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On a year-by-year comparison we need to keep in mind that loans are still higher by £539,556 (H1, 2014: £1,899,634) largely as a result of that £330,000 purchase of property to serve as company headquarters. The number of receivables due is also higher than the same period last year and balance sheet growth of this kind should ensure there are no liquidity issues. The net debt position continues to fall and that trend looks to be improving at a quicker pace. The difference in inventories + trade and other receivables (ITOR) vs trade and other payables (TOP) is an interesting comparison for assessing trading performance. According to first half 2015 results ITOR fell to £2,294,609 and TOP rose to £1,397,576. That’s still an overall surplus of £897,033 but lower than 6 months previous (H2, 2014: £1,510,008). The surplus will likely repay loans or become cash on the balance sheet in the next trading period. As we have seen, cash rose by £96,807 and loans fell by £612,177 in the first 6 months of 2015. Like I mentioned last time “Expect a balance sheet with net debt significantly reduced and much of the receivables due at the end of the 2014 realised into cash.” Net debt is now just £734,128 and with an overall trade surplus of £897,033 we could be looking at a net cash position by year end although more likely to fall in H116. High revenue, low margins and profitability is due to MBO reinvesting funds back into the company's research & development departments. There could at any time be costs reductions and in fact we did see a fall in Administration costs over the prior period. Gross profits were up in the period but margins lower than the final 6 months of 2014. Much will depend on what the Ringgit does in the coming months but whilst MBO’s market cap is £2.8 million I won’t be swayed to sell if the Ringgit does continue its current trajectory lower. The HY results are tabled alongside the previous half year trading periods for ease of analysis. I would expect second half operating profits somewhere in the £500-600k bracket. Margins are improving and will continue to do so according to company guidance. Disposing of loss making assets, reducing costs, increasing customer base should all contribute to a very profitable second half trading. The amount of cash/loans on balance can vary but I’m expecting net debt to fall to around £300-350k by the end of the year.

So looking at the latest set of results MBO turned revenue of £31.3 million in the first half! That’s up over 33% on the same period last year (H114: £23.5 million). This is a huge increase for a small-cap company. What’s potentially more exciting is that second half trading is always higher! Even if we use conservative forecasts we are looking at more than £60 million revenue this year compared to £53 million in 2014. I think it will come in around £65 million assuming they can maintain this momentum. Revenue growth is a key driver and indicates product demand is on the rise. Factoring in the sale of subsidy holdings in the Cambodian and Indonesian operations during March 2014, it’s clear the Group's mobile phone prepaid airtime reload and bill payment business is therefore expanding at its quickest pace, even as the weakening Malaysian Ringgit impacts currency conversion. The Group recorded an operating profit of £218,664 in H115 compared to £41,137 for H114, an improvement and by no means a paltry amount. The exchange rate has negatively impacted the value of profits in (£) Sterling. MBO’s international remittance services (IRS), of which they had 6 continued to ‘incur losses’ and was subsequently discontinued in the period. We can deduce that had they been disposed of earlier, the headline operating profit would be higher. Certainly in the second half the company results will benefit from the disposal of the IRS and in future trading periods. For the first time since 2012 MobilityOne have booked a first half post-tax profit of £111,534. This followed a post-tax profit of £73,998 in the final 6 months of 2014 and compares favourably to a loss post-tax of £29,526 in the same period last year. Whilst this figure is less important for assessing cash-flow and growth trends, it’s exciting to see a genuine improvement in company profitability in what is normally the weaker of the two trading periods. The cash position continued to rise and was up by £247,259 year on year to £1,705,062 (H1, 2014: £1,457,803). This compares to the year end 2014 cash position up by £288,262 during the year to £1,608,255 (H2, 2013: £1,319,993). In the past six months we know the cash position has risen by £96,807 which isn’t so significant. Cash generated and a lot of what was due in trade and other receivables at Year End has been reduced to repay approximately 20% of the debt. Loans (including those owed to Directors) amounted to £3,051,367 at H214 and has now fallen to £2,439,190. A very impressive net debt reduction in six months from £1,443,112 to just £734,128 today.

MobilityOne’s Half Year performance boasts a post-tax profit for first time since 2012 The signs were here late last year. Management were proactive and enacted a disposal of loss-making and non-core assets. The share price bottomed following an improvement to the cash-flow figures however the balance sheet remained a little uncertain following the increase in net debt. First half 2015 results have revealed that was indeed a one-off increase, with the net debt position likely to fall as has been the trend previously and for the first time since 2012 the company has reported an interim post-tax profit. It has been the case for a long time that most of the company’s revenue and profit is generated in the latter half of the year. So it’s encouraging to read MBO have generated record revenues in the six month period and solid operating profits of £218,664. This follows an impressive second half performance last year when the company booked £379,688 operating profit in the final 6 months of 2014. The news was poorly received however, the share price has barely moved all summer. The prime reason being liquidity here remains very low with over 78% of the share capital held by long term investors. It’s worth a quick reminder who holds what. SUBSTANTIAL SHAREHOLDERS As at 23 June 2015, the Company had been notified of the following beneficial interests in 3% or more of the issued share capital pursuant to Part VI of Article 110 of the Companies (Jersey) Law 1991: Total of 83,336,323 shares or 78.4% of the capital held by 1. Dato’ Hussian @ Rizal bin A. Rahman (‘Dato’ Hussian’) (53,465,724 shares = 50.29%) 2. Thornbeam Limited (16,048,922 shares = 15.10% 3. Dato’ Shamsir bin Omar (9,131,677 shares = 8.59%) 4. Perbadanan Nasional Berhad (4,690,000 shares = 4.41%) The freefloat is currently 22,962,457 shares (21.6%). Infrequent updates makes for little excitement. But things can change. As we saw last January the share price moved very quickly for no reason following some buying pressure. Perhaps it was a delayed market reaction, rumour or value traders as over 2.25 million shares exchanged hands. The market capitalisation is currently less than £2.8 million and as a holder I’m fairly confident this will look cheap in the next 12 months. The question all investors will ask themselves is when will this return investment value.

StatPro SOG have a market cap of £52m Their earnings multiples are around 32x (P/E) and are expected to make £2.3m profit before tax on £30m revenue this year. Analysts have their P/E ratio falling to 27x next year. MBO are trading on less than 4x P/E this year in my view. StatPro is currently investing heavily into its new cloud products, 8 years in the making. Similarly MBO invest profits back into the business but with operations more focused than ever on profitable cashflow the company reported 33% growth in revenue and relative jump in profit. I'll do a full breakdown of results to better explain the reasons to be positive jolly :)

Looking good so far, up to $1185 this morning following downbeat economic data yesterday and again this morning. The USD is losing value again and for good reason. Deflation is coming. RRS safe and steady :)

Looks good rivaldo, organic growth this year was already looking healthy and now this addition. Immediately earnings-enhancing and funded through new loans shouldn't be an issue. The market value needs to rerate.

Boom! That's what we were waiting for! :D

A range of analyst views and market reports http://www.nst.com.my/news/2015/10/economy-far-more-diversified-now-says-wahid http://www.themalaysianinsider.com/malaysia/article/malaysia-on-right-economic-course-with-gst-subsidy-cuts-says-najib http://www.theedgemarkets.com/my/article/najib-says-malaysia-%E2%80%98succeeded-service-economy-transition%E2%80%99 http://asia.nikkei.com/Politics-Economy/Economy/August-trade-surplus-rises-to-9-month-high-FX-reserves-decline http://www.thestar.com.my/Business/Business-News/2015/10/12/Propping-economy-with-bold-tax-measures/?style=biz http://www.themalaysianinsider.com/malaysia/article/malaysia-faces-triple-challenge-over-economy-says-wahid http://www.themalaysianinsider.com/malaysia/article/malaysia-at-risk-in-event-of-global-financial-crash-says-report http://www.cnbc.com/2015/09/24/malaysian-ringgit-sell-off-may-worsen-over-economy-1mdb-najib.html

Gold is up this morning in Asia Rate rise looking less likely as each day passes, gold falling after the FED minutes were released... the first time in a while. Should crack 4500 today easy

What a day! :)

Strong finish yesterday with gold closing near the intra-day high of circa $1148 thanks to a weaker dollar. News from the IMF released yesterday ts forecast for global economic growth for the second time this year. This follows weak U.S. jobs data released Friday, delaying expectations on the timing of an initial rate hike by the Federal Reserve to early 2016. Also released on Tuesday the U.S. trade deficit widened faster than expected to $48.33 billion in August from $41.81 billion in July, whose figure was revised from a previously estimated deficit of $41.90 billion. Analysts had expected the trade deficit to widen to $47.40 billion in August. Both Australia and Canada saw their trade deficits widen worse than expected also. Risk across the advanced world economies is growing, currency devaluation (wars) are just beginning. Gold will look increasingly attractive as this contagion takes hold in my view. The IMF slashed its global economic growth forecast for the second time in 2015 citing weakness in China and soft commodity prices. Their estimate is that the world's economy will grow at 3.1% this year and 3.6% in 2016. Both estimates are 0.2% below the IMF's July forecasts. In April, the IMF downgraded its 2015 forecast by 0.4% and its growth forecast for 2016 by 0.2%. The IMF forecasts a sharp deceleration in growth among emerging markets, as commodity prices continue to plummet. In its latest forecast, the IMF cut growth in emerging markets to 4% for 2015. "Prospects across the main countries and regions remain uneven," the IMF said in its October, 2015, World Economic Outlook. "Relative to last year, the recovery in advanced economies is expected to pick up slightly, while activity in emerging market and developing economies is projected to slow for the fifth year in a row, primarily reflecting weaker prospects for some large emerging market economies and oil-exporting countries. In China, the IMF forecasts growth of 6.8% this year and 6.3% in 2016. Annual economic growth in China has not dipped below 7.0% in more than a decade.

Well that's a selling point in my opinion, taken a few at 4212. GLA

Back in July I highlighted the missing $3 million and received some grief for my troubles. To quote - The company put out an announcement post year end stating "The Company's balance sheet remains strong with over $9m of liquid cash at 31 December 2014". This was on February 10th 2015. They issued their audited results to 31 December 2014 two months later, no mention of why the cash position is $3m lower than originally stated in the trading statement. Looking through the interim results, the value of the short term investments and cash position are both down despite the company making nearly $800k operating profits. Hidden in the cash-flow breakdown is a $2 million reduction in the operating assets and liabilities during the period. Short term investments and cash reduced but did not make up the full amount, instead trade receivables are up and will contribute to the next half results. Recurring revenues an important sign for growth are falling as are gross profits. The only reason why operating profits were marginally up was due to reduced spend in R&D and marketing - two important parts of the business for fueling business. Are holders optimistic this will reverse and soon trend up?

Friday saw the strongest one-day gold rise in more than a month following a worse than expected U.S. jobs report. The case for a delayed interest rate hike by the Federal Reserve continues to grow The reversal came after four consecutive down trading days and some analysts are forecasting a swing to test $1200/oz in the coming weeks. Gold likely gained support at $1,098.20, the low from September 11 and was met with resistance at $1,155.90, the high from Sept. 24. On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics said non-farm payrolls for the month of September increased by 142,000, significantly below consensus estimates from analysts of a 203,000 gain. Severe declines in manufacturing and mining employment restrained overall job gains as the sectors lost 9,000 and 13,000 positions respectively. A month earlier, the manufacturing industry lost 18,000 jobs in August, while mining positions nationwide decreased by 22,000. There were other signs of weakness including hourly wages data unchanged from the month previous and falling short of the 0.2% increase analysts had expected. Last month, the Federal Open Market Committee sent strong indications that it wanted to see continued improvement in the labor market before it hiked short-term interest rates for the first time in nearly a decade.

4065 to sell

Gold up today after further evidence of slower than expected US growth.

Results look good enough, £220k in the first half. Huge 33% increase in revenue with similar outlook expected in the second half. Liabilities reducing slower than expected but the balance sheet is looking healthy with cash up and loans down. Potential £60m turnover this year with £500-600k operating profits, cash position building and net debt falling again might we see some confidence return and a build in share price towards year end as we witnessed last year...

Nice swing in recent weeks considering. Need some clarification on net debt, cash-flow and profitability in the results.

3832 on the ASK and moving up still

Gold price holding up well and Randgold modestly up as almost all other major commodities continue to tumble. Gold's five-and-a-half year low of $1,072.30 back in July is not yet behind us but it is becoming clearer there is very little appetite for a rate rise. According to recent market analyst expectations, the Fed will begin raising rates in December after voting to keep policy steady. The problem is deflation and without new cash to prop up economies struggling to reduce deficits etc there is only one outcome. Manufacturing activity in China contracted at the fastest pace since the global financial crisis, fueling fears over "slackening demand for the industrial metal." See the Caixin manufacturing purchasing managers’ index at its lowest reading since March 2009. The problem is not that the Yuan is too expensive, so a strong dollar is unlikely to solve the world's second largest economy. Gold is becoming more expensive to the Yuan, Baht, Ringgit, PHP peso etc so demand for jewellery will continue to grow. Government backed purchases are more exciting but we have yet to see any major declarations that will shift the dynamics.