RE: Bullish engulfing pattern (Today's candle is bullish engulfing pattern)28 Jan 2026 17:48
It’s important to note that:
No revenue or earnings are expected from the new Islamic banking business in 2026, it’s a long-lead, future project.
Also, for the full year ended 31 December 2024, MobilityOne reported a net loss of about £3.45 million after tax, meaning it did not make a profit for that year.
For the first half of 2025 (six months to 30 June), it also recorded a loss after tax of £1.14 million, though this was smaller than the loss in the same period the previous year.
Profitability is the challenge: Costs, such as administrative expenses, cost of sales, and associated company losses, have kept the company in the red.
Although what can be seen encouraging is the revenue of £230.2m, however, the company is still in the loss and that's a red flag. It's actually quite worrying that they are not in profit despite having £203M of revenue. These guys had near 20 years in the business but still failed to make a profit.
For that reason I have rated this a sell. Whether that will change further down the line would depend on if they can reduce expenses and admin costs.
I would also like to point out that the Islamic finance is just a conditional approval for an Islamic digital banking arm in Labuan, Malaysia. It means that the operation are mostly limited to Malaysia.