of ordinary shares		-	2,482,064	2,482,064
Net movement on short term cash borrowings		-	-	(100,000)
Net movement on long term borrowings		-	(50,000)	1,000,000
Interest paid		(47,357)	(123,123)	(225,042)
Cash inflow from financing		(47,357)	2,308,941	3,157,022
Increase/(decrease) in cash and cash equivalents		452,977	1,011,583	(247,411)
Cash and cash equivalents at the beginning of the financial period		526,506	773,917	773,917
Cash and cash equivalents at the end of the financial period		979,483	1,785,500	526,506

Bglobal plc

Consolidated statement of changes in equity for the period ended 30 September 2009

	Share  capital £	Share  premium £	Share Based Comp £	Merger reserve £	Retained deficit £	Total equity £
Balance at 1October 2008	741,061	10,542,386	84,269	792,128	(7,044,045)	5,115,799
Total comprehensive Loss for the period	-	-	-	-	(2,286,457)	(2,286,457)
Share based compensation	-	-	31,576	-		31,576
Balance as at 31 March 2009	741,061	10,542,386	115,845	792,128	(9,330,502)	2,860,918
Total comprehensive Loss for the period	-	-	-	-	(556,780)	(556,780)
Share based compensation	-	-	93,963	-	-	93,963
Balance as at 30 September 2009	741,061	10,542,386	209,808	792,128	(9,887,282)	2,398,101

Notes to the accounts

1    Basis of preparation and accounting policies

Basis of preparation

The Group's half-yearly financial report consolidates the results of the company and its subsidiary undertakings made up to 30 September 2009. The company is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange.

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 March 2009. 

The financial information for the 6 months ended 30 September 2009 is also unaudited.

The Group's statutory accounts for the year ended 31 March 2009 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985. 

Significant accounting policies

The accounting policies used in the preparation of the financial information for the six months ended 30 September 2009 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ended 31 March 2010.

While the financial information included has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRS's.  

2    Segmental information

At this stage of the Group's development, the directors are of the opinion that there is only one business segment within the activities of the Group relating to the provision of advanced metering technology and services.  This is the business segment used for internal reporting purposes and reviewed by the Directors to assess performance and allocate resources. As overheads and the assets and liabilities of the Group are not separately allocated to sub-segments for internal reporting purposes, it is not practical to report on this separately.  The Group generated total revenues from its 2 largest customers of £3,116,206 and £1,997,433 (2008:Nil and £617,608).  All operations are carried out within the United Kingdom.

3    Taxation on ordinary activities

	6 Months ended 30 Sept 09 Unaudited £	6 Months ended 30 Sept 08 Unaudited £	Year ended 31 Mar 09 Audited £
Current tax:
Corporation tax at 28% (2008: 30%)	-	-	(24,964)
R & D tax credit	110,012	-	-
Total current tax	110,012	-	(24,964)
Deferred tax:
Total deferred tax	-	-	-
Income tax expense	110,012	-	(24,964)

4    Loss per share

The calculation of basic loss per ordinary share is based on losses attributable to equity holders of £556,780 (6 months ended 30 September 2008: £2,016,077, year ended 31 March 2009: £4,302,534) and on 74,106,100 ordinary shares (6 months ended 30 September 2008: 63,311,056, year ended 31 March 2009: 68,650,621) being the weighted average number of shares in issue during the year.

The loss for the periods and the weighted average number of ordinary shares for calculating the diluted loss per share are identical to those for the basic loss per share. This is because the outstanding share options and shares arising on conversion of the other loan would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under the terms of International Accounting Standard ("IAS") No 33.

5    The half-yearly financial report was approved for issue by the Board of Directors on 30th November 2009.

6    A copy of this half-yearly financial report is available from the Company's Registered Office or by visiting our website at www.bglobalplc.com.

INDEPENDENT REVIEW REPORT TO BGLOBAL PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2009 which comprises Consolidated Statement of Financial Position, Consolidated Statement of Comprehensive Income, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report, including the conclusion, has been prepared for and only for the Company for the purpose of meeting the requirements of the AIM Rules for Companies and for no other purpose. We do not, therefore, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Directors' Responsibilities

The half-yearly financial report, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing and presenting the half-yearly financial report in accordance with the AIM Rules for Companies.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2009 is not prepared, in all material respects, in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union, and the AIM Rules for Companies.

Baker Tilly UK Audit LLP

Chartered Accountants

3 Hardman Street

Manchester

M3 3HF

1st December 2009

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