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VINYL GROUP LTD Annual Report 2014

Aug 28, 2014

66014_rns_2014-08-28_a3655509-765f-4dd7-9d0b-8afc7c332707.pdf

Annual Report

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AND MEDIA RELEASE Date: 29 August 2014

ASX CODE: MBO

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MBO delivers record year in FY2014

  • Full year loss of $0.063M reduced by $1.235M or 95% over the previous year

  • Record orders, revenues.

  • Initial rental order book to improve operations in future years

Perth, Western Australia : Global marine safety

equipment provider, Mobilarm Limited (ASX:

MBO) (“The Company”) today reported full year results for the year ended 30 June 2014. Mobilarm reported an overall decrease in its operating loss by 95% to $63,392, a near breakeven performance.

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Ken Gaunt, Mobilarm’s Chief Executive Officer, commented: “This financial year was a turn around year for the Company and we have delivered record orders and revenues enabling us to reach a near breakeven position. Our focus on delivering new products and solutions, introducing a unique rental service and expanding our annual service offering has been key to achieving this. We have grown organically and invested in new products and markets and we will deliver a substantial increase on this performance next year."

Mobilarm’s Chief Financial Officer, Jorge Nigaglioni, commented: “We have now moved from the implementation phase of our strategy to our growth phase. We have set aggressive plans to drive further increase in the number of users in the market and our market share. We are well positioned to grow our business in the North America and Australasia regions over the next 12-24 months. The rentals signed in the last year will have a positive impact on results in financial years 2015 to 2019.”

TEL. +61 8 9315 3511 MOBILARM LIMITED (ABN 15 106 513 580) FAX. +61 8 9315 3611 768 CANNING HIGHWAY PO BOX 1533 APPLECROSS 6953 WESTERN AUSTRALIA WWW.MOBILARM.COM [email protected]


Ken Gaunt Chief Executive Officer

Perth, Western Australia 29 August 2014

Further details

Ken Gaunt

Chief Executive Officer

Email: [email protected] Tel.: +61 417 961 770 Tel.: +44 782 731 4442 www.mobilarm.com

2

APPENDIX 4E

Full
Year
Report 30
June
2013

MOBILARM LIMITED

**ACN

106
513
580**

**Results

for
announcement
to
the
market**

June 2014 June 2014 June 2013
Financial Results Movement $ $

Revenue from ordinaryactivities
36% 5,816,192 4,279,624
Profit/(loss) from ordinary activities after tax attributable to
members
95% (63,392) (1,297,765)
Netprofit/(loss)for theperiod attributable to members 95% (63,392) (1,297,765)
Dividends Amount per
OrdinarySecurity
Franked amount per
security
2014 dividend
Nil -
2013 dividend
Nil -
Record date for determiningentitlements to interim dividends N/A
Net Tangible Asset/(Liability) Backing June 2014 June 2013
Net tangible asset/(liability) backing per ordinary security – cents
per share
0.1 0.1

3

**MOBILARM

LIMITED PRELIMINARY
STATEMENT
OF
COMPREHENSIVE
INCOME FOR
THE
YEAR
ENDED
30
JUNE
2014**






Note



Revenue


Sale of goods


Rental revenue








Cost of units sold


Depreciation of units under rental














Interest income


Other income





Employee benefits


Share based compensation expense


Depreciation and amortisation


Advertising


Audit and tax


Accountancy


Freight and cartage


External consultants and contractors


Rental


Travel and accommodation


Allowance for doubtful debts


Payroll tax


Legal fees


Telephone and internet charges


Insurance


Printing, postage and stationery


Motor vehicles expenses


Finance costs


Property letting fees


Rates and land tax


Foreign exchange (loss)/gain


Redundancy costs


Impairment of capitalised development costs


Other expenses


Loss before income tax (carried forward)





Income tax benefit





Loss after income tax from continuing operations

Mobilarm
2014

$



5,647,019

169,173

5,816,192



(1,482,079)

(24,464)

(1,506,543)

4,309,649





6,427

-



(2,143,003)

(181,130)

(463,531)

(64,046)

(92,525)

(19,995)

(68,092)

(361,605)

(159,960)

(406,965)

507,026

(6,901)

(91,949)

(72,674)

(71,250)

(93,119)

(80,287)

(186,518)

(78,969)

(69,265)

(173,536)

-

-

(413,035)

(475,253)



411,861



(63,392)
Limited
2013
$

4,279,624
-
4,279,624

(1,205,348)
-
(1,205,348)
3,074,276


14,777
180

(1,759,163)
(77,687)
(499,165)
(45,095)
(46,423)
(76,731)
5,830
(265,665)
(80,105)
(238,476)
(607,639)
(20,826)
(79,671)
(72,150)
(79,359)
(90,502)
(57,588)
(137,473)
(26,032)
(35,778)
116,294
(27,115)
(78,506)
(398,360)
(1,588,152)

290,387

(1,297,765)

4

Loss after income tax from continuing operations





Other comprehensive income


Changes in value of available-for-sale investments, net of tax





Total comprehensive loss for the period





Basic earnings per share (cents per share)

(6)



Diluted earnings per share (cents per share)

(6)


(63,392)





-



(63,392)



(0.0)



(0.0)


(1,297,765)


-

(1,297,765)

(0.4)

(0.4)

5

**MOBILARM

LIMITED PRELIMINARY
STATEMENT
OF
FINANCIAL
POSITION AS
AT
30
JUNE
2014**









Note
CURRENT ASSETS


Cash and cash equivalents


Restricted cash


Short–term securities

(4)
Trade and other receivables


Inventories


Other current assets


TOTAL CURRENT ASSETS





NON-CURRENT ASSETS


Plant and equipment


Intangible assets and Goodwill

(3)
TOTAL NON-CURRENT ASSETS





TOTAL ASSETS





CURRENT LIABILITIES


Trade and other payables


Interest bearing loans and borrowings

(4)
Provisions





TOTAL CURRENT LIABILITIES





NON-CURRENT LIABILITIES


Provisions


Interest bearing loans and borrowings

(4)
TOTAL NON-CURRENT LIABILITIES





TOTAL LIABILITIES





NET ASSETS





EQUITY


Contributed equity

(5)
Accumulated Losses


Reserves

(5)



TOTAL EQUITY

Mobilarm Limited



2014

2013
$

$
842,229

589,072
48,217

48,217
698,979

-
1,590,210

981,729
1,174,063

482,739
314,638

105,867
4,668,336

2,207,624






623,887

229,167
3,253,948

3,088,432
3,877,835
3,317,599



8,546,171

5,525,223






1,793,768

1,224,859
896,134

723,954
153,018

226,307



2,842,920

2,175,120






30,294

17,425
6,318

17,738
36,612

35,163



2,879,532

2,210,283



5,666,639

3,314,940






29,804,298

27,790,295
(24,873,934)

(24,810,542)
736,275

335,187



5,666,639

3,314,940
Mobilarm Limited



2014

2013
$

$
842,229

589,072
48,217

48,217
698,979

-
1,590,210

981,729
1,174,063

482,739
314,638

105,867
4,668,336

2,207,624






623,887

229,167
3,253,948

3,088,432
3,877,835
3,317,599



8,546,171

5,525,223






1,793,768

1,224,859
896,134

723,954
153,018

226,307



2,842,920

2,175,120






30,294

17,425
6,318

17,738
36,612

35,163



2,879,532

2,210,283



5,666,639

3,314,940






29,804,298

27,790,295
(24,873,934)

(24,810,542)
736,275

335,187



5,666,639

3,314,940
2,207,624


229,167
3,088,432
3,317,599

5,525,223


1,224,859
723,954
226,307

2,175,120


17,425
17,738
35,163

2,210,283

3,314,940


27,790,295
(24,810,542)
335,187

3,314,940

6

**MOBILARM

LIMITED PRELIMINARY
STATEMENT
OF
CHANGES
IN
EQUITY FOR
THE
YEAR
ENDED
30
JUNE
2014**



As at 30 June 2012

Net loss for the period

Other comprehensive income

Total comprehensive loss for the period

Transactions with owners in their
capacity as owners

Issue of deferred ordinary share
compensation from MRT acquisition

Share based payments Performance
Shares

Forfeiture of Performance Shares

Share based payments Performance
Share Rights

Share based payments – Stock Options

As at 30 June 2013

Net loss for the period

Other comprehensive income

Total comprehensive loss for the period

Transactions with owners in their
capacity as owners

Issue of equity

Costs of share issues

Currency translation reserve

Conversion of convertible notes into
ordinary shares

Share based payments – Performance
Shares

Share based payments – Performance
Shares Rights

Share based payments – Stock Options

As at 30 June 2014
Issued Capital
$
27,710,729

-



-



114,233

16,000

(50,667)

-

-

27,790,295

-

-

-



1,300,000

(10,000)

(7,654)

720,989

10,668

-

-

29,804,298
Accumulated
Losses
$
(23,512,777)

(1,239,280)



(1,239,280)



-

-

-

-

-

(24,810 542)

(63,392)

-

(63,392)



-

-

-

-

-

-

-

(24,873,934)
Stock Option
Reserve
$
222,833

-



-



-

-

-

29,549

82,805

335,187

-

-

-



-

-

-

-

-

70,917

99,544

505,648
Currency
Translation
Reserve
$
-

-



-



-

-

-

-

-

-

-
-
-


-
-
230,627
-
-
-
-
230,627

Total Equity
$ 4,420,785
(1,239,280)
(1,239,280)

114,233
16,000
(50,667)
29,549
82,805
3,314,940
(63,392)
-
(63,392)

1,300,000
(10,000)
222,973
720,989
10,668
70,917
99,544
5,666,639

7

**MOBILARM

LIMITED PRELIMINARY
STATEMENT
OF
CASH
FLOWS FOR
THE
YEAR
ENDED
30
JUNE
2014**


Note
CASH FLOWS FROM

OPERATING ACTIVITIES



Receipts from customers

Payments to suppliers and employees

Interest received

Payment for research & development

R&D tax rebate

Rental income & recoveries

Interest and other borrowing costs paid

NET CASH FLOWS USED IN OPERATING





CASH FLOWS FROM INVESTING ACTIVITIES

Payments for plant and equipment

Acquisition of business

Term Deposit

NET CASH FLOWS PROVIDED/(USED) IN
INVESTING ACTIVITIES



CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings – related parties
(4)
Proceeds from borrowings
(4)
Repayment of borrowings

Proceeds from share issues
(5)
Costs of share issue
(5)
NET
CASH
FLOWS
PROVIDED
BY



NET INCREASE/(DECREASE) IN CASH HELD



CASH
AT
THE
BEGINNING
OF
THE



CASH AT THE END OF THE FINANCIAL YEAR
2014



$



6,220,708

(7,128,757)

6,347

(444,224)

319,423

-

(26,275)

(1,052,778)







(40,753)

-

-

(40,753)





-

56,688

-

1,300,000

(10,000)

1,346,688



253,157



589,072



842,229
2013

$

3,822,246
(5,567,185)
11,726
(263,158)
584,645
-
(21,710)
(1,433,436)



(7,578)
-
217,907
210,329


720,989
-
-
-
-
720,989

(502,118)

1,091,190

589,072

8

NOTES
TO
THE
PRELIMINARY
FINAL
REPORT
(UNAUDITED) FOR
THE
YEAR
ENDED
30
JUNE
2014

**1 CORPORATE

INFORMATION**

The
financial
report
of
Mobilarm
Limited
(the
“Company”)
for
the
year
ended
30
June
2014
was
authorised for
issue
in
accordance
with
a
resolution
of
directors
on
29
August
2014.

Mobilarm
Limited
is
a
Company
limited
by
shares
incorporated
and
domiciled
in
Australia.
The
nature
of the
operations
and
principal
activities
of
the
Company
are
described
in
the
Director’s
Report.

The
Company
owns
three
wholly
owned
subsidiary
companies
as
follows:

Name Country of Incorporation Date of Establishment
Marine Rescue Technologies Ltd United Kingdom
Mobilarm, Inc. United States of America
Rentquip Ltd United Kingdom 14 June 2013

The
Company
also
owns
50%
ownership
stake
of
a
joint
venture
as
follows:

Name Country of Incorporation Date of Establishment
Mobilarm Nigeria Nigeria 19 March 2013

**2 SUMMARY

OF
SIGNIFICANT
ACCOUNTING
POLICIES**

**(a) Basis

of
Preparation**

The
preliminary
final
report
has
been
prepared
in
accordance
with
the
Australian
Securities
Exchange Listing
Rules
as
set
out
in
Appendix
4E
and
in
accordance
with
the
measurement
and
recognition
(but
not disclosure)
requirements
of
the
Australian
Accounting
Standards,
Corporations
Act
2001
and
other pronouncements
of
the
Australian
Accounting
Standards.

As
such,
this
preliminary
final
report
does
not
include
all
the
notes
of
the
type
included
in
an
annual financial
report
and
accordingly,
should
be
read
in
conjunction
with
the
annual
report
for
the
year
ended 30
June
2013
and
with
any
public
announcement
made
by
Mobilarm
Limited
during
the
reporting
period
in accordance
with
the
disclosure
requirements
of
the
Corporations
Act
2001.

The
accounting
policies
and
methods
of
computation
are
the
same
as
those
adopted
in
the
most
recent annual
financial
report.

The
accounting
policies
and
methods
of
computation
are
the
same
as
those
adopted
in
the
annual
financial report
for
the
year
ended
30
June
2013.

The
financial
report
is
presented
in
Australian
Dollars
and
all
values
are
rounded
to
the
nearest
dollar.

(b) Going Concern

This
report
has
been
prepared
on
a
going
concern
basis,
which
contemplates
the
continuity
of
normal business
activity
and
the
realisation
of
assets
and
settlement
of
liabilities
in
the
normal
course
of
business.

9

The
Company
has
incurred
a
net
loss
after
tax
for
the
year
ended
30
June
2014
of
$63,392
(2013: $1,297,765)
and
experienced
net
cash
outflows
from
operating
activities
of
$1,052,788
(2013:
$1,433,436). As
30
June
2014,
the
Company
had
net
assets
of
$5,666,639
(2013:
$3,314,940).

Notwithstanding
the
above,
the
ability
of
the
Company
to
continue
as
a
going
concern
is
reliant
on:

  • increased
    cash
    flows
    from
    operations,
    and/
    or

  • the
    raising
    of
    funds
    through
    a
    debt
    or
    equity
    issues.

The
Directors
have
reviewed
the
business
outlook
and
plans
of
the
company
and
believe
that
the
Company will
achieve
increased
cash
flows
from
operations
to
sustain
its
ability
to
continue
as
a
going
concern,
which will
also
make
the
raising
of
funds
more
achievable
if
needed.

The
Company
started
a
rental
program during
the
year
that
will
initially
require
capital
investment,
but
will
produce
long
term
cash
inflows.
The Company
reduced
its
losses
by
95%
for
the
year
and
increased
its
revenues.
The
continued
growth
of
the rental
portfolio
will
enhance
the
Company’s
financial
position.

Should
the
entity
not
achieve
the
matters
set
out
above,
there
is
significant
uncertainty
whether
the
entity will
continue
as
a
going
concern
and
therefore
whether
it
will
realise
its
assets
and
extinguish
its
liabilities in
the
normal
course
of
business
and
at
amounts
stated
in
the
financial
report.

The
financial
report
does
not
include
any
adjustments
that
may
be
necessary
if
the
Company
is
unable
to continue
as
a
going
concern.

10

**3 INTANGIBLE

ASSETS**



Intangible assets net of amortisation
Development Cost
Goodwill
Incorporation Cost
Intangible assets net of amortisation
June 2014
June 2013
$
$


1,329,880
1,164,364
1,924,068
1,924,068
-
-
3,253,948
3,088,432

**4 INTEREST

BEARING
LOANS
AND
BORROWINGS**

INTEREST BEARING LOANS AND BORROWINGS
CURRENT

Intangible assets net of amortisation
Convertible Note (i)
Credit facility (i) (ii)

Finance leases


NON CURRENT

Finance leases
June 2014
June 2013
$
$


197,135
-
698,999
720,989
896,134
720,989
-
2,965
896,134
723,954



6,318
17,738

The
Company
entered
into
various
interest
bearing
loans
for
working
capital
purposes.
The
terms
of
each loan
are
described
below.

  • (i) The
    Company
    entered
    into
    credit
    facility
    with
    its
    director
    Ken
    Gaunt
    for
    up
    to
    $1,000,000
    on
    8 March
  • The
    facility
    was
    purchased
    by
    another
    party
    in
    July
    2013
    and
    changed
    into
    a convertible
    loan.
    The
    balance
    of
    the
    facility
    was
    converted
    on
    28
    June
    2014
    at
    the
    conversion

  • (ii) The
    Company
    entered
    into
    a
    credit
    facility
    with
    a
    shareholder
    for
    the
    value
    of
    an
    equity
    investment in
    another
    entity.
    As
    the
    Company
    sells
    the
    equity
    investment,
    it
    recognises
    the
    proceeds
    as
    a convertible
    note,
    with
    an
    interest
    rate
    of
    6%
    and
    convertible
    at
    a
    price
    of
    $0.04
    cents.
    The convertible
    note
    expires
    on
    28
    March

  • As
    at
    30
    June
    2014,
    the
    Company
    had
    sold
    $197,135 and
    recognised
    it
    as
    a
    convertible
    note.
    As
    at
    30
    June
    2014,
    $56,688
    of
    the
    funds
    realized
    from
    the sale
    had
    cleared
    with
    $140,447
    reflected
    as
    a
    receivable
    in
    transit.
    The
    remaining
    value
    of
    the investment
    is
    recognised
    as
    a
    credit
    facility
    at
    its
    current
    market
    value
    of
    $698,999.

11

**5 CONTRIBUTED

EQUITY**



Ordinary shares (a)
Performance shares (b)
Contributed equity

(a) Ordinary Shares
Movement in ordinary shares on issue
Balance at beginning of year
Issuance of equity
Cost of share issues
Currency revaluation
Issue of deferred ordinary share compensation from
MRT acquisition
Conversion of Convertible Notes
Balance at end of the year
June 2014
June 2013

$
$
29,626,815

27,623,480

177,483

166,815

29,804,298

27,790,295




June 2014
June 2013
Number
$
Number
$
299,560,681
27,623,480
296,704,866
27,509,247
32,500,000
1,300,000
-
-
-
(10,000)
-
-
-
(7,654)
-
-
-
-
2,855,815
114,233
18,024,735
720,989
-
-
350,084,416
29,626,815
299,560,681
27,623,480

Holders
of
ordinary
shares
are
entitled
to
receive
dividends
as
declared
from
time
to
time
and
are
entitled to
one
vote
per
share
at
shareholder
meetings.

(b) Performance Shares
(i)
Movement in Performance Shares Class B
Balance at beginning of year
Expiry of shares during the year
Forfeiture of shares during the year
Share based payment expense for the year
Balance at end of the year

(ii)
Movement in Performance Shares Class C
Balance at beginning of year
Share issue
Forfeiture of shares during the year
Share based payment expense for the year
Balance at end of the year
Total Performance Shares
June 2014
June 2013
Number
$
Number
$
-
125,927
833,333
125,927
-
-
(833,333)
-
-
-
-
-
-
-
-
-
-
125,927
-
125,927
June 2014
June 2013
Number
$
Number
$
333,334
40,888
833,334
75,555
-
-
-
-
-
-
(500,000)
(50,667)
-
10,668
-
16,000
333,334
51,556
333,334
40,888
333,334
177,483
333,334
166,815

Performance
class
B
shares
convert
to
ordinary
shares
on
a
1
for
1
basis
upon
the
Company
reaching
a market
capitalisation
of
$65
million
dollars
based
on
the
five
day
weighted
average
share
price
on
the
ASX. The
Company
has
amortised
the
Performance
shares
class
B
based
upon
the
Company’s
financial
plans
to reach
that
milestone.
833,333
Performance
shares
class
B
reached
their
expiry
date
without
meeting
the performance
condition.

12

Performance
class
C
shares
convert
to
ordinary
shares
on
a
1
for
1
basis
upon
the
Company
reaching
a market
capitalisation
of
$100
million
dollars
based
on
the
five
day
weighted
average
share
price
on
the ASX.
The
Company
has
amortised
the
Performance
shares
class
C
based
upon
the
Company’s
financial
plans to
reach
that
milestone.
500,000
Performance
shares
class
C
were
forfeited
during
the
year
as
the employees
did
not
meet
the
service
condition
as
part
of
the
grant
due
to
their
departure
from
the Company.

The
Company
offset
$50,667
of
previously
expensed
share
based
payments
as
part
of
the forfeiture.



Stock options
Performance share rights
Reserves


(c) Options
Movement in options on issue
Balance at beginning of year (i)
Options issued – Capital Raising (ii)
Options issued – Employee Stock Option Plan (iv)
Options forfeited – Employee Stock Option Plan (iv)
Options cancelled – Employee Stock Option Plan (iv)
Options issued – Directors Compensation (v)
Options cancelled – Capital Raising
Subtotal
June 2014
June 2013

$

$

405,182

305,638

100,466

29,549

505,648

335,187








June 2014
June 2013
Number
$
Number
$
71,345,471
305,638
44,006,314
222,833
20,000,000
-
-
-
-
-
-
2,152
-
-
-
-
-
-
(883,330)
-
-
99,544
31,670,487
80,653
(23,166,651)
-
(3,448,000)
-
68,178,820
405,182
71,345,471
305,638

(i) All
options
were
issued
as
a
free
attaching
option
as
part
of
the
Company’s
capital
raises
in 2011
and
2010
or
as
part
of
the
employee
stock
option
plan.

(ii) The
Group
issued
20,000,000
share
options
on
28
March
2014
as
part
of
its
Entitlements
Offer. The
options
have
a
one
year
expiry
and
the
exercise
price
is
as
follows:

Date
of
Exercise Exercise
Price Within
181
days
of
issue $0.04 Within
182-­‐365
days
of
issue $0.06

(iii) The
outstanding
options
issued
under
the
employee
stock
option
plan
are
detailed
as
follows:

Grant Date
Expiry Date
Strike Price
22-Dec-2010
22-Dec-2015
$0.193
20-Jan-2011
15-Oct-2015
$0.193

09-Jun-2011
09-Jun-2016
$0.072
Balance at end of the year
Amount
925,000
83,333
500,000
1,508,333
  • The
    original
    strike
    price
    for
    these
    options
    was
    $0.20.
    The
    terms
    of
    these
    employee
    options
    provide
    for the
    exercise
    price
    of
    the
    options
    to
    be
    adjusted
    in
    accordance
    with
    the
    formula
    set
    out
    in
    ASX
    Listing
    Rule

13

6.22.2
following
an
Entitlement
Offer.
The
Company
adjusted
the
strike
price
as
part
of
the
Entitlements Offer
completed.

  • (iv) On
    the
    8th
    of
    August
    2012
    the
    Board
    (excluding
    Mr
    Ken
    Gaunt
    who
    did
    not
    wish
    to
    make
    any recommendation)
    has
    proposed
    the
    issue
    of
    29,670,487
    share
    options
    to
    Director/Chief Executive
    Officer
    Ken
    Gaunt.
    Each
    option
    entitles
    the
    holder
    to
    exercise
    the
    option
    in
    exchange for
    one
    ordinary
    share
    in
    the
    Company.
    The
    options
    are
    exercisable
    at
    an
    exercise
    price
    of
    per option
    A$0.021.

The
Options
vest
when
the
Share
Price
is
equal
to
or
greater
than
A$0.10 (subject
to
adjustment
under
the
terms
of
the
grant).
In
addition,
upon
a
Change
of
Control Event
(i),
the
Options
automatically
vest.

  • (i) Change
    of
    Control
    Event
    means:

  • a. a
    person
    acquires
    voting
    power
    in
    at
    least
    50.1%
    or
    more
    of
    the
    issued
    Shares;

  • b. a
    person
    acquires
    the
    power
    to
    direct
    or
    cause
    the
    direction
    of
    management
    or
    policies
    of theCompany;

  • c. a
    person
    directly
    or
    indirectly
    acquires
    all
    or
    substantially
    all
    of
    the
    business
    and
    assets
    of the
    Group;
    or

  • d. (d)
    a
    person
    otherwise
    acquires
    or
    merges
    with
    the
    Group,

  • including
    by
    way
    of
    a
    takeover
    bid,
    scheme
    of
    arrangement,
    amalgamation,
    merger,
    capital reconstruction,
    consolidation,
    share
    acquisition,
    securities
    issuance,
    share
    buyback
    or repurchase,
    reverse
    takeover,
    dual
    listed
    company
    structure,
    establishment
    of
    a
    new
    holding entity
    for
    the
    Group
    or
    any
    other
    comparable
    transaction
    or
    arrangement.

In
association
with
the
grant
above,
the
Company
has
also
proposed
that
the
Company
enter
into
an interest-­‐free
loan
agreement
with
Mr.
Gaunt
of
an
amount
equal
to
the
total
Grant
Price
payable
for
the 29,670,487
Options,
being
a
total
loan
amount
of
$267,034.
These
transactions
were
approved
at
a
general meeting
of
shareholders
on
the
7[th] of
September
2012.

Additionally,
Sir
Tim
McClement
was
issued
2,000,000
options.
The
options
are
exercisable
at
an
exercise price
of
per
option
A$0.027.

The
Options
vest
when
the
Share
Price
is
equal
to
or
greater
than
A$0.10 (subject
to
adjustment
under
the
terms
of
the
grant).
These
transactions
were
approved
at
a
general meeting
of
shareholders
on
the
29[th] of
November
2012.

14

(d) Performance Share Rights
Movement in options on issue
Balance at beginning of year
Performance share rights issued
Balance at end of the year
June 2014
June 2013
Number
$
Number
$
11,000,000
29,549
-
-
-
70,917
11,000,000
29,549
11,000,000
100,466
11,000,000
29,549

The
Company
granted
11,000,000
performance
share
rights
in
2013
to
employees.
The
performance
share rights
vest
when
the
Share
Price
is
equal
to
or
greater
than
A$0.10
(subject
to
adjustment
under
the
terms of
the
grant).
In
addition,
upon
a
Change
of
Control
Event
(i),
the
performance
share
rights
automatically vest.

  • (i) Change
    of
    Control
    Event
    means:

  • a. a
    person
    acquires
    voting
    power
    in
    at
    least
    50.1%
    or
    more
    of
    the
    issued
    Shares;

  • b. a
    person
    acquires
    the
    power
    to
    direct
    or
    cause
    the
    direction
    of
    management
    or
    policies
    of the
    Company;

  • c. a
    person
    directly
    or
    indirectly
    acquires
    all
    or
    substantially
    all
    of
    the
    business
    and
    assets
    of the
    Group;
    or

  • d. (d)
    a
    person
    otherwise
    acquires
    or
    merges
    with
    the
    Group,

including
by
way
of
a
takeover
bid,
scheme
of
arrangement,
amalgamation,
merger,
capital reconstruction,
consolidation,
share
acquisition,
securities
issuance,
share
buyback
or repurchase,
reverse
takeover,
dual
listed
company
structure,
establishment
of
a
new
holding entity
for
the
Group
or
any
other
comparable
transaction
or
arrangement.

Some
of
the
performance
share
rights
have
additional
vesting
criteria
regarding
specific
performance
of projects
being
completed,
such
as
the
development
of
our
next
generation
products.

**6 EARNINGS

PER
SHARE**

EARNINGS PER SHARE


EARNINGS PER SHARE
Weighted average number of ordinary shares
outstanding during the year used in the calculation of
basic earnings per share
Weighted average number of ordinary shares
outstanding during the year used in the calculation of
diluted earnings per share

Basic earnings/(loss) per share (cents per share)

Diluted earnings/(loss) per share (cents per share)
June 2014
June 2013
Number
Number


323,888,349
296,884,821
323,888,349
296,884,821


(0.0)
(0.4)


(0.0)
(0.4)

15

**7 SEGMENT

INFORMATION**

The
company
operates
solely
in
the
development,
manufacturing
and
sale
of
Man
Overboard
safety systems.
The
Company
operates
in
four
geographical
locations
being
Australia,
the
United
Kingdom,
Nigeria and
the
United
States
of
America.
The
Company
manages
its
operations
internally
as
one
segment
under the
management
of
the
CEO.
The
accounting
policies
applied
for
internal
reports
are
consistent
with
the policies
used
to
prepare
the
financial
statements.

**8 CONTINGENT

LIABILITIES**

As
at
reporting
date
there
were
no
contingent
liabilities.

**9 SUBSEQUENT

EVENTS**

There
have
been
no
events
since
the
end
of
the
financial
year
that
affect
the
results
as
at
and
for
the
year ended
30
June
2014.

**10 BUSINESS

COMBINATIONS**

_**Acquisition

of
Marine
Rescue
Technologies
Ltd**_

On
9
June
2011,
Mobilarm
Limited
acquired
Marine
Rescue
Technologies
Ltd
(MRT),
a
leader
in
the
design and
manufacture
of
man
overboard
technology
in
Europe.
Mobilarm
acquired
100%
of
the
issued
capital
of MRT
for
GBP
£1,723,000
(approximately
AUD
$2,653,790).The
purchase
price
was
split
into
an
initial
cash payment
of
GBP
£1,189,000
(approximately
AUD
$1,831,316)
and
a
deferred
share
based
compensation
of GBP
£534,000
(approximately
AUD
$822,475).

Reconciliation of Goodwill

$

Carrying
amount
at
beginning
of
financial
year 1,924,068 Provisional
goodwill
recognised
on
business -­‐ Carrying
amount
at
end
of
financial
year 1,924,068

16

ANNUAL MEETING

The
annual
meeting
will
be
held
as
follows:

Place Date Time Approximate
date
the
+annual
report
will
be available

To
be
advised To
be
advised To
be
advised 31
October
2013

COMPLIANCE ESTATEMENT

  • 1 This
    report
    has
    been
    prepared
    in
    accordance
    with
    AASB
    Standards,
    other
    AASB
    authoritative

pronouncements
and
Urgent
Issues
Group
Consensus
Views
or
other
standards
acceptable
to
ASX

(see
note
12).

Identify
other
standards
used

  • 2 This
    report,
    and
    the
    +accounts
    upon
    which
    the
    report
    is
    based
    (if
    separate),
    use
    the
    same accounting
    policies.

  • 3 This
    report
    does
    give
    a
    true
    and
    fair
    view
    of
    the
    matters
    disclosed

  • 4

This
report
is
based
on
+accounts
to
which
one
of
the
following
applies. (Tick
one)

  • The +accounts
    have
    been � The +accounts
    have
    been audited. subject
    to
    review.

  • � The[+] accounts
    are
    in
    the � The[+] accounts
    have not yet process
    of
    being
    audited
    or been
    audited
    or
    reviewed. subject
    to
    review.

  • 5 The
    entity
    has
    formally
    constituted
    audit
    committee.

Sign
here:

==> picture [146 x 38] intentionally omitted <==

Date:

29
August
2014

Print
name:
Jorge
Nigaglioni Executive
Director
&
Chief
Financial
Officer

17