REG - MobilityOne Limited - Half-year Report
27/09/2024 10:00
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RNS Number : 0247G MobilityOne Limited 27 September 2024
27 September 2024
MobilityOne Limited
("MobilityOne", the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June 2024
MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and
platform provider, announces its unaudited interim results for the six months
ended 30 June 2024.
Highlights:
· Revenue decreased by 9.1% to £110.5 million (H1 2023:
£121.5 million) due to lower sales for the Group's mobile phone prepaid
airtime reload and bill payment business in Malaysia;
· Loss after tax of £1.68 million (H1 2023: profit after
tax of £5,117);
· Cash and cash equivalents (including fixed deposits
classified under other financial assets) at 30 June 2024 of £4.41 million (30
June 2023: £3.42 million);
· The Group remains cautious on the outlook for the
remainder of 2024 due to rising inflation and increasing expenditure,
including higher administrative expenses as well as higher infrastructure and
marketing costs. As the Group strives to maintain as well as grow its
business, the Group's gross profit margins for its products and services will
continue to be affected;
· The expected completion of the proposed joint venture
with Super Apps Holdings Sdn Bhd ("Super Apps") and the merger exercise of
Technology & Telecommunication Acquisition Corporation ("TETE") and Super
Apps, as previously announced, is expected to significantly enhance the
Group's financial position and future growth;
· In October 2023, the Group announced the acquisition of
49% equity interest in Sincere Acres Sdn Bhd ("Sincere") that has a
wholly-owned subsidiary Hati International Sdn Bhd ("Hati") which focuses on
healthcare software development and information technology. RM2.0 million (c.
£0.36 million) of the total purchase consideration of RM30.0 million (c.
£5.42 million) has been paid and the balance of RM28.0 million (c. £5.06
million) to be paid by 31 December 2024. The Group and Hati hope to secure
more projects in hospital information systems in the next 12 months; and
· The Group will also continue to invest and enhance its
research and development capabilities to support business and technological
advancements and to form partnerships for future growth.
For further information, contact:
MobilityOne
Limited +6
03 89963600
Dato' Hussian A. Rahman,
CEO
www.mobilityone.com.my
har@mobilityone.com.my
Allenby Capital Limited
(Nominated Adviser and
Broker)
+44 20 3328 5656
Nick Athanas / Vivek Bhardwaj
About the Group:
MobilityOne is one of the leading virtual distributors of mobile prepaid
reload and bill payment services in Malaysia. With connections to various
service providers across industries such as banking, telecommunications,
utilities, government agencies, and transportation, the Group operates through
multiple distribution channels including mobile wallets, e-commerce sites, EDC
terminals, automated teller machines, kiosks, and internet & mobile
banking. Holding licenses in regulated spaces including acquiring, e-money,
remittance and lending, the Group offers a range of services to the market,
including wallet, internet, and terminal-based payment services, white label
e-money, remittance, lending, and custom fintech ecosystems for communities.
The Group's flexible, scalable technology platform enables cash, debit card,
and credit card transactions from multiple devices while providing robust
control and monitoring of product and service distribution.
For more information, refer to our website at www.mobilityone.com.my
(http://www.mobilityone.com.my)
Chairman's statement
The Group's revenue decreased by 9.1% to £110.5 million (H1 2023: revenue of
£121.5 million) in the first six months of 2024 as a result of lower sales
from the Group's main products and services in Malaysia, namely the mobile
phone prepaid airtime reload and bill payment business through the Group's
banking channels (i.e. mobile banking and internet banking), electronic data
capture ("EDC") terminals and third parties' e-wallet applications. The
Malaysian market continues to account for the majority of the Group's revenue.
The Group registered a loss after tax of £1.68 million in the first six
months of 2024 (H1 2023: profit after tax of £5,117) mainly due to lower
sales, an increase in cost of sales, higher administrative expenses, higher
finance costs and the Group's share of the loss generated by its 49%-owned
associate company, Sincere Acres Sdn Bhd, which was acquired on 4 October
2023.
The Group's other businesses, such as its international remittance services
and e-money business in Malaysia as well as the payment solution business in
Brunei, continued to remain small. As previously announced the Group has
discontinued to explore new business in the Philippines. However, if there
is any new business opportunity in the future, the Group may consider
exploring such opportunities.
As at 30 June 2024, the Group had cash and cash equivalents (including fixed
deposits classified under other financial assets) of £4.41 million (30 June
2023: cash and cash equivalents of £3.42 million) while the secured loans and
borrowings from financial institutions increased to £6.57 million (30 June
2023: £4.14 million) mainly due to payments for higher cost of sales and
higher administrative expenses.
Current trading and outlook
Mobile phone prepaid airtime reload and bill payments will continue to be the
main business activities for the Group in Malaysia, whereas other businesses
are expected to remain insignificant in 2024. The Group has commenced the
issuance of MasterCard prepaid cards in Malaysia on a small scale to
complement the Group's existing e-wallet.
On 11 May 2023, the Company announced that M1 Tech Limited, the Group's
wholly-owned subsidiary in the UK, had withdrawn its application to the
Financial Conduct Authority, the financial regulatory body in the UK,
for authorisation as an electronic money institution to provide e-money
services in the UK. As announced by the Company on 20 August 2024, following
an extensive review process, the Group has decided not to submit a revised
application to the FCA and instead will continue to focus on its businesses in
Malaysia as well as other new business opportunities.
In September 2023, MobilityOne Sdn Bhd ("M1 Malaysia"), the Group's
wholly-owned subsidiary in Malaysia, incorporated Qube Nexus Sdn Bhd with M1
Malaysia and Syed Faisal Algadrie Bin Syed Hassan owning 80% and 20% of the
equity interest respectively with the joint venture to explore any suitable
business opportunities from the Kingdom of Saudi Arabia. There has not been
any material development in relation to this joint venture.
As part of the Group's business plans for long-term growth, the Group has the
following initiatives:
(1) Money transfer business via SWIFT network
As previously disclosed, the Group intends to expand its money transfer
business via the Society for Worldwide Interbank Financial
Telecommunication ("SWIFT") network. The Group is still working with a bank
in Malaysia on the integration process while waiting for the Central Bank of
Malaysia's approval, the timings of which continue to remain uncertain. The
Company will make any relevant announcements on the arrangement with SWIFT as
and when is appropriate.
(2) Disposal of OneShop Retail Sdn Bhd ("1Shop") and proposed
joint venture with Super Apps
On 19 October 2022, M1 Malaysia entered into a share sale agreement (the
"Share Sale Agreement") with Super Apps for the disposal by M1 Malaysia of a
60% shareholding in the Group's wholly-owned non-core subsidiary 1Shop to
Super Apps (together the "Disposal"). Concurrently, M1 Malaysia entered into a
joint-venture cum shareholders agreement with Super Apps and 1Shop (together
the "Proposed Joint Venture"). The intention of the Disposal and Proposed
Joint Venture is to establish a new joint venture to expand the Group's
e-products and services business initially in Malaysia.
The Disposal was initially subject to the completion of a merger exercise
between TETE and Super Apps which includes certain approvals by the United
States Securities and Exchange Commission ("SEC") (together the "Merger
Exercise"). Subsequently it was announced on 1 March 2024 that M1 Malaysia had
entered into a supplementary agreement with Super Apps to amend the terms and
conditions of the Share Sale Agreement in preparation for the Merger Exercise
(the "Supplementary Agreement"). Under the new terms and conditions of the
Supplementary Agreement, completion of the Disposal is no longer conditional
on the Merger Exercise completing. In this regard, it was instead agreed that
the Disposal completes upon entry of the Supplementary Agreement.
Notwithstanding completion, if the Merger Exercise does not complete, M1
Malaysia is entitled to purchase back the 60% interest in 1Shop from Super
Apps for a nominal consideration of RM1.00.
It was further agreed that irrespective of the completion of the Disposal and
subject to the completion of the Merger Exercise, Super Apps shall pay M1
Malaysia the following consideration:
(a) RM40.0 million (c. £7.23 million) in cash within 14 days upon completion
of the Merger Exercise; and
(b) RM20.0 million (c. £3.61 million) in cash within 180 days upon completion
of the Merger Exercise.
In addition, pursuant to the terms of the Proposed Joint Venture, M1 Malaysia
undertook to provide the necessary technical and business support to 1Shop and
guaranteed that 1Shop will achieve revenues of at least RM560.0 million
(equivalent to c. £101.16 million) in the financial year ending 31 December
2023 or any other period as mutually agreed (the "Revenue Target"). As the
Merger Exercise has been delayed, the period to achieve the Revenue Target
shall be re-assessed and agreed with Super Apps in due course. In order to
achieve the Revenue Target, Super Apps undertakes to provide all the necessary
working capital requirements of 1Shop. This will be supplemented through Super
Apps, in conjunction with 1Shop, collaborating with other organisations.
Moreover, Super Apps shall procure TETE to issue shares in TETE (the "TETE
Shares") to a stakeholder to be mutually agreed by M1 Malaysia and Super Apps
with an aggregate value of RM20.0 million (equivalent to c. £3.61 million)
within 14 days upon completion of the Merger Exercise. The issue price for the
TETE Shares to the stakeholder will be determined at a later date. M1 Malaysia
will only be entitled to receive the TETE Shares from the stakeholder
following 1Shop achieving the Revenue Target.
Tete Technologies Inc, a wholly-owned subsidiary of TETE, has since filed
draft proxy statements (the "TETE Proxy Filing") with the SEC and the TETE
Proxy Filing is subject to the approval by the SEC. The Company will release
further announcements as and when appropriate.
It was announced by the Group on 18 June 2024 that the deadline to complete
the Merger Exercise was extended from 20 July 2024 to 20 January 2025. There
can be no guarantee that the payment for the consideration of the Disposal and
the Proposed Joint Venture can be completed as they are conditional on the
completion of the Merger Exercise, which is out of the Group's control. The
payment for the consideration of the Disposal and the completion of the
Proposed Joint Venture are expected to contribute positively to the financial
position and future growth prospects of the Group.
(3) Acquisition of Hati via Sincere
On 29 September 2023, M1 Malaysia entered into a share sale agreement with
United Flagship Development Sdn Bhd ("Vendor") to acquire a 49% equity
interest in Sincere for a total cash consideration of RM30.0 million (c.
£5.42 million) to be paid to the Vendor in two tranches (the "Acquisition").
On 4 October 2023, the acquisition of Hati, via Sincere, completed and the
first tranche, representing RM2.0 million (c. £0.36 million), has since been
paid to the Vendor. The second tranche, representing the balance of RM28.0
million (c. £5.06 million) (the "Second Tranche"), was originally required to
be paid by M1 Malaysia by 8 March 2024 (the "Second Tranche Payment Date").
On 8 March 2024, the Second Tranche Payment Date was extended until 8
September 2024 and, on 9 September 2024, it was further extended until 31
December 2024. Any payment in relation to the Second Tranche made after the
Second Tranche Payment Date will be subject to an interest charge of 10% per
annum.
Sincere is an investment holding company with its sole business activity
comprising of owning a 100% equity interest in Hati, an operating company in
Malaysia. Hati is a healthcare information systems provider in Malaysia
focused on healthcare software development and information technology. Through
the use of cloud service platforms and software system solutions, Hati has
developed a product suite comprising of hospital information systems, clinical
information systems, business intelligence platforms and Internet of Things
(IoT)/Artificial Intelligence (AI) enabled platforms.
The Acquisition has a number of synergistic benefits for both the Group and
Hati. The Acquisition not only will enable the Group to diversify its existing
business activities into the growing healthcare information systems industry,
it is anticipated to enable the Group to vertically integrate its existing
electronic payment systems and services with Hati's suite of existing products
to support payment methods such as credit cards, debit cards and eWallets via
online payments and over the counter payments. In addition, the Acquisition
will result in Hati being able to utilise the Group's infrastructure and
engineering know-how to automate electronic billing and invoicing.
In September 2024, M1 Malaysia was appointed as supplier to Selgate Healthcare
Sdn Bhd ("Selgate") to supply, deliver, install, test and commission a
hospital information system incorporating Hati's healthcare software
development and information technology capabilities (together the
"Appointment"). As part of the Appointment, Selgate has agreed to pay staged
payments to M1 Malaysia over a five-year period totalling RM11,952,600
(equivalent to c. £2.16 million). With this positive development, the Group
and Hati hope to secure more projects in hospital information systems in the
next 12 months.
(4) Acquisition of Jejak Semangat Sdn. Bhd. ("Jejak")
On 7 March 2024, the Group announced that M1 Malaysia had entered into a share
sale agreement with MBP Solutions Sdn. Bhd., LMS Technology Distributions Sdn.
Bhd., Dato' Hussian A Rahman and Derrick Chia Kah Wai to acquire 100% of the
issued share capital of Jejak for a nominal cash consideration of RM4.00 (c.
£0.70). The acquisition completed on 2 July 2024.
Jejak holds a license issued by the Malaysian Ministry of Communications and
Multimedia to provide network services in Malaysia for a period until 23 April
2031. The license will complement M1 Malaysia's current business of providing
mobile prepaid reload services.
The Group anticipates a challenging business environment and remains cautious
about the outlook for the remainder of 2024. This caution is due to rising
inflation and increased expenses, including higher administrative,
infrastructure, and marketing costs, among other related expenses.
Consequently, the Group's gross profit margins for its products and services
are expected to continue to be affected as it strives to maintain or grow its
business.
The expected completion of the Proposed Joint Venture with Super Apps and the
Merger Exercise, as disclosed above, will significantly enhance the Group's
financial position and future growth. Additionally, the implementation of
Hati's potential projects in the foreseeable future is expected to benefit the
Group through the share of any profit from this associated company. The Group
will continue to invest in and enhance its research and development to support
business and technological advancements and to form partnerships for future
growth.
Abu Bakar bin Mohd Taib (Chairman)
27 September 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024
Six months Six months Financial year
Ended Ended Ended
30 June 2024 30 June 2023 31 Dec 2023
Unaudited Unaudited Audited
CONTINUING OPERATIONS £ £ £
Revenue 110,488,003 121,529,982 241,673,952
Cost of sales (105,464,057) (115,358,166) (229,742,340)
GROSS PROFIT 5,023,946 6,171,816 11,931,612
Other operating income 10,625 24,686 136,872
Administration expenses (6,247,169) (5,914,978) (12,547,017)
Other operating expenses (162,877) (174,821) (220,895)
Net loss on financial instruments - (351,387)
OPERATING (LOSS)/PROFIT (1,375,475) 106,703 (1,050,815)
Finance income 14,191 15,479 41,033
Finance costs (157,203) (116,268) (236,058)
Share of post-tax loss of equity accounted
associates (157,630) - (123,774)
(LOSS)/PROFIT BEFORE TAX (1,676,117) 5,914 (1,369,614)
Tax (416) (797) (38,518)
(LOSS)/PROFIT FROM CONTINUING OPERATIONS
(1,676,533) 5,117 (1,408,132)
Attributable to:
Owners of the parent (1,672,674) 1,056 (1,408,482)
Non-controlling interest (3,859) 4,061 350
(1,676,533) 5,117 (1,408,132)
(LOSS) / PROFIT PER SHARE
Basic (loss) / earnings per share (pence) (1.574) 0.001 (1.325)
Diluted (loss) / earnings per share (pence) (1.574) 0.001 (1.325)
(LOSS)/PROFIT FOR THE PERIOD/YEAR
(1,676,533) 5,117 (1,408,132)
OTHER COMPREHENSIVE LOSS
Foreign currency translation (41,786) (624,236) (542,104)
TOTAL COMPREHENSIVE LOSS FOR
THE PERIOD/YEAR (1,718,319) (619,119) (1,950,236)
Total comprehensive (loss)/profit attributable to:
Owners of the parent (1,714,710) (624,438) (1,952,013)
Non-controlling interest (3,609) 5,319 1,777
(1,718,319) (619,119) (1,950,236)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
At At At
30 June 2024 30 June 2023 31 Dec 2023
Unaudited Unaudited Audited
£ £ £
Assets
Non-current assets
Intangible assets 543,664 473,001 567,823
Property, plant and equipment 435,320 648,525 544,033
Investment property 242,208 251,568 250,102
Right-of-use assets 177,821 144,414 154,755
Trade and other receivables 889,800 905,758 258,428
Investment in associate 4,754,604 - 5,010,284
Other investment 10,899 11,045 11,116
7,054,316 2,434,311 6,796,541
Current assets
Inventories 1,495,795 2,280,346 1,912,675
Trade and other receivables 2,572,590 3,277,551 2,688,902
Other financial assets 474,032 483,040 600,694
Tax recoverable 160,267 254,391 163,452
Cash and cash equivalents 3,938,017 2,934,515 3,536,135
8,640,701 9,229,843 8,901,858
Total Assets 15,695,017 11,664,154 15,698,399
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 462,115 422,188 504,151
Accumulated losses (3,174,922) (92,710) (1,502,248)
Shareholders' equity 1,563,086 4,605,371 3,277,796
Non-controlling interest (16,943) (9,792) (13,334)
Total Equity 1,546,143 4,595,579 3,264,462
Liabilities
Non-current liabilities
Loans and borrowings - secured 181,926 195,166 189,428
Lease liabilities 126,381 15,007 101,465
Deferred tax liabilities 45,169 13,926 46,066
353,476 224,099 336,959
Current liabilities
Trade and other payables 2,587,235 2,775,077 3,169,711
Deferred consideration due 4,695,151 - 4,788,453
Amount due to directors 58,300 2,403 35,300
Loans and borrowings - secured 6,390,338 3,943,085 4,036,396
Lease liabilities 62,662 123,063 65,372
Tax payables 1,712 848 1,746
13,795,398 6,844,476 12,096,978
Total Liabilities 14,148,874 7,068,575 12,433,937
Total Equity and Liabilities 15,695,017 11,664,154 15,698,399
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
Non-Distributable Distributable
Foreign
Reverse Currency Non-
Share Share Acquisition Translation Accumulated Controlling Total
Capital Premium Reserve Reserve Profit/(Losses) Total Interest Equity
£ £ £ £ £ £ £ £
As at 1 January 2023 2,657,470 909,472 708,951 1,047,682 (93,766) 5,229,809 (15,111) 5,214,698
Foreign currency translation - - - (625,494) - (625,494) 1,258 (624,236)
Profit for the period - - - - 1,056 1,056 4,061 5,117
As at 30 June 2023 2,657,470 909,472 708,951 422,188 (92,710) 4,605,371 (9,792) 4,595,579
As at 1 July 2023 2,657,470 909,472 708,951 422,188 (92,710) 4,605,371 (9,792) 4,595,579
Foreign currency translation - - - 81,963 - 81,963 169 82,132
Profit/(Loss) for the period - - - - (1,409,538) (1,409,538) (3,711) (1,413,249)
As at 31 Dec 2023 2,657,470 909,472 708,951 504,151 (1,502,248) 3,277,796 (13,334) 3,264,462
As at 1 January 2024 2,657,470 909,472 708,951 504,151 (1,502,248) 3,277,796 (13,334) 3,264,462
Foreign currency translation - - - (42,036) - (42,036) 250 (41,786)
Profit for the period - - - - (1,672,674) (1,672,674) (3,859) (1,676,533)
As at 30 June 2024 2,657,470 909,472 708,951 462,115 (3,174,922) 1,563,086 (16,943) 1,546,143
Share capital is the amount subscribed for shares at nominal value.
Share premium represents the excess of the amount subscribed for share capital
over the nominal value of the respective shares net of share issue expenses.
The reverse acquisition reserve relates to the adjustment required by
accounting for the reverse acquisition in accordance with IFRS 3.
The Company's assets and liabilities stated in the Statement of Financial
Position were translated into Pound Sterling (£) using the closing rate as at
the Statement of Financial Position date and the income statements were
translated into £ using the average rate for that period. All resulting
exchange differences are taken to the foreign currency translation reserve
within equity.
Retained earnings represent the cumulative earnings of the Group attributable
to equity shareholders.
Non-controlling interests represent the share of ownership of subsidiary
companies outside the Group.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
Six months Six months Financial year
Ended Ended ended
30 June 2024 30 June 2023 31 Dec 2023
Unaudited Unaudited Audited
£ £ £
Cash flows (used in)/from operating activities
Cash (used in)/from operations (1,918,818) (816,961) 213,934
Interest received 13,915 14,580 39,435
Tax paid (417) (99,165) (168,251)
Tax refund - - 157,324
Net cash (used in)/from operating activities (1,905,320) (901,546) 242,442
Cash flows used in investing activities
Purchase of property, plant and equipment (6,373) (9,876) (47,092)
Purchase of intangible assets 26,191 (280,379) (373,965)
Addition in right-of-use assets (68,842) (23,641) -
Addition to investments in associate - - (342,032)
Proceeds from disposal of property, plant & equipment - 163 2,018
Net cash used in investing activities (49,024) (313,733) (761,071)
Cash flows from financing activities
Interest paid (156,660) (116,414) (236,058)
Net change of banker acceptance 2,432,591 662,713 389,297
Net change in other financial assets pledged 126,662 (483,040) 51,512
Addition / (Repayment) of lease liabilities 25,456 (45,186) (96,503)
Repayment of term loan (3,811) (4,218) (11,617)
Net cash from financing activities 2,424,238 13,855 96,631
Increase/(Decrease) in cash and cash equivalents 469,894 (1,201,424) (421,998)
Effect of foreign exchange rate changes (68,012) (879,233) (404,833)
Cash and cash equivalents at beginning of period/year 3,536,135 5,015,172
4,362,966
Cash and cash equivalents at end of period/year 3,938,017 2,934,515 3,536,135
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
The Group's interim financial statements for the six months ended 30 June 2024
were authorised for issue by the Board of Directors on 27 September 2024.
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 2023 Annual Report, will be included in the
audited financial statements for the year ending 31 December 2024.
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 2024.
3. Nature of financial information
The unaudited interim financial information for the six months ended 30 June
2024 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 2023 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:
Exchange rate (RM: £)
At Statement of Financial Position date Average for year/
Period
Period ended 30 June 2024 5.96 5.98
Period ended 30 June 2023 5.88 5.50
Year ended 31 December 2023 5.85 5.68
5. Segmental analysis
The Group has two operating segments as follows:
(a) Telecommunication services and electronic commerce solutions; and
(b) Hardware and services, including selling of hardware, remittance
services and money lending income.
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.
Telecommunication services and electronic commerce solutions
Hardware and services Elimination Total
Group
6months ended 30 June 2024 £ £ £ £
Segment revenue:
Sales to external customers 109,732,428 755,575 110,488,003
Inter-segment 161,094 (161,094) -
109,732,428 916,669 (161,094) 110,488,003
Loss before tax - - (1,676,117)
Tax - - (416)
Loss for the period - - (1,676,533)
Group
6months ended 30 June 2023
Segment revenue:
Sales to external customers 121,242,999 286,983 121,529,982
Inter-segment 84,867 (84,867) -
121,242,999 371,850 (84,867) 121,529,982
Profit before tax - - 5,914
Tax - - (797)
Profit for the period - - 5,117
Group
Financial year ended 31 Dec 2023
Segment revenue:
Sales to external customers 239,532,015 2,141,937 241,673,952
Inter-segment 167,282 (167,282) -
239,532,015 2,309,219 (167,282) 241,673,952
Loss before tax - - (1,369,614)
Tax - - (38,518)
Loss for the year - - (1,408,132)
*The disclosure for non-cash expenses has not been split according to the
different segments as the cost to obtain such information is excessive and
provides very little by way of information.
*The disclosure for non-cash expenses has not been split according to the
different segments as the cost to obtain such information is excessive and
provides very little by way of information.
*The disclosure for non-cash expenses has not been split according to the
different segments as the cost to obtain such information is excessive and
provides very little by way of information.
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
atransaction 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 / (loss) per share
The basic earnings / (loss) per share is calculated by dividing the loss in
the six month period ended 30 June 2024 of £1,672,674 (30 June 2023: profit
of £1,056 and year ended 31 December 2023: loss of £1,408,482) attributable
to owners of the parent by the number of ordinary shares outstanding at 30
June 2024 of 106,298,780 (30 June 2023: 106,298,780 and 31 December 2023:
106,298,780).
The diluted earnings per share for the six month period ended 30 June 2024 is
calculated using the number of shares adjusted to assume the exercise of all
dilutive potential ordinary shares of 112,623,648. 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, which are expiring on 4 December 2024. Share
options of 2,000,000 shares have lapsed due to resignation of employees and no
options have been exercised.
8. Reconciliation of profit before tax to cash generated from operations
Six months Six months Financial year
ended Ended ended
30 June 2024 30 June 2023 31 Dec 2023
Unaudited Unaudited Audited
£ £ £
Cash flow (used in)/from operating activities
(Loss)/Profit before tax (1,676,117) 5,914 (1,369,614)
Adjustments for:
Amortisation of intangible assets 13,060 - -
Amortisation of right-of-use assets 42,645 47,471 96,319
Bad debt written off - - 12,131
Depreciation of property, plant and equipment 104,160 124,078 248,320
Depreciation of investment property 3,012 3,272 6,344
Gain on disposal of property, plant & equipment - (156) (1,437)
Gain on disposal of right-of-use assets - - (3,234)
Impairment loss on trade receivables - - 377,411
Interest expenses 156,660 116,414 236,058
Inventories written off - - 808
Interest income (13,915) (14,580) (39,435)
Property, plant and equipment written off 45 - 20,354
Reversal on impairment loss on trade receivable - - (62,402)
Share of post-tax loss of equity accounted associates 157,630 - 123,774
Unrealised loss/(gain) on forex - 2,707 (10,707)
Operating (loss)/profit before working capital changes (1,212,820) 285,120 (365,310)
(Increase)/Decrease in inventories 379,613 909,555 1,276,418
(Increase)/Decrease in receivables (588,199) (1,775,475) (888,275)
Increase/(Decrease) in amount due to directors & shareholder
23,000 - (31,555)
(Decrease)/Increase in payables (520,412) (236,161) 222,656
Cash (used in)/from operations (1,918,818) (816,961) 213,934
9. Contingent liabilities
In the period under review, corporate guarantees of RM29.1 million (£4.88
million) (H1 2023: RM27.0 million (£4.59 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
2023 except for the adoption of new and amended reporting standards, which are
effective for periods commencing on or after 1 January 2024. Various
amendments to standards and interpretations of standards are effective for
periods commencing on or after 1 January 2024 as detailed in the 2023 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.
7.
Earnings / (loss) per share
The basic earnings / (loss) per share is calculated by dividing the loss in
the six month period ended 30 June 2024 of £1,672,674 (30 June 2023: profit
of £1,056 and year ended 31 December 2023: loss of £1,408,482) attributable
to owners of the parent by the number of ordinary shares outstanding at 30
June 2024 of 106,298,780 (30 June 2023: 106,298,780 and 31 December 2023:
106,298,780).
The diluted earnings per share for the six month period ended 30 June 2024 is
calculated using the number of shares adjusted to assume the exercise of all
dilutive potential ordinary shares of 112,623,648. 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, which are expiring on 4 December 2024. Share
options of 2,000,000 shares have lapsed due to resignation of employees and no
options have been exercised.
8.
Reconciliation of profit before tax to cash generated from operations
Six months Six months Financial year
ended Ended ended
30 June 2024 30 June 2023 31 Dec 2023
Unaudited Unaudited Audited
£ £ £
Cash flow (used in)/from operating activities
(Loss)/Profit before tax (1,676,117) 5,914 (1,369,614)
Adjustments for:
Amortisation of intangible assets 13,060 - -
Amortisation of right-of-use assets 42,645 47,471 96,319
Bad debt written off - - 12,131
Depreciation of property, plant and equipment 104,160 124,078 248,320
Depreciation of investment property 3,012 3,272 6,344
Gain on disposal of property, plant & equipment - (156) (1,437)
Gain on disposal of right-of-use assets - - (3,234)
Impairment loss on trade receivables - - 377,411
Interest expenses 156,660 116,414 236,058
Inventories written off - - 808
Interest income (13,915) (14,580) (39,435)
Property, plant and equipment written off 45 - 20,354
Reversal on impairment loss on trade receivable - - (62,402)
Share of post-tax loss of equity accounted associates 157,630 - 123,774
Unrealised loss/(gain) on forex - 2,707 (10,707)
Operating (loss)/profit before working capital changes (1,212,820) 285,120 (365,310)
(Increase)/Decrease in inventories 379,613 909,555 1,276,418
(Increase)/Decrease in receivables (588,199) (1,775,475) (888,275)
Increase/(Decrease) in amount due to directors & shareholder
23,000 - (31,555)
(Decrease)/Increase in payables (520,412) (236,161) 222,656
Cash (used in)/from operations (1,918,818) (816,961) 213,934
9.
Contingent liabilities
In the period under review, corporate guarantees of RM29.1 million (£4.88
million) (H1 2023: RM27.0 million (£4.59 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
2023 except for the adoption of new and amended reporting standards, which are
effective for periods commencing on or after 1 January 2024. Various
amendments to standards and interpretations of standards are effective for
periods commencing on or after 1 January 2024 as detailed in the 2023 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 (http://www.mobilityone.com.my) .
-Ends-
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