TIDMMBO
RNS Number : 1728O
MobilityOne Limited
29 September 2023
29 September 2023
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2023
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, announces its unaudited interim
results for the six months ended 30 June 2023.
Highlights:
-- Revenue increased by 7.2% to GBP121.5 million (H1 2022:
GBP113.4 million) due to higher sales for the Group's mobile phone
prepaid airtime reload and bill payment business in Malaysia;
-- Profit after tax of GBP5,117 (H1 2022: profit after tax of GBP0.34 million);
-- Cash and cash equivalents (including fixed deposits) at 30
June 2023 of GBP3.42 million (30 June 2022: GBP4.72 million);
-- The Group is cautious on the outlook for the remainder of
2023, taking into consideration rising interest rates and expenses
including, but not limited to, higher administrative expenses,
higher infrastructure and marketing costs as well as lower gross
profit margins for the Group's products and services; and
-- For future growth, the Group will continue to invest and
enhance its research and development capabilities as well as form
partnerships or to undertake acquisitions in complementary
businesses, as applicable.
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 / Vivek Bhardwaj
About the Group:
MobilityOne is one of the leading virtual distributors of mobile
prepaid reload and bill payment services in Malaysia. With
connections to various service providers across industries such as
banking, telecommunications, utilities, government agencies, and
transportation, the Group operates through multiple distribution
channels including mobile wallets, e-commerce sites, EDC terminals,
automated teller machines, kiosks, and internet & mobile
banking. Holding licenses in regulated spaces including acquiring,
e-money, remittance and lending, the Group offers a range of
services to the market, including wallet, internet, and
terminal-based payment services, white label e-money, remittance,
lending, and custom fintech ecosystems for communities. The Group's
flexible, scalable technology platform enables cash, debit card,
and credit card transactions from multiple devices while providing
robust control and monitoring of product and service
distribution.
For more information, refer to our website at
www.mobilityone.com.my
Chairman's statement
The Group's revenue increased by 7.2% to GBP121.5 million (H1
2022: revenue of GBP113.4 million) i n the first six months of 2023
as a result of higher sales from the Group's main products and
services in Malaysia, namely the mobile phone prepaid airtime
reload and bill payment business through the Group's banking
channels (i.e. mobile banking and internet banking), electronic
data capture ("EDC") terminals and third parties' e-wallet
applications. Notwithstanding the higher sales, the Group
registered a lower profit after t ax of GBP5,117 in the first six
months of 2023 (H1 2022: profit after tax of GBP0.34 million)
mainly due to a reduction in gross profit margin in the period
under review to 5.08% (H1 2022: gross profit margin of 5.52%),
higher administrative expenses and higher finance costs.
The Group's other businesses such as its international
remittance services, EDC terminals sales and services, e-money and
lending in Malaysia as well as the e-payment solutions activities
in Brunei continued to remain small. The Group did not record any
sales in the Philippines in the first six months of 2023.
As at 30 June 2023, the Group had cash and cash equivalents
(including fixed deposits) of GBP3.42 million (30 June 2022: cash
and cash equivalents of GBP4.72 million) while the secured loans
and borrowings from financial institutions increased to GBP4.14
million (30 June 2022: GBP2.89 million).
Current trading and outlook
The Group's business activities are still predominately
concentrated in Malaysia. Other than the Group's main business
activities of mobile phone prepaid airtime reload and bill payment
in Malaysia, the Group's other businesses are expected to remain
insignificant in 2023. As reported by the Central Bank of Malaysia
in August 2023, the Malaysian economy grew by 2.9% in the second
quarter of 2023 weighed mainly by slower external demand. Domestic
demand remained the key driver of growth, supported by private
consumption and investment. With the challenging global
environment, the Malaysian economy is projected to expand close to
the lower end of the 4.0% to 5.0% range in 2023. Growth will
continue to be supported by domestic demand amid improving
employment and income as well as implementation of multi-year
projects.
As part of the Group's business plans for long-term growth, the
Group has the following initiatives:
(1) Proposed disposal of OneShop Retail Sdn Bhd ("1Shop") and
proposed joint venture with Super Apps Holdings Sdn Bhd ("Super
Apps")
On 19 October 2022, MobilityOne Sdn Bhd ("M1 Malaysia"), the
Group's wholly-owned subsidiary in Malaysia, entered into a Share
Sale Agreement with Super Apps for the proposed disposal by M1
Malaysia of a 60% shareholding in the Group's wholly-owned non-core
subsidiary 1Shop to Super Apps (together the "Proposed Disposal").
Concurrently, M1 Malaysia entered into a Joint-Venture cum
Shareholders Agreement with Super Apps and 1Shop (together the
"Proposed Joint Venture"). The Proposed Disposal and Proposed Joint
Venture are inter-conditional in order to establish a new joint
venture to expand the Group's e-products and services business
initially in Malaysia.
The Proposed Disposal is subject to the completion of a merger
exercise between Technology & Telecommunication Acquisition
Corporation ("TETE") and Super Apps (together the "Merger
Exercise") .
Pursuant to the terms of the Proposed Disposal and subject to
the completion of the Merger Exercise, the Group is expected to
receive cash proceeds of RM40.0 million (c. GBP7.53 million) and
RM20.0 million (c. GBP3.76 million) within 14 days and 180 days
respectively of completion of the Merger Exercise.
A draft proxy statement has been filed by Tete Technologies Inc,
a wholly-owned subsidiary of TETE, on 2 August 2023 ("TETE Proxy
Filing") with the United States Securities and Exchange Commission
("SEC"). An extraordinary general meeting will be convened in due
course by TETE once the TETE Proxy Filing is in complete form and
approved by the SEC. The Company will release further announcements
as and when appropriate.
There can be no guarantee that t he Proposed Disposal and
Proposed Joint Venture can be completed as they are conditional on
the completion of the Merger Exercise, which is out of the Group's
control. The completion of the Proposed Disposal and Proposed Joint
Venture are expected to positively contribute to the future growth
of the Group.
(2) Money transfer business via SWIFT network
To expand the Group's money transfer business via the Society
for Worldwide Interbank Financial Telecommunication ("SWIFT")
network, the Group continues to work with a bank in Malaysia on the
integration process due to the migration of messaging standards
within the SWIFT network while waiting for the Central Bank of
Malaysia's approval, the timings of which continue to remain
uncertain. The Company will make the relevant announcement on the
arrangement with SWIFT as and when is appropriate.
(3) UK electronic money institution application
On 11 May 2023, the Company announced that M1 Tech Limited ("M1
Tech"), the Group's wholly-owned subsidiary in the UK, had
withdrawn its application to the Financial Conduct Authority (the
"FCA"), the financial regulatory body in the UK, for authorisation
as an electronic money institution to provide e-money services in
the UK (the "FCA Application"). This follows receipt of further
feedback from the FCA requesting further information in relation to
certain disclosures relating to M1 Tech's proposed business plan.
The Group is reviewing its proposed business plan to expand its
business in the UK and its options in relation to submitting a
further revised FCA application in due course which addresses the
FCA's latest feedback. The Company will release further
announcements as and when appropriate.
(4) New joint venture to explore business opportunities from the Kingdom of Saudi Arabia
On 26 June 2023, M1 Malaysia entered into a joint venture cum
shareholders agreement with Syed Faisal Algadrie Bin Syed Hassan to
incorporate Qube Nexus Sdn Bhd, Malaysia to explore any suitable
business opportunities from the Kingdom of Saudi Arabia. Any
material developments in relation to new business opportunities
will be announced in due course.
(5) Proposed acquisition of Hati International Sdn Bhd ("Hati")
via Sincere Acres Sdn Bhd ("Sincere")
On 29 September 2023, M1 Malaysia entered into a share sale
agreement with United Flagship Development Sdn Bhd ("Vendor") to
acquire a 49% equity interest in Sincere for a total cash
consideration of RM30.0 million (c. GBP5.217 million) to be paid to
the Vendor in two tranches (the "Proposed Acquisition"). The first
tranche, representing RM2.0 million (c. GBP0.348 million), has been
paid to the Vendor using M1 Malaysia's existing cash resources. The
second tranche, representing the balance of RM28.0 million (c.
GBP4.869 million) (the "Second Tranche"), is required to be paid by
M1 Malaysia by 8 March 2024 (the "Second Tranche Payment Date"). It
is envisaged that the Second Tranche will be paid by the Group
using M1 Malaysia's existing cash resources.
While the Second Tranche Payment Date can be extended for up to
a further 6 months ("Extended Second Tranche Payment Date"), any
payment in relation to the Second Tranche made after the Second
Tranche Payment Date will be subject to an interest charge of 10%
per annum. The balance amount payable for the Second Tranche
(including any interest charge if the payment is made after the
Second Tranche Payment Date) shall be reduced by RM1.0 million (c.
GBP0.174 million) when the payment is made by the Extended Second
Tranche Payment Date.
While the Proposed Acquisition is not subject to any conditions
precedent, both parties have agreed to complete the Proposed
Acquisition by 4 October 2023.
Sincere is an investment holding company with its sole business
activity comprising of owning a 100% equity interest in Hati, an
operating company in Malaysia. Hati is a healthcare information
systems provider in Malaysia focused on healthcare software
development and information technology. T hrough the use of cloud
service platforms and software system solutions, Hati has developed
a product suite comprising of hospital information systems,
clinical information systems, business intelligence platforms and
Internet of Things (IoT)/Artificial Intelligence (AI) enabled
platforms .
The Proposed Acquisition will result in a number of synergistic
benefits for both the Group and Hati. The Proposed Acquisition is
anticipated to enable the Group to vertically integrate its
existing electronic payment systems and services with Hati's suite
of existing products to support payment methods such as credit
cards, debit cards and eWallets via online payments and over the
counter payments. In addition, the Proposed Acquisition will result
in Hati being able to utilise the Group's infrastructure and
engineering know-how to automate electronic billing and
invoicing.
Following completion of the Proposed Acquisition, and as part of
the Group's long-term growth strategy, the Group intends to develop
a payment system that integrates the Group's e-claims and
e-payments services with insurance companies thereby resolving cash
flow issues typically faced by hospitals and clinics. The Group
also intends to explore potential collaborations with the Group's
telecommunication partners in order to enable Hati's real-time
IoT/AI enabled healthcare devices to operate over 5G cellular
networks. The above proposed developments will also contribute to
the Group expanding its customers base for its existing electronic
payment systems and services.
In addition, the Proposed Acquisition will enable the Group to
amongst other benefits, diversify its existing business activities
into the growing healthcare information systems industry.
Further details on the Proposed Acquisition can be found in the
announcement released by the Group on 29 September 2023.
Notwithstanding that the Malaysia economy is expected to grow in
2023 as well as the demand for the Group's mobile phone prepaid
products , t he Group is cautious on the outlook for the remainder
of 2023, taking into consideration rising interest rates and
expenses including, but not limited to, higher administrative
expenses, higher infrastructure and marketing costs as well as
other related expenses . In addition, in order to maintain or grow
the Group's businesses, the Group's gross profit margins for its
products and services have been impacted. For future growth, the
Group will continue to invest and enhance its research and
development as the backbone to support the business and technology
advancement as well as to form partnerships or to undertake
acquisitions in complementary businesses, as applicable.
Abu Bakar bin Mohd Taib (Chairman)
29 September 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIODED 30 JUNE 2023
Six months Six months Financial
year
Ended Ended Ended
30 June 30 June 31 Dec 2022
2023 2022
Unaudited Unaudited Audited
CONTINUING OPERATIONS GBP GBP GBP
Revenue 121,529,982 113,355,113 233,761,671
Cost of sales (115,358,166) (107,103,390) (221,010,827)
-------------- -------------- -------------------
GROSS PROFIT 6,171,816 6,251,723 12,750,844
Other operating income 40,165 92,839 183,426
Administration expenses (5,914,978) (5,549,417) (11,940,311)
Other operating expenses (174,821) (209,083) (304,196)
Net loss on financial instruments - - (273,642)
OPERATING PROFIT 122,182 586,062 416,121
Finance costs (116,268) (63,501) (137,143)
PROFIT BEFORE TAX 5,914 522,561 278,978
Tax (797) (184,356) (262,350)
-------------- -------------- -------------------
PROFIT FROM CONTINUING
OPERATIONS 5,117 338,205 16,628
============== ============== ===================
Attributable to:
Owners of the parent 1,056 338,842 23,857
Non-controlling interest 4,061 (637) (7,229)
--------------
5,117 338,205 16,628
============== ============== ===================
EARNINGS PER SHARE
Basic earnings per share
(pence) 0.001 0.319 0.022
Diluted earnings per share
(pence) 0.001 0.301 0.021
PROFIT FOR THE PERIOD/YEAR 5,117 338,205 16,628
OTHER COMPREHENSIVE PROFIT/(LOSS)
Foreign currency translation (624,236) 296,985 354,322
TOTAL COMPREHENSIVE PROFIT/(LOSS)
FOR THE PERIOD/YEAR (619,119) 635,190 370,950
==============
Total comprehensive profit/loss
attributable to:
Owners of the parent (624,438) 636,224 378,832
Non-controlling interest 5,319 (1,034) (7,882)
(619,119) 635,190 370,950
============== ============== ===================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
At At At
30 June 2023 30 June 2022 31 Dec 2022
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 192,622 421,863 214,180
Property, plant and equipment 900,093 1,180,684 1,122,194
Right-of-use assets 144,414 191,759 182,935
Development cost 280,379 - -
Trade and other receivables 905,758 - 228,050
Other investment 11,045 12,144 12,281
2,434,311 1,806,450 1,759,640
------------- ------------- ------------
Current assets
Inventories 2,280,346 3,162,123 3,189,901
Trade and other receivables 3,277,551 3,015,416 2,179,785
Tax recoverable 254,391 169,179 183,321
Fixed deposits 1,604,051 1,603,471 1,768,584
Cash and cash equivalents 1,813,504 3,114,703 3,246,588
------------- ------------- ------------
9,229,843 11,064,892 10,568,179
------------- ------------- ------------
Total Assets 11,664,154 12,871,342 12,327,819
============= ============= ============
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 422,188 990,089 1,047,682
Accumulated profit/ (losses) (92,710) 221,219 (93,766)
------------- ------------- ------------
Shareholders' equity 4,605,371 5,487,201 5,229,809
Non-controlling interest (9,792) (8,263) (15,111)
------------- ------------- ------------
Total Equity 4,595,579 5,478,938 5,214,698
------------- ------------- ------------
Liabilities
Non-current liabilities
Loans and borrowings
- secured 195,166 225,171 221,697
Lease liabilities 15,007 74,047 98,450
Deferred tax liabilities 13,926 44,782 15,484
224,099 344,000 335,631
Current liabilities
Trade and other payables 2,775,077 4,063.714 2,947,056
Amount due to directors 2,403 176,457 66,855
Loans and borrowings
- secured 3,943,085 2,668,243 3,647,482
Lease liabilities 123,063 108,810 105,316
Tax payables 848 31,180 10,781
6,844,476 7,048,404 6,777,490
------------- ------------- ------------
Total Liabilities 7,068,575 7,392,404 7,113,121
------------- ------------- ------------
Total Equity and Liabilities 11,664,154 12,871,342 12,327,819
============= ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 30 JUNE 2023
Non-Distributable Distributable
Foreign
Reverse Currency Non-
Share Share Acquisition Translation Accumulated Controlling Total
Capital Premium Reserve Reserve Profit/(Losses) Total Interest Equity
GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 January
2022 2,657,470 909,472 708,951 692,707 (117,623) 4,850,977 (7,229) 4,843,748
Foreign currency
translation - - - 297,382 - 297,382 (397) 296,985
Profit for the
period - - - - 338,842 338,842 (637) 338,205
----------- --------- ------------ ------------ ---------------- ----------- ------------ ------------
As at 30 June
2022 2,657,470 909,472 708,951 990,089 221,219 5,487,201 (8,263) 5,478,938
=========== ========= ============ ============ ================ =========== ============ ============
As at 1 July 2022 2,657,470 909,472 708,951 990,089 221,219 5,487,201 (8,263) 5,478,938
Foreign currency
translation - - - 57,593 - 57,593 (256) 57,337
Profit/(Loss) for
the period - - - - (314,985) (314,985) (6,592) (321,577)
----------- --------- ------------ ------------ ---------------- ----------- ------------ ------------
As at 31 Dec 2022 2,657,470 909,472 708,951 1,047,682 (93,766) 5,229,809 (15,111) 5,214,698
=========== ========= ============ ============ ================ =========== ============ ============
As at 1 January
2023 2,657,470 909,472 708,951 1,047,682 (93,766) 5,229,809 (15,111) 5,214,698
Foreign currency
translation - - - (625,494) - (625,494) 1,258 (624,236)
Profit for the
period - - - - 1,056 1,056 4,061 5,117
----------- --------- ------------ ------------ ---------------- ----------- ------------ ------------
As at 30 June
2023 2,657,470 909,472 708,951 422,188 (92,710) 4,605,371 (9,792) 4,595,579
=========== ========= ============ ============ ================ =========== ============ ============
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 2023
Six months Six months Financial
year
Ended Ended ended
30 June 30 June 31 Dec 2022
2023 2022
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows used in operating
activities
Cash used in operations (816,961) (205,386) (614,763)
Interest paid (116,414) (63,501) (137,143)
Interest received 14,580 11,221 35,933
Tax paid (99,165) (287,340) (421,991)
Tax refund - 5,470 5,532
-----------
Net cash used in operating activities (1,017,960) (539,536) (1,132,432)
----------- ---------- -----------
Cash flows used in investing
activities
Purchase of property, plant and
equipment (9,876) (306,614) (390,056)
Addition in right-of-use assets (23,641) - -
Addition in other investment - - (12,281)
Increase in development cost (280,379) - -
Proceeds from disposal of property,
plant & equipment 163 8,370 8,465
Net cash used in investing activities (313,733) (298,244) (393,872)
----------- ---------- -----------
Cash flows from financing activities
Net change of banker acceptance 662,713 607,556 1,562,937
Repayment of lease liabilities (45,186) (53,825) (111,144)
Repayment of term loan (4,218) (4,038) (9,615)
Net cash from financing activities 613,309 549,693 1,442,178
----------- ---------- -----------
Decrease in cash and cash equivalents (718,384) (288,087) (84,126)
Effect of foreign exchange rate
changes (879,233) 340,737 433,774
Cash and cash equivalents at
beginning of period/year 5,015,172 4,665,524 4,665,524
Cash and cash equivalents at
end of period/year 3,417,555 4,718,174 5,015,172
=========== ========== ===========
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The Group's interim financial statements for the six months
ended 30 June 2023 were authorised for issue by the Board of
Directors on 29 September 2023.
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 2022 Annual Report, will
be included in the audited financial statements for the year
ending 31 December 2023.
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 2023.
3. Nature of financial information
The unaudited interim financial information for the six months
ended 30 June 2023 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 2022 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
2023 5.88 5.50
Period ended 30 June
2022 5.35 5.54
Year ended 31 December
2022 5.29 5.43
5. Segmental analysis
The Group has three operating segments as follows:
(a) Telecommunication services and electronic commerce solutions;
(b) Hardware and services; and
(c) Remittance services and others.
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.
Telecommunication
services and Hardware Remittance Elimination Total
Group electronic and services
commerce services and others
solutions
6 months ended 30 GBP GBP GBP GBP GBP
June 2023
==================== ================== ========== =========== ============ ============
Segment revenue:
Sales to external
customers 121,242,999 279,339 92,511 (84,867) 121,529,982
-------------------- ------------------ ---------- ----------- ------------ ------------
121,242,999 279,339 92,511 (84,867) 121,529,982
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit before tax 5,914 - - - 5,914
Tax (797) - - - (797)
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit for the
period 5,117 - - - 5,117
-------------------- ------------------ ---------- ----------- ------------ ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant
and equipment 127,350 - - - 127,350
Amortisation of - - - - -
intangible assets
Amortisation of
right-of-use
assets 47,471 - - - 47,471
Unrealised loss on
forex 2,707 - - - 2,707
177,528 - - - 177,528
-------------------- ------------------ ---------- ----------- ------------ ------------
Group
6 months ended 30
June 2022
==================== ================== ========== =========== ============ ============
Segment revenue:
Sales to external
customers 112,494,543 959,051 56,692 (155,173) 113,355,113
-------------------- ------------------ ---------- ----------- ------------ ------------
112,494,543 959,051 56,692 (155,173) 113,355,113
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit before tax 522,561 - - - 522,561
Tax (184,356) - - (184,356)
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit for the
period 338,205 - - - 338,205
-------------------- ------------------ ---------- ----------- ------------ ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant
and equipment 132,115 - - - 132,115
Amortisation of
intangible assets 33,384 - - - 33,384
Amortisation of
right-of-use
assets 43,584 - - - 43,584
--------------------
209,083 - - - 209,083
-------------------- ------------------ ---------- ----------- ------------ ------------
Group
Financial year
ended 31 Dec 2022
-------------------- ------------------ ---------- ----------- ------------ ------------
Segment revenue:
Sales to external
customers 230,754,843 3,296,531 - (289,703) 233,761,671
-------------------- ------------------ ---------- ----------- ------------ ------------
230,754,843 3,296,531 - (289,703) 233,761,671
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit before tax 278,978 - - - 278,978
Tax (262,350) - - - (262,350)
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit for the
period 16,628 - - - 16,628
-------------------- ------------------ ---------- ----------- ------------ ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant
and equipment 282,260 - - - 282,260
Amortisation of
intangible assets 68,051 - - - 68,051
Amortisation of
right-of-use
assets 132,580 - - - 132,580
Bad debt written
off 5,622 - - - 5,622
488,513 - - - 488,513
-------------------- ------------------ ---------- ----------- ------------ ------------
*The disclosure for non-cash expenses has not been split according
to the different segments as the cost to obtain such information
is excessive and provides very little by way of information.
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 2023 of GBP 1,056 (30 June
2022: profit of GBP338,842 and year ended 31 December 2022: profit
of GBP23,857) attributable to owners of the parent by the number
of ordinary shares outstanding at 30 June 2023 of 106,298,780
(30 June 2022: 106,298,780 and 31 December 2022: 106,298,780).
The diluted earnings per share for the six month period ended
30 June 2023 is calculated using the number of shares adjusted
to assume the exercise of all dilutive potential ordinary shares
of 112,623,648- 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. Share options of 2,000,000 shares have
lapsed due to resignation of employees and no options have been
exercised.
8. Reconciliation of profit before tax to cash generated from operations
Six months Six months Financial
year
ended Ended ended
30 June 2023 30 June 2022 31 Dec 2022
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
Profit before tax 5,914 522,561 278,978
------------- ------------- ------------
Adjustments for:
Amortisation of intangible
assets - 33,384 68,051
Amortisation of right-of-use
assets 47,471 43,584 132,580
Bad debt written off - - 5,622
Depreciation of property,
plant and equipment 127,350 132,115 282,260
Gain on disposal of property,
plant & equipment (156) (8,090) (8,464)
Impairment loss on trade
receivables - - 282,535
Impairment loss on others
receivables - - 3,403
Impairment loss on goodwill - - 177,546
Interest expenses 116,414 63,501 137,143
Interest income (14,580) (11,221) (35,933)
Reversal on impairment
loss on trade receivable - - (5,061)
Unrealised loss/(gain)
on forex 2,707 - (22,279)
Operating profit before
working capital changes 285,120 775,834 1,296,381
(Increase)/Decrease in
inventories 909,555 (43,552) (71,330)
(Increase)/Decrease in
receivables (1,775,475) 150,139 474,252
Increase in amount due
to Directors &
Shareholder - - (121,754)
Amount due to/by related - 52,030 -
company
Decrease in payables (236,161) (1,139,837) (2,192,312)
------------- ------------- ------------
Cash used in operations (816,961) (205,386) (614,763)
============= ============= ============
9. Contingent liabilities
In the period under review, corporate guarantees of RM27.0
million (GBP4.59 million) (H1 2022: RM27.0 million (GBP5.04
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 2022 except for
the adoption of new and amended reporting standards, which
are effective for periods commencing on or after 1 January
2023. Various amendments to standards and interpretations
of standards are effective for periods commencing on or after
1 January 2023 as detailed in the 2022 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-
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END
IR VKLBLXKLZBBB
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September 29, 2023 04:42 ET (08:42 GMT)
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