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MBO Mobilityone Limited

4.75
0.33 (7.47%)
03 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Mobilityone Limited LSE:MBO London Ordinary Share JE00B1Z48326 ORD 2.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.33 7.47% 4.75 4.50 5.00 4.75 4.75 4.75 21,405 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Business Services, Nec 233.76M 24k 0.0002 237.50 5.05M

MobilityOne Limited Half-year Report (4664N)

24/09/2019 11:00am

UK Regulatory


Mobilityone (LSE:MBO)
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From May 2019 to May 2024

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TIDMMBO

RNS Number : 4664N

MobilityOne Limited

24 September 2019

24 September 2019

MobilityOne Limited

("MobilityOne", the "Company" or the "Group")

Unaudited interim results for the six months ended 30 June 2019

MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and platform provider, announces its unaudited interim results for the six months ended 30 June 2019.

Highlights:

-- Revenue increased by 37.2% to GBP78.9 million (H1 2018: GBP57.5 million) contributed by strong growth in the Group's mobile phone prepaid airtime reload and bill payment business in Malaysia via mainly mobile and internet channels;

   --          Profit after tax of GBP0.42 million (H1 2018: loss after tax of GBP0.83 million); 

-- Cash and cash equivalents at 30 June 2019 of GBP4.99 million (30 June 2018: GBP3.21 million);

-- The Group is planning to expand its existing e-Money business in Malaysia and has recently commenced the Group's mobile remittance service which allows money transfer using a mobile application; and

-- The Group remains confident on the outlook for the full year, based on both the strong financial performance of the Group in the first half of the year as well as the future prospects for the Group particularly in the mobile phone prepaid airtime reload and bill payment business.

For further information, contact:

MobilityOne Limited +6 03 89963600

Dato' Hussian A. Rahman, CEO www.mobilityone.com.my

har@mobilityone.com.my

Allenby Capital Limited

(Nominated Adviser and Broker) +44 20 3328 5656

Nick Athanas /James Hornigold

About the Group:

MobilityOne provides e-commerce infrastructure payment solutions and platforms through its proprietary technology solutions. 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 including EDC terminals, mobile devices, automated teller machines ("ATM") and internet banking. The Group's technology platform is flexible, scalable and 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, refer to our website at www.mobilityone.com.my

Chairman's statement

The Group's revenue increased by 37.2% to GBP78.92 million (H1 2018: revenue of GBP57.51 million) in the first six months of 2019. This increase in revenue was as a result of strong growth from the Group's e-payment business in the mobile phone prepaid airtime reload and bill payment business in Malaysia via mainly the Group's banking channels (i.e. mobile banking and internet banking) with 10 banks and third parties' e-wallet applications whereby more customers are using mobile and internet channels. The Group's c.2,500 payment terminal base has also contributed to the revenue growth. As a result of the substantial increase in revenue in the period under review, the Group returned to profitability having suffering losses in the last two financial years and recorded a net profit after tax of GBP0.42 million in the first six months of 2019 (H1 2018: loss after tax of GBP0.83 million).

The Group's international remittance services in Malaysia via its 50%-owned associate company, OneTransfer Remittance Sdn Bhd, has not made a significant contribution to the Group. The revenue from the Group's operations in the Philippines remained insignificant through the provision of an e-payment solution. In addition, the Group's new venture in Brunei has started to record a small revenue contribution from its e-payment solution.

During the first six months of 2019 the Group's business in Bangladesh, through its 55% owned operating subsidiary, Mobility I Tap Pay (Bangladesh) Limited ("MiTP"), continued to generate minimal revenues and incur losses. The Group disposed of the subsidiary in July 2019 in order to avoid further losses to the Group. The impact of MiTP is included in the results for the Group for the six months ended 30 June 2019.

As at 30 June 2019, the Group had cash and cash equivalents of GBP4.99 million (30 June 2018: cash and cash equivalents of GBP3.21 million) and the secured loans and borrowings from financial institutions amounted to GBP4.08 million (30 June 2018: GBP3.87 million).

Current trading and outlook

The Group is planning to expand its existing e-Money business in Malaysia, initially by targeting students. e-Money is a type of payment instrument where it contains monetary value that has been paid in advance by the end users to the e-Money issuer to make payments to purchase goods from merchants such as retail outlets. When the end users pay using e-Money, the amounts are automatically deducted from their e-Money balance. The Group currently has agreements with 5 schools in Malaysia to test the integrated student cards with payments.

The Group has also recently commenced a mobile remittance service which allows money transfer using a mobile application. In addition, to further expand the group's electronic payment base and to introduce new revenue streams, the Group is planning to work with small convenient stores in Malaysia to improve their store image by introducing the brand name of "OneShop". The Group will work closely with these convenience stores to market products and to introduce the latest electronic payment capabilities within the stores. For this purpose, the Group is in the midst of incorporating a new wholly-owned subsidiary in Malaysia to be named "OneShop Sdn Bhd". For future growth, the Group will continue to enhance its product offering and payment systems, including online payment gateway which covers the acceptance of credit cards and payment wallets.

Even though the operations in the Philippines and Brunei for the provision of e-payment solutions is not expected to make a significant contribution to the Group in 2019, the Group is also exploring other business opportunities in these countries.

The Group remains confident on the outlook for the full year, based on both the strong financial performance of the Group in the first half of the year as well as the future prospects for the Group, both in the mobile phone prepaid airtime reload and bill payment business as well as the remittance services and other initiatives.

Abu Bakar bin Mohd Taib

Chairman

24 September 2019

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS PERIODED 30 JUNE 2019

 
                                          Six months     Six months       Financial 
                                                                               year 
                                               Ended          Ended           Ended 
                                             30 June        30 June     31 Dec 2018 
                                                2019           2018 
                                           Unaudited      Unaudited         Audited 
 CONTINUING OPERATIONS                           GBP            GBP             GBP 
 
 Revenue                                  78,920,618     57,506,068     125,471,796 
 Cost of sales                          (73,676,744)   (54,013,646)   (118,106,575) 
                                       -------------  -------------  -------------- 
 
 GROSS PROFIT                              5,243,874      3,492,422       7,365,221 
 
 Other operating income                       59,822         48,296          77,544 
 Administration expenses                 (4,610,647)    (4,011,980)     (8,445,816) 
 Distribution costs                            (384)              -       (103,632) 
 Other operating expenses                  (124,664)      (186,981)       (231,621) 
 Share of associate result                         -              -        (22,285) 
                                       -------------  -------------  -------------- 
 
 OPERATING PROFIT/(LOSS)                     568,001      (658,243)     (1,360,589) 
 
 Finance costs                             (144,002)      (122,663)       (276,426) 
 
 PROFIT/(LOSS) BEFORE TAX                    423,999      (780,906)     (1,637,015) 
 
 Tax                                         (2,813)       (51,486)         274,564 
                                       -------------  -------------  -------------- 
 
 PROFIT/(LOSS) FOR THE PERIOD/YEAR           421,186      (832,392)     (1,362,451) 
                                       =============  =============  ============== 
 
 Attributable to: 
 Owners of the parent                        786,931      (514,013)       (735,204) 
 Non-controlling interest                  (365,745)      (318,379)       (627,247) 
 
                                             421,186      (832,392)     (1,362,451) 
                                                      ============= 
 
 EARNINGS PER SHARE 
 Basic earnings/(loss) per 
  share (pence)                                0.740        (0.484)         (0.692) 
 Diluted earnings/(loss) per 
  share (pence)                                0.677        (0.442)         (0.692) 
 
 PROFIT/(LOSS) FOR THE PERIOD/YEAR           421,186      (832,392)     (1,362,451) 
 
 OTHER COMPREHENSIVE PROFIT 
 Foreign currency translation                 11,718         15,390             838 
 
 TOTAL COMPREHENSIVE PROFIT/(LOSS) 
  FOR THE PERIOD                             432,904      (817,002)     (1,361,613) 
 
   Total comprehensive profit/(loss) 
   attributable to: 
 Owners of the parent                        445,693      (789,042)       (696,138) 
 Non-controlling interest                   (12,789)       (27,960)       (665,475) 
                                             432,904      (817,002)     (1,361,613) 
                                       =============  =============  ============== 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

 
                                            At             At            At 
                                  30 June 2019   30 June 2018   31 Dec 2018 
                                     Unaudited      Unaudited       Audited 
                                           GBP            GBP           GBP 
 Assets 
 Non-current assets 
  Intangible assets                    268,501        315,288       302,286 
  Property, plant and 
   equipment                         1,855,510      2,451,226     1,884,900 
  Deferred tax assets                  193,251              -       193,962 
                                     2,317,262      2,766,514     2,381,148 
                                 -------------  -------------  ------------ 
 
 Current assets 
  Inventories                        1,317,318      1,487,577     1,381,106 
  Trade receivables                  3,040,250      2,834,275     3,056,458 
  Other receivables                  1,399,891      1,838,700     1,203,628 
  Tax recoverable                      142,591        225,256       141,890 
  Assets held for sale                  63,740              -       119,439 
  Cash and cash equivalents          4,994,352      3,213,816     4,181,490 
                                 -------------  -------------  ------------ 
                                    10,958,142      9,599,624    10,084,011 
                                 -------------  -------------  ------------ 
 
 Total Assets                       13,275,404     12,366,138    12,465,159 
                                 =============  =============  ============ 
 
 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                             894,229        897,063       882,511 
  Accumulated losses               (3,968,077)    (4,533,817)   (4,755,008) 
                                 -------------  -------------  ------------ 
 Shareholders' equity                1,202,045        639,139       403,396 
 Non-controlling interest          (1,681,855)      (984,185)   (1,303,321) 
                                 -------------  -------------  ------------ 
 Total Equity                        (479,810)      (345,046)     (899,925) 
                                 -------------  -------------  ------------ 
 
 Liabilities 
 Non-current liabilities 
  Loans and borrowings 
   - secured                           269,651        574,116       499,893 
  Deferred tax liabilities                 472        129,867           470 
  Amount due to directors            1,911,200      1,689,622     1,754,319 
                                 -------------  -------------  ------------ 
                                     2,181,323      2,393,605     2,254,682 
                                 ------------- 
 
 Current liabilities 
  Trade payables                     1,816,034        776,136     1,272,014 
  Other payables                     5,772,848      6,245,697     5,943,526 
  Amount due to directors              174,598          2,670       122,685 
  Loans and borrowings 
   - secured                         3,805,908      3,293,076     3,767,696 
  Tax payables                           4,503              -         4,481 
                                    11,573,891     10,317,579    11,110,402 
                                 -------------  -------------  ------------ 
 
 Total Liabilities                  13,755,214     12,711,184    13,365,084 
                                 -------------  -------------  ------------ 
 
 Total Equity and Liabilities       13,275,404     12,366,138    12,465,159 
                                 =============  =============  ============ 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIODED 30 JUNE 2019

 
                               Non-Distributable                     Distributable 
                                                           Foreign 
                                             Reverse      Currency                                    Non- 
                       Share     Share   Acquisition   Translation   Accumulated               Controlling 
                     Capital   Premium       Reserve       Reserve        Losses       Total      Interest       Total 
                         GBP       GBP           GBP           GBP           GBP         GBP           GBP         GBP 
 As at 1 January 
  2018             2,657,470   909,472       708,951       881,673   (4,019,804)   1,137,762     (637,846)     499,916 
 Foreign 
  currency 
  translation              -         -             -        15,390             -      15,390      (27,960)    (12,570) 
 (Loss) for the 
  period                   -         -             -             -     (514,013)   (514,013)     (318,379)   (832,392) 
                  ----------  --------  ------------  ------------  ------------  ----------  ------------  ---------- 
 As at 30 June 
  2018             2,657,470   909,472       708,951       897,063   (4,533,817)     639,139     (984,185)   (345,046) 
                  ==========  ========  ============  ============  ============  ==========  ============  ========== 
 
 As at 1 July 
  2018             2,657,470   909,472       708,951       897,063   (4,533,817)     639,139     (984,185)   (345,046) 
 Foreign 
  currency 
  translation              -         -             -      (14,552)             -    (14,552)      (10,268)    (24,820) 
 (Loss) for the 
  period                   -         -             -             -     (221,191)   (221,191)     (308,868)   (530,059) 
                  ----------  --------  ------------  ------------  ------------  ----------  ------------  ---------- 
 As at 31 Dec 
  2018             2,657,470   909,472       708,951       882,511   (4,755,008)     403,396   (1,303,321)   (899,925) 
                  ==========  ========  ============  ============  ============  ==========  ============  ========== 
 
 As at 1 January 
  2019             2,657,470   909,472       708,951       882,511   (4,755,008)     403,396   (1,303,321)   (899,925) 
 Foreign 
  currency 
  translation              -         -             -        11,718             -      11,718      (12,789)     (1,071) 
 Profit for the 
  period                   -         -             -             -       786,931     786,931     (365,745)     421,186 
                  ----------  --------  ------------  ------------  ------------  ----------  ------------  ---------- 
 As at 30 June 
  2019             2,657,470   909,472       708,951       894,229   (3,968,077)   1,202,045   (1,681,855)   (479,810) 
                  ==========  ========  ============  ============  ============  ==========  ============  ========== 
 

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 (GBP) using the closing rate as at the Statement of Financial Position date and the income statements were translated into GBP 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.

Non-controlling interests represent the share of ownership of subsidiary companies outside the Group.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIODED 30 JUNE 2019

 
                                            Six months    Six months      Financial 
                                                                               year 
                                                 Ended         Ended          ended 
                                          30 June 2019  30 June 2018    31 Dec 2018 
                                             Unaudited     Unaudited        Audited 
                                                   GBP           GBP            GBP 
Cash flows from operating activities 
Cash generated from operations               1,117,239       447,908      1,201,064 
    Interest paid                            (144,002)     (120,257)      (276,426) 
    Interest received                           41,725        38,085         66,554 
    Tax paid                                   (2,813)      (49,127)       (93,759) 
Net cash generated from operating 
 activities                                  1,012,149       316,609        897,433 
                                          ------------  ------------  ------------- 
 
Cash flows from investing activities 
    Purchase of property, plant and 
     equipment                                (39,716)     (334,430)      (893,113) 
    Decrease/(Increase) in asset 
     held for sale                              55,699             -      (119,439) 
    Proceeds from disposal of property, 
     plant and equipment                             -             -        779,123 
    Net cash inflow for acquisition 
     of subsidiary company                           -             -         18,267 
Net cash used in investing activities           15,983     (334,430)      (215,162) 
                                          ------------  ------------  ------------- 
 
Cash flows from financing activities 
    Drawdown of borrowings                           -             -         90,429 
    Increase in pledged fixed deposits               -             -      (297,416) 
    Net change of banker acceptance            (2,671)     (223,183)        252,118 
    Repayment from finance lease 
     payables                                 (87,381)      (47,577)       (13,604) 
    Repayment of term loan                    (10,634)      (10,312)        (6,375) 
Net cash (used in)/from financing 
 activities                                  (100,686)     (281,072)         25,152 
                                          ------------  ------------  ------------- 
 
Increase/(Decrease) in cash and 
 cash equivalents                              927,446     (298,893)        707,423 
 
Effect of foreign exchange rate 
 changes                                      (41,412)       187,858         76,044 
 
Cash and cash equivalents at 
 beginning of period/year                    4,108,318     3,324,851      3,324,851 
 
Cash and cash equivalents at 
 end of period/year                          4,994,352     3,213,816      4,108,318 
                                          ============  ============  ============= 
 

NOTES TO THE INTERIM FINANCIAL STATEMENTS

 
 1.   Basis of preparation 
 
        The Group's interim financial statements for the six months 
        ended 30 June 2019 were authorised for issue by the Board 
        of Directors on 24 September 2019. 
 
        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 2018 Annual 
        Report, will be included in the audited financial statements 
        for the year ending 31 December 2019. 
 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 2019. 
 3.   Nature of financial information 
 
       The unaudited interim financial information for the six months 
       ended 30 June 2019 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 2018 
       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 (GBP), 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 
           (GBP) at foreign exchange rates ruling at the Statement of 
           Financial Position date. Results and cash flows are translated 
           into Pound Sterling (GBP) 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: 
 
                                         Exchange rate (RM: GBP) 
                                       At Statement    Average for 
                                       of Financial       year/ 
                                       Position date      Period 
            Period ended 30 June 
             2019                          5.24           5.33 
            Period ended 30 June 
             2018                          5.30           5.42 
            Year ended 31 December 
             2018                          5.27           5.39 
 5.   Segmental analysis 
      No segmental analysis of assets and capital expenditure are 
       presented as they are mostly unallocated items which comprise 
       corporate assets and liabilities. No geographical segment 
       information is presented as more than 95% of the Group's revenue 
       was generated in Malaysia. 
 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 2019 of GBP786,931 
                  (30 June 2018: loss of GBP514,013 and year ended 31 December 
                  2018: loss of GBP735,204) attributable to owners of the parent 
                  by the number of ordinary shares outstanding at 30 June 2019 
                  of 106,298,780 (30 June 2018: 106,298,780 and 31 December 
                  2018: 106,298,780). 
 
                  The diluted earnings per share for the six month period ended 
                  30 June 2019 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 
 
                                                                                 Financial 
                                                Six months       Six months           year 
                                                     ended            ended          ended 
                                              30 June 2019     30 June 2018    31 Dec 2018 
                                                 Unaudited        Unaudited        Audited 
                                                       GBP              GBP            GBP 
        Cash flow from 
         operating activities 
 
        Profit/(Loss) before 
         tax                                       423,999        (780,906)    (1,637,015) 
                                             -------------  ---------------  ------------- 
 
        Adjustments for: 
            Depreciation                            90,422          248,886        649,905 
            Amortisation of 
             intangible assets                      34,672               73         68,852 
            Amortisation of 
             development costs                           -           33,691              - 
            Interest expenses                      144,002          120,257        276,426 
            Interest income                       (41,725)         (38,085)       (66,554) 
                                             -------------  ---------------  ------------- 
            Operating profit/(loss) 
             before working 
             capital changes                       651,370        (416,084)      (708,386) 
 
        Decrease in inventories                     63,788          133,801        240,272 
        (Increase) in receivables                (180,055)      (1,006,480)      (593,591) 
            Increase in amount 
             due to Directors 
             & Shareholder                         208,794          153,288        238,400 
            Increase in payables                   373,342        1,583,383      2,024,369 
                                             -------------  ---------------  ------------- 
            Cash generated 
             from operations                     1,117,239          447,908      1,201,064 
                                             =============  ===============  ============= 
 
 9    Contingent liabilities 
 
        In the period under review, corporate guarantees of RM20.0 
        million (GBP3.82 million) (H1 2018: RM20.0 million (GBP3.58 
        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 2018 except for 
         the adoption of new and amended reporting standards, which 
         are effective for periods commencing on or after 1 January 
         2019. Various amendments to standards and interpretations 
         of standards are effective for periods commencing on or after 
         1 January 2019 as detailed in the 2018 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 26 of the AIM Rules for Companies, be available shortly 
        on the Company's website at www.mobilityone.com.my. 
 
 
                                   -Ends- 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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