MobilityOne (MBO) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 fell 9.1% year-over-year to £110.5 million, mainly due to lower sales in Malaysia's mobile prepaid and bill payment segment.

• The group posted a loss after tax of £1.68 million, compared to a small profit of £5,117 in H1 2023, driven by lower sales, higher costs, and losses from its associate Sincere Acres.

• Cash and cash equivalents increased to £4.41 million from £3.42 million a year earlier, while secured loans and borrowings rose to £6.57 million.

• The group remains cautious for the rest of 2024 due to inflation and rising expenses, with gross profit margins expected to remain under pressure.

Financial highlights

• Gross profit for H1 2024 was £5.02 million, down from £6.17 million in H1 2023.

• Operating loss was £1.38 million, compared to an operating profit of £0.11 million in H1 2023.

• Basic and diluted loss per share were (1.574)p, versus 0.001p earnings per share in H1 2023.

• Total assets stood at £15.70 million as of 30 June 2024, with total equity at £1.55 million.

• Net cash used in operating activities was £1.91 million, with a net increase in cash and cash equivalents of £0.47 million during the period.

Outlook and guidance

• Main business activities in Malaysia are expected to continue dominating revenue, with other segments remaining small.

• The group is cautious for H2 2024 due to inflation and higher costs, expecting continued pressure on gross margins.

• Anticipates positive impact from the completion of the Super Apps joint venture and the merger exercise, as well as new healthcare IT projects.