The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
15 June 2021
("MobilityOne", the "Company" or the "Group")
Trading update and
extension to publication of audited accounts for year ended
31 December 2020
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 2020.
· Unaudited revenue increased 45.6% to £246.7 million (2019: £169.4 million) mainly due to higher sales recorded in the Group's mobile phone prepaid airtime reload and bill payment business in Malaysia;
· Gross profit of £12.96 million (2019: £10.77 million);
· Profit before tax of £2.26 million (2019: £1.08 million);
· Profit after tax of £1.61 million (2019: £1.87 million, included gain on disposal of a subsidiary of £1.11 million);
· Cash and cash equivalents as at 31 December 2020 of £4.42 million (31 December 2019: £4.42 million);
· The Directors remain positive on the prospects of the Group for 2021 as the COVID-19 pandemic has not negatively affected the Group's financial performance and the existing businesses in Malaysia are expected to grow further; and
· The Company has been granted an extension to publish its audited results for the financial year ended 31 December 2020 by no later than 30 September 2021.
Based on the unaudited results for the financial year ended 31 December 2020, the Group achieved an increase in revenue of £246.7 million (12 months ended 31 December 2019: revenue of £169.4 million). This reflects a 45.6% increase and was mainly due to the strong growth of the Group's e-payment business in Malaysia, in particular, 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) with 10 banks and third parties' e-wallet.
In tandem with the increase in revenue, the Group is expected to record a profit after tax of £1.61 million in 2020 (2019: profit after tax of £1.87 million, which included a one-off gain of £1.11 million in connection with the Group's disposal of its 55%-owned loss-making subsidiary in Bangladesh).
In 2020, 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.
As at 31 December 2020, the Group's financial position remained healthy with cash and cash equivalents of £4.42 million (31 December 2019: cash and cash equivalents of £4.42 million) and the secured loans and borrowings from financial institutions amounted to £3.20 million (31 December 2019: £3.43 million).
All figures stated above are based on unaudited financial figures and remain subject to finalisation of the Group's audit.
The COVID-19 pandemic has not negatively affected the Group's financial performance given that the nature of the Group's major business activities are focused on e-payments. As such, the Group remains positive on its business outlook for the remainder of 2021 as the e-payments industry is expected to continue its growth trend in Malaysia. In addition, the Group will continue to enhance its product offering and pursue new business opportunities.
In 2020, the Company incorporated M-One Tech Limited in the United Kingdom with the intention to commence business in areas such as payment aggregation, electronic payments and e-remittance services in the United Kingdom, in which the Group already has the operational experience in Malaysia. In view of the outbreak of the COVID-19 pandemic, the preparation for the necessary application to the Financial Conduct Authority ("FCA") to seek its authorisation for the above has been delayed and the Group plans to finalise the application to the FCA during 2022.
As recently announced, the Group has received a license from MasterCard Asia/Pacific Pte Ltd ("MasterCard") for the Group to issue MasterCard prepaid cards in Malaysia which will complement the Group's existing e-wallet and will be part of the Group's end-to-end payment ecosystem. In addition, the Society for Worldwide Interbank Financial Telecommunication ("SWIFT") has permitted the Group to join its network. With SWIFT's platform, the Group is expected to be able to expand its business to larger amount of money transfers for business to business (B2B) in addition to the Group's existing arrangement with MoneyGram which caters mainly for the smaller amount of money transfers, typically for consumer to consumer (C2C).
While the Directors do not anticipate any significant revenue contribution from the developments with MasterCard and SWIFT in the current financial year, as the transactions are expected to only commence in the 4th quarter of this year after receiving relevant approvals from the Central Bank of Malaysia, they are expected to contribute positively to the Group's overall growth prospects in the long term.
Annual Report and Accounts
In view of the recent renewed set of lockdown restrictions in Malaysia due to rising COVID-19 cases in Malaysia where the main business operations of the Group are based, the Company will be posting its annual audited report and accounts for the financial year ended 31 December 2020 ("Annual Report") to shareholders by 30 September 2021 but will endeavour to do so as soon as possible. Pursuant to the guidance provided by AIM Regulation in "Inside AIM" on 27 January 2021, AIM Regulation has granted the Company an additional period of up to 3 months until 30 September 2021 to publish the Annual Report.
The Company has also been granted an extension of time to file the Annual Report with the Jersey Financial Services Commission until 30 September 2021.
For further information, please contact:
MobilityOne Limited +6 03 89963600
Dato' Hussian A. Rahman, CEO www.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 EDC terminals, mobile devices, automated teller machines ("ATM") 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