29th Jun 2009 07:00
MobilityOne Limited
("MobilityOne" or the "Company")
Full year audited results for the financial year ended 31 December 2008
MobilityOne (AIM : MBO), an e-commerce infrastructure payment solutions and platform provider in Malaysia and Indonesia via its subsidiaries MobilityOne Sdn Bhd ("MobilityOne Malaysia"), Netoss Sdn Bhd and PT MobilityOne Indonesia (collectively known as "Group"), announces its full year audited results for the financial year ended 31 December 2008.
Highlights:
Revenue down 24.7% to £12.5 million (2007: £16.6 million)
Loss after tax of £0.88 million (2007: profit £0.73 million)
Launched the international remittance service in Malaysia to diversify revenue streams
Commenting on the results, Dato'Hussian A. Rahman, Chief Executive Officer said: "In 2008, the performance of the Group has been badly affected by the global economy slowdown and some of the projects and expansion plans have been delayed. Although 2009 expects to be equally challenging, the Group will continue to invest in R&D and introduce new revenue streams for its future growth."
The Annual Report and Audited Financial Statements for the financial year ended 31 December 2008 will be sent to shareholders on 30 June 2009 and be available on the Company's website.
About the Group:
MobilityOne is the holding company of an established group of companies in the business of providing e-commerce infrastructure payment solutions and platforms through their proprietary technology solutions, which are marketed under the brands MoCS and ABOSSE.
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 such as EDC terminals, short messaging services, automated teller machines, and Internet banking.
The Group's technology platform is flexible, scalable and has been 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, please refer to our website at www.mobilityone.com.my
For further information, please contact:
MobilityOne +6 03 6286 1999
Dato'Hussian A. Rahman, CEO www.mobilityone.com.my
HB Corporate +44 (0)20 7510 8600
Luke Cairns
Threadneedle Communications +44 (0) 20 7653 9850
Graham Herring
Josh Royston
Chairman's statement
2008 has been a challenging year for the Group. Demand for the Group's products and services has been affected by the weak business sentiment, which has also led to the delay of certain projects and expansion plans. Despite the challenging global economic situation, the Group remains committed to developing innovative solutions through Research & Development, which include the remittance business and connectivity to various foreign partners, mobile and Internet banking systems, bill payment systems and enhancement of the existing infrastructure, and to growing and diversifying its range of services, in order to place the Group on a stronger footing to capitalise on future prospects.
In order to diversify the Group's revenue base, the Group has set up a subsidiary in Indonesia, namely PT. MobilityOne Indonesia, to market the Group's solutions to financial institutions and telecommunication companies in that country. The Group has entered into agreements with PT. Finnet Indonesia ("Finnet") and PT Telekomunikasi Selular ("Telkomsel") in Indonesia to provide remittance services. Finnet is a transaction management company which focuses primarily on switching and shared transactions settlement for all business entities, especially financial institutions, while Telkomsel is the leading operator, by market share, of cellular telecommunications services in Indonesia. The Group has also entered into a similar agreement with G-Xchange, Inc., a wholly-owned subsidiary of Globe Telecom, which is one of the largest mobile phone companies in the Philippines, to provide similar remittance services. In addition, the Group has been appointed by Telekom Malaysia International (Cambodia) Co., Ltd, one of the major telecommunications companies in Cambodia, as its technology partner to provide the e-voucher and credit transfer platform for its telecommunications operations in Cambodia. Whilst entry into these new markets and geographies has not resulted in immediate strong returns, the Board is hopeful that it will provide good new business opportunities and, therefore, revenue growth to the Group in the long term.
Financial performance
Due to a number of factors, not least the slowing of the global economy, the Group saw a slowdown in demand for its products and services. As a result, for the financial year ended 30 December 2008, the Group registered a revenue of £12.5 million, a decrease of 24.7% compared to £16.6 million for 2007 and a loss after tax of £0.87 million (2007: profit £0.73 million). The loss was primarily due to the lower revenue registered for the financial year, higher operating costs and expenses to explore new business opportunities, depreciation and amortisation of intangible assets and development costs of £0.29 million, as well as a write down of equipment and inventories of £0.22 million.
Current trading and outlook
The Group, like many other companies during this global economic crisis, has experienced a further slowdown in turnover during the first few months of 2009. As such, the Group has taken measures to reduce costs and overheads in order to cushion the impact of the slowdown, and to be more aggressive in its sales and marketing activities.
Although the Group expects 2009 to continue to be a challenging year, due to the prevailing market conditions, and expects some of its projects may continue to be deferred or put on hold, the Group will continue to introduce new revenue streams through its new products and services and to focus on continuous innovation and enhancement of its products and services to ensure its competitiveness and future growth in the industry.
So far, the roll out of the Group's self-service "OnePay" terminals has been slow. However, the Group expects the usage of the terminals to improve in the long term as the Group has been in discussions with its business partners to include bill payments and other payment functionalities to the terminals and this will enhance the value of the terminals. In addition, the Group has recently launched an International Remittance Service at its first two outlets in Kota Kinabalu and Kuala Lumpur in Malaysia. This new service is designed to cater for the estimated two million Indonesians and 200,000 Filipinos in Malaysia who have the need to use international remittance services to send money back to their home countries. The Group is also exploring similar agreements with partners in other countries such as Bangladesh, as there are about 450,000 Bangladeshis currently working in Malaysia. In addition, the Group plans to increase the number of its own remittance services outlets as well as linking-up with financial institutions in Malaysia.
Conclusion
On behalf of the Board of Directors, I would like to take this opportunity to thank the management and staff for their efforts and commitment over the year.
Dato' Dr. Wan Azmi bin Ariffin
Chairman
25 June 2009
CONSOLIDATED INCOME STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008
|
Restated |
|||
|
2008 |
2007 |
||
|
£ |
£ |
||
|
Revenue |
12,460,925 |
16,573,813 |
|
|
Cost of sales |
(11,608,785) |
(14,448,152) |
|
|
GROSS PROFIT |
852,140 |
2,125,661 |
|
|
Other operating income |
136,014 |
46,002 |
|
|
Administration expenses |
(1,343,110) |
(1,254,473) |
|
|
Other operating expenses |
(512,744) |
(100,673) |
|
|
OPERATING (LOSS)/PROFIT |
(867,700) |
816,517 |
|
|
Finance costs |
(48,347) |
(51,260) |
|
|
(LOSS)/PROFIT BEFORE TAX |
(916,047) |
765,257 |
|
|
Tax |
36,895 |
(32,168) |
|
|
(LOSS)/PROFIT FOR THE YEAR |
(879,152) |
733,089 |
|
|
Attributable to: |
|||
|
Equity holders of the Company |
(876,818) |
733,089 |
|
|
Minority interest |
(2,334) |
- |
|
|
(879,152) |
733,089 |
||
|
EARNING PER SHARE |
|||
|
Basic earnings per share (pence) |
(1.10) |
0.84 |
|
|
Diluted earnings per share (pence) |
(1.10) |
0.84 |
|
CONSOLIDATED BALANCE SHEETS
AS AT 31 DECEMBER 2008
|
At |
At |
|||
|
31 December |
31 December |
|||
|
2008 |
2007 |
|||
|
Audited |
Restated |
|||
|
£ |
£ |
|||
|
Assets |
||||
|
Non-current assets |
||||
|
Intangible assets |
2,272,547 |
1,689,011 |
||
|
Property, plant and equipment |
1,105,264 |
1,121,909 |
||
|
Prepaid lease payments |
- |
167,555 |
||
|
3,377,811 |
2,978,475 |
|||
|
Current assets |
||||
|
Inventories |
878,777 |
918,118 |
||
|
Trade receivables |
415,289 |
160,799 |
||
|
Other receivables & deposits |
48,233 |
1,572,723 |
||
|
Tax recoverable |
8,179 |
6,754 |
||
|
Available for sale financial assets |
- |
45,514 |
||
|
Cash and cash equivalents |
410,085 |
348,476 |
||
|
1,760,563 |
3,052,384 |
|||
|
Non-current assets held for sale |
413,084 |
- |
||
|
2,173,647 |
3,052,384 |
|||
|
Liabilities |
||||
|
Current liabilities |
||||
|
Trade payables |
325,394 |
151,181 |
||
|
Other payables |
222,259 |
51,561 |
||
|
Amount due to director |
106,129 |
- |
||
|
Borrowings -secured |
688,273 |
359,678 |
||
|
1,342,055 |
|
562,420 |
||
|
Liability relating to non-current assets held for sale |
36,808 |
- |
||
|
1,378,863 |
562,420 |
|||
|
Net current assets |
794,784 |
2,489,964 |
||
|
Total assets less current liabilities |
4,172,595 |
5,468,439 |
||
|
Non-current liabilities |
||||
|
Borrowings - secured |
180,045 |
150,137 |
||
|
Deferred tax liabilities |
- |
34,588 |
||
|
180,045 |
184,725 |
|||
|
Net assets |
3,992,550 |
5,283,714 |
||
|
|
|
|||
|
Shareholders' equity |
||||
|
Equity attributable to equity holders of the Company |
||||
|
Called up share capital |
1,974,374 |
2,348,430 |
||
|
Share premium |
782,234 |
782,234 |
||
|
Reverse acquisition reserve |
1,537,117 |
708,951 |
||
|
Foreign currency translation reserve |
221,191 |
71,567 |
||
|
Retained earnings |
(523,216) |
1,372,532 |
||
|
Shareholders' equity |
3,991,700 |
5,283,714 |
||
|
Minority interest |
850 |
- |
||
|
Total Equity |
3,992,550 |
5,283,714 |
||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008
|
Non-Distributable |
Distributable |
|||||||
|
Foreign |
||||||||
|
Reverse |
Currency |
Retained |
||||||
|
Share |
Share Premium |
Acquisition |
Translation |
earnings |
Minority |
|||
|
Capital |
Reserve |
Reserve |
Reserve |
Total |
Interest |
Total |
||
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
At 1 January 2007 |
2,017,021 |
911 |
- |
(162,608) |
1,078,346 |
2,933,670 |
- |
2,933,670 |
|
Profit for the year |
- |
- |
- |
31,651 |
733,089 |
764,740 |
- |
764,740 |
|
Capital as bonus issue in subsidiary |
438,905 |
- |
- |
- |
(438,903) |
2 |
- |
2 |
|
Conversion of redeemable preference share in subsidiary company |
293,044 |
- |
- |
- |
- |
293,044 |
- |
293,044 |
|
Reverse acquisition |
(708,040) |
(911) |
708,951 |
- |
- |
- |
- |
- |
|
Issues of shares in MobilityOne Limited |
307,500 |
782,234 |
- |
- |
- |
1,089,734 |
- |
1,089,734 |
|
Foreign currency translation |
- |
- |
- |
202,524 |
- |
202,524 |
- |
202,524 |
|
As at 31 December 2007 |
2,348,430 |
782,234 |
708,951 |
71,567 |
1,372,532 |
5,283,714 |
- |
5,283,714 |
|
As at 1 January 2008 |
2,348,430 |
782,234 |
708,951 |
71,567 |
1,372,532 |
5,283,714 |
- |
5,283,714 |
|
Acquisition of subsidiary company |
- |
- |
- |
- |
- |
- |
3,184 |
3,184 |
|
Loss for the year |
- |
- |
- |
147,084 |
(876,818) |
(729,734) |
(2,334) |
(732,068) |
|
Share buy back in MobilityOne Limited |
(374,056) |
- |
- |
- |
(1,018,930) |
(1,392,986) |
- |
(1,392,986) |
|
Foreign currency translation |
- |
- |
830,706 |
- |
830,706 |
- |
832,706 |
|
|
As at 31 December 2008 |
1,974,374 |
782,234 |
708,951 |
1,049,357 |
(523,216) |
3,991,700 |
850 |
3,992,550 |
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 balance sheet were translated into Pound Sterling (£) using the closing rate as at the balance sheet date and the income statements were translated into £ 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.
CONSOLIDATED CASH FLOW STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008
|
2008 |
Restated 2007 |
|||||||||||||||||||
|
£ |
£ |
|||||||||||||||||||
|
Cash flow from operating activities |
||||||||||||||||||||
|
Cash generated from/(used in) operations |
2,060,020 |
(672,251) |
||||||||||||||||||
|
Interest paid |
(48,347) |
(51,260) |
||||||||||||||||||
|
Interest received |
14,963 |
625 |
||||||||||||||||||
|
Net cash generated from/(used in) operating activities |
2,026,636 |
(722,886) |
||||||||||||||||||
|
Cash flows from investing activities |
||||||||||||||||||||
|
Purchase of property, plant and equipment |
(152,253) |
(669,977) |
||||||||||||||||||
|
Purchase of available for sale financial asset |
- |
(45,514) |
||||||||||||||||||
|
Proceeds from disposal of property, plant and equipment |
9,053 |
- |
||||||||||||||||||
|
Proceeds from disposal of available for sale financial asset |
60,252 |
- |
||||||||||||||||||
|
Addition to development costs |
(178,289) |
(68,995) |
||||||||||||||||||
|
Net cash used in investing activities |
(261,237) |
(784,486) |
||||||||||||||||||
|
Cash flows from financing activities |
||||||||||||||||||||
|
Drawdown of short term borrowings |
126,028 |
- |
||||||||||||||||||
|
Drawdown of term loan |
136,030 |
- |
||||||||||||||||||
|
Repayment of term loan |
(68,649) |
(172,960) |
||||||||||||||||||
|
Share buyback |
(1,392,986) |
- |
||||||||||||||||||
|
Proceeds from issuance of ordinary shares (net of listing expenses) |
- |
1,089,734 |
||||||||||||||||||
|
Net cash generated from financing activities |
(1,199,577) |
916,774 |
||||||||||||||||||
|
Increase/(decrease) in cash and cash equivalents |
565,822 |
(590,598) |
||||||||||||||||||
|
Effect of foreign exchange rate changes |
(504,213) |
70,907 |
||||||||||||||||||
|
Cash and cash equivalents at beginning of year |
348,476 |
868,167 |
||||||||||||||||||
|
Cash and cash equivalents at end of year |
410,085 |
348,476 |
||||||||||||||||||
|
Cash flow from operating activities |
||||||||||||||||||||
|
Cash used in operations |
(158,115) |
(1,026,992) |
||||||||||||||||||
|
Cash flows from investing activity |
||||||||||||||||||||
|
Dividends received |
1,486,023 |
- |
||||||||||||||||||
|
Cash flows from financing activities |
||||||||||||||||||||
|
Share buyback |
(1,392,986) |
- |
||||||||||||||||||
|
Proceeds from issuance of ordinary shares (net of listing expenses) |
- |
1,089,734 |
||||||||||||||||||
|
Increase in cash and cash equivalents |
(65,078) |
62,742 |
||||||||||||||||||
|
Effect of foreign exchange rate changes |
5,753 |
- |
||||||||||||||||||
|
Cash and cash equivalents at beginning of year |
62,742 |
- |
||||||||||||||||||
|
Cash and cash equivalents at end of year |
3,417 |
62,742 |
||||||||||||||||||
NOTES TO THE FINANCIAL STATEMENTS
|
1. |
Basis of preparation |
||||||||||||
|
These financial statements 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. The financial statements have been prepared under the historical cost convention. |
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|
2. 3. |
Going concern These financial statements have been prepared on the assumption that the Group is a going concern. When assessing the foreseeable future, the Directors have looked at a period of twelve months from the date of approval of this report. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Changes in the structure of the Group |
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|
i) On 23 January 2008, MobilityOne Sdn. Bhd. acquired 2 ordinary shares of RM1 each representing 100% equity interest in Pay Station Sdn. Bhd. (formerly known as Versatel Sdn. Bhd.) for a cash consideration of RM2; and
ii) On 12 March 2008, MobilityOne Sdn. Bhd. acquired 95,000 ordinary shares of USD1 each representing 95% equity interest in PT. MobilityOne Indonesia for a cash consideration of USD100,000, which equivalents to RM318,350. |
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|
4. |
Functional and presentation currency |
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|
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 (£), 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 (£) at foreign exchange rates ruling at the balance sheet date. Results and cash flows are translated into Pound Sterling (£) 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-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. The financial information set out below has been translated at the following rates:
|
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|
5. |
Segmental reporting |
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|
The Group's activities are treated as a single class of business, all arising from goods and services provided in the Far East. Accordingly, no segmental analysis of revenues, profits, assets and liabilities is available for presentation. |
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|
6. |
Taxation |
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|
The direct subsidiary company, MobilityOne Sdn. Bhd., was granted Pioneer Status by the relevant authorities for a period of five years effective from 27 April 2005 to 26 April 2010. |
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|
7. |
Earnings per share |
||||||||||||
|
The basic earnings per share is calculated by dividing the loss of £876,818 (2007: profit of £733,089) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, which is 79,547,278 (2007: 87,669,255). The diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares. For the year ended 31 December 2008, the diluted earnings per share is equivalent to the basic earnings per share as the exercise price of the share options is above the current market price. |
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|
8. |
Material events subsequent to the end of the financial year |
||||||||||||
|
There are no material events subsequent to the end of the year. |
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|
9. |
Significant accounting policies |
||||||||||||
|
Amortisation of intangible assets Software is amortised over its estimated useful life. Management estimated the useful life of this asset to be within 5 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. The Group assesses at each reporting date whether there is an indication that an asset may be impaired, by considering the net present value of discounted cash flows forecasts. If an indication exists an impairment review is carried out. At the year end, there was no indication of impairment of the value of goodwill on consolidation or of development costs. During the financial year, the Group did not recognise any impairment loss in respect of the goodwill on consolidation |
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|
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 the net present value of discounted cash flows forecasts which have been discounted at 8.5%. The cash flow projections are based on the assumption that the Group can realise projected sales together. 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. However, if the projected sales do not materialise there is a risk that the value of the intangible assets shown above would be impaired. Development costs |
|
|
Development costs will not be amortised if the product is still in its development phase. The amortisation of the development costs is over 5 years period, which in the opinion of the Directors is adequate. |
|
|
-Ends- |
Related Shares:
Mobilityone