29th Jun 2010 09:00
29 June 2010
MobilityOne Limited
("MobilityOne" or the "Company")
Audited results for the financial year ended 31 December 2009
MobilityOne (AIM : MBO), an e-commerce infrastructure payment solutions and platform provider 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 2009.
Highlights:
·; Revenue increased by 10.2% to £13.7 million (12 months ended 31 December 2008: £12.5 million)
·; Loss after tax of £920k (12 months ended 31 December 2008: loss after tax of £880k)
·; New agreements signed with Carrefour Malaysia and Telekom Malaysia Berhad in Malaysia, several telecommunications companies in Cambodia and PT Citra Multi Services in Indonesia
Notice of Annual General Meeting
The Company will today send to shareholders the Company's Annual Report for the financial year ended 31 December 2009 together with notice of the Company's Annual General Meeting to be held at 9.00 am (Malaysian time) on 21 July 2010 at Malaysian Petroleum Club, Level 42, Tower 2, Petronas Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia.
The Annual Report will be available today on the Company's website: www.mobilityone.com.my.
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 8996 3600 |
|
Dato' Hussian A. Rahman, CEO |
www.mobilityone.com.my |
|
Allenby Capital Limited |
+44 (0)20 3328 5656 |
|
Nick Athanas/James Reeve |
|
Chairman's statement
The year 2009 was a challenging year for the Group with the global financial crisis and weak market conditions continuing to have an impact on the Group's operations. These combined events have directly affected the Group's overall financial performance. Even though the Group saw an increase in revenue for its mobile phone's prepaid airtime reloads, several higher profit margin projects and expansion plans have been deferred. Despite a difficult global economic backdrop, the Group has continued to focus on developing its existing businesses and to introduce new revenue streams for its future growth.
During the year, the Group continued to develop additional payment channels for its wide range of electronic based products and services to be made available to its customers via active new channel acquisitions. For the Group's international remittance services, MobilityOne Malaysia has entered into an agreement with M. Lhuillier, a financial services company in the Philippines, to provide money transfer service from the Group's outlets in Malaysia to any of M. Lhuillier's branches in the Philippines. This is in addition to the existing agreement signed with G‐Xchange, Inc., a wholly‐owned subsidiary of Globe Telecom of the Philippines, as well as the agreements with PT. Finnet Indonesia and PT Telekomunikasi Selular in Indonesia for the money transfer service to Indonesia.
During the challenging period, the Group took several measures to reduce costs and focused on the reorganisation of its business operations in Malaysia in order to cushion the impact of the slowdown.
Financial performance
For the financial year ended 31 December 2009, the Group registered a revenue of £13.7 million, representing an increase of 10.2% as compared to £12.5 million for the 12 months ended 31 December 2008 and a loss after tax of £0.92 million (12 months ended 31 December 2008: loss after tax of £0.88 million). The increase in revenue was mainly contributed by higher demand for our existing mobile phone's prepaid airtime reload business. Despite the increase in revenue, the Group continued to record a loss, which was due to higher operating costs and expenses to explore new business opportunities, depreciation and amortisation of intangible assets and development costs of £0.32 million, as well as a write off of bad debts and development costs of £0.12 million.
Current trading and outlook
As a result of the continuing global economic uncertainties and prevailing market conditions, we envisage the financial performance of the Group for the year ending 31 December 2010 to remain challenging. However, barring any unforeseen circumstances, the Group is anticipating an upturn in the 4th quarter of 2010 in the markets in which it operates in particularly in consideration of the following recent developments (details of which were announced on 10 June 2010):
(i) MobilityOne Malaysia has signed an agreement with Carrefour Malaysia (www.carrefour.com.my) to roll out approximately 300 EDC terminals for mobile phone's prepaid airtime reloads across Carrefour Malaysia's 23 hypermarkets and 20 express stores throughout Malaysia;
(ii) MobilityOne Malaysia has been awarded a contract from Telekom Malaysia Berhad (www.tm.com.my) with the value of RM22.7 million (equivalent to c. £4.8 million) to supply telecommunication hardware over a period of 3 years;
(iii) In Cambodia, MobilityOne Malaysia has entered into agreements with 4 telecommunications companies, namely Hello Axiata Company Limited (Hello Mobile - www.hello.com.kh), Latelz Co. Ltd (Smart Mobile - www.smart.com.kh), Combodia Advance Communications Co. Ltd (QB Mobile - www.qbmore.com) and Viettel (Cambodia) Pte Ltd (Metfone Mobile - www.metfone.com.kh) to sell their prepaid reloads via EDC terminals and banking channels. In addition, MobilityOne Malaysia is in discussion with several banks in Cambodia to provide prepaid reloads via ATMs, Internet banking and mobile banking; and
(iv) In Indonesia, MobilityOne Malaysia has entered into an agreement with PT Citra Multi Services (www.cms701.com) to provide up to 100,000 units of EDC terminals throughout Indonesia over a period of 7 years. MobilityOne Malaysia is currently working with PT Citra Multi Services on the technical aspects of the system and is evaluating the funding options and requirements for the EDC terminals.
Whilst entry into new markets has not resulted in immediate revenue growth, the Directors believe that it will provide good opportunities for the Group in the long term. In addition, the Group will continue to strengthen its existing core business and continuously develop innovative solutions and tap into new business opportunities in order to expand the earnings base for long term growth.
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
29 June 2010
CONSOLIDATED INCOME STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
|
|
|
2009 |
|
2008 |
|
|
|
|
||
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Revenue |
|
13,733,773 |
|
12,460,925 |
|
Cost of sales |
|
(12,719,917) |
|
(11,608,785) |
|
|
|
|
|
|
|
GROSS PROFIT |
|
1,013,856 |
|
852,140 |
|
|
|
|
|
|
|
Other operating income |
|
71,713 |
|
136,014 |
|
Administration expenses |
|
(1,496,741) |
|
(1,343,110) |
|
Other operating expenses |
|
(435,114) |
|
(512,744) |
|
|
|
|
|
|
|
OPERATING LOSS |
|
(846,286) |
|
(867,700) |
|
|
|
|
|
|
|
Finance costs |
|
(71,057) |
|
(48,347) |
|
|
|
|
|
|
|
LOSS BEFORE TAX |
|
(917,343) |
|
(916,047) |
|
|
|
|
|
|
|
Tax |
|
- |
|
36,895 |
|
|
|
|
|
|
|
LOSS AFTER TAX |
|
(917,343) |
|
(879,152) |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity holders of the Company |
|
(916,220) |
|
(876,818) |
|
Minority interest |
|
(1,123) |
|
(2,334) |
|
|
|
|
|
|
|
|
|
(917,343) |
|
(879,152) |
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (pence) |
|
(1.15) |
|
(1.10) |
|
Diluted earnings per share (pence) |
|
(1.15) |
|
(1.10) |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
AS AT 31 DECEMBER 2009
|
|
|
At |
|
At |
|
|
|
|
31 December 2009 |
|
31 December 2008 |
|
|
|
|
£ |
|
£ |
|
|
Assets |
|
|
|
||
|
Non-current assets |
|
|
|
||
|
|
Intangible assets |
1,829,400 |
|
2,272,547 |
|
|
|
Property, plant and equipment |
988,465 |
|
1,105,264 |
|
|
|
|
2,817,865 |
|
3,377,811 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
||
|
|
Inventories |
728,094 |
|
878,777 |
|
|
|
Trade receivables |
333,737 |
|
415,289 |
|
|
|
Other receivables |
81,976 |
|
48,233 |
|
|
|
Tax recoverable |
7,434 |
|
8,179 |
|
|
|
Cash and cash equivalents |
400,304 |
|
410,085 |
|
|
|
|
1,551,545 |
|
1,760,563 |
|
|
|
Non-current assets held for sale |
375,442 |
|
413,084 |
|
|
|
|
1,926,987 |
|
2,173,647 |
|
|
Liabilities |
|
|
|
||
|
Current liabilities |
|
|
|
||
|
|
Trade payables |
135,470 |
|
325,394 |
|
|
|
Other payables |
314,092 |
|
222,259 |
|
|
|
Amount due to Directors |
29,047 |
|
106,129 |
|
|
|
Borrowings - secured |
1,182,498 |
|
688,273 |
|
|
|
|
1,661,107 |
|
1,342,055 |
|
|
|
Liability relating to non-current assets held for sale |
71,090 |
|
36,808 |
|
|
|
|
1,732,197 |
|
1,378,863 |
|
|
|
|
|
|
|
|
|
Net current assets |
194,790 |
|
794,787 |
||
|
|
|
|
|
||
|
Total assets less current liabilities |
3,012,655 |
|
4,172,595 |
||
|
|
|
|
|
||
|
Non-current liabilities |
|
|
|
||
|
|
Borrowings - secured |
70,318 |
|
180,045 |
|
|
|
|
|
|
|
|
|
Net assets |
2,942,337 |
|
3,992,550 |
||
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
||
|
|
|
|
|
||
|
Equity attributable to equity holders of the Company |
|
|
|
||
|
|
Called up share capital |
2,339,374 |
|
1,974,374 |
|
|
|
Share premium |
784,234 |
|
782,234 |
|
|
|
Reverse acquisition reserve |
708,951 |
|
708,951 |
|
|
|
Foreign currency translation reserve |
552,141 |
|
1,049,357 |
|
|
|
Retained earnings |
(1,439,436) |
|
(523,216) |
|
|
Shareholders' equity |
2,943,264 |
|
3,991,700 |
||
|
Minority interest |
(927) |
|
850 |
||
|
Total Equity |
2,942,337 |
|
3,992,550 |
||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
|
|
|
Non-Distributable |
Distributable |
|||||
|
|
|
|
|
Foreign |
|
|
|
|
|
|
|
|
Reverse |
currency |
|
|
|
|
|
|
Share |
Share |
acquisition |
translation |
Retained |
|
Minority |
|
|
capital |
premium |
reserve |
reserve |
earnings |
Total |
interest |
Total |
|
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 January 2008 |
2,348,430 |
782,234 |
708,951 |
71,567 |
1,372,532 |
5,283,714 |
- |
5,283,714 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income/(loss) |
|
|
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
147,084 |
(876,818) |
(729,734) |
(2,334) |
(732,068) |
|
Foreign currency translation |
- |
- |
- |
830,706 |
- |
830,706 |
- |
830,706 |
|
Total comprehensive income for the year |
- |
- |
- |
977,790 |
(876,818) |
100,972 |
(2,334) |
98,638 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary company |
- |
- |
- |
- |
- |
- |
3,184 |
3,184 |
|
Share buyback in MobilityOne Limited |
(374,056) |
- |
- |
- |
(1,018,930) |
(1,392,986) |
- |
(1,392,986) |
|
Total transactions with owners for the year |
(374,056) |
- |
- |
- |
(1,018,930) |
(1,392,986) |
3,184 |
(1,389,802) |
|
As at 31 December 2008 |
1,974,374 |
782,234 |
708,951 |
1,049,357 |
(523,216) |
3,991,700 |
850 |
3,992,550 |
|
|
|
Non-Distributable |
Distributable |
|||||
|
|
|
|
|
Foreign |
|
|
|
|
|
|
|
|
Reverse |
currency |
|
|
|
|
|
|
Share |
Share |
acquisition |
translation |
Retained |
|
Minority |
|
|
|
capital |
premium |
reserve |
reserve |
earnings |
Total |
interest |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
|
|
As at 1 January 2009 |
1,974,374 |
782,234 |
708,951 |
1,049,357 |
(523,216) |
3,991,700 |
850 |
3,992,550 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income/(loss) |
|
|
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
60,159 |
(916,220) |
(856,061) |
(1,123) |
(857,184) |
|
Foreign currency translation |
- |
- |
- |
(557,375) |
- |
(557,375) |
(654) |
(558,029) |
|
Total comprehensive income for the year |
- |
- |
- |
(497,216) |
(916,220) |
(1,413,436) |
(1,777) |
(1,415,213) |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
Issue of shares in MobilityOne Limited |
365,000 |
- |
- |
- |
- |
365,000 |
- |
365,000 |
|
Total transactions with owners for the year |
365,000 |
- |
- |
- |
- |
365,000 |
- |
365,000 |
|
As at 31 December 2009 |
2,339,374 |
782,234 |
708,951 |
552,141 |
(1,439,436) |
2,943,264 |
(927) |
2,942,337 |
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 (£) using the closing rate as at the Statement of Financial Position 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 2009
|
|
|
2009 |
|
2008 |
|
|
|
£ |
|
£ |
|
Cash flows from operating activities |
|
|
|
|
|
Cash (depleted in)/generated from operations |
|
(489,661) |
|
2,060,020 |
|
Interest paid |
|
(71,057) |
|
(48,347) |
|
Interest received |
|
1,902 |
|
14,963 |
|
Net cash (used in)/generated from operating activities |
|
(558,816) |
|
2,026,636 |
|
Cash flows from investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(57,804) |
|
(152,253) |
|
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) |
|
Net cash used in investing activities |
|
(57,804) |
|
(261,237) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Drawdown of short term borrowings |
|
472,719 |
|
126,028 |
|
Drawdown of term loan |
|
- |
|
136,030 |
|
Repayment of term loan |
|
(89,122) |
|
(68,649) |
|
Repayment of finance lease payables |
|
(4,662) |
|
- |
|
Share buyback |
|
- |
|
(1,392,986) |
|
Proceeds from issuance of ordinary shares |
|
365,000 |
|
- |
|
Net cash generated from/(used in) financing activities |
|
743,935 |
|
(1,199,577) |
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
127,315 |
|
565,822 |
|
|
|
|
|
|
|
Effect of foreign exchange rate changes |
|
(137,096) |
|
(504,213) |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
410,085 |
|
348,476 |
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
400,304 |
|
410,085 |
NOTES TO THE FINANCIAL STATEMENTS
|
1. |
Basis of preparation |
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|
|
The 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. |
Going concern
|
||||||||||||
|
3. |
In order to assess the going concern of the Group, the Directors have prepared cashflow forecasts for companies within the Group. These cashflow forecasts show the Group will have increased sales based primarily on signed contracts and having sufficient headroom over available banking facilities. The Group has obtained banking facilities sufficient to facilitate the growth forecast in future periods. No matters have been drawn to the Directors' attention to suggest that future renewals may not be forthcoming on acceptable terms.
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.
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 (£), 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 Statement of Financial Position 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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|
4. |
Segmental reporting |
|
|
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.
|
|
5. |
Taxation |
|
|
The direct subsidiary company, MobilityOne Malaysia, was granted a MSC status (Pioneer Status) by Multimedia Development Corporate Sdn Bhd and is entitled to tax-free incentives in Malaysia for a period of five years effective from 27 April 2005 to 26 April 2010.
|
|
6. |
Earnings per share |
|
|
The basic earnings per share is calculated by dividing the loss of £916,220 (2008: loss of £876,818) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, which is 79,934,951 (2008: 79,547,278).
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 2009, 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.
|
|
7. |
Contingent liabilities |
|
|
Corporate guarantees of £1,109,090 given to a licensed bank by a subsidiary company, MobilityOne Malaysia, for credit facilities granted to a third party. |
|
8. |
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
|
|
|
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. 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.
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-Ends- |
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Related Shares:
Mobilityone