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
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
|