TIDMMBO
RNS Number : 2609B
MobilityOne Limited
30 September 2022
30 September 2022
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2022
MobilityOne (AIM: MBO), the e-commerce infrastructure payment
solutions and platform provider, announces its unaudited interim
results for the six months ended 30 June 2022.
Highlights:
-- Revenue decreased by 13.2% to GBP113.4 million (H1 2021:
GBP130.7 million) due to lower sales for the Group's mobile phone
prepaid airtime reload and bill payment business in Malaysia;
-- Profit after tax of GBP0.34 million (H1 2021: profit after tax of GBP1.01 million);
-- Cash and cash equivalents (including fixed deposits) at 30
June 2022 of GBP4.72 million (30 June 2021: GBP4.52 million);
and
-- The Group is cautious on the outlook for the remainder of
2022, taking into consideration the current business and
operational landscape of rising inflation and interest rates as
well as higher administrative expenses notwithstanding that the
e-payments industry is expected to continue to grow in
Malaysia.
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 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 decreased by 13.2% to GBP113.4 million (H1
2021: revenue of GBP130.7 million) i n the first six months of
2022. This was as a result of lower sales from the Group's products
and services, namely the mobile phone prepaid airtime reload and
bill payment business through the Group's banking channels (i.e.
mobile banking and internet banking) with 10 banks and third
parties' e-wallet applications. The Malaysian market accounted for
almost the Group's entire revenue for the first six months of 2022.
As a consequence of the reduction of revenue, coupled with higher
administrative expenses, the Group registered a lower profit after
tax of GBP0.34 million in the first six months of 2022 (H1 2021:
profit after tax of GBP1.01 million).
The Group's other businesses (i.e., the international remittance
services and e-money in Malaysia and e-payment solutions activities
in the Philippines and Brunei) continued to remain small in the
first six months of 2022.
As at 30 June 2022, the Group had cash and cash equivalents
(including fixed deposits) of GBP4.72 million (30 June 2021: cash
and cash equivalents of GBP4.52 million) while the secured loans
and borrowings from financial institutions increased to GBP2.89
million (30 June 2021: GBP2.06 million).
Current trading and outlook
The Group's business activities are predominately concentrated
in Malaysia. Other than the Group's core mobile phone prepaid
airtime reload and bill payment business, the Group's international
remittance and e-money businesses are expected to remain
insignificant in 2022. This is also expected to be the case for the
e-payment solutions activities in the Philippines and Brunei.
On 1 June 2022 the Company announced that its wholly-owned
subsidiary in Malaysia, MobilityOne Sdn Bhd, had received a license
from MasterCard Asia/Pacific Pte Ltd ("MasterCard") and approval
from the Central Bank of Malaysia to issue MasterCard prepaid
cards. In line with announced expectations, the Group has commenced
the issuance of MasterCard prepaid cards in Malaysia on a small
scale to complement the Group's existing e-wallet and is part of
the Group's end-to-end payment ecosystem.
However, the Central Bank of Malaysia has not yet given its
decision, the timings of which continue to remain uncertain, for
the Group to expand its money transfer business via the Society for
Worldwide Interbank Financial Telecommunication ("SWIFT") network.
Nevertheless, the Group is currently working closely with a bank in
Malaysia on the integration process while waiting for the Central
Bank of Malaysia's approval.
On 11 October 2021, the Group entered into a joint venture cum
shareholders agreement with One M Tech Pty Ltd to explore
e-commerce and e-payment business opportunities in Australia. As
there have been no developments or progress made by the joint
venture partner, the Group has today given a notice to the joint
venture partner to terminate the agreement. While this joint
venture cum shareholders agreement was previously envisaged to not
contribute any material revenue or earnings to the Group, should a
viable new opportunity arise, the Group will reassess exploring
potential business expansion in Australia again in the future.
In order for the Group to expand its business in the UK, M-One
Tech Limited, the Company's wholly-owned subsidiary in the UK,
continues to progress its work in respect of re-submit an
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
(together the "FCA Application"). While it was originally the
Group's intention to re-submit the FCA Application by September
2022, as most recently announced by the Group on 29 June 2022, the
Group now intends to re-submit the revised FCA Application
reflecting the FCA's feedback in the fourth quarter of 2022.
Notwithstanding that the e-payments industry is expected to
continue to grow in Malaysia in the long-term and that the Group
will continue to invest and enhance its research and development as
the backbone to support the business expansion and technology
advancement , t he Group is cautious on the outlook for the
remainder of 2022. This cautious view takes into consideration the
current business and operational landscape which comprises rising
inflation and interest rates as well as higher administrative
expenses. Rising administrative expenses include higher staff
costs, higher infrastructure and marketing costs as well as other
related expenses . As a result, in order to maintain or grow the
Group's business, it is the Board's view that the Group's gross
profit margin for its products and services are likely to also be
impacted. For future growth, the Group will also consider
partnerships with parties in complementary businesses to explore
new business opportunities.
Abu Bakar bin Mohd Taib (Chairman)
30 September 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIODED 30 JUNE 2022
Six months Six months Financial
year
Ended Ended Ended
30 June 30 June 31 Dec 2021
2022 2021
Unaudited Unaudited Audited
CONTINUING OPERATIONS GBP GBP GBP
Revenue 113,355,113 130,710,091 255,707,270
Cost of sales (107,103,390) (123,637,568) (242,050,541)
-------------- -------------- -------------------
GROSS PROFIT 6,251,723 7,072,523 13,656,729
Other operating income 92,839 91,793 155,832
Administration expenses (5,549,417) (5,403,641) (11,256,000)
Other operating expenses (209,083) (314,042) (411,740)
Net loss on financial instruments - - (13,366)
OPERATING PROFIT 586,062 1,446,633 2,131,455
Finance costs (63,501) (58,603) (115,620)
PROFIT BEFORE TAX 522,561 1,388,030 2,015,835
Tax (184,356) (374,862) (507,582)
-------------- -------------- -------------------
PROFIT FROM CONTINUING
OPERATIONS 338,205 1,013,168 1,508,253
============== ============== ===================
Attributable to:
Owners of the parent 338,842 1,013,868 1,524,429
Non-controlling interest (637) (700) (16,176)
--------------
338,205 1,013,168 1,508,253
============== ============== ===================
EARNINGS PER SHARE
Basic earnings per share
(pence) 0.319 0.954 1.434
Diluted earnings per share
(pence) 0.301 0.882 1.341
PROFIT FOR THE PERIOD/YEAR 338,205 1,013,168 1,508,253
OTHER COMPREHENSIVE PROFIT/(LOSS)
Foreign currency translation 296,985 (30,164) (44,254)
TOTAL COMPREHENSIVE PROFIT
FOR THE PERIOD/YEAR 635,190 983,004 1,463,999
==============
Total comprehensive profit
attributable to:
Owners of the parent 636,224 962,256 1,458,754
Non-controlling interest (1,034) 20,748 5,245
635,190 983,004 1,463,999
============== ============== ===================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
At At At
30 June 2022 30 June 2021 31 Dec 2021
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 421,863 598,367 433,844
Property, plant and equipment 1,180,684 991,405 950,664
Right-of-use assets 191,759 218,708 155,660
Other investment 12,144 - -
1,806,450 1,808,480 1,540,168
------------- ------------- ------------
Current assets
Inventories 3,162,123 2,485,534 3,118,571
Trade receivables 2,087,657 1,651,637 2,299,267
Other receivables 927,759 837,538 878,431
Tax recoverable 169,179 - 53,010
Fixed deposits 1,603,471 1,471,568 1,508,388
Cash and cash equivalents 3,114,703 3,050,103 3,157,136
------------- ------------- ------------
11,064,892 9,496,380 11,014,803
------------- ------------- ------------
Total Assets 12,871,342 11,304,860 12,554,971
============= ============= ============
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 990,089 706,770 692,707
Accumulated profit/ (losses) 221,219 (628,184) (117,623)
------------- ------------- ------------
Shareholders' equity 5,487,201 4,354,479 4,850,977
Non-controlling interest (8,263) 8,274 (7,229)
------------- ------------- ------------
Total Equity 5,478,938 4,362,753 4,843,748
------------- ------------- ------------
Liabilities
Non-current liabilities
Loans and borrowings
- secured 225,171 226,161 217,881
Lease liabilities 74,047 76,386 83,501
Deferred tax liabilities 44,782 55,204 42,570
344,000 357,751 343,952
Current liabilities
Trade payables 947,062 1,030,890 1,195,283
Other payables 3,116,652 3,195,262 4,008,268
Amount due to directors 176,457 140,878 124,426
Loans and borrowings
- secured 2,668,243 1,830,684 1,958,841
Lease liabilities 108,810 124,358 71,988
Tax payables 31,180 262,284 8,465
7,048,404 6,584,356 7,367,271
------------- ------------- ------------
Total Liabilities 7,392,404 6,942,107 7,711,223
------------- ------------- ------------
Total Equity and Liabilities 12,871,342 11,304,860 12,554,971
============= ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 30 JUNE 2022
Non-Distributable Distributable
Foreign
Reverse Currency Non-
Share Share Acquisition Translation Accumulated Controlling Total
Capital Premium Reserve Reserve Losses Total Interest Equity
GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 January
2021 2,657,470 909,472 708,951 758,382 (1,642,052) 3,392,223 (12,474) 3,379,749
Foreign currency
translation - - - (51,612) - (51,612) 21,448 (30,164)
Profit for the
period - - - - 1,013,868 1,013,868 (700) 1,013,168
---------- -------- ------------ ------------ ------------ ---------- ------------ ------------
As at 30 June
2021 2,657,470 909,472 708,951 706,770 (628,184) 4,354,479 8,274 4,362,753
========== ======== ============ ============ ============ ========== ============ ============
As at 1 July 2021 2,657,470 909,472 708,951 706,770 (628,184) 4,354,479 8,274 4,362,753
Foreign currency
translation - - - (14,063) - (14,063) (27) (14,090)
Profit/(Loss) for
the period - - - - 510,561 510,561 (15,476) 495,085
---------- -------- ------------ ------------ ------------ ---------- ------------ ------------
As at 31 Dec 2021 2,657,470 909,472 708,951 692,707 (117,623) 4,850,977 (7,229) 4,843,748
========== ======== ============ ============ ============ ========== ============ ============
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
========== ======== ============ ============ ============ ========== ============ ============
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 2022
Six months Six months Financial
year
Ended Ended ended
30 June 30 June 31 Dec 2021
2022 2021
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows (used in)/from operating
activities
Cash (used in)/generated from
operations (205,386) 2,011,004 2,409,305
Interest paid (63,501) (58,630) (115,620)
Interest received 11,221 12,568 12,867
Tax paid (287,340) (242,859) (723,469)
Tax refund 5,470 - -
Net cash (used in)/generated from
operating activities (539,536) 1,722,083 1,583,083
---------- ----------- -----------
Cash flows (used in) investing
activities
Purchase of property, plant and
equipment (306,614) (1,692) (34,866)
Addition in right-of-use assets - - (5,690)
Net cash outflow for acquisition
of subsidiary company - (408,722) (376,517)
Repayment from associate company - - 221,583
Addition in non-controlling interests - - 21,310
Proceeds from disposal of property,
plant & equipment 8,370 - -
Net cash (used in) investing activities (298,244) (410,414) (174,180)
---------- ----------- -----------
Cash flows from/(used in) financing
activities
Net change of banker acceptance 607,556 (1,136,798) (1,202,597)
Repayment of lease liabilities (53,825) (71,214) (122,576)
Repayment of term loan (4,038) (6,685) (8,734)
Net cash from/(used in) financing
activities 549,693 (1,214,697) (1,333,907)
---------- ----------- -----------
(Decrease)/Increase in cash and
cash equivalents (288,087) 96,972 74,996
Effect of foreign exchange rate
changes 340,737 6,823 172,652
Cash and cash equivalents at
beginning of period/year 4,665,524 4,417,876 4,417,876
Cash and cash equivalents at
end of period/year 4,718,174 4,521,671 4,665,524
========== =========== ===========
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The Group's interim financial statements for the six months
ended 30 June 2022 were authorised for issue by the Board of
Directors on 30 September 2022.
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 2021 Annual Report, will
be included in the audited financial statements for the year
ending 31 December 2022.
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 2022.
3. Nature of financial information
The unaudited interim financial information for the six months
ended 30 June 2022 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 2021 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
2022 5.35 5.54
Period ended 30 June
2021 5.74 5.69
Year ended 31 December
2021 5.63 5.70
5. Segmental analysis
The Group has three operating segments as follows:
(a) Telecommunication services and electronic commerce solutions;
(b) Hardware; and
(c) Remittance services
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 Remittance
Group electronic Hardware services Elimination Total
commerce
solutions
6 months ended 30 GBP GBP GBP GBP GBP
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
6 months ended 30
June 2021
==================== ================== ========== =========== ============ ============
Segment revenue:
Sales to external
customers 129,559,457 1,297,991 - (147,357) 130,710,091
-------------------- ------------------ ---------- ----------- ------------ ------------
129,559,457 1,297,991 - (147,357) 130,710,091
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit before tax 1,388,030 - - - 1,388,030
Tax (374,862) - - - (374,862)
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit for the
period 1,013,168 - - - 1,013,168
-------------------- ------------------ ---------- ----------- ------------ ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant
and equipment 109,577 - - - 109,577
Amortisation of
intangible assets 32,488 - - - 32,488
Amortisation of
right-of-use
assets 60,111 - - - 60,111
-------------------- ------------------ ---------- ----------- ------------ ------------
202,176 - - - 202,176
-------------------- ------------------ ---------- ----------- ------------ ------------
Group
Financial year
ended 31 Dec 2021
-------------------- ------------------ ---------- ----------- ------------ ------------
Segment revenue:
Sales to external
customers 252,841,803 3,248,248 - (382,781) 255,707,270
-------------------- ------------------ ---------- ----------- ------------ ------------
252,841,803 3,248,248 - (382,781) 255,707,270
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit before tax 2,015,835 - - - 2,015,835
Tax (507,582) - - - (507,582)
-------------------- ------------------ ---------- ----------- ------------ ------------
Profit for the
period 1,508,253 - - - 1,508,253
-------------------- ------------------ ---------- ----------- ------------ ------------
Non-cash
expenses/(income)*
Depreciation of
property, plant
and equipment 243,980 - - - 243,980
Amortisation of
intangible assets 64,864 - - - 64,864
Amortisation of
right-of-use
assets 104,169 - - - 104,169
Bad debt written
off 36,339 - - - 36,339
Inventories written
off 182 - - - 182
449,534 - - - 449,534
-------------------- ------------------ ---------- ----------- ------------ ------------
*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 2022 of GBP 338,842 (30
June 2021: profit of GBP1,013,868 and year ended 31 December
2021: profit of GBP1,524,429) attributable to owners of the
parent by the number of ordinary shares outstanding at 30 June
2022 of 106,298,780 (30 June 2021: 106,298,780 and 31 December
2021: 106,298,780).
The diluted earnings per share for the six month period ended
30 June 2022 is calculated using the number of shares adjusted
to assume the exercise of all dilutive potential ordinary shares
of 112,567,904 (ie, 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
had lapsed due to resignation of employees and no option has
been exercised).
8. Reconciliation of profit before tax to cash generated from operations
Six months Six months Financial
year
ended Ended ended
30 June 2022 30 June 2021 31 Dec 2021
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
Profit before tax 522,561 1,388,030 2,015,835
------------- ------------- ------------
Adjustments for:
Amortisation of intangible
assets 33,384 32,488 64,864
Amortisation of right-of-use
assets 43,584 60,111 104,169
Bad debt written off - - 36,339
Deposit written off - - 8,683
Depreciation of property,
plant and equipment 132,115 109,577 243,980
Gain on disposal of (8,090) - -
property, plant & equipment
Impairment loss on
goodwill - - 99,939
Interest expenses 63,501 58,630 115,620
Inventories written
off - - 182
Interest income (11,221) (12,567) (12,867)
Waiver of debts - - (99,025)
Operating profit before
working capital changes 775,834 1,636,269 2,577,719
(Increase)/Decrease
in inventories (43,552) 1,143,696 499,324
(Increase)/Decrease
in receivables 150,139 (116,884) (848,771)
Increase in amount
due to Directors &
Shareholder - - 13,435
Amount due to/by related
company 52,030 59,310 -
Increase in payables (1,139,837) (711,387) 167,598
------------- ------------- ------------
Cash generated from
operations (205,386) 2,011,004 2,409,305
============= ============= ============
9. Contingent liabilities
In the period under review, corporate guarantees of RM27.0 million
(GBP5.04 million) (H1 2021: RM21.1 million (GBP3.68 million)
were given to a licensed bank by the Company for credit facilities
granted to a subsidiary company.
10. Significant accounting policies
The interim consolidated financial statements have been prepared
applying the same accounting policies that were applied in
the preparation of the Company's published consolidated financial
statements for the year ended 31 December 2021 except for the
adoption of new and amended reporting standards, which are
effective for periods commencing on or after 1 January 2022.
Various amendments to standards and interpretations of standards
are effective for periods commencing on or after 1 January
2022 as detailed in the 2021 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 FKLLLLKLEBBZ
(END) Dow Jones Newswires
September 30, 2022 02:00 ET (06:00 GMT)
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