VINYL GROUP LTD — Interim / Quarterly Report 2016

Oct 29, 2015

ASX CODE: MBO

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ASX ANNOUNCEMENT AND MEDIA RELEASE

Date: 31 October 2015

Mobilarm wraps up 2015

• Order performance finished at $1.4M for the quarter

• Revenues of $1.7M and receipts from customers of $1.8M for the year.

Global marine safety equipment provider Mobilarm Limited (ASX: MBO) today reported orders for the year reached $1,424,587, along with revenues of $1,707,959 and receipts from customers of $1,801,244.

Mobilarm Chief Executive Officer Ken Gaunt commented: “We are excited with the market’s adoption and embracing of our rental and service strategy. Our corporate customers have stringent safety requirements that we deliver on. Our solutions are constantly evolving to meet these high standards and the new needs that arise every year. Our capabilities and abilities to deliver on these requirements sets us apart from the competition.”

Mobilarm Chief Financial Officer Jorge Nigaglioni commented: “Our service business keeps increasing as customers have recognised the importance of maintenance and upgrades to their safety capabilities. Our ability to deliver additional value throughout the service life is very important to our customers. This is helping to normalise our cash flows and revenues during the product lifecycle.“

-Ends-

Further details

Ken Gaunt Chief Executive Officer

Email: keng@mrtsos.com Tel.: +61 417 961 770 Tel.: +44 782 731 4442 www.mobilarm.com

Mobilarm Limited (ASX: MBO) and its 100% owned subsidiary MRT (UK) is involved in the development, manufacturing and sale of a Man Overboard Safety Systems provided to the offshore oil & gas industries, commercial marine industries, defence, and government & regulatory agencies internationally. MBO currently operates in the UK, Australia, Nigeria and USA.

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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 2015

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 (3 Months) $
	1,801,244 (688,712) (33,951) (20,600) - (745,533) - 3,167 (61,858) - - (418,080)	1,801,244 (688,712) (33,951) (20,600) - (745,533) - 3,167 (61,858) - - (418,080)
	(164,323)	(164,323)

• 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 (3 Months) $
1.8 Net operating cash flows (carried forward)	(164,323)	(164,323)
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	- - - - - - - - - - - - -	- - - - - - - - - - - - -
	-	-
	(164,323)	(164,323)
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	900,489 - - - - -	900,489 - - - - -
	900,489	900,489
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	736,166 1,487,957 -	736,166 1,487,957 -
	2,224,123	2,224,123

• 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
	(117,569)
	-

• 1.26 Explanation necessary for an understanding of the transactions Payments were for salaries and director fees and travel.

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

• 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
	$2,971,525	$2,971,525
	-	-

The Company has $2,000,000 in convertible notes entered into on the 30[th] of January. These carry a 12% interest rate and are convertible at $0.06 per share. These notes expire on 29[th] July 2016. The Company also has an additional $971,525 in convertible debt, convertible that expires on the 7th of March 2016 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 $0.007 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.

• 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	2,224,123	1,487,957
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,224,123	1,487,957

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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Director

Date: 31 October 2015

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