REG - MobilityOne Limited - Trading update

MobilityOneAnnouncement

01/06/2022 11:45

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RNS Number : 5810N  MobilityOne Limited  01 June 2022

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under article 7 of EU Regulation
596/2014 which forms part of domestic UK law pursuant to the European Union
(Withdrawal) Act 2018. With the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.

 

1 June 2022

MobilityOne Limited

("MobilityOne", the "Company" or the "Group")

 

Trading update

 

MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and
platform provider, announces an update on trading prior to release of its
audited results for the financial year ended 31 December 2021.

 

Highlights:

 

·       Unaudited revenue increased 3.66% to £255.71 million (2020:
£246.67 million) due to higher sales recorded in the Group's mobile phone
prepaid airtime reload and bill payment business;

 

·       Gross profit of £13.66 million (2020: £12.96 million);

 

·       Profit after tax of £1.51 million (2020: £1.61 million);

 

·       Cash and cash equivalents as at 31 December 2021 of £4.67
million (31 December 2020: £4.42 million); and

 

·          In light of the continued growth of the Group's existing
core business in Malaysia, the Directors remain confident on the future
prospects for the Group.

 

 

In the financial year ended 31 December 2021, the Group expects to achieve an
increase in revenue of £9.04 million to £255.71 million (year ended 31
December 2020: revenue of £246.67 million) due to the continued growth of the
Group's e-payment business in Malaysia. In particular, revenue growth was as a
result of higher sales that were recorded in the Group's mobile phone prepaid
airtime reload and bill payment business through the Group's banking channels
(i.e. mobile banking and internet banking), third parties' e-wallet and
electronic data capture terminals.

 

Notwithstanding the increase in revenue, the Group expects to record a lower
profit after tax of £1.51 million in 2021 mainly due to higher administration
expenses (year ended 31 December 2020: profit after tax of £1.61 million).
The Group's international remittance services and e-money business in Malaysia
and e-payment solutions activities in the Philippines and Brunei remained
small and did not make significant contributions to the Group in the year
ended 31 December 2021.

 

As at 31 December 2021, the Group's cash and cash equivalents increased to
£4.67 million (31 December 2020: cash and cash equivalents of £4.42 million)
while the secured loans and borrowings from financial institutions reduced to
£2.18 million (31 December 2020: £3.20 million).

 

All figures stated above for the year ended 31 December 2021 are based on
unaudited financial figures and are subject to finalisation of the Group's
audit.

 

Outlook and business update

 

The Company's wholly-owned subsidiary in Malaysia, MobilityOne Sdn Bhd, which
received a license from MasterCard Asia/Pacific Pte Ltd ("MasterCard") to
issue MasterCard prepaid cards, has obtained approval from the Central Bank of
Malaysia to introduce international scheme prepaid cards under MasterCard's
brand in Malaysia.  The Group expects to commence the issuance of MasterCard
prepaid cards in the 3(rd) quarter of 2022, which is expected to complement
the Group's existing e-wallet and will be part of the Group's end-to-end
payment ecosystem.

 

However, the Central Bank of Malaysia has not yet given its decision, the
timing of which remains uncertain, for the Group to expand its money transfer
business via the Society for Worldwide Interbank Financial
Telecommunication ("SWIFT") network. The Group is currently working closely
with a bank in Malaysia on the integration process while waiting for the
Central Bank of Malaysia's approval. As a result, the Group will not now be in
a position to commence arrangements with SWIFT during the first half of 2022,
as had been previously announced. A further announcement in this respect will
be made as and when is appropriate.

 

In September 2021, M-One Tech Limited, the Company's wholly-owned subsidiary
in the UK, submitted an application to the Financial Conduct Authority (the
"FCA") (together the "FCA Application"), the financial regulatory body in the
UK, for authorisation as an electronic money institution to provide e-money
services in the UK. The Group has, in late May 2022, received feedback from
the FCA to include additional information in the FCA Application. In view of
this and after further consideration, the Group has decided to withdraw the
FCA Application by 6 June 2022. It is the Directors' intention to re-submit
the FCA Application in the next 3 months with additional information based on
the FCA's feedback.

 

In October 2021, the Group entered into a joint venture cum shareholders
agreement ("JV Agreement") with One M Tech Pty Ltd to explore e-commerce and
e-payment business opportunities in Australia.  There have been no
developments or progress made by the joint venture partner since the signing
of the JV Agreement and the Group is still in discussions with the joint
venture partner about the business opportunities and the continuation of the
JV Agreement.

 

The Directors remain positive on the Group's outlook for 2022 noting that the
e-payments industry is expected to continue to grow in Malaysia and that the
Group will continue to enhance its product offering.

 

Annual Report and Accounts

 

The Company expects to publish its annual audited report and accounts for the
financial year ended 31 December 2021 at the end of June 2022.

 

For further information, please 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 provides e-commerce infrastructure payment solutions and platforms
through its proprietary technology solutions. The Group has developed an
end-to-end e-commerce solution which connects various service providers across
several industries such as banking, telecommunication and transportation
through multiple distribution devices including electronic date capture
terminals, mobile devices, automated teller machines and internet banking. The
Group's technology platform is flexible, scalable and designed to facilitate
cash, debit card and credit card transactions from multiple devices while
controlling and monitoring the distribution of different products and
services.

 

For more information, refer to our website at www.mobilityone.com.my
(http://www.mobilityone.com.my)

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