VINYL GROUP LTD — Interim / Quarterly Report 2011

Apr 27, 2011

ASX CODE: MBO

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ASX ANNOUNCEMENT AND MEDIA RELEASE

Date: 28 April 2011

**MBO

well
placed
for
growth
with
solid
first
half
performance**

• Continues
  year
  over
  year
  order
  growth

• Entered
  into
  an
  agreement
  to
  acquire
  Marine
  Rescue
  Technologies

• Opened
  entitlements
  offer

• Established
  US
  operations
  to
  bolster
  presence
  in
  that
  market

• Strengthened
  presence
  in
  the
  oil
  &
  gas
  sector
  with
  new
  project
  for
  Apache
  Energy

Global
marine
safety
equipment
provider
Mobilarm
Limited
(ASX:
MBO)
today
reported
orders
for
the
nine month
period
ending
31
March
FY2011
have
increased
to
$748,000.
This
order
amount
represents
a
70% increase
over
the
previous
corresponding
period
in
FY2010.

In
March,
Mobilarm
entered
into
a
sale
and
purchase
agreement
to
acquire
all
the
issued
capital
of
UK-­‐ based
Marine
Rescue
Technologies
Limited
(“MRT”),
the
company
that
has
developed
and
marketed
the leading
marine
personal
locator
beacon
(PLB)
brand,
Sea
Marshall.

The
acquisition,
which
is
subject
to
final
due
diligence
and
other
conditions
for
the
benefit
of
MBO,
will create
the
world’s
largest
man
overboard
safety
and
technology
company,
with
a
strong
presence
in
the defence,
oil
&
gas,
and
commercial
marine
sectors
worldwide.

Mobilarm
Chief
Executive
Officer
Lindsay
Lyon
commented:
“With
a
much
wider
product
portfolio
across two
well
regarded
brands,
we
expect
Mobilarm
will
achieve
solid
revenue
growth
once
the
transaction
is completed.
Additionally,
with
the
added
status
of
being
the
world’s
largest
and
most
innovative
man overboard
safety
and
technology
company,
the
increased
scale
will
help
us
fast-­‐track
growth.”

To
fund
this
transaction,
MBO
announced
an
Entitlement
Offer
to
raise
approximately
$3.2
million
at
5 cents
per
share.
The
offer
is
underwritten
up
to
approximately
$2.1
million.

As
reported
on
5
January
2011,
the
United
States
Naval
Sea
Systems
Command
(NAVSEA)
confirmed
its support
for
MBO’s
V200
Submariner
VHF
Locator
Beacon
development
project
by
exercising
its
option
to purchase
an
additional
US$300,000
worth
of
test
units
and
engineering
services.
Sea
trials
are
planned
to take
place
in
June
2011
when
NAVSEA
will
undertake
a
large-­‐scale
sea
and
air
capability
demonstration involving
multiple
vessels
and
aircraft
from
the
US
Navy
fleet
and
US
Coast
Guard.

To
support
expected
roll-­‐out
of
MBO’s
Crewsafe
V200
submarine
escape
and
survival
beacon
for
US
Navy and
to
expand
into
the
US
commercial
maritime
market
following
recent
regulatory
acceptance
of
VHF
DSC technology
for
man
overboard
beacons,
the
Company
has
established
Mobilarm
Inc.
Based
in
the
metro area
of
Washington
D.C.,
the
Company
has
appointed
Roger
Hoff
to
run
this
wholly
owned
subsidiary.
As

the
Company’s
Defence
Program
Manager
and
North
American
Business
Manager,
Roger
will
be responsible
for
the
rollout
and
implementation
of
the
V200
Submariner
VHF
Locator
Beacon
in
2012, following
successful
trials
by
NAVSEA
and
their
subsequent
move
to
procurement.
Prior
to
joining Mobilarm,
Roger
was
responsible
for
the
implementation
of
50,000
man
overboard
beacons
across
the
US Navy
Pacific
Fleet
and
was
directly
engaged
with
US
Navy
procurement.

The
Company
also
secured
a
new
contract
to
supply
its
VHF
DSC
Locator
Beacons
to
Apache
Energy.
The
35 units
will
be
carried
by
maintenance
crews
on
the
not
normally
manned
Reindeer
Wellhead
platform offshore
Northwest
Australia.
Apache
is
the
first
Australian
oil
and
gas
operator
to
implement
the company’s
VHF
DSC
locator
beacon
technology
to
protect
employees
working
on
offshore
platforms, chosen
because
of
the
device’s
unique
ability
to
broadcast
precise
location
coordinates
to
local
search
and rescue
assets
immediately
following
a
man
overboard
incident
or
emergency
evacuation.

“We
are
continuing
to
build
our
pipeline
of
orders
and
new
business
opportunities
in
a
number
of
markets. The
addition
of
MRT
will
help
increase
our
overall
market
presence
and
expand
our
operations
globally,” says
Lyon.

“Mobilarm
continues
executing
on
its
strategy
for
growth.”

-­‐Ends-­‐

MOBILARM MEDIA ANNOUNCEMENT

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	31 March 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 (9 months) $
	60,273 (484,392) (37.726) (106,315) - (221,309) - 4,441 (229) - 21,412 (3,598)	607,699 (1,650,447) (129,698) (363,042) - (1,058,603) - 15,034 (3,533) 324,685 69,302 (291,020)
	(767,443)	(2,479,623)

• See chapter 19 for defined terms.

30/9/2001

Appendix 4C Page 1

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

	Current quarter $	Year to date (9 months) $
1.8 Net operating cash flows (carried forward)	(767,443)	(2,479,623)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) business ( 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	- - - (6,517) - - - - - - - - -	- - - (8,113) - - - - - - - - -
	(6,517)	(8,113)
	(773,960)	(2,487,736)
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	450,000 - - - - -	2,833,400 - 10,000 (10,000) - (184,285)
	450,000	2,649,115
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 ofquarter	(323,960) 591,750 -	161,379 106,411 -
	267,790	267,790

• 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 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A
		41,875
		-
1.26	Explanation necessaryfor an understandingof the transactions
	Payments were for salaries and director fees

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, which is subject to shareholder ratification at the annual shareholders meeting on 26 November 2010.

• See chapter 19 for defined terms.

30/9/2001

Appendix 4C Page 3

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	102,790	426,750
	-	-
	-	-
	165,000	165,000
Total: cash at end of quarter(item 1.22)	267,790	591,750

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:

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Company Secretary

Date: 28 April 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 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in the report.

3. 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.

4. See chapter 19 for defined terms.

30/9/2001

Appendix 4C Page 5