VINYL GROUP LTD — Interim / Quarterly Report 2014

Apr 29, 2014

ASX CODE: MBO

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ASX ANNOUNCEMENT AND MEDIA RELEASE

Date: 30 April 2014

**Mobilarm

continues
record
year**

• Record
  order
  performance
  of
  $5.7M
  year
  to
  date,
  including
  rentals.

• Receipts
  from
  customers
  increased
  26%
  over
  the
  previous
  quarter.

Global
marine
safety
equipment
provider
Mobilarm
Limited
(ASX:
MBO)
today
reported
that
year
to
date
orders through
31
March
2014
have
reached
$5,692,208.

The
Company
had
receipts
from
customers
for
the
three month
period
ended
30
April
2014
of
$1,427,242,
a
26%
increase
over
the
previous
quarter.
This
helped
reduce the
net
operating
cash
out
flows
for
the
quarter
to
$338,314,
an
improvement
of
55%.

Mobilarm
Chief
Executive
Officer
Ken
Gaunt
commented:
“The
momentum
we
have
been
building
in
the business
by
launching
newly
developed
products,
offering
a
turnkey
rental
option,
and
providing
annual servicing
solutions
are
key
reasons
why
customers
are
choosing
MRT
as
a
preferred
business
partner.

This
is reflected
in
our
increased
sales
volumes.

We
are
on
track
to
achieve
a
record
year
for
the
Company
and
will continue
with
our
strategic
initiatives
to
grow
sales
and
in
particular
our
rental
and
service
book
beyond
our results
this
year.

The
last
two
years
have
seen
a
major
turnaround
for
our
business,
and
while
we
have completed
a
number
of
major
initiatives
and
developments,
we
have
additional
opportunities
to
pursue
to maintain
our
aggressive
growth
plans.
We
remain
very
excited
with
not
only
our
achievements
to
date
but
more importantly
our
future
ahead.”

Mobilarm
Chief
Financial
Officer
Jorge
Nigaglioni
commented:
“Our
growing
outright
sale
and
rental
portfolio will
keep
improving
our
financial
position
moving
forward.
We
are
entering
the
next
quarter
with
a
backlog
of outright
sales
and
rentals
that
will
further
bolster
our
operating
cash
flows
next
quarter.
We
have
also implemented
company
wide
systems
and
process
improvements
to
enable
us
to
improve
our
capabilities
to manage
the
new
business
models
and
growth.

This
is
helping
our
sales,
production
and
services
teams
in
order to
deliver
our
customer’s
requirements.”

-­‐Ends-­‐

Further details

Ken Gaunt Email: keng@mrtsos.com Chief Executive Officer Tel.: +61 417 961 770 Tel.: +44 782 731 4442 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	31 March 2014

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) $
		1,427,242 (537,277) (12,354) (85,951) - (361,323) - 1,726 (9,766) - - (760,611)	3,983,996 (1,483,356) (53,606) (372,985) (9,400) (1,645,571) - 5,621 (18,083) 319,423 - (1,958,589)
		(338,314)	(1,232,550)

• 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)	(338,314)	(1,232,550)
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	- - - - - - - - - - - - -	- - - (40,753) - - - - - - - - -
	-	(40,753)
	(338,314)	(1,273,303)
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	195,779 - - - - -	1,073,840 - - - - (10,000)
	195,779	1,063,840
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	(142,535) 570,361 -	(209,463) 637,289 -
	427,826	427,826

• 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

• Current quarter $A

• 1.24 Aggregate amount of payments to the parties included in item 1.2 (145,158) 1.25 Aggregate amount of loans to the parties included in item 1.11 -

• 1.26 Explanation necessary for an understanding of the transactions Payments were for salaries and director fees and travel. Mr. Gaunt also received $11,903 in interest from the credit facility provided to the Company.

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

The Company has equity investments with a value of $896,221 that can be converted to cash as part of a convertible note facility. The final realised value is to be determined at the time of the sale. The convertible note expires on the 7[th] of March 2015 and carries an interest rate of 6.0%. The note is convertible by the noteholder upon giving the Company thirty days notice at the lower of $0.04 per share or the price of any new Entitlements Issue. The note can be converted by the Company at the expiration date at a price that equals 80% of the trailing 30 day VWAP at the time of expiry.

• 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
	$1,000,000	$720,989
	-	-

• 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	379,609	522,144
	-	-
	-	-
	48,217	48,217
Total: cash at end of quarter(item 1.22)	427,826	570,361

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: Director Date: 30 April 2014 Print name: Jorge Nigaglioni

• 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 • 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.

30/9/2001

Appendix 4C Page 5