VINYL GROUP LTD — Interim / Quarterly Report 2012

Oct 30, 2011

Date: 31 October 2011

==> picture [175 x 109] intentionally omitted <==

ASX ANNOUNCEMENT AND MEDIA RELEASE

ASX CODE: MBO

MBO starts the financial year with record quarter performance

• MBO customer orders grow 1946% over prior corresponding period

• Experienced order growth of 23% when compared with overall orders in FY2011

• Completed acquisition and integration of Marine Rescue Technologies – contributed to strengthening sales

• Completed Board and Senior management restructure to focus on ongoing operational growth

• Significantly increased footprint in key global markets and strengthened overall sales pipeline

Global marine safety equipment provider Mobilarm Limited (ASX: MBO) today reported that orders for the quarter ended 30 September 2011 have increased to $1,559,000. This order amount represents a 1946% increase over the first quarter of the previous year and a 23% increase over the $1,294,000 in orders received during the full financial year of 2011.

During the quarter, Mobilarm successfully completed the integration of Marine Rescue Technologies (“MRT”) following the acquisition announced in the previous quarter. This significantly contributed to overall sales growth, and established Mobilarm’s presence in key European markets.

Mobilarm also completed a Board and senior management restructure during the quarter to heighten the Company’s focus on corporate development and further build the sales pipeline in key international jurisdictions.

Mobilarm Chief Executive Officer Lindsay Lyon commented: “The increase in customer orders reflects our customer’s commitment to safety and Mobilarm’s steadily expanding presence in high growth global markets. Our customers are committing to repeat business and increasing the levels of safety throughout their operations, which is leading to recurring revenue streams and earnings visibility. Our expanded global footprint has been key to securing wins worldwide by customers such as Shell, Heerema Marine and Saipem.

“The Company has leveraged its acquisition of Marine Rescue Technologies and is delivering a wider array of safety solutions to its customers around the globe. We are witnessing strengthening demand for our safety products as a result and our order pipeline continues to grow quarter-on-quarter. As part of our strategic and organic growth strategy, we are engaging our global customer base and promoting the deployment of safety solutions that can be procured and utilised across their broader operations.

“The results for the quarter are exceptional. We have already exceeded last year’s order results in one quarter. The interest shown by our customers and target customers is strong and we have the solutions and the team to deliver,” Mr. Lyon added.

-Ends-

MOBILARM LIMITED

2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity Mobilarm Limited

ABN 15 106 513 580	Quarter ended (“current quarter”)
15 106 513 580	30 September 2011

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising & marketing (c) research & development (d) leased assets (e) Other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes (paid)/received 1.7 Rental recoveries 1.7 Purchases of inventory Net operating cash flows	Current quarter $	Year to date (3 months) $
	1,063,412 (757,324) (64,931) (153,268) - (941,840) - 1,189 (2,470) - 21,412 (383,823)	1,063,412 (757,324) (64,931) (153,268) - (941,840) - 1,189 (2,470) - 21,412 (383,823)
	(1,217,643)	(1,217,643)

Other working capital included amounts deferred from the previous quarter until the receipt of the amounts received under the shortfall from the Entitlements Issue as announced to the market on 25 July 2011.

• See chapter 19 for defined terms.

Appendix 4C Page 1

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $	Year to date (1 Year) $
1.8 Net operating cash flows (carried forward)	(1,217,643)	(1,217,643)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) Net cash acquired on acquisition( item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	- - - - - - - - - - - - -	- - - - - - - - - - - - -
	-	-
	(1,217,643)	(1,217,643)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Share issue expenses Net financing cash flows	2,415,420 - - (891,347) - -	2,415,420 - - (891,347) - -
	1,524,073	1,524,073
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	306,430 293,558 -	306,430 293,558 -
	599,988	599,988

• See chapter 19 for defined terms.

Appendix 4C Page 2

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A
	(547,903)
	-

1.26	Explanation necessaryfor an understandingof the transactions
	Payments were for salaries and director fees and travel expenses from the MRT acquisition,
	including fees deferred from the previous quarter, as well as repayment of loans from
	Directors of a total of $210,419.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Nil

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A	Amount used $A
	-	-
	5,000,000	-

Financing facilities available relates to the $5m Equity Drawdown Facility with Equity Partners Funds SPC as announced to the ASX on 16 September 2010.

• See chapter 19 for defined terms.

Appendix 4C Page 3

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A	Previous quarter $A
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Deposits securing guarantees	398,901	92.470
	-	-
	-	-
	201,087	201,087
Total: cash at end of quarter(item 1.22)	599,988	293,557

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	Nil	Nil

Compliance statement

• 1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

Company Secretary

Date: 31 October 2011

Print name: David McArthur

• See chapter 19 for defined terms.

Appendix 4C Page 4

30/9/2001

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals

6. 12.1(a) - policy for classification of cash items  12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

7. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

8. See chapter 19 for defined terms.

Appendix 4C Page 5

30/9/2001