VINYL GROUP LTD — Interim / Quarterly Report 2015

Jan 29, 2015

ASX CODE: MBO

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ASX ANNOUNCEMENT AND MEDIA RELEASE

Date: 31 January 2015

Mobilarm)continues)its)record)year)))

• Record)order)performance)of)$5.1M)for)the)first)six)months.

• Revenues)of)$3.4M)and)receipts)from)customers)of)$3.3M)for)the)first)six)months.

Global!marine!safety!equipment!provider!Mobilarm!Limited!(ASX:!MBO)!today!reported!orders!for!the!first!six! months! reached! $5,106,588,! along! with! revenues! of! $3,368,911! and! receipts! from! customers! of! $3,284,491.!! The!order!total!represents!a! 37% !increase!compared!to!the!same!period!last!year,!while!revenues!increased!by! 53% .!The!Company’s!receipts!from!customers!for!the!sixSmonth!period!ended!31!December!2014!of!$3,283,491,!! a! 28% !increase!over!the!same!period!last!year.!

Mobilarm!Chief!Executive!Officer!Ken!Gaunt!commented:!“Our!first!half!has!been!very!positive.!Our!year!on!year! growth! continues! to! show! the! value! of! our! change! in! business! model! and! validates! our! leading! range! of!! products!and!unique!Safety!Solution!offering.!!The!new!sMRT!V100X,!the!world’s!first!IECEx!zone!1!beacon!has! been!welcomed!to!the!market!by!our!customers!as!has!the!sMRT!AU10.!We!look!forward!to!converting!our! substantial!pipeline!of!opportunities!and!continuing!to!build!our!rental!and!service!revenues!in!the!second!half! of!the!financial!year.”!!

Mobilarm!Chief!Financial!Officer!Jorge!Nigaglioni!commented:!“Our!first!half!was!a!strong!start!to!the!year.!!We! are!committed!to!continued!growth!in!our!markets!and!have!commenced!activities!to!further!streamline!our! operations!and!cost!base!whilst!increasing!efficiency!and,!more!importantly,!the!delivery!of!our!best!of!breed! customer!service.“!

Our!results!for!the!quarter!and!our!ongoing!rental!results!are!outlined!in!the!following!table:!

	Orders Receivedin PriorPeriods, notshippednor amortised.	Ordersbooked duringthe periodtodate	Ordersshipped duringthe periodtodate	Portionof Rentalor ServiceOrder amortised duringthe periodtodate	Foreign Exchange Impact	EndingOrder BookatPeriod End
OutrightPurchases	$87,182	$2,718,762	($3,011,794)		292,207	$86,357
Rentals	$1,503,483	$2,002,350		($379,496)		$3,126,337
ServiceOrders	$98,919 $1,515,220	$385,876 $5,106,588	($3,011,794)	($357,116) ($736,612)		$127,679 $3,340,373
Total
				($736,612)	$3,748,406
					$3,284,491

TEL. +61 8 9315 3511 MOBILARM LIMITED (ABN 15 106 513 580) FAX. +61 8 9315 3611 38 GUTHRIE STREET PO BOX 1837 OSBORNE PARK 6916 WESTERN AUSTRALIA WWW.MOBILARM.COM INFO@MOBILARM.COM

SEndsS!

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 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 December 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 (6 Months) $
		1,458,346 (701,627) (15,714) (81,555) - (744,567) - 1,292 (2,239) 320,917 - (542,133)	3,284,491 (1,250,484) (39,126) (102,855) - (1,402,065) - 2,150 (2,963) 320,917 - (1,509,165)
		(307,280)	(699,100)

• 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 (6 Months) $
1.8 Net operating cash flows (carried forward)	(307,280)	(699,100)
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	- - - (20,457) (1,318) - - - - - - - -	- - - (30,426) (1,318) - - - - - - - -
	(21,775)	(31,744)
	(329,055)	(730,844)
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	- - - - - -	- - 140,456 - - -
	-	140,456
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	(329,055) 629,103 -	(590,388) 890,436 -
	300,048	300,048

• 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
		(126,920)
		-

• 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

• 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

The Company has equity investments with a value of $540,036 as at 31 December 2014 that can be converted to cash as part of a convertible note facility. This instrument was sold on 15 January 2014 for a final realised value of $774,391. 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
	$540,036	$540,036
	-	-

• 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	251,831	580,886
	-	-
	-	-
	48,217	48,217
Total: cash at end of quarter(item 1.22)	300,048	629,103

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: 31 January 2015 Print name: Jorge Nigaglioni

• See chapter 19 for defined terms.

Appendix 4C Page 4

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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.

30/9/2001

Appendix 4C Page 5