Mobile Streams Plc On Way Of Course Correction With New Management

  • Dec 30, 2019 GMT
  • Team Kalkine
Mobile Streams Plc On Way Of Course Correction With New Management
Mobile Streams Plc

Mobile Streams Plc (LON: MOS) is the United Kingdom domiciled mobile content generation and distribution company. The company’s products include online mobile phone apps and content ranging from ringtones, videos, music to mobile games. The company has a very wide consumer base with operations ranging across all continents, with local subsidiaries in  North America, South America, Europe and Asia. The company recently signed a deal with Krunch.ai an Artificial Intelligence firm which will help the company get better insights and intelligence into the behaviours of its customers and helping it better place its products.

The stocks of the company are traded on the London Stock Exchange in the Alternative Investment Market (AIM). The shares trade there with the ticker name MOS and form part of the AIM All-Share index.

News Update

The company on 23 December 2019 published an update on the publication of its annual report for the year ending on 30 June 2019.

  • The update stated that the company would not be able to publish its annual report by 31 December 2019 as is the requirement under the listing rules of the AIM segment of the London Stock Exchange.
  • The delay has been on account of the change in the board of the company which is conducting a thorough review of all the aspects of the company in conjunction with the new auditors of the company PKF Littlejohn.
  • The company, however, has been working tirelessly in its review exercise and will be able to meet the requirement of the AIM regulations no later than the second week of January 2020 and hence its shares will be suspended from trading on AIM until publication of the results.
Financial Update

During the past six years, the revenues of the company have been falling rapidly, while it reported a revenue of £53.93 million for year ended 2013 the revenues have fallen to as low as £3.0 million for the year ended 2018. However, the company has managed to control its costs meaning that it has been streamlining its operations since the past six years. The company has also not raised any significant debts during this six-year period, making its debt servicing obligation remain almost flat over the years other than that there is no other major cash outgo of the company.

Source – Company website

Stock Performance At The London Stock Exchange

Source – Thomson Reuters

At the time of writing of the report at 11.19 AM GMT on 30 December 2019, the shares of the company were trading on the London Stock Exchange at GBX 0.1375.

The shares of the company during the past 52 weeks of trading at the London Stock Exchange have registered a 52-week high of GBX 0.833 while registering a 52-week low of GBX 0.054; the company has a market capitalisation of £ 562.58 thousand on the London Stock Exchange at the time of writing this report on 30 December 2019. The stock’s average traded volume as on the above date and time stood at 16,021,168 in last one month, the shares have generated a return of -9.38 % and a return of -74.78 % on year to date basis.

Shareholdings In The Company

Below are the top four institutional shareholders of the company.

Major Shareholders                                                       Amount                                                    % Holding

SVS Nominees Limited                                                 29,563,211                                                   7.57%

Hsdl Nominees Limited                                                18,890,173                                                   4.84%

Interactive Investor Services Nominees Limited    16,447,122                                                   4.21%

Hargreave Hale Nominees Limited                              15,405,318                                                   3.95%

Source – Company website

Business Outlook

The company has a brand-new board, who have a fresh perspective of the business of the company, they are conducting a thorough review of the business model, strategies and practices of the company which will surely place the company in a better position than it was before.

The most bankable feature of the company is that it has been able to diversify its business into multiple high volume geographies across the world, which would give the new management enough leverage to successfully implement any strategy that it deems necessary to spur growth for the company. The board along with the new auditors of the company PKF Littlejohn is also conducting a thorough review of the practices being followed by the company, with appropriate policies and procedures which will provide impetus to the future growth of the company.

There are a number of contemporary companies in the field of mobile app-based solutions and other deliverable which are doing relatively well. The company stands a good chance to perform well should it offer such value-added solutions to its portfolio of offerings.

The strategic review though, has come late but will surely put the company in the right path and will place the company alongside its contemporaries, in the rapidly expanding sector of the mobile app-based service industry. The company’s recent announcement that it was signing a deal with Artificial Intelligence services providing firm Krunch.ai is a step in the right direction; the company will not only help the new management thoroughly analyse strengths and shortcomings of its current products and services but will also help it finetune its operations to make it ready for any future value-creating impetus envisaged by the new management of the company and its implementation.

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