(Alliance News) - MobilityOne Ltd on Friday said its outlook for the rest of the year remains cautious in view of the current business and operational landscape.
MobilityOne shares plummeted 37% to 4.70 pence each in London on Friday afternoon.
In the first half ended June 30, the Malaysia-based company, which provides solutions for electronic transactions and payments, reported pretax profit of GBP522,561, down 63% from GBP1.4 million a year prior.
Revenue decreased by 13% to GBP113.4 million from GBP123.6 million, which the company attributed to lower sales from products and services, namely the mobile phone prepaid airtime reload and bill payment business.
The company's half-year cost of sales narrowed to GBP107.1 million from GBP123.6 million a year ago.
Chair Abu Bakar bin Mohd Taib believed gross profit margin for the rest of the year would be damaged by higher administrative expenses and rising inflation and interest rates.
However, he expected long-term growth for the company in Malaysia, adding that it will "continue to invest and enhance its research and development as the backbone to support the business expansion and technology advancement".
MobilityOne has not proposed or declared an interim dividend.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Mobilityone (MBO)