TIDMMBO
RNS Number : 5383N
MobilityOne Limited
30 September 2021
30 September 2021
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2021
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, announces its unaudited interim
results for the six months ended 30 June 2021.
Highlights:
-- Revenue increased by 9.0% to GBP130.7 million (H1 2020:
GBP119.9 million) mainly as a result of the Group's mobile phone
prepaid airtime reload and bill payment business in Malaysia;
-- Profit after tax of GBP1.01 million (H1 2020: profit after tax of GBP1.07 million);
-- Cash and cash equivalents (including fixed deposits) at 30
June 2021 of GBP4.52 million (30 June 2020: GBP5.92 million) as a
result of reduction of bank borrowings to GBP2.06 million at 30
June 2021 (30 June 2020: GBP3.47 million) ; and
-- The Group remains positive on its business outlook for the
remainder of 2021, taking into consideration the performance of the
Group's existing core business. For future growth, the Group will
continue to enhance its product offering and pursue new business
opportunities.
For further information, contact:
MobilityOne Limited +6 03 89963600
Dato' Hussian A. Rahman, CEO www.mobilityone.com.my
har@mobilityone.com.my
Allenby Capital Limited
(Nominated Adviser and Broker) +44 20 3328 5656
Nick Athanas /Vivek Bhardwaj
About the Group:
MobilityOne provides e-commerce infrastructure payment solutions
and platforms through its proprietary technology solutions. The
Group has developed an end-to-end e-commerce solution which
connects various service providers across several industries such
as banking, telecommunication and transportation through multiple
distribution devices including EDC terminals, mobile devices,
automated teller machines ("ATM") and internet banking. The Group's
technology platform is flexible, scalable and designed to
facilitate cash, debit card and credit card transactions from
multiple devices while controlling and monitoring the distribution
of different products and services.
For more information, refer to our website at
www.mobilityone.com.my
Chairman's statement
I n the first six months of 2021, t he Group's revenue increased
by 9.0% to GBP130.7 million (H1 2020: GBP119.9 million) . This was
mainly as a result of the Group's core business in mobile phone
prepaid airtime reload and bill payment business activities in
Malaysia through the Group's banking channels (i.e. mobile banking
and internet banking) with 10 banks and third parties' e-wallets.
Notwithstanding the growth in revenue in the period under review, t
he Group recorded a profit after tax of GBP1.01 million in the
first six months of 2021, which is within the region of the profit
after tax achieved in the first six months of 2020 of GBP1.07
million as a result of higher cost of sales and operating
expenses.
The Group's other businesses (i.e., the international remittance
services and e-money business in Malaysia and e-payment solutions
activities in the Philippines and Brunei) remained small in the
first six months of 2021.
During the period under review, the Group received a license
from MasterCard Asia/Pacific Pte Ltd ("MasterCard") for the Group
to issue MasterCard prepaid cards in Malaysia which will complement
the Group's existing e-wallet and will be part of the Group's
end-to-end payment ecosystem. In addition, the Society for
Worldwide Interbank Financial Telecommunication ("SWIFT") has
permitted the Group to join its network. With the SWIFT's platform,
the Group is expected to be able to expand its business to larger
amount of money transfers for business to business (B2B) in
addition to the Group's existing arrangement with MoneyGram which
caters mainly for the smaller amount of money transfers, typically
for consumer to consumer (C2C). The arrangements with MasterCard
and the SWIFT are expected to commence in the 4(th) quarter of this
year and 1(st) half of 2022, respectively after receiving relevant
approvals from the Central Bank of Malaysia.
As at 30 June 2021, the Group had cash and cash equivalents
(including fixed deposits) of GBP4.52 million (30 June 2020: cash
and cash equivalents of GBP5.92 million). The reduction in cash
compared to the prior year is primarily as a result of reduction of
bank borrowings to GBP2.06 million (30 June 2020: GBP3.47
million).
Current trading and outlook
The Group's financial performance has not been negatively
affected by the COVID-19 pandemic in view of the nature of the
Group's major business activities being focused on e-payments. The
Group remains positive on its business outlook for the remainder of
2021, particularly in light of the Group's mobile phone prepaid
airtime reload and bill payment business in Malaysia. This is n
otwithstanding the Group's international remittance services and
e-money business in Malaysia and business activities in the
Philippines and Brunei being expected to remain insignificant in
2021.
Recently the Company's wholly-owned subsidiary in the UK, M-One
Tech Limited, submitted an application to the Financial Conduct
Authority (the " FCA " ), the financial regulatory body in the UK,
for authorisation as an electronic money institution to provide
e-money services in the UK. This includes the use of e-wallets for
payments of purchases or transfer funds to/from other parties
within the e-money ecosystem, both of which are areas in which the
Group already has the operational experience in Malaysia. The
decision from the FCA in respect of the submitted application is
expected to be received in the 2(nd) quarter of 2022 and, if
approved, the Group will be able to expand its business activities
into the UK. There can be no guarantee as to either the decision or
timing of the decision by the FCA.
For future growth, the Group will continue to enhance its
product offering and pursue new business opportunities. While the
Group does not expect any significant revenue contribution from the
developments with MasterCard and the SWIFT in 2021, they are
expected to contribute positively to the Group's overall growth
prospects in the long term.
Abu Bakar bin Mohd Taib
Chairman
30 September 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIODED 30 JUNE 2021
Six months Six months Financial
year
Ended Ended Ended
30 June 30 June 31 Dec 2020
2021 2020
Unaudited Unaudited Audited
CONTINUING OPERATIONS GBP GBP GBP
Revenue 130,710,091 119,909,734 246,673,038
Cost of sales (123,637,568) (112,615,797) (233,710,850)
-------------- -------------- -------------------
GROSS PROFIT 7,072,523 7,293,937 12,962,188
Other operating income 91,793 54,024 109,110
Administration expenses (5,403,641) (5,701,502) (10,292,726)
Other operating expenses (314,042) (155,027) (314,495)
OPERATING PROFIT 1,446,633 1,491,432 2,464,077
Finance costs (58,603) (68,905) (206,541)
PROFIT BEFORE TAX 1,388,030 1,422,527 2,257,536
Tax (374,862) (356,510) (651,909)
-------------- -------------- -------------------
PROFIT FROM CONTINUING OPERATIONS 1,013,168 1,066,017 1,605,627
============== ============== ===================
Attributable to:
Owners of the parent 1,013,868 1,066,435 1,607,100
Non-controlling interest (700) (418) (1,473)
1,013,168 1,066,017 1,605,627
============== ============== ===================
EARNINGS PER SHARE
Basic earnings per share
(pence) 0.954 1.003 1.512
Diluted earnings per share
(pence) 0.882 0.912 1.375
PROFIT FOR THE PERIOD/YEAR 1,013,168 1,066,017 1,605,627
OTHER COMPREHENSIVE PROFIT/(LOSS)
Foreign currency translation (30,164) 52,686 (80,617)
TOTAL COMPREHENSIVE PROFIT
FOR THE PERIOD/YEAR 983,004 1,118,703 1,525,010
Total comprehensive profit
attributable to:
Owners of the parent 962,256 1,118,970 1,526,223
Non-controlling interest 20,748 (267) (1,213)
983,004 1,118,703 1,525,010
============== ============== ===================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
At At At
30 June 2021 30 June 2020 31 Dec 2020
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 598,367 192,685 150,784
Property, plant and equipment 991,405 701,369 723,871
Right-of-use assets 218,708 396,736 291,602
1,808,480 1,290,790 1,166,257
------------- ------------- -------------
Current assets
Inventories 2,485,534 2,328,897 3,629,230
Trade receivables 1,651,637 4,129,100 1,944,750
Other receivables 837,538 551,494 271,292
Amount due from an associate - 175,363 221,583
Tax recoverable - 131,866 420
Fixed deposits 1,471,568 2,912,833 2,572,421
Cash and cash equivalents 3,050,103 3,011,312 1,845,455
------------- ------------- -------------
9,496,380 13,240,865 10,485,151
------------- ------------- -------------
Total Assets 11,304,860 14,531,655 11,651,408
============= ============= =============
Shareholders' equity
Equity attributable to
equity holders of the Company
Called up share capital 2,657,470 2,657,470 2,657,470
Share premium 909,472 909,472 909,472
Reverse acquisition reserve 708,951 708,951 708,951
Foreign currency translation
reserve 706,770 891,945 758,382
Accumulated losses (628,184) (2,182,717) (1,642,052)
------------- ------------- -------------
Shareholders' equity 4,354,479 2,985,121 3,392,223
Non-controlling interest 8,274 (11,946) (12,474)
------------- ------------- -------------
Total Equity 4,362,753 2,973,175 3,379,749
------------- ------------- -------------
Liabilities
Non-current liabilities
Loans and borrowings
- secured 226,161 268,449 232,846
Lease liabilities 76,386 45,114 55,482
Deferred tax liabilities 55,204 62,274 57,756
357,751 375,837 346,084
Current liabilities
Trade payables 1,030,890 1,732,505 1,125,242
Other payables 3,195,262 5,884,717 3,490,712
Amount due to directors 140,878 123,991 110,991
Loans and borrowings
- secured 1,830,684 3,199,201 2,967,482
Lease liabilities 124,358 236,547 94,227
Tax payables 262,284 5,682 136,921
6,584,356 11,182,643 7,925,575
------------- ------------- -------------
Total Liabilities 6,942,107 11,558,480 8,271,659
------------- ------------- -------------
Total Equity and Liabilities 11,304,860 14,531,655 11,651,408
============= ============= =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 30 JUNE 2021
Non-Distributable Distributable
Foreign
Reverse Currency Non-
Share Share Acquisition Translation Accumulated Controlling Total
Capital Premium Reserve Reserve Losses Total Interest Equity
GBP GBP GBP GBP GBP GBP GBP GBP
As at 1
January
2020 2,657,470 909,472 708,951 839,259 (3,249,152) 1,866,000 (11,261) 1,854,739
Foreign
currency
translation - - - 52,686 - 52,686 (267) 52,419
Profit for the
period - - - - 1,066,435 1,066,435 (418) 1,066,017
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 30 June
2020 2,657,470 909,472 708,951 891,945 (2,182,717) 2,985,121 (11,946) 2,973,175
========== ======== ============ ============ ============ ========== ============ ==========
As at 1 July
2020 2,657,470 909,472 708,951 891,945 (2,182,717) 2,985,121 (11,946) 2,973,175
Foreign
currency
translation - - - (133,563) - (133,563) 527 (133,036)
Profit/(Loss)
for
the period - - - - 540,665 540,665 (1,055) 539,610
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 31 Dec
2020 2,657,470 909,472 708,951 758,382 (1,642,052) 3,392,223 (12,474) 3,379,749
========== ======== ============ ============ ============ ========== ============ ==========
As at 1
January
2021 2,657,470 909,472 708,951 758,382 (1,642,052) 3,392,223 (12,474) 3,379,749
Foreign
currency
translation - - - (51,612) - (51,612) 21,448 (30,164)
Profit for the
period - - - - 1,013,868 1,013,868 (700) 1,013,168
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 30 June
2021 2,657,470 909,472 708,951 706,770 (628,184) 4,354,479 8,274 4,362,753
========== ======== ============ ============ ============ ========== ============ ==========
Share capital is the amount subscribed for shares at nominal
value.
Share premium represents the excess of the amount subscribed for
share capital over the nominal value of the respective shares net
of share issue expenses.
The reverse acquisition reserve relates to the adjustment
required by accounting for the reverse acquisition in accordance
with IFRS 3.
The Company's assets and liabilities stated in the Statement of
Financial Position were translated into Pound Sterling (GBP) using
the closing rate as at the Statement of Financial Position date and
the income statements were translated into GBP using the average
rate for that period. All resulting exchange differences are taken
to the foreign currency translation reserve within equity.
Retained earnings represent the cumulative earnings of the Group
attributable to equity shareholders.
Non-controlling interests represent the share of ownership of
subsidiary companies outside the Group.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIODED 30 JUNE 2021
Six months Six months Financial
year
Ended Ended ended
30 June 2021 30 June 2020 31 Dec 2020
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations 2,011,004 1,634,969 1,223,062
Interest paid (58,630) (68,906) (206,541)
Interest received 12,568 45,890 67,868
Tax paid (242,859) (133,882) (439,476)
Tax refund - - -
Net cash generated from operating
activities 1,722,083 1,478,071 644,913
------------ ------------ -----------
Cash flows (used in)/from investing
activities
Purchase of property, plant and
equipment (1,692) (32,719) (149,791)
Investment in subsidiary (408,722) - -
Net cash (used in)/from investing
activities (410,414) (32,719) (149,791)
------------ ------------ -----------
Cash flows used in financing activities
Net change of banker acceptance (1,136,798) (27,017) (193,723)
Repayment of lease liabilities (71,214) (118,702) (234,084)
Repayment of term loan (6,685) (3,250) (8,765)
Net cash used in financing activities (1,214,697) (148,969) (436,572)
------------ ------------ -----------
Increase in cash and cash equivalents 96,972 1,296,383 58,550
Effect of foreign exchange rate
changes 6,823 204,699 (63,737)
Cash and cash equivalents at beginning
of period/year 4,417,876 4,423,063 4,423,063
Cash and cash equivalents at end
of period/year 4,521,671 5,924,145 4,417,876
============ ============ ===========
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The Group's interim financial statements for the six months ended
30 June 2021 were authorised for issue by the Board of Directors
on 30 September 2021.
The interim financial statements are unaudited and have been prepared
in accordance with International Financial Reporting Standards
(IFRSs and IFRIC interpretations) issued by the International
Accounting Standards Board (IASB), as adopted by the European
Union, and with those parts of the Companies (Jersey) Law 1991
applicable to companies preparing their financial statements under
IFRS. It has been prepared in accordance with IAS 34 "Interim
Financial Reporting" and does not include all of the information
required for full annual financial statements. The financial statements
have been prepared under the historical cost convention.
Full details of the accounting policies adopted, which are consistent
with those disclosed in the Company's 2020 Annual Report, will
be included in the audited financial statements for the year ending
31 December 2021.
2. Basis of consolidation
The consolidated statement of comprehensive income and statement
of financial position include financial statements of the Company
and its subsidiaries made up to 30 June 2021.
3. Nature of financial information
The unaudited interim financial information for the six months
ended 30 June 2021 does not constitute statutory accounts under
the meaning of Section 435 of the Companies Act 2006. The comparative
figures for the year ended 31 December 2020 are extracted from
the audited statutory financial statements. Full audited financial
statements of the Group in respect of that financial year prepared
in accordance with IFRS, which we received an unqualified audit
opinion, have been delivered to the Registrar of Companies.
4. Functional and presentation currency
(i) Functional and presentation currency
Items included in the financial statements of each of the Group's
entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).
The functional currency of the Group is Ringgit Malaysia (RM).
The consolidated financial statements are presented in Pound Sterling
(GBP), which is the Company's presentational currency as this
is the currency used in the country in which the entity is listed.
Assets and liabilities are translated into Pound Sterling (GBP)
at foreign exchange rates ruling at the Statement of Financial
Position date. Results and cash flows are translated into Pound
Sterling (GBP) using average rates of exchange for the period.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation at year/period-end
exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in the statement of comprehensive
income.
The financial information set out below has been translated at
the following rates:
Exchange rate (RM: GBP)
At Statement Average for
of Financial year/
Position date Period
Period ended 30 June
2021 5.74 5.69
Period ended 30 June
2020 5.26 5.36
Year ended 31 December
2020 5.49 5.39
5. Segmental analysis
The Group has two operating segments as follows:
(a) Telecommunication services and electronic commerce solutions;
and
(b) Hardware
No segmental analysis of assets and capital expenditure are presented
as they are mostly unallocated items which comprise corporate
assets and liabilities. No geographical segment information is
presented as more than 95% of the Group's revenue was generated
in Malaysia.
Telecommunication
Group services and
electronic commerce Hardware Elimination Total
solutions
6 months ended 30 GBP GBP GBP GBP
June 2021
====================== ===================== ========== ============= ============
Segment revenue:
Sales to external
customers 129,559,457 1,297,991 (147,357) 130,710,091
---------------------- --------------------- ---------- ------------- ------------
129,559,457 1,297,991 (147,357) 130,710,091
---------------------- --------------------- ---------- ------------- ------------
Profit before tax 1,388,030 - - 1,388,030
Tax (374,862) - - (374,862)
---------------------- --------------------- ---------- ------------- ------------
Profit for the period 1,013,168 - - 1,013,168
---------------------- --------------------- ---------- ------------- ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant and
equipment 109,577 - - 109,577
Amortisation of
intangible assets 32,488 - - 32,488
Amortisation of
right-of-use assets 60,111 - - 60,111
202,176 - - 202,176
---------------------- --------------------- ---------- ------------- ------------
Group
6 months ended 30
June 2020
====================== ===================== ========== ============= ============
Segment revenue:
Sales to external
customers 118,573,581 1,492,294 (156,141) 119,909,734
---------------------- --------------------- ---------- ------------- ------------
118,573,581 1,492,294 (156,141) 119,909,734
---------------------- --------------------- ---------- ------------- ------------
Profit before tax 1,422,527 - - 1,422,527
Tax (356,510) - - (356,510)
---------------------- --------------------- ---------- ------------- ------------
Profit for the period 1,066,017 - - 1,066,017
---------------------- --------------------- ---------- ------------- ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant and
equipment 68,166 - - 68,166
Amortisation of
intangible assets 34,507 - - 34,507
Amortisation of
right-of-use assets 67,601 - - 67,601
170,274 - - 170,274
---------------------- --------------------- ---------- ------------- ------------
Group
Financial year ended 31 Dec
2020
============================== ============== ============ ============ ================
Segment revenue:
Sales to external customers 243,642,783 3,342,043 (311,788) 246,673,038
------------------------------ -------------- ------------ ------------ ----------------
243,642,783 3,342,043 (311,788) 246,673,038
------------------------------ -------------- ------------ ------------ ----------------
Profit before tax 2,257,536 - - 2,257,536
Tax (651,909) - - (651,909)
------------------------------ -------------- ------------ ------------ ----------------
Profit for the year 1,605,627 - - 1,605,627
------------------------------ -------------- ------------ ------------ ----------------
Non-cash
expenses/(income)*
Depreciation of property,
plant and equipment 149,028 - - 149,028
Amortisation of intangible
assets 68,595 - - 68,595
Amortisation of right-of-use
assets 127,958 - - 127,958
Bad debt written off 16,888 - - 16,888
Inventories written off 2,025 - - 2,025
364,494 - - 364,494
------------------------------ -------------- ------------ ------------ ----------------
*The disclosure for non-cash expenses has not been split according
to the different segments as the cost to obtain such information
is excessive and provides very little by way of information.
6. Taxation
Taxation on the income statement for the financial period comprises
current and deferred tax. Current tax is the expected amount of
taxes payable in respect of the taxable profit for the financial
period and is measured using the tax rates that have been enacted
at the Statement of Financial Position date.
Deferred tax is recognised on the liability method for all temporary
differences between the carrying amount of an asset or liability
in the Statement of Financial Position and its tax base at the
Statement of Financial Position date. Deferred tax liabilities
are recognised for all taxable temporary differences and deferred
tax assets are recognised for all deductible temporary differences,
unused tax losses and unused tax credits to the extent that it
is probable that future taxable profit will be available against
which the deductible temporary differences, unused tax losses
and unused tax credits can be utilised. Deferred tax is not recognised
if the temporary difference arises from goodwill or negative goodwill
or from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time
of the transaction, affects neither accounting profit nor taxable
profit.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the asset is realised
or the liability is settled, based on the tax rates that have
been enacted or substantively enacted by the Statement of Financial
Position date. The carrying amount of a deferred tax asset is
reviewed at each Statement of Financial Position date and is reduced
to the extent that it becomes probable that sufficient future
taxable profit will be available.
Deferred tax is recognised in the income statement, except when
it arises from a transaction which is recognised directly in equity,
in which case the deferred tax is also charged or credited directly
in equity, or when it arises from a business combination that
is an acquisition, in which case the deferred tax is included
in the resulting goodwill or negative goodwill.
7. Earnings per share
The basic earnings per share is calculated by dividing the profit
in the six month period ended 30 June 2021 of GBP1 ,013,868 (30
June 2020: profit of GBP1 ,066,435 and year ended 31 December
2020: profit of GBP1,607,100) attributable to owners of the parent
by the number of ordinary shares outstanding at 30 June 2021 of
106,298,780 (30 June 2020: 106,298,780 and 31 December 2020: 106,298,780).
The diluted earnings per share for the six month period ended
30 June 2021 is calculated using the number of shares adjusted
to assume the conversion of all dilutive potential ordinary shares
of 114,898,780 (ie, on 5 December 2014, the Company granted share
options of 10,600,000 shares at 2.5p to directors and certain
employees of the Group. Share options of 2,000,000 shares had
lapsed due to resignation of employees and no option has been
exercised).
8. Reconciliation of profit before tax to cash generated from operations
Six months Six months Financial
year
ended Ended ended
30 June 2021 30 June 2020 31 Dec 2020
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
Profit before tax 1,388,030 1,422,527 2,257,536
------------- ------------- ------------
Adjustments for:
Amortisation of intangible
assets 32,488 34,507 68,595
Amortisation of right-of-use
assets 60,111 67,601 127,958
Bad debt written off - - 16,888
Depreciation of property,
plant and equipment 109,577 68,166 149,028
Gain on foreign exchange - (9,831) -
- unrealised
Interest expenses 58,630 68,906 206,541
Inventories written
off - - 2,025
Interest income (12,567) (45,890) (86,172)
------------- ------------- ------------
Operating profit before
working capital changes 1,636,269 1,605,986 2,742,399
(Increase)/Decrease
in inventories 1,143,696 (728,728) (2,067,095)
(Increase)/Decrease
in receivables (116,884) (319,033) 2,180,259
Increase in amount
due to Directors &
Shareholder - 16,102 3,164
Amount due to/by related
company 59,310 - (76,488)
(Decrease)/Increase
in payables (711,387) 1,060,642 (1,559,177)
------------- ------------- ------------
Cash generated from
operations 2,011,004 1,634,969 1,223,062
============= ============= ============
9. Contingent liabilities
In the period under review, corporate guarantees of RM21.1 million
(GBP3.68 million) (H1 2020: RM21.1 million (GBP4.01 million)
were given to a licensed bank by the Company for credit facilities
granted to a subsidiary company.
10. Significant accounting policies
The interim consolidated financial statements have been prepared
applying the same accounting policies that were applied in
the preparation of the Company's published consolidated financial
statements for the year ended 31 December 2020 except for the
adoption of new and amended reporting standards, which are
effective for periods commencing on or after 1 January 2021.
Various amendments to standards and interpretations of standards
are effective for periods commencing on or after 1 January
2021 as detailed in the 2020 Annual Report, none of which have
any impact on reported results.
Amortisation of intangible assets
Software is amortised over its estimated useful life. Management
estimated the useful life of this asset to be within 10
years. Changes in the expected level of usage and technological
development could impact the economic useful life therefore
future amortisation could be revised.
The Group determines whether goodwill is impaired at least
on an annual basis. This requires an estimation of the
value-in-use of the cash generating units ("CGU") to which
goodwill is allocated. Estimating a value-in-use amount
requires management to make an estimation of the expected
future cash flows from the CGU and also to choose a suitable
discount rate in order to calculate the present value of
those cash flows.
The research and development costs are amortised on a straight-line
basis over the life span of the developed assets. Management
estimated the useful life of these assets to be within
5 years. Changes in the technological developments could
impact the economic useful life and the residual values
of these assets, therefore future amortisation charges
could be revised.
Impairment of goodwill on consolidation
The Group's cash flow projections include estimates of
sales. However, if the projected sales do not materialise
there is a risk that the value of goodwill would be impaired.
The Directors have carried out a detailed impairment review
in respect of goodwill. The Group assesses at each reporting
date whether there is an indication that an asset may
be impaired, by considering cash flows forecasts. The
cash flow projections are based on the assumption that
the Group can realise projected sales. A prudent approach
has been applied with no residual value being factored.
At the period end, based on these assumptions there was
no indication of impairment of the value of goodwill or
of development costs.
Research and development costs
All research costs are recognised in the income statement
as incurred.
Expenditure incurred on projects to develop new products
is capitalised and deferred only when the Group can demonstrate
the technical feasibility of completing the intangible
asset so that it will be available for use or sale, its
intention to complete and its ability to use or sell the
asset, how the asset will generate future economic benefits,
the availability of resources to complete the project
and the ability to measure reliably the expenditure during
the development. Product development expenditures which
do not meet these criteria are expensed when incurred.
Development costs, considered to have finite useful lives,
are stated at cost less any impairment losses and are
amortised through other operating expenses in the income
statement using the straight-line basis over the commercial
lives of the underlying products not exceeding 5 years.
Impairment is assessed whenever there is an indication
of impairment and the amortisation period and method are
also reviewed at least at each Statement of Financial
Position date.
11. Dividends
The Company has not proposed or declared an interim dividend.
12. Interim report
This interim financial statement will, in accordance
with Rule 26 of the AIM Rules for Companies, be available
shortly on the Company's website at www.mobilityone.com.my
.
-Ends-
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END
IR VBLBXFKLBBBE
(END) Dow Jones Newswires
September 30, 2021 04:14 ET (08:14 GMT)
Mobilityone (AQSE:MBO.GB)
過去 株価チャート
から 9 2024 まで 10 2024
Mobilityone (AQSE:MBO.GB)
過去 株価チャート
から 10 2023 まで 10 2024
