Member Info for Jettydog

I was wondering if MBO would move up around the 6th April. This really is the perfect ISA share safe, profitable, perfect to stick away and come back to a nice profit. Not one for the day traders I am glad to say.

I am expecting good news in May (complete acquisition of OneTransfer Remittance Sdn Bhd ), June and September (2020 and H1 results), any other news beyond this will be a bonus. So I personally think it is just a matter of time for the upward trend of the share price and by then todays sellers will be annoyed with the price they took.

This was posted on the MBO board at ADVFN on Friday, as always DYOR.
"14 year Weekly High & New Daily All Time Closing High today in MBO. A noteworthy event in any listed entity & one which I believe investors should pay close attention to ….. & still only a £17m Mkt Cap for a Fin Tech company with Annual Revs circa £200m Some may argue it's expensive on some metrics but, I suggest otherwise & still believe it is ridiculously cheap given the growth potential this year & forward. If H2 2020 grew at the same rate as H1 2020 did then FY 2020 could see: Revs: £257m Op. Profit: £3.5m Cash Generated from Operating Activities: £1.8m Fully Diluted EPS: 1.5p & that growth likely continued into H1 2021, given the initiatives / partnerships that came on-line before end calendar 2020. So at current price of 16p that would just be a pitiful trailing 10.6x EPS …. as i said, ridiculously cheap. Should be more like Forward 25-35x or, 40-50p Another 12-18 months growth like this and shares should be trading hands at 75-100p"

Yes if MBO merely maintain existing profit margins they will be in a position to return cash to their investors this year. Given the board is currently adding more profitable operations I personally think 25-30p a conservative end of year target.

Nice sustained rise and plenty of scope for more. Looking at AIM profit / dividend levels I think MBO still has plenty of value to add to the share price.

The saying is "empty vessels make the most noise". The broke companies with no profit needing to dilute to raise cash to survive are always issuing RNS's saying how great the future is. MobilyOne just get on with it, quadrupled revenue in four years, increased profit, great partnerships......

I was previously a shareholder of PXOG and lost a load when they drilled a duster years ago. But I had been following the post consolidation share for a while and had it on my possible list to reinvest. Then they announce an dilution making it 84% less attractive. I guess it comes down to how well they use the money raised, good use then maybe, paying director expenses then maybe not.

If you read the consolidated statement of changes in equity in the half year report there are some interesting numbers. The Distributable Accumulated Losses figure as at 30 June 2020 was a book loss of £2,182,717. The 2020 H1 profit was £1.07 million and typically H2 is more profitable so if the figure is in the £1 to £1.5 million range that will reduce the Distributable Accumulated Losses below the £1 million level.
This means that by June 2021 if profit is maintained then Mobility One will finally have a Distributable Accumulated Surplus and by the end of 2021 that could be anything from £1 to £2 million. Although the company has millions in the bank they are constrained what they can use this money for. The move into surplus means they can start to look at returning money to shareholders.
Dividend anybody?

For me any news would be a bonus. This is a profitable company with cash in the bank and a great business model. Way undervalued and worth a much higher market cap.

When the profit and cash in the bank is greater than the market cap it will probably move up then. Lol

The company wants a money changing licence from the Central Bank but they are unlikely to issue any new ones. The best option is therefore to acquire a company that already has one. They tried with TRP in December but have now switched to OTR. It currently holds a remittance business licence issued by BNM and has six outlets in Malaysia. MobilityOne currently owns, via M1 Malaysia, 50% of OTR and upon completion of the Acquisition the Group will own the entire issued share capital of OTR.
All tied to approval from BNM and gives the company control of a fully operating company with existing links to MoneyGram.
The 20p+ prediction is based on revenue and profit and during 2021 I expect the level of profit to increase significantly, this move will help that.

Lots of justified impatience but there is the stuff that has to happen and the other stuff. The dates we absolutely know are the end June when we get the full 2020 figures (£1.07 million profit at the half so looking for somewhere in the £2.5 million area). In September we get the first half 2021 figures and with all the activity announced in 2020 we will hopefully see a move to higher profit levels guiding a full year profit in £3-£4 million range.
The other stuff is the UK FCA approval and any new partnerships or mergers and acquisitions. There were three surprise RNS’s in H2 2020 so hopefully we will get a repeat in 2021.
For me, the profit is key as that has to push the market cap up especially as the cash pile in the bank grows. I certainly see 20p share price as a milestone to pass during 2021.

We will not get the finalised 2020 figures and a trading update until June but before then I would expect news on the UK operation and possibly some partnership or joint venture news. It would be nice if the company did some PR too.

Hi Draft, If the CEO was going to do anything like that he would have done years ago when the market cap was a fraction of what it is today. I suspect it is much better being listed on AIM than the other options for Malaysian companies and as LL says the focus looking ahead may well lie in the UK.

It has gone really quiet here so I thought I would speculate on what I personally see on the horizon for MobilityOne.
In October 2020 the company said "For future growth, the Group intends to continue to enhance its product offering and payment systems including online payment gateways which cover the acceptance of credit cards and payment wallets”. In December 2020 the company started a new joint venture and expects to generate revenue from the Agreement “by early 2021”.
Additionally “the Group intends to explore venturing into complementary businesses such as moneylending business in Malaysia by the first quarter of next year following demand from individuals and small businesses such as the Group's existing and new merchants”. In December they purchased a company with a money changing licence from the Central Bank of Malaysia valid through to 27 March 2022 and capable of extension.
In October 2020 the Company's wholly-owned subsidiary in the United Kingdom, M-One Tech Limited, was preparing the necessary application to the Financial Conduct Authority to seek its approval for the Group to commence businesses such as payment aggregation, electronic payments and e-remittance services in the United Kingdom. The FCA website states approval typically takes 6 months so if MBO applied late in 2020 then we should have some indication around April or May 2021.
In June 2021 we will have the full audited 2020 figures and a 2021 trading update which I expect to be bullish based on the activity above.
Additionally, the company seems to be keen on acquisitions and partnerships so some news there would be welcome.

I prefer that to companies who dilute their stock every couple of months!
Seriously they did raise money on AIM back in 2007 which I guess was the purpose and yes I would like the BoD to pay more attension to the PI's. According to the MobilityOne website as of March 2020 the top five shareholders owned 92,120,991 shares or 86.7%.

Hi LL, its not a rerate its the normal down and up seen on all of AIM. There is a view on the board that MBO is undervalued. Any company with money in the bank and generating north of £2.5 million profit per year is going to be worth more than the £10 million market cap it was valued a week ago so its gone up.
Publishing insider information is illegal so we go by what we know from RNS info. So now having a money changing licence from the Central Bank of Malaysia, partnerships with Alipay and MoneyGram, getting approval for UK office and a new joint venture to expand payment terminal business in Malaysia to generate revenue by early 2021 all moves to boost profitability further.
The share price tripled last year so let's be hopefully a similar growth happens this year.

Money isn't a problem here, they could easily raise funds if they needed it but they don't need to unless they go out and buy someone. Because the core business operates on such tight margins what they do need is areas of fatter profits, Picking up a money changing licence from the Central Bank of Malaysia for £56k in December looks very sharp business that should impact 2021 figures.

Hi, I would definitely agree. For a company that has quadrupled revenue in four years you would expect more. It is true profit suffered two years ago but it seems very robust now and the banking license, the partnerships, the move in the UK are all targeted at higher margin business.

The FCA approval is an interesting one, if they can trade in the UK especially post Brexit that is a great opportunity. The BoD are focused on ways to increase profitability, good to see.