Mobilityone Regulatory News (MBO)

Six months

Six months

Financial year

Ended

Ended

Ended

30 June 2019

30 June 2018

31 Dec 2018

Unaudited

Unaudited

Audited

CONTINUING OPERATIONS

£

£

£

Revenue

78,920,618

57,506,068

125,471,796

Cost of sales

(73,676,744)

(54,013,646)

(118,106,575)

GROSS PROFIT

5,243,874

3,492,422

7,365,221

Other operating income

59,822

48,296

77,544

Administration expenses

(4,610,647)

(4,011,980)

(8,445,816)

Distribution costs

(384)

-

(103,632)

Other operating expenses

(124,664)

(186,981)

(231,621)

Share of associate result

-

-

(22,285)

OPERATING PROFIT/(LOSS)

568,001

(658,243)

(1,360,589)

Finance costs

(144,002)

(122,663)

(276,426)

PROFIT/(LOSS) BEFORE TAX

423,999

(780,906)

(1,637,015)

Tax

(2,813)

(51,486)

274,564

PROFIT/(LOSS) FOR THE PERIOD/YEAR

421,186

(832,392)

(1,362,451)

Attributable to:

Owners of the parent

786,931

(514,013)

(735,204)

Non-controlling interest

(365,745)

(318,379)

(627,247)

421,186

(832,392)

(1,362,451)

EARNINGS PER SHARE

Basic earnings/(loss) per share (pence)

0.740

(0.484)

(0.692)

Diluted earnings/(loss) per share (pence)

0.677

(0.442)

(0.692)

PROFIT/(LOSS) FOR THE PERIOD/YEAR

421,186

(832,392)

(1,362,451)

OTHER COMPREHENSIVE PROFIT

Foreign currency translation

11,718

15,390

838

TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD

432,904

(817,002)

(1,361,613)

Total comprehensive profit/(loss) attributable to:

Owners of the parent

445,693

(789,042)

(696,138)

Non-controlling interest

(12,789)

(27,960)

(665,475)

432,904

(817,002)

(1,361,613)

At

At

At

30 June 2019

30 June 2018

31 Dec 2018

Unaudited

Unaudited

Audited

£

£

£

Assets

Non-current assets

Intangible assets

268,501

315,288

302,286

Property, plant and equipment

1,855,510

2,451,226

1,884,900

Deferred tax assets

193,251

-

193,962

2,317,262

2,766,514

2,381,148

Current assets

Inventories

1,317,318

1,487,577

1,381,106

Trade receivables

3,040,250

2,834,275

3,056,458

Other receivables

1,399,891

1,838,700

1,203,628

Tax recoverable

142,591

225,256

141,890

Assets held for sale

63,740

-

119,439

Cash and cash equivalents

4,994,352

3,213,816

4,181,490

10,958,142

9,599,624

10,084,011

Total Assets

13,275,404

12,366,138

12,465,159

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

894,229

897,063

882,511

Accumulated losses

(3,968,077)

(4,533,817)

(4,755,008)

Shareholders' equity

1,202,045

639,139

403,396

Non-controlling interest

(1,681,855)

(984,185)

(1,303,321)

Total Equity

(479,810)

(345,046)

(899,925)

Liabilities

Non-current liabilities

Loans and borrowings - secured

269,651

574,116

499,893

Deferred tax liabilities

472

129,867

470

Amount due to directors

1,911,200

1,689,622

1,754,319

2,181,323

2,393,605

2,254,682

Current liabilities

Trade payables

1,816,034

776,136

1,272,014

Other payables

5,772,848

6,245,697

5,943,526

Amount due to directors

174,598

2,670

122,685

Loans and borrowings - secured

3,805,908

3,293,076

3,767,696

Tax payables

4,503

-

4,481

11,573,891

10,317,579

11,110,402

Total Liabilities

13,755,214

12,711,184

13,365,084

Total Equity and Liabilities

13,275,404

12,366,138

12,465,159

Non-Distributable

Distributable

Foreign

Reverse

Currency

Non-

Share

Share

Acquisition

Translation

Accumulated

Controlling

Capital

Premium

Reserve

Reserve

Losses

Total

Interest

Total

£

£

£

£

£

£

£

£

As at 1 January 2018

2,657,470

909,472

708,951

881,673

(4,019,804)

1,137,762

(637,846)

499,916

Foreign currency translation

-

-

-

15,390

-

15,390

(27,960)

(12,570)

(Loss) for the period

-

-

-

-

(514,013)

(514,013)

(318,379)

(832,392)

As at 30 June 2018

2,657,470

909,472

708,951

897,063

(4,533,817)

639,139

(984,185)

(345,046)

As at 1 July 2018

2,657,470

909,472

708,951

897,063

(4,533,817)

639,139

(984,185)

(345,046)

Foreign currency translation

-

-

-

(14,552)

-

(14,552)

(10,268)

(24,820)

(Loss) for the period

-

-

-

-

(221,191)

(221,191)

(308,868)

(530,059)

As at 31 Dec 2018

2,657,470

909,472

708,951

882,511

(4,755,008)

403,396

(1,303,321)

(899,925)

As at 1 January 2019

2,657,470

909,472

708,951

882,511

(4,755,008)

403,396

(1,303,321)

(899,925)

Foreign currency translation

-

-

-

11,718

-

11,718

(12,789)

(1,071)

Profit 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

(3,968,077)

1,202,045

(1,681,855)

(479,810)

Six months

Six months

Financial year

Ended

Ended

ended

30 June 2019

30 June 2018

31 Dec 2018

Unaudited

Unaudited

Audited

£

£

£

Cash flows from operating activities

Cash generated from operations

1,117,239

447,908

1,201,064

Interest paid

(144,002)

(120,257)

(276,426)

Interest received

41,725

38,085

66,554

Tax paid

(2,813)

(49,127)

(93,759)

Net cash generated from operating activities

1,012,149

316,609

897,433

Cash flows from investing activities

Purchase of property, plant and equipment

(39,716)

(334,430)

(893,113)

Decrease/(Increase) in asset held for sale

55,699

-

(119,439)

Proceeds from disposal of property, plant and equipment

-

-

779,123

Net cash inflow for acquisition of subsidiary company

-

-

18,267

Net cash used in investing activities

15,983

(334,430)

(215,162)

Cash flows from financing activities

Drawdown of borrowings

-

-

90,429

Increase in pledged fixed deposits

-

-

(297,416)

Net change of banker acceptance

(2,671)

(223,183)

252,118

Repayment from finance lease payables

(87,381)

(47,577)

(13,604)

Repayment of term loan

(10,634)

(10,312)

(6,375)

Net cash (used in)/from financing activities

(100,686)

(281,072)

25,152

Increase/(Decrease) in cash and cash equivalents

927,446

(298,893)

707,423

Effect of foreign exchange rate changes

(41,412)

187,858

76,044

Cash and cash equivalents at beginning of period/year

4,108,318

3,324,851

3,324,851

Cash and cash equivalents at end of period/year

4,994,352

3,213,816

4,108,318

1.

Basis of preparation

The Group's interim financial statements for the six months ended 30 June 2019 were authorised for issue by the Board of Directors on 24 September 2019.

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 2018 Annual Report, will be included in the audited financial statements for the year ending 31 December 2019.

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 2019.

3.

Nature of financial information

The unaudited interim financial information for the six months ended 30 June 2019 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 2018 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

No segmental analysis of assets and capital expenditure are presented as they are mostly unallocated items which comprise corporate assets and liabilities. No geographical segment information is presented as more than 95% of the Group's revenue was generated in Malaysia.

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 2019 of £786,931 (30 June 2018: loss of £514,013 and year ended 31 December 2018: loss of £735,204) attributable to owners of the parent by the number of ordinary shares outstanding at 30 June 2019 of 106,298,780 (30 June 2018: 106,298,780 and 31 December 2018: 106,298,780).

The diluted earnings per share for the six month period ended 30 June 2019 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 RM20.0 million (£3.82 million) (H1 2018: RM20.0 million (£3.58 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 2018 except for the adoption of new and amended reporting standards, which are effective for periods commencing on or after 1 January 2019. Various amendments to standards and interpretations of standards are effective for periods commencing on or after 1 January 2019 as detailed in the 2018 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-