Mobilityone Regulatory News (MBO)

Six months

Six months

Financial year

Ended

Ended

Ended

30 June 2020

30 June 2019

31 Dec 2019

Unaudited

Unaudited

Audited

CONTINUING OPERATIONS

£

£

£

Revenue

119,909,734

78,920,618

169,412,664

Cost of sales

(112,615,797)

(73,676,744)

(158,641,222)

GROSS PROFIT

7,293,937

5,243,874

10,771,442

Other operating income

54,024

59,822

192,515

Administration expenses

(5,701,502)

(4,610,647)

(9,253,270)

Distribution costs

-

(384)

-

Other operating expenses

(155,027)

(124,664)

(377,143)

Share of associate result

-

-

22,684

OPERATING PROFIT

1,491,432

568,001

1,356,228

Finance costs

(68,905)

(144,002)

(273,052)

PROFIT BEFORE TAX

1,422,527

423,999

1,083,176

Tax

(356,510)

(2,813)

(108,674)

PROFIT FROM CONTINUING OPERATIONS

1,066,017

421,186

974,502

Gain on disposal of subsidiary

-

-

1,105,535

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

-

-

(208,039)

PROFIT FOR THE PERIOD/YEAR

1,066,017

421,186

1,871,998

Attributable to:

Owners of the parent

1,066,435

786,931

1,508,874

Non-controlling interest

(418)

(365,745)

363,124

1,066,017

421,186

1,871,998

EARNINGS PER SHARE

Basic earnings per share (pence)

1.003

0.740

1.419

Diluted earnings per share (pence)

0.912

0.677

1.291

PROFIT FOR THE PERIOD/YEAR

1,066,017

421,186

1,871,998

OTHER COMPREHENSIVE PROFIT/(LOSS)

Foreign currency translation

52,686

11,718

(43,083)

TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD/YEAR

1,118,703

432,904

1,828,915

Total comprehensive profit attributable to:

Owners of the parent

1,118,970

445,693

1,465,622

Non-controlling interest

(267)

(12,789)

363,293

1,118,703

432,904

1,828,915

At

At

At

30 June 2020

30 June 2019

31 Dec 2019

Unaudited

Unaudited

Audited

£

£

£

Assets

Non-current assets

Intangible assets

192,685

268,501

222,731

Property, plant and equipment

701,369

1,855,510

721,079

Deferred tax assets

-

193,251

-

Right-of-use assets

396,736

-

455,168

1,290,790

2,317,262

1,398,978

Current assets

Inventories

2,328,897

1,317,318

1,564,160

Trade receivables

4,129,100

3,040,250

3,769,016

Other receivables

551,494

1,399,891

644,173

Amount due from an associate

175,363

-

145,095

Tax recoverable

131,866

142,591

81,353

Fixed deposits

2,912,833

-

2,763,029

Assets held for sale

-

63,740

-

Cash and cash equivalents

3,011,312

4,994,352

1,660,034

13,240,865

10,958,142

10,626,860

Total Assets

14,531,655

13,275,404

12,025,838

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

891,945

894,229

839,259

Accumulated losses

(2,182,717)

(3,968,077)

(3,249,152)

Shareholders' equity

2,985,121

1,202,045

1,866,000

Non-controlling interest

(11,946)

(1,681,855)

(11,261)

Total Equity

2,973,175

(479,810)

1,854,739

Liabilities

Non-current liabilities

Loans and borrowings - secured

268,449

269,651

265,585

Lease liabilities

45,114

-

151,565

Deferred tax liabilities

62,274

472

60,873

Amount due to directors

-

1,911,200

-

375,837

2,181,323

478,023

Current liabilities

Trade payables

1,732,505

1,816,034

1,266,150

Other payables

5,884,717

5,772,848

4,920,913

Amount due to directors

123,991

174,598

107,827

Loans and borrowings - secured

3,199,201

3,805,908

3,161,178

Lease liabilities

236,547

-

232,228

Tax payables

5,682

4,503

4,780

11,182,643

11,573,891

9,693,076

Total Liabilities

11,558,480

13,755,214

10,171,099

Total Equity and Liabilities

14,531,655

13,275,404

12,025,838

Non-Distributable

Distributable

Foreign

Reverse

Currency

Non-

Share

Share

Acquisition

Translation

Accumulated

Controlling

Total

Capital

Premium

Reserve

Reserve

Losses

Total

Interest

Equity

£

£

£

£

£

£

£

£

As at 1 January 2019

2,657,470

909,472

708,951

882,511

(4,755,008)

403,396

(1,303,321)

(899,925)

Effect of adopting IFRS16

-

-

-

-

(3,018)

(3,018)

-

(3,018)

As at 1 January 2019, restated

2,657,470

909,472

708,951

882,511

(4,758,026)

400,378

(1,303,321)

(902,943)

Foreign currency translation

-

-

-

11,718

-

11,718

(12,789)

(1,071)

Profit/(Loss) for the period

-

-

-

-

786,931

786,931

(365,745)

421,186

As at 30 June 2019

2,657,470

909,472

708,951

894,229

(3,971,095)

1,199,027

(1,681,855)

(482,828)

As at 1 July 2019

2,657,470

909,472

708,951

894,229

(3,971,095)

1,199,027

(1,681,855)

(482,828)

Foreign currency translation

-

-

-

(54,970)

-

(54,970)

12,958

(42,012)

Profit/(Loss) for the period

-

-

-

-

721,943

721,943

728,869

1,450,812

2,657,470

909,472

708,951

839,259

(3,249,152)

1,866,000

(940,028)

925,972

Transaction with owners:

Disposal of a subsidiary company

-

-

-

-

-

-

928,767

928,767

As at 31 Dec 2019

2,657,470

909,472

708,951

839,259

(3,249,152)

1,866,000

(11,261)

1,854,739

As at 1 January 2020

2,657,470

909,472

708,951

839,259

(3,249,152)

1,866,000

(11,261)

1,854,739

Foreign currency translation

-

-

-

52,686

-

52,686

(267)

52,419

Profit for the period

-

-

-

-

1,066,435

1,066,435

(418)

1,066,017

As at 30 June 2020

2,657,470

909,472

708,951

891,945

(2,182,717)

2,985,121

(11,946)

2,973,175

Six months

Six months

Financial year

Ended

Ended

ended

30 June 2020

30 June 2019

31 Dec 2019

Unaudited

Unaudited

Audited

£

£

£

Cash flows from operating activities

Cash generated from operations

1,634,969

1,117,239

1,428,219

Interest paid

(68,906)

(144,002)

(287,587)

Interest received

45,890

41,725

97,617

Tax paid

(133,882)

(2,813)

(184,491)

Tax refund

-

-

196,205

Net cash generated from operating activities

1,478,071

1,012,149

1,249,963

Cash flows (used in)/from investing activities

Purchase of property, plant and equipment

(32,719)

(39,716)

(70,294)

Decrease/(Increase) in asset held for sale

-

55,699

-

Proceeds from disposal of property, plant and equipment

-

-

1,890

Net cash outflow for disposal of subsidiary company

-

-

(80,486)

Addition investment in associate company

-

-

(47,258)

Net cash (used in)/from investing activities

(32,719)

15,983

(196,148)

Cash flows used in financing activities

Net change of banker acceptance

(27,017)

(2,671)

(398,175)

Repayment of lease liabilities

(118,702)

(87,381)

(317,999)

Repayment of term loan

(3,250)

(10,634)

(6,824)

Net cash used in financing activities

(148,969)

(100,686)

(722,998)

Increase in cash and cash equivalents

1,296,383

927,446

330,817

Effect of foreign exchange rate changes

204,699

(41,412)

(16,072)

Cash and cash equivalents at beginning of period/year

4,423,063

4,108,318

4,108,318

Cash and cash equivalents at end of period/year

5,924,145

4,994,352

4,423,063

1.

Basis of preparation

The Group's interim financial statements for the six months ended 30 June 2020 were authorised for issue by the Board of Directors on 22 October 2020.

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 2019 Annual Report, will be included in the audited financial statements for the year ending 31 December 2020.

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 2020.

3.

Nature of financial information

The unaudited interim financial information for the six months ended 30 June 2020 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 2019 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 (£), 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 (£) at foreign exchange rates ruling at the Statement of Financial Position date. Results and cash flows are translated into Pound Sterling (£) 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:

5.

Segmental analysis

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 2020 of £1,066,435 (30 June 2019: profit of £786,931 and year ended 31 December 2019: profit of £1,508,874) attributable to owners of the parent by the number of ordinary shares outstanding at 30 June 2020 of 106,298,780 (30 June 2019: 106,298,780 and 31 December 2019: 106,298,780).

The diluted earnings per share for the six month period ended 30 June 2020 is calculated using the number of shares adjusted to assume the conversion of all dilutive potential ordinary shares of 116,898,780 (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).

8.

Reconciliation of profit before tax to cash generated from operations

9.

Contingent liabilities

In the period under review, corporate guarantees of RM21.1 million (£4.01 million) (H1 2019: RM21.1 million (£4.03 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 2019 except for the adoption of new and amended reporting standards, which are effective for periods commencing on or after 1 January 2020. Various amendments to standards and interpretations of standards are effective for periods commencing on or after 1 January 2020 as detailed in the 2019 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-