28th Sep 2007 07:02
MobilityOne Limited28 September 2007 MobilityOne Limited ("MobilityOne" or the "Company") Interim results for the six months ended 30 June 2007 MobilityOne (AIM : MBO), an e-commerce infrastructure payment solutions andplatform provider in Malaysia via its subsidiaries MobilityOne Sdn Bhd("MobilityOne Malaysia") and Netoss Sdn Bhd ("Netoss") (collectively known as"Group"), today announces its unaudited interim results for the six months ended30 June 2007. Highlights: • Revenue up 32% to £7.97 million (H1 2006 : £6.02 million) • Profit before taxation up 64% to £439k (H1 2006 : 268k) • Earnings per share up 64% to 0.54 pence (H1 2006 : 0.33 pence) • Total points of sale increased 13% to 3,400 (at 30 June 2006 : c3,000) • Transactions through the Group's proprietary technology platform up 46% to 3.12 million (H1 2006 : 2.14 million) • Successfully listing on AIM on 5 July 2007 raising £1.54 million Hussian A. Rahman, Chief Executive Officer, commented:"We are pleased to announce another period of growth with strong improvements inrevenues and profits, driven by an increase in the total number of points ofsale and the overall number of transactions. Further improvement can be achievedas we look to increase the average revenue per EDC terminal, thereby improvingour operational efficiency." "As we continue to build on our existing technological competitive strengths andexpand our range of products and services we are confident of our futureprospects in both our existing markets and new geographies." For further information, please contact: MobilityOne +6 03 6286 1999Hussian A. Rahman, CEO [email protected] Boon Chin, Corporate Finance [email protected] HB Corporate +44 (0)20 7510 8600Luke Cairns www.hbcorporate.co.ukRachel KaneJim McGeever Threadneedle Communications +44 (0) 20 7936 9605Graham Herring www.threadneedlepr.co.ukJosh Royston Chairman's statement The first half of 2007 has been another period of growth for the Group withfurther sales growth which has enabled us to strengthen our position as aleading e-commerce infrastructure payment solutions and platform provider inMalaysia. The Group provides products and services through multiple distributionchannels including EDC terminals, SMS, and via banks' Automated Teller Machinesand Internet banking. The Group increased its total points of sale, in the form of EDC terminals, by13% to more than 3,400 (30 June 2006 : c3,000), whilst the number oftransactions through the Group's proprietary technology platform increased by46% to 3.12 million (30 June 2006 : 2.14 million) During the period, MobilityOne Malaysia also entered into an agreement withAmBank (M) Berhad for the Group to provide its range of products and servicesvia the bank's payment channels. This is in addition to similar agreementsentered into with other large-sized banks in Malaysia such as CIMB Bank Berhadand RHB Bank Berhad. The Group's strategy for growth remains focused on two principal areas. Firstly,by expanding the range of products and services available on the Group'stechnology platform and secondly by expanding the business into furthergeographical markets. To this end, the period under review saw the introductionof electronic ticketing for buses and events to its range of products andservices and we are currently exploring several new business opportunities incountries such as Cambodia and Indonesia. The Group has also continued to invest in research and development of its MoCSTMand ABOSSETM solutions with the major focus being on improving our bankingchannel connectivity. These new improvements will not only allow for better andfaster integration with banks, but will also enable more products and services,such as electronic ticketing and bill payment, to be channeled directly via thebanks. Financial performance The Group's revenues for the six months ended 30 June 2007 were £7.97 million,up 32% from the corresponding period in 2006 of £6.02 million. This was mainlydriven by the increase in transaction volumes which resulted from the Group'sefforts to increase its number of distribution points and also the encouragingresults from the transactions via the banks' payment channels. In tandem with the revenue growth, the Group's operating profit increased by 62%to £475k (H1 2006 : £293k), net profit after tax improved 65% to £439k (H1 2006: £266k) and earnings per share increase by 64% to 0.54 pence (H1 2006 : 0.33pence). Current trading and outlook The second half of the financial year has started well with revenue in line withthe management's expectation. The Board is confident of a successful second halfof the year as we continue to expand upon our range of products and services.The technologies and services offered by the Group are expected to creategreater operational efficiencies and provide service providers with a widerreach into the marketplace and we continue to explore a number of overseasexpansion opportunities. YB Dato' Dr Wan Azmi Bin AriffinChairman28 September 2007 CONSOLIDATED INCOME STATEMENTSFOR THE PERIOD ENDED 30 JUNE 2007 Six months Six months Nine months ended ended ended 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £ £ £ Revenue 7,970,500 6,019,618 8,597,494 Cost of sales (6,869,622) (5,197,304) (7,267,468) Gross profit 1,100,878 822,314 1,330,026 Other operating income 656 128 21,815Administrative expenses (355,557) (296,217) (519,699)Distribution costs (271,265) (232,985) (305,737) Operating profit 474,712 293,240 526,405Finance costs (35,225) (24,856) (52,454) Profit before taxation 439,487 268,384 473,951Taxation (232) (1,953) (32,033) Net profit for the financial period 439,255 266,431 441,918 Attributable to:Equity holders 439,255 266,431 441,918 Earnings per share attributable toequity holders of the Group (pence):Basic 0.54 0.33 0.54Diluted 0.54 0.33 0.54 Note:A group reorganization took place on 22 June 2007. The financial information forthe current and comparative periods has been presented as if MobilityOne hadbeen the parent company of the group throughout (see Notes 1 and 2). CONSOLIDATED BALANCE SHEETSAS AT 30 JUNE 2007 At At At 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £ £ £ AssetsNon-current assets Property, plant and equipment 898,599 1,114,079 940,148 Prepaid lease payment 161,345 72,588 162,967 Development costs 263,228 141,029 195,861 Other intangible assets 984,885 1,020,491 986,129 2,308,057 2,348,187 2,285,105 Current assets Inventories 749,527 413,108 646,062 Trade receivables 920,049 138,660 726,172 Other receivables 236,188 206,220 139,805 Cash and bank balances 776,870 312,430 868,167 2,682,634 1,070,418 2,380,206 Total assets 4,990,691 3,418,605 4,665,311 LiabilitiesCurrent liabilities Trade payables 342,923 141,823 384,991 Other payables 326,174 211,891 256,473 Amount owing to a director - - 144,625 Bank borrowings 529,122 - 500,865 Current taxation 229 - - 1,198,448 353,714 1,286,954 Non-current liabilities Redeemable cumulative convertible preference shares - 299,329 289,250 Deferred taxation - 1,987 2,829 Bank borrowings 140,629 - 152,608 140,629 301,316 444,687 Total liabilities 1,339,077 655,030 1,731,641 Shareholders' equity Share capital 2,040,930 2,040,930 2,040,930 Other reserve 709,009 38,634 (18,252) Translation reserve (177,021) (92,548) (167,354) Retained earnings 1,078,696 776,559 1,078,346 Total shareholders' equity 3,651,614 2,763,575 2,933,670 Total shareholders' equity and liabilities 4,990,691 3,418,605 4,665,311 Note:A group reorganization took place on 22 June 2007. The financial information forthe current and comparative periods has been presented as if MobilityOne hadbeen the parent company of the group throughout (see Notes 1 and 2). CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE PERIOD ENDED 30 JUNE 2007 Attributable to the equity holders of the Group Non-Distributable Distributable Share Other Translation Retained Capital Reserve Reserve Earnings Total £ £ £ £ £ At 1 January 2007 2,040,930 (18,252) (167,354) 1,078,346 2,933,670Capitalised as bonus issue in subsidiary company - 438,905 - (438,905) -Conversion of redeemable cumulative convertible preference shares in subsidiary company - 293,044 - - 293,044Listing expenses - (4,688) - - (4,688)Foreign currency translation difference - - (9,667) - (9,667)Net profit for the financial period - - - 439,255 439,255 At 30 June 2007 2,040,930 709,009 (177,021) 1,078,696 3,651,614 At 1 January 2006 2,040,930 38,634 (22,212) 510,128 2,567,480Foreign currency translation difference - - (70,336) - (70,336)Net profit for the financial period - - - 266,431 266,431 At 30 June 2006 2,040,930 38,634 (92,548) 776,559 2,763,575Foreign currency translation difference - - (74,806) - (74,806)Listing expenses - (56,886) - - (56,886)Net profit for the financial period - - - 301,787 301,787 At 31 December 2006 2,040,930 (18,252) (167,354) 1,078,346 2,933,670 Note:A group reorganization took place on 22 June 2007. The financial information forthe current and comparative periods has been presented as if MobilityOne hadbeen the parent company of the group throughout (see Notes 1 and 2). CONSOLIDATED CASH FLOW STATEMENTSFOR THE PERIOD ENDED 30 JUNE 2007 Six months Six months Nine months ended ended ended 30 June 30 June 31 December 2007 2006 2006 Unaudited Unaudited Audited £ £ £ Cash flows from operating activities Profit before taxation 439,487 268,384 473,951 Adjustments for :- Depreciation of property, plant and equipment 62,618 64,585 96,254Amortisation of prepaid lease rental 1,417 373 1,263Interest expenses 35,225 24,856 52,454Interest income (500) (42) (343) Operating profit before working capital changes 538,247 358,156 623,579 Increase in inventories (104,281) (119,312) (152,553)(Increase)/decrease in receivables (294,178) 394,752 (648,812)(Decrease)/increase in payables (120,763) 145,972 372,489 Cash generated from operating activities 19,025 779,568 194,703Interest paid (35,225) (24,856) (52,454)Tax (paid)/refunded (2,826) 60 (31,124)Interest received 500 42 343 Net cash (used in)/ from operating activities (18,526) 754,814 111,468 Cash flows from investing activitiesPurchase of property, plant and equipment (22,258) (436,935) (35,157)Prepaid lease payment - (72,962) -Development costs (67,615) (63,796) (87,831) Net cash used in investing activities (89,873) (573,693) (122,988) Cash flows from financing activitiesDrawdown of term loan 17,102 - 653,473 Net cash from financing activities 17,102 - 653,473 Net (decrease)/increase in cash and cash equivalents (91,297) 181,121 641,953Cash and cash equivalents at beginning of financial period 868,167 131,309 226,214 Cash and cash equivalents at end of financial period 776,870 312,430 868,167 Cash and cash equivalents at end of financial period comprises:Cash and bank balances 776,870 312,430 868,167 Note:A group reorganization took place on 22 June 2007. The financial information forthe current and comparative periods has been presented as if MobilityOne hadbeen the parent company of the group throughout (see Notes 1 and 2). NOTES TO THE INTERIM FINANCIAL STATEMENTS 1. Basis of preparation The Group's interim financial statements for the six months ended 30 June 2007were authorized for issue by the Board of Directors on 28 September 2007. The interims financial statements are unaudited and have been presented inaccordance with International Financial Reporting Standards ("IFRS") as adoptedby the European Union. The interim financial statements do not constitute fullstatutory accounts within the meaning of Article 104 Companies (Jersey) Law1991.The financial information contained in the interim financial statements for thesix months ended 30 June 2007 and 30 June 2006 is unaudited. The comparativefigures for the nine month period ended 31 December 2006 have been extractedfrom MobilityOne Malaysia's audited consolidated financial statements. Full details of the accounting policies adopted which are consistent with thosedisclosed in the Company's AIM Admission Document will be included in thefinancial statements for the year ending 31 December 2007. The acquisition by MobilityOne of the entire issued share capital of MobilityOneMalaysia was pursuant to a share swap agreement whereby the shareholders ofMobilityOne were the same as those of MobilityOne Malaysia prior to thetransaction and therefore falls outside the scope of IFRS 3. The transaction hastherefore been accounted for as a group reorganisation rather than a businesscombination. Further information is provided in Note 2 to the interim financialstatements. 2. Changes in the structure of the Group As explained in Note 1 to the interim financial statements, the acquisition byMobilityOne of the entire issued share capital of MobilityOne Malaysia has beenaccounted for as a group reorganisation rather than a business combination.Consequently, the previously recognised book values for assets and liabilitieshave been retained and the consolidated financial statements have been presentedas if MobilityOne had always been the parent company of the Group. The share capital for the period covered by the interim financial statements andthe comparative periods is stated at the nominal value of the shares issuedpursuant to the share swap agreement dated 22 June 2007. Any differences betweenthe nominal value of these shares and previously reported nominal values ofshares and applicable share premium issued by MobilityOne Malaysia has beentransferred to "other reserves". The effect on the Group of the changes in theissued share capital of MobilityOne Malaysia during the period are reflected asmovements in other reserves. 3. Functional and presentation currency Items included in the financial statements of each of the Group's entities aremeasured using the currency of the primary economic environment in which theentity operates ("functional currency"). The functional currency of the Group isRinggit Malaysia ("RM"). The consolidated financial information is presented inGreat Britain Pounds Sterling ("£"), which is the Group's presentationalcurrency as this is the currency used in the country in which the entity islisted. Assets and liabilities are translated into £ at foreign exchange rates ruling atthe balance sheet date. Results and cash flows are translated into £ usingaverage rates of exchange for the period. The highlighted financial information has been translated using the exchangerate as follows: Exchange rate (RM : £) At balance AveragePeriod ended sheet date for period30 June 2006 6.68 6.5931 December 2006 6.90 6.8530 June 2007 6.92 6.82 4. Segmental reporting For management reporting purposes, the Group's activities are treated as asingle class of business, all arising from goods and services provided in theFar East. Accordingly, no segmental analysis of revenues, profits, assets andliabilities is available for presentation. 5. Taxation The charge for income tax expense included in the interim financial statementsis based on the unaudited results for the six months ended 30 June 2007 and iscalculated at the expected rate applicable to the Group for the full year ending31 December 2007. MobilityOne Malaysia has been awarded a MSC status by Multimedia DevelopmentCorporate Sdn Bhd and is entitled to tax-free incentives in Malaysia until 2015.However, an insignificant amount of tax is provided for Netoss as it is subjectto the Malaysian taxation. 6. Earnings per share Earnings per share is calculated by dividing the profit attributable to equityshareholders in the six month period ended 30 June 2007 of £439,255 (30 June2006 : £266,431; 31 December 2006 : £441,918 ) by the number of shares in issueat 30 June 2007 81,637,204. As explained in Note 2, the share capital for thecurrent and comparative periods has been stated as the number of shares issuedpursuant to the share swap agreement dated 22 June 2007. 7. Material events subsequent to the end of the first half yearSubsequent to the end of the period under review, MobilityOne placed 12.3million ordinary shares at 12.5 pence per ordinary share ("Placing Shares")raising approximately £1.54 million before expenses which will be utilisedmainly for the Group's overseas expansion, working capital and capitalexpanditure. The Placing Shares and the existing ordinary shares of MobilityOnewere subsequently admitted to AIM on 5 July 2007. -Ends- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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