Half-year Report

Six months

Six months

Financial year

Ended

Ended

Ended

30 June 2016

30 June 2015

31 Dec 2015

Unaudited

Unaudited

Audited

CONTINUING OPERATIONS

£

£

£

Revenue

33,591,365

31,317,005

65,161,080

Cost of sales

(31,291,165)

(29,424,516)

(61,008,206)

GROSS PROFIT

2,300,200

1,892,489

4,152,874

Other operating income

21,695

63,354

71,408

Administration expenses

(1,778,599)

(1,500,002)

(3,228,126)

Other operating expenses

(249,684)

(237,177)

(650,550)

OPERATING PROFIT

293,612

218,664

345,606

Finance costs

(86,066)

(88,479)

(153,286)

PROFIT BEFORE TAX

207,546

130,185

192,320

Tax

(63,528)

(18,651)

(29,100)

PROFIT FOR THE PERIOD/YEAR

144,018

111,534

163,220

Attributable to:

Owners of the parent

144,761

113,165

165,678

Non-controlling interest

(743)

(1,631)

(2,458)

144,018

111,534

163,220

EARNINGS PER SHARE

Basic earnings per share (pence)

0.136

0.106

0.156

Diluted earnings per share (pence)

0.124

0.097

0.142

PROFIT FOR THE PERIOD

144,018

111,534

163,220

OTHER COMPREHENSIVE PROFIT/(LOSS)

Foreign currency translation

158,894

(144,135)

(104,617)

TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD

302,912

(32,601)

58,603

Total comprehensive profit/(loss) attributable to:

Owners of the parent

301,259

(31,324)

61,061

Non-controlling interest

1,653

(1,277)

(2,458)

302,912

(32,601)

58,603

At

At

At

30 June 2016

30 June 2015

31 Dec 2015

Unaudited

Unaudited

Audited

£

£

£

Assets

Non-current assets

Intangible assets

31,733

473,489

54,291

Property, plant and equipment

545,204

542,999

497,567

576,937

1,016,488

551,858

Current assets

Inventories

1,055,079

337,181

1,063,008

Trade receivables

602,820

1,558,053

2,697,809

Other receivables

858,235

399,375

649,979

Tax recoverable

1,029

-

3,016

Cash and cash equivalents

2,571,104

1,705,062

2,216,715

5,088,267

3,999,671

6,630,527

Total Assets

5,665,204

5,016,159

7,182,385

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

845,744

649,374

689,246

Retained earnings

(3,557,036)

(3,754,310)

(3,701,797)

Shareholders' equity

1,564,601

1,170,957

1,263,342

Non-controlling interest

(3,970)

(4,442)

(5,623)

Total Equity

1,560,631

1,166,515

1,257,719

Liabilities

Non-current liabilities

Loans and borrowings - secured

347,597

328,833

296,692

Current liabilities

Trade payables

475,334

851,129

157,856

Other payables

552,741

546,447

3,769,912

Amount due to Directors

6,439

6,146

118,603

Loans and borrowings - secured

2,702,848

2,104,211

1,581,603

Tax Payable

19,614

12,878

-

3,756,976

3,520,811

5,627,974

Total Liabilities

4,104,573

3,849,644

5,924,666

Total Equity and Liabilities

5,665,204

5,016,159

7,182,385

Non-Distributable

Distributable

Foreign

Reverse

Currency

Non-

Share

Share

Acquisition

Translation

Retained

Controlling

Capital

Premium

Reserve

Reserve

Earnings

Total

Interest

Total

£

£

£

£

£

£

£

£

As at 1 January 2016

2,657,470

909,472

708,951

689,246

(3,701,797)

1,263,342

(5,623)

1,257,719

Foreign currency translation

-

-

-

156,498

-

156,498

2,396

158,894

Profit for the period

-

-

-

-

144,761

144,761

(743)

144,018

As at 30 June 2016

2,657,470

909,472

708,951

845,744

(3,557,036)

1,564,601

(3,970)

1,560,631

As at 1 January 2015

2,657,470

909,472

708,951

793,863

(3,867,475)

1,202,281

(3,165)

1,199,116

Foreign currency translation

-

-

-

(144,489)

-

(144,489)

354

(144,135)

Profit for the period

-

-

-

-

113,165

113,165

(1,631)

111,534

As at 30 June 2015

2,657,470

909,472

708,951

649,374

(3,754,310)

1,170,957

(4,442)

1,166,515

Six months

Six months

Financial year

Ended

Ended

ended

30 June 2016

30 June 2015

31 Dec 2015

Unaudited

Unaudited

Audited

£

£

£

Cash flows from operating activities

Cash (used in)/generated from operations

(768,380)

779,714

1,972,724

Interest paid

(86,066)

(88,479)

(153,286)

Interest received

21,668

22,600

51,395

Tax paid

(52,012)

(1,522)

(44,948)

Tax refund

-

-

434

Net cash (used in)/generated from operating activities

(884,790)

712,313

1,826,319

Cash flows from investing activities

Purchase of property, plant and equipment

(18,042)

(74,656)

(111,191)

Net cash used in investing activities

(18,042)

(74,656)

(111,191)

Cash flows from financing activities

Drawdown /(Repayment) of term loan

40,011

(1,861)

(46,355)

Drawdown /(Repayment) of short term borrowings

1,161,488

(249,098)

(938,577)

Repayment from finance lease payables

(29,348)

(49,984)

(114,717)

Net cash generated/(used in) from financing activities

1,172,151

(300,943)

(1,099,649)

Increase in cash and cash equivalents

269,319

336,714

615,479

Effect of foreign exchange rate changes

85,070

(239,907)

(7,019)

Cash and cash equivalents at beginning of period/year

2,216,715

1,608,255

1,608,255

Cash and cash equivalents at end of period/year

2,571,104

1,705,062

2,216,715

1.

Basis of preparation

The Group's interim financial statements for the six months ended 30 June 2016 were authorised for issue by the Board of Directors on 28 September 2016.

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 2015 Annual Report, will be included in the audited financial statements for the year ending 31 December 2016.

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 2016.

3.

Nature of financial information

The unaudited interim financial information for the six months ended 30 June 2016 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 2015 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 (£), 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/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:

5.

Segmental analysis

No segmental analysis of revenues, profits, assets and liabilities are presented and no geographical segment information is presented as the Group mainly trades and provides services in only one region - the Far East.

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 2016 of £144,761 (30 June 2015: profit of £113,165 and year ended 31 December 2015: profit of £165,678) attributable to ordinary shareholders by the number of ordinary shares outstanding at 30 June 2016 of 106,298,780 (30 June 2015: 106,298,780 and 31 December 2015: 106,298,780).

The diluted earnings per share for the six month period ended 30 June 2016 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

9.

Contingent liabilities

In the period under review, corporate guarantees of RM20.0 million (£3.68 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 2015 except for the adoption of new and amended reporting standards, which are effective for periods commencing on or after 1 January 2016. Various amendments to standards and interpretations of standards are effective for periods commencing on or after 1 January 2016 as detailed in the 2015 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 20 of the AIM Rules for Companies, be available shortly on the Company's website at www.mobilityone.com.my.

-Ends-