5th Jul 2007 08:00
MobilityOne Limited05 July 2007 MobilityOne Admission to AIM MobilityOne (the "Company"), a Malaysian e-payment solutions provider, announcesthe commencement today of trading in its ordinary shares on AIM. As part of the flotation, HB Corporate placed 12,300,000 ordinary shares at12.5p per share raising a total of £1,537,500 for the Company. At admission,there are 93,937,204 ordinary shares in issue giving a market capitalisation of£11.7m at the placing price. MobilityOne has developed an advanced e-commerce system that connects serviceproviders to consumers across a range of industries, taking in banking,telecommunications and transportation. Using the software consumers can accesscertain products via full-service terminals, self-service terminals, SMS, ATMsand the internet. Through these multiple distribution channels MobilityOne sellsproducts including: • prepaid mobile phone reloads • prepaid international and local call card reloads • prepaid internet usage reloads • electronic ticketing for buses and events • prepaid online gaming reloads. At present approximately 90 per cent of its revenue is generated through prepaidmobile phone reloads. In contrast to the UK market, prepaid is by far thepreferred method for phone usage in Malaysia and becoming increasingly more so.In 2006, 82.7% of the 19.5 million Malaysian mobile phone subscribers usedprepaid, compared to 67.3% in 2002. Hussian A. Rahman, MobilityOne CEO, commented: "We are delighted with thesupport that we have received from investors and to list our shares on AIM. Themoney raised by the float will be used to develop and increase the number ofdistribution points from our existing 3,000 terminals; increase the range ofproducts available for purchase through the platform technology; maintain R&D;and target organisations with large customer bases to provide the Company'sTechnology Managed Services. "In addition the funds will assist our planned expansion into neighbouring areassuch as Brunei, Cambodia, China, Indonesia, Bangladesh and Thailand - marketswhere prepaid phone penetration mirrors that of Malaysia. HB Corporate is Nominated Adviser and Broker for the flotation. MobilityOne 020 7936 9605Hussian A. Rahman, CEOSeah Boon Chin HB Corporate 020 7510 8600Luke CairnsRachel KaneJim McGeever Threadneedle Communications 020 7936 9605Graham HerringJosh Royston Notes to Editors Business MobilityOne is the holding company of an established and profitable group ofcompanies based in Malaysia in the business of providing e-commerceinfrastructure payment solutions and platforms through their proprietarytechnology solutions, which are marketed under the brands MoCS(TM)and ABOSSE(TM)The vast majority of the Group's income is currently derived from prepaidreloads for mobile phones, the Internet and IDD/STD (international and localcall card services) but the nature of the Group's technology platform allows itto add further products and services. The Group has developed an end-to-end e-commerce solution which connects variousservice providers across several industries such as banking, telecommunicationand transportation through multiple distribution devices such as EDC terminals,SMS, ATMs, and Internet banking. Through the multiple distribution channelsavailable the Group is currently selling the following products to consumers: • Prepaid airtime for mobile phone reloads;• Prepaid airtime for international and local calls;• Prepaid Internet usage reloads;• Prepaid mobile phone user registration;• Electronic ticketing for buses and events; and• Prepaid online gaming reloads. The Group's technology platform is flexible, scalable and has been designed tofacilitate cash, debit card and credit card transactions (according to thedevice) from multiple devices while controlling and monitoring the distributionof different products and services. With full ownership of the intellectual property rights, the Group generatesrevenues from its technology platform in three ways: (a) By selling electronic based products via EDC terminals located in retailoutlets including convenience stores, petrol stations and restaurants. The Groupoperates terminals under two brands: "onepointTM" which is a full serviceterminal located behind the counter of a retail outlet and controlled by themerchant; and "Mr Kiosk" which is a self service terminal located on the shopfloor of a retail outlet. Revenues are generated on sales commissions and a feeper transaction basis depending on the product sold; (b) By offering the Group's technology platform as a complete or partialTechnology Managed Services ("TMS") to banks and MLM companies the Group canleverage off these partners' existing customer bases by integrating itstechnology platform into that partner's existing networks. Products and servicescan then be offered to the partners' customers through Internet banking andATMs, in the case of banks, and through SMS, in the case of MLM companies.Revenue generated through TMS is shared between the Group and the TMS partner;and (c) By providing or licensing all or part of the Group's technology platform tointerested companies or partners both locally within Malaysia and in the futureinternationally. The Group intends to generate further revenues through licensefees and the provision of system training and professional services with thepossibility of further annual maintenance and support charges. The Group's product suppliers are broadly categorised as prepaid productsuppliers such as mobile, IDD/STD, Internet providers, and non-prepaid productsuppliers, such as ticketing and Micro-Payment Recharge providers. Approximately90 per cent. of the Group's revenue is generated from prepaid products. Strategy Following Admission to AIM, the Group's strategy will be focussed on thefollowing areas: (a) Continue to Increase the Number of Distribution Points: Central to theGroup's strategy following Admission is to continue to increase the number ofdistribution points available to consumers for the products and services offeredthrough the Group's technology platform. The potential to increase the number ofdistribution points will come from the collaboration with additional merchants,banks and MLM companies; (b) Regional Expansion: The Group intends to market its technology platformthroughout the surrounding region to Malaysia, in particular: Indonesia; thePhilippines; Cambodia; Brunei; Thailand; Bangladesh; Vietnam and China. Any suchexpansion would be on a gradual basis and typically either by means of settingup a local sales office or establishing a joint venture with a local partner; (c) Continuous R&D: The Group intends to continue to allocate sufficient fundsto continue the development and improvement of the Group's proprietarytechnology platform; (d) Expanding the Range of the Group's Products and Services: By expanding therange of products and services available on its technology platform, such asbill payments, the Group will be able to gain access to more markets to broadenits sources of revenue whilst at the same time reducing the relative risk ofbeing over exposed to any particular market; (e) Developing New Distribution Channels: In addition to increasing the productsand services, the Group intends to continue to develop and improve its availabledistribution channels; and (f) Targeting Organisations with Large Customer Bases: The Group intends tocontinue to target organisations with large customer bases that have networks ofmembers or participating merchants that are reluctant to commit high capitalexpenditure to delivering new technologies. Key Strengths The Directors believe the Group has the following key strengths: (a) Proven Proprietary Technology: The Group's technology has been in operationin the market since 2004 and is accepted and utilised by several major banks,retailers and MNOs in Malaysia; (b) Multi Distribution Devices: The Group's technology platform has fourdistribution devices - namely terminals, SMS, ATMs and Internet bankingnetworks. It has over 3,000 existing points of sale in the form of terminalswith retail agents such as Shell, Petronas and BH Petrol and has commenceddistribution via the Internet banking operations of certain major banks inMalaysia including CIMB and RHB giving the Group access to the banks' customers; (c) Broad Range of Products: The Group's technology supports multiple productsincluding prepaid reloads for mobile phones, the Internet and IDD/STD(international and local call card services) together with ticketing for majorevents such as the Malaysian Grand Prix as well as day to day operations such aspurchasing bus tickets; (d) Multi Payment: Unlike some competitors, the Group's technology solutions canfacilitate payments through each of credit card, debit card and cash as well asby internet banking; and (e) Flexible Business Model: Ownership of its proprietary technology allows theGroup to offer its technology solutions to customers in a number of ways eitheras an outsourced TMS or by way of licensing the technology to possiblejoint-venture partners in new countries. Trading History The consolidated income statement of MobilityOne Malaysia for the financialperiod ended ("FPE") 31 March 2004, financial year ended 31 March ("FYE") 2005,FYE 2006 and the 9-month period ended 31 December ("9mPE") 2006 is set out belowand full details are set out in Part IV of this document: FPE 2004 FYE 2005 FYE 2006 9mPE 2006 Audited Audited Audited Audited £'000 £'000 £'000 £'000Revenue - 5,439 9,791 8,597Cost of sales - (4,709) (8,479) (7,267)Gross profit - 730 1,312 1,330Other operating income - - - 22Administrative expenses (4) (480) (456) (520)Distribution costs - - (442) (306)Operating (loss)/profit (4) 250 414 526Finance costs - - (21) (52)(Loss)/Profit before taxation (4) 250 393 474Taxation - - (2) (32)Net (loss)/profit for the FP/FY (4) 250 391 442 The PlacingThe Company is issuing 12,300,000 Placing Shares at 12.5 pence per Placing Sharepursuant to the Placing to raise approximately £1.537 million before expenses.The Placing will provide additional funds for the Group's overseas expansion,continued roll out of terminals and to finance its R&D expenditures. Inaddition, the Placing proceeds will be applied towards the costs of Admissionand to provide working capital for the Group. DirectorsThe Directors of the Company on Admission are as follows: Dato' Dr. Wan Azmi bin Ariffin(Non-Executive Chairman)Dato' Dr. Wan Azmi bin Ariffin, aged 63, is the Non-Executive Chairman of theCompany. He began his career as a teacher for secondary schools from 1965 to1977 and later became a university lecturer from 1979 to 1981. Since then, hehas been active in the Malaysian politics and is currently a member ofParliament of Malaysia. He obtained his Bachelor Degree in Geography fromUniversiti Sains Malaysia and a Master's Degree in Economic Development and aPhD in Political Economics from McGill University, Canada. Hussian @ Rizal bin A. Rahman(Chief Executive Officer)Hussian @ Rizal bin A. Rahman, aged 45, is the Chief Executive Officer of theGroup. He has extensive experience in the IT and telecommunications industriesin Malaysia and is responsible for the development of the Group's overallmanagement, particularly in setting the Group's business direction andstrategies. He obtained a certified Master of Business Administration from theOxford Association of Management, England. Derrick Chia Kah Wai(Chief Technology Officer)Derrick Chia Kah Wai, aged 36, is the Chief Technology Officer of the Group. Hebegan his career as a programmer in 1994, he then joined GHL in January 1998 asa Software Engineer and was promoted to Software Development Manager in December1999. He obtained his Bachelor Degree in Commerce, majoring in ManagementInformation System from University of British Columbia, Canada. He joined theGroup in May 2005 and is responsible for the Group's R&D team which include thearchitectural design of its technology platform. Seah Boon Chin(Corporate Finance Director)Seah Boon Chin, aged 35, is the Corporate Finance Director of the Group. Hebegan his career as a senior officer with Chung Khiaw Bank (Malaysia) Bhd (nowUnited Overseas Bank (Malaysia) Berhad) from 1995 to 1996. From 1997 to January2007, he worked in the Corporate Finance Department of established financialinstitutions in Malaysia and Singapore including CIMB Investment Bank Berhad,Affin Investment Bank Berhad and Public Investment Bank Berhad. He obtained hisBachelors Degree in Commerce (Honours) with Distinction from McMasterUniversity, Canada. He joined the Group in January 2007 and is responsible forthe Group's corporate finance activities. Dato' Shamsir bin Omar(Non-Executive Director)Dato' Shamsir bin Omar, aged 73, is a Non-Executive Director of the Company. Hecommenced his career with the Malaysian Government in August 1960 as the Auditorand Accountant in the Department of Cooperative Development. In 1966, he wasappointed as the Chief Accountant in the Ministry of Education, Malaysia. In1967, he was promoted to the position of Deputy Accountant General in theMinistry of Finance, Malaysia. In 1968, he became the Accountant General,Malaysia, a post he held for 22 years until his retirement in July 1989. Afterretirement from government service in 1989, he joined Shamsir Jasani GrantThornton, Malaysia. He has been the accounting firm's Chairman since then. He isa fellow member of the Institute of Chartered Accountants in Australia. Kjetil Langland Bohn(Non-Executive Director)Kjetil Langland Bohn, aged 37, graduated from the Norwegian Business School inBergen and began his career as a journalist with Hegnar Media AS from 1996 to2000. In July 2000 he founded Viva Technologies AS and acted as CEO untilFebruary 2004 when he founded Vyke AS. He has extensive experience within themobile service industry and mobile VoIP in Europe and Asia. He is currently theCEO of AIM quoted Vyke Communications plc. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mobilityone