TIDMMBO
RNS Number : 4664N
MobilityOne Limited
24 September 2019
24 September 2019
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2019
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, announces its unaudited interim
results for the six months ended 30 June 2019.
Highlights:
-- Revenue increased by 37.2% to GBP78.9 million (H1 2018:
GBP57.5 million) contributed by strong growth in the Group's mobile
phone prepaid airtime reload and bill payment business in Malaysia
via mainly mobile and internet channels;
-- Profit after tax of GBP0.42 million (H1 2018: loss after tax of GBP0.83 million);
-- Cash and cash equivalents at 30 June 2019 of GBP4.99 million
(30 June 2018: GBP3.21 million);
-- The Group is planning to expand its existing e-Money business
in Malaysia and has recently commenced the Group's mobile
remittance service which allows money transfer using a mobile
application; and
-- The Group remains confident on the outlook for the full year,
based on both the strong financial performance of the Group in the
first half of the year as well as the future prospects for the
Group particularly in the mobile phone prepaid airtime reload and
bill payment business.
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 /James Hornigold
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
The Group's revenue increased by 37.2% to GBP78.92 million (H1
2018: revenue of GBP57.51 million) in the first six months of 2019.
This increase in revenue was as a result of strong growth from the
Group's e-payment business in the mobile phone prepaid airtime
reload and bill payment business in Malaysia via mainly the Group's
banking channels (i.e. mobile banking and internet banking) with 10
banks and third parties' e-wallet applications whereby more
customers are using mobile and internet channels. The Group's
c.2,500 payment terminal base has also contributed to the revenue
growth. As a result of the substantial increase in revenue in the
period under review, the Group returned to profitability having
suffering losses in the last two financial years and recorded a net
profit after tax of GBP0.42 million in the first six months of 2019
(H1 2018: loss after tax of GBP0.83 million).
The Group's international remittance services in Malaysia via
its 50%-owned associate company, OneTransfer Remittance Sdn Bhd,
has not made a significant contribution to the Group. The revenue
from the Group's operations in the Philippines remained
insignificant through the provision of an e-payment solution. In
addition, the Group's new venture in Brunei has started to record a
small revenue contribution from its e-payment solution.
During the first six months of 2019 the Group's business in
Bangladesh, through its 55% owned operating subsidiary, Mobility I
Tap Pay (Bangladesh) Limited ("MiTP"), continued to generate
minimal revenues and incur losses. The Group disposed of the
subsidiary in July 2019 in order to avoid further losses to the
Group. The impact of MiTP is included in the results for the Group
for the six months ended 30 June 2019.
As at 30 June 2019, the Group had cash and cash equivalents of
GBP4.99 million (30 June 2018: cash and cash equivalents of GBP3.21
million) and the secured loans and borrowings from financial
institutions amounted to GBP4.08 million (30 June 2018: GBP3.87
million).
Current trading and outlook
The Group is planning to expand its existing e-Money business in
Malaysia, initially by targeting students. e-Money is a type of
payment instrument where it contains monetary value that has been
paid in advance by the end users to the e-Money issuer to make
payments to purchase goods from merchants such as retail outlets.
When the end users pay using e-Money, the amounts are automatically
deducted from their e-Money balance. The Group currently has
agreements with 5 schools in Malaysia to test the integrated
student cards with payments.
The Group has also recently commenced a mobile remittance
service which allows money transfer using a mobile application. In
addition, to further expand the group's electronic payment base and
to introduce new revenue streams, the Group is planning to work
with small convenient stores in Malaysia to improve their store
image by introducing the brand name of "OneShop". The Group will
work closely with these convenience stores to market products and
to introduce the latest electronic payment capabilities within the
stores. For this purpose, the Group is in the midst of
incorporating a new wholly-owned subsidiary in Malaysia to be named
"OneShop Sdn Bhd". For future growth, the Group will continue to
enhance its product offering and payment systems, including online
payment gateway which covers the acceptance of credit cards and
payment wallets.
Even though the operations in the Philippines and Brunei for the
provision of e-payment solutions is not expected to make a
significant contribution to the Group in 2019, the Group is also
exploring other business opportunities in these countries.
The Group remains confident on the outlook for the full year,
based on both the strong financial performance of the Group in the
first half of the year as well as the future prospects for the
Group, both in the mobile phone prepaid airtime reload and bill
payment business as well as the remittance services and other
initiatives.
Abu Bakar bin Mohd Taib
Chairman
24 September 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIODED 30 JUNE 2019
Six months Six months Financial
year
Ended Ended Ended
30 June 30 June 31 Dec 2018
2019 2018
Unaudited Unaudited Audited
CONTINUING OPERATIONS GBP GBP GBP
Revenue 78,920,618 57,506,068 125,471,796
Cost of sales (73,676,744) (54,013,646) (118,106,575)
------------- ------------- --------------
GROSS PROFIT 5,243,874 3,492,422 7,365,221
Other operating income 59,822 48,296 77,544
Administration expenses (4,610,647) (4,011,980) (8,445,816)
Distribution costs (384) - (103,632)
Other operating expenses (124,664) (186,981) (231,621)
Share of associate result - - (22,285)
------------- ------------- --------------
OPERATING PROFIT/(LOSS) 568,001 (658,243) (1,360,589)
Finance costs (144,002) (122,663) (276,426)
PROFIT/(LOSS) BEFORE TAX 423,999 (780,906) (1,637,015)
Tax (2,813) (51,486) 274,564
------------- ------------- --------------
PROFIT/(LOSS) FOR THE PERIOD/YEAR 421,186 (832,392) (1,362,451)
============= ============= ==============
Attributable to:
Owners of the parent 786,931 (514,013) (735,204)
Non-controlling interest (365,745) (318,379) (627,247)
421,186 (832,392) (1,362,451)
=============
EARNINGS PER SHARE
Basic earnings/(loss) per
share (pence) 0.740 (0.484) (0.692)
Diluted earnings/(loss) per
share (pence) 0.677 (0.442) (0.692)
PROFIT/(LOSS) FOR THE PERIOD/YEAR 421,186 (832,392) (1,362,451)
OTHER COMPREHENSIVE PROFIT
Foreign currency translation 11,718 15,390 838
TOTAL COMPREHENSIVE PROFIT/(LOSS)
FOR THE PERIOD 432,904 (817,002) (1,361,613)
Total comprehensive profit/(loss)
attributable to:
Owners of the parent 445,693 (789,042) (696,138)
Non-controlling interest (12,789) (27,960) (665,475)
432,904 (817,002) (1,361,613)
============= ============= ==============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
At At At
30 June 2019 30 June 2018 31 Dec 2018
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 268,501 315,288 302,286
Property, plant and
equipment 1,855,510 2,451,226 1,884,900
Deferred tax assets 193,251 - 193,962
2,317,262 2,766,514 2,381,148
------------- ------------- ------------
Current assets
Inventories 1,317,318 1,487,577 1,381,106
Trade receivables 3,040,250 2,834,275 3,056,458
Other receivables 1,399,891 1,838,700 1,203,628
Tax recoverable 142,591 225,256 141,890
Assets held for sale 63,740 - 119,439
Cash and cash equivalents 4,994,352 3,213,816 4,181,490
------------- ------------- ------------
10,958,142 9,599,624 10,084,011
------------- ------------- ------------
Total Assets 13,275,404 12,366,138 12,465,159
============= ============= ============
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 894,229 897,063 882,511
Accumulated losses (3,968,077) (4,533,817) (4,755,008)
------------- ------------- ------------
Shareholders' equity 1,202,045 639,139 403,396
Non-controlling interest (1,681,855) (984,185) (1,303,321)
------------- ------------- ------------
Total Equity (479,810) (345,046) (899,925)
------------- ------------- ------------
Liabilities
Non-current liabilities
Loans and borrowings
- secured 269,651 574,116 499,893
Deferred tax liabilities 472 129,867 470
Amount due to directors 1,911,200 1,689,622 1,754,319
------------- ------------- ------------
2,181,323 2,393,605 2,254,682
-------------
Current liabilities
Trade payables 1,816,034 776,136 1,272,014
Other payables 5,772,848 6,245,697 5,943,526
Amount due to directors 174,598 2,670 122,685
Loans and borrowings
- secured 3,805,908 3,293,076 3,767,696
Tax payables 4,503 - 4,481
11,573,891 10,317,579 11,110,402
------------- ------------- ------------
Total Liabilities 13,755,214 12,711,184 13,365,084
------------- ------------- ------------
Total Equity and Liabilities 13,275,404 12,366,138 12,465,159
============= ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 30 JUNE 2019
Non-Distributable Distributable
Foreign
Reverse Currency Non-
Share Share Acquisition Translation Accumulated Controlling
Capital Premium Reserve Reserve Losses Total Interest Total
GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 January
2018 2,657,470 909,472 708,951 881,673 (4,019,804) 1,137,762 (637,846) 499,916
Foreign
currency
translation - - - 15,390 - 15,390 (27,960) (12,570)
(Loss) for the
period - - - - (514,013) (514,013) (318,379) (832,392)
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 30 June
2018 2,657,470 909,472 708,951 897,063 (4,533,817) 639,139 (984,185) (345,046)
========== ======== ============ ============ ============ ========== ============ ==========
As at 1 July
2018 2,657,470 909,472 708,951 897,063 (4,533,817) 639,139 (984,185) (345,046)
Foreign
currency
translation - - - (14,552) - (14,552) (10,268) (24,820)
(Loss) for the
period - - - - (221,191) (221,191) (308,868) (530,059)
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 31 Dec
2018 2,657,470 909,472 708,951 882,511 (4,755,008) 403,396 (1,303,321) (899,925)
========== ======== ============ ============ ============ ========== ============ ==========
As at 1 January
2019 2,657,470 909,472 708,951 882,511 (4,755,008) 403,396 (1,303,321) (899,925)
Foreign
currency
translation - - - 11,718 - 11,718 (12,789) (1,071)
Profit for the
period - - - - 786,931 786,931 (365,745) 421,186
---------- -------- ------------ ------------ ------------ ---------- ------------ ----------
As at 30 June
2019 2,657,470 909,472 708,951 894,229 (3,968,077) 1,202,045 (1,681,855) (479,810)
========== ======== ============ ============ ============ ========== ============ ==========
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 2019
Six months Six months Financial
year
Ended Ended ended
30 June 2019 30 June 2018 31 Dec 2018
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations 1,117,239 447,908 1,201,064
Interest paid (144,002) (120,257) (276,426)
Interest received 41,725 38,085 66,554
Tax paid (2,813) (49,127) (93,759)
Net cash generated from operating
activities 1,012,149 316,609 897,433
------------ ------------ -------------
Cash flows from investing activities
Purchase of property, plant and
equipment (39,716) (334,430) (893,113)
Decrease/(Increase) in asset
held for sale 55,699 - (119,439)
Proceeds from disposal of property,
plant and equipment - - 779,123
Net cash inflow for acquisition
of subsidiary company - - 18,267
Net cash used in investing activities 15,983 (334,430) (215,162)
------------ ------------ -------------
Cash flows from financing activities
Drawdown of borrowings - - 90,429
Increase in pledged fixed deposits - - (297,416)
Net change of banker acceptance (2,671) (223,183) 252,118
Repayment from finance lease
payables (87,381) (47,577) (13,604)
Repayment of term loan (10,634) (10,312) (6,375)
Net cash (used in)/from financing
activities (100,686) (281,072) 25,152
------------ ------------ -------------
Increase/(Decrease) in cash and
cash equivalents 927,446 (298,893) 707,423
Effect of foreign exchange rate
changes (41,412) 187,858 76,044
Cash and cash equivalents at
beginning of period/year 4,108,318 3,324,851 3,324,851
Cash and cash equivalents at
end of period/year 4,994,352 3,213,816 4,108,318
============ ============ =============
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The Group's interim financial statements for the six months
ended 30 June 2019 were authorised for issue by the Board
of Directors on 24 September 2019.
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 2018 Annual
Report, will be included in the audited financial statements
for the year ending 31 December 2019.
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 2019.
3. Nature of financial information
The unaudited interim financial information for the six months
ended 30 June 2019 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 2018
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
2019 5.24 5.33
Period ended 30 June
2018 5.30 5.42
Year ended 31 December
2018 5.27 5.39
5. Segmental analysis
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.
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 2019 of GBP786,931
(30 June 2018: loss of GBP514,013 and year ended 31 December
2018: loss of GBP735,204) attributable to owners of the parent
by the number of ordinary shares outstanding at 30 June 2019
of 106,298,780 (30 June 2018: 106,298,780 and 31 December
2018: 106,298,780).
The diluted earnings per share for the six month period ended
30 June 2019 is calculated using the number of shares adjusted
to assume the conversion of all dilutive potential ordinary
shares of 116,898,780 (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).
8. Reconciliation of profit before tax to cash generated from
operations
Financial
Six months Six months year
ended ended ended
30 June 2019 30 June 2018 31 Dec 2018
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from
operating activities
Profit/(Loss) before
tax 423,999 (780,906) (1,637,015)
------------- --------------- -------------
Adjustments for:
Depreciation 90,422 248,886 649,905
Amortisation of
intangible assets 34,672 73 68,852
Amortisation of
development costs - 33,691 -
Interest expenses 144,002 120,257 276,426
Interest income (41,725) (38,085) (66,554)
------------- --------------- -------------
Operating profit/(loss)
before working
capital changes 651,370 (416,084) (708,386)
Decrease in inventories 63,788 133,801 240,272
(Increase) in receivables (180,055) (1,006,480) (593,591)
Increase in amount
due to Directors
& Shareholder 208,794 153,288 238,400
Increase in payables 373,342 1,583,383 2,024,369
------------- --------------- -------------
Cash generated
from operations 1,117,239 447,908 1,201,064
============= =============== =============
9 Contingent liabilities
In the period under review, corporate guarantees of RM20.0
million (GBP3.82 million) (H1 2018: RM20.0 million (GBP3.58
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 2018 except for
the adoption of new and amended reporting standards, which
are effective for periods commencing on or after 1 January
2019. Various amendments to standards and interpretations
of standards are effective for periods commencing on or after
1 January 2019 as detailed in the 2018 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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London Stock Exchange. RNS is approved by the Financial Conduct
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR KZLBLKKFEBBF
(END) Dow Jones Newswires
September 24, 2019 06:00 ET (10:00 GMT)
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