VINYL GROUP LTD — Interim / Quarterly Report 2012

Jul 30, 2012

ASX CODE: MBO

Date: 31 July 2012

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ASX ANNOUNCEMENT AND MEDIA RELEASE

MBO continues to improve its results from operations

• Customer receipts for the year grow to $5.9M for the year ended 30 June 2012

• Transfer of manufacturing and other operating activities completed during the quarter

Global marine safety equipment provider Mobilarm Limited (ASX: MBO) today reported full year receipts from customers for the year ended 30 June 2012 of $5,876,388. The Company had net operating cash out flows of $358,975 for the quarter, including costs of restructuring. The Company continued the restructuring of its operations to further reduce its operating cash requirements whilst focusing on increasing its sales volumes.

Mobilarm Chief Executive Officer Ken Gaunt commented: “We have executed our key restructuring plans in this period to start the new financial year in a position to achieve our target of positive returns to our shareholders. We are continuously looking to optimise our operation whilst growing our sales and distribution reach. Your board and management remain totally focused and absolutely committed to deliver positive returns.”

Mobilarm Chief Financial Officer Jorge Nigaglioni commented: “We completed the transition of our manufacturing and the wind down of other support services during the quarter. These restructuring activities will have a positive impact on our operating results and the associated cash position moving forward. Our focus on improving our sales volumes and margins will combine with the cuts made to deliver the returns we have targeted to achieve.”

-Ends-

Further details

Ken Gaunt Email: keng@mobilarm.com Chief Executive Officer Tel.: +61 417 961 770 Tel.: +44 743 252 6599 www.mobilarm.com

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 June 2012

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 (12 months) ~~$~~
	1,510,347 (712,524) (11,601) (98,050) - (669,986) - 8,677 (3,786) - - (382,052)	5,876,388 (3,212,961) (165,969) (453,577) - (2,731,583) - 22,683 (23,516) 202,097 21,412 (1,608,355)
	(358,975)	(2,073,381)

• See chapter 19 for defined terms.

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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)	(358,975)	(2,073,381)
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	- - - - - - - - - - - - -	- - - (12,850) - - - - - - - - -
	-	(12,851)
	(358,975)	(2,086,231)
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	- - - - - -	4,040,420 - - (891,347) - -
	-	3,149,073
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 ofquarter	(358,975) 1,715,375 -	1,062,842 293,558 -
	1,356,400	1,356,400

• See chapter 19 for defined terms.

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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
	(183,756)
	-

1.26	Explanation necessaryfor an understandingof the transactions
	Payments were for salaries and director fees and travel expenses including fees deferred from the
	previous quarter. This also included approximately $26,000 in purchases of inventory
	from Mr. Marshall.

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
	-	-
	-	-

• See chapter 19 for defined terms.

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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	1,091,226	1,450,201
	-	-
	-	-
	265,174	265,174
Total: cash at end of quarter(item 1.22)	1,356,400	1,715,375

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: 31 July 2012

Print name: David McArthur

• See chapter 19 for defined terms.

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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  9.4 - itemised disclosure relating to disposals  12.1(a) - policy for classification of cash items  12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

5. 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.

6. See chapter 19 for defined terms.

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