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yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

We said on June 9 to watch out.... that we did not recommend this company.

10 days later, the company's own auditors don't recommend it............

Reprinted courtesy of Hemscott

Mobestar FY pretax loss widens; shares tumble on outlook doubts

LONDON (Thomson Financial) - Mobestar Holdings Plc. said its full-year pretax loss widened, with doubts being raised by the company and its auditors about the group's ability to continue as a going concern.

The mobile community company warned that the take-up of its mDate product is still unproven, impacting its revenue projections of generating cash by mid-2009.

'There is a material uncertainty which could cast doubt on the ability of the company to continue as a going concern.'

The auditors said that 'the continued operational existence of the group is dependent upon the availability of further external funding'.

The AIM-listed company said it is confident additional external funding will be arranged, when required, in 2008.

Mobestar posted a pretax loss of 2.17 million pounds for the year ending December 31, compared to a loss of 1.94 million in 2006. Revenue increased from 18,000 pounds in 2006 to 63,000 pounds in 2007.

The group said that it has experienced a transitional year as the mobile community sector emerges from the states of being an experimental concept. However the take up of services has been slower than expected.

The sales pipeline for the group is expanding, Mobestar added, with the group continuing its international expansion.

Mobestar raised 550,000 pounds in April through the placing of 3.99 million shares.

By 8:22 a.m., shares plummeted 12.90 percent to 6-3/4 pence. lorraine.turner@thomsonreuters.com lht/ejp

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

I have seen many companies at this sort of state change their company names. Usually, executives at companies in situations similar to Mobestar ( LSE: MOBS ) do everything they can to hide their past, should the bottom fall out.

So, we thought it best to keep records for the future.....to keep them honest, and you informed....

The directors and owners of Mobestar Holdings Plc ( London Stock Exchange: MOBS ) are:

Suzanne Newnes-Smith - Finance Director, Secretary, Director
Paul Robinson - Executive Chairman of the Board
Stephen Doyle - Chief Technology Officer, Director
Peter Richards - Chief Executive Officer, Director

Source: Reuters

Best of luck with anyone forced to deal with this mess.

Marc Lesnick
Conference Organizer
Internet Dating Conference

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

Mobestar posts another Quarterly loss:

RTT News Release

436,000 GBP loss this quarter.... Ouch.

Marc Lesnick
Conference Organizer
Internet Dating Conference[

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

Business Week shows very interesting financials of Mobestar Holdings PLC (LSE: MOBS). It gives a historical perspective.

It took three years for the company to generate over GBP 100,000 in income, while operations each year for the last few years have been over GBP 2 million.

Apart from some curious accounting notes mentioned in their last quarterly results (ex: certain write-offs with vague descriptions), each year for the last 2 years the company has posted a loss close to GBP 2 million ( negative USD ~$-4 million).

If that isn't bad enough, check out their cash flows. The company invests and loses money on their investments each year, with at least a 100,000 GBP loss each year.

I have summed up their numbers .... this gives a VERY good perspective on where they are now (losses are in BOLD)

MOBESTAR HOLDINGS PLC (LSE MOBS) - 2005-2007 (Sum of Financials)

LOSS

(-GBP 5,300,000)

(-GBP 400,000)

(-GBP 1,100,000)

LOSS

(-GBP 5,600,000)

(-GBP 100,000)

(-GBP 500,000)

(-GBP 600,000)

(-GBP 100,000)

Net Cash GBP 100,000

That's it. According to my numbers from Business Week. Mobestar has GBP 100,000 in its coffers left .... this after 3 years of operations. Either they are securing more financing, or their company may close its doors. No wonder why the Press Release of June 18 sounded dire.

Marc Lesnick
Conference Organizer
iDate2009.com

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

Important Note: When this message board started covering Mobestar Holdings, the stock price was 7.5p per share. As of today (September 30, 2008) their stock price is 1.50 p per share.

This represents a market cap loss of 80% over the last few months (Current market cap £618,777)

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Mobestar reports ... revenues slower than expected

LONDON (Thomson Financial) - Mobestar Holdings Plc. said its contract rollout has accelerated throughout 2008 but revenues associated with these contracts have been slower than expected.

In a trading update, the AIM-listed provider of mobile community applications said this has resulted in the company experiencing working capital constraints.

As a result, in the short term, the company is seeking to raise further funds by the issue of new ordinary shares in the company. The Company is in discussions with a number of parties and said it will make a further announcement in due course.

Mobestar also said Friday that it has passed a major milestone with the release of 'mSpace', an upgrade to its flagship product 'mDate'.

The rollout of the 'mSpace' in the U.S., Europe and Asia Pacific continues with new installations and upgrades to existing sites.
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yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

October 7, 2008 - Mobestar stock SUSPENDED FROM TRADING on the AIM Market.

Did the senior officers of the company quit? - Mobestar seeks to appoint administrators after failing to secure funding

Date : 07/10/2008 @ 17:22
Source : Thomson Financial News Limited
Stock : Mobestar Holdings Pl (MOBS)
Quote : 1.375 -0.25 (-15.38%) @ 09:31

LONDON (Thomson Financial) - Mobestar Holdings Plc. said it is seeking to appoint administrators to the company as it has been unable to secure further funding.

The company's shares were earlier Tuesday temporarily suspended from trading on AIM, pending clarification of its financial position.

Mobestar said on Sept. 26 that its contract rollout had accelerated throughout 2008 but revenues associated with these contracts were slower than expected, causing the company to experience working capital constraints.

TFN.newsdesk@thomson.com

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

Confirmed on FT.com - the shares are suspended:

London Stock Exchange Regulatory News Service
AIM: Suspension - Mobestar Holdings plc
AIM
07 October 2008 4:00pm

NOTICE
(721)
TEMPORARY SUSPENSION OF TRADING ON AIM

MOBESTAR HOLDINGS PLC

At the request of the company trading on AIM for the under-mentioned securities has been temporarily suspended from 07/10/2008 4:00pm, pending clarification of the company's financial position.

Ordinary Shares of 1p each
fully paid (B12B4Q1)(GB00B12B4Q16)

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

The below press release speaks for itself. The amount of calls and emails I have been getting on this company are something to be believed. Former officers, customers and investors have contacted me. As I said above, some of the former executives are trying to hide the fact that they ever were at the company.

I said back on June 9, 2008 that we did not recommend this company to anyone in the industry.

Marc Lesnick
Conference Organizer
iDate2008

Mobestar Holdings Plc (the "Company" or "Mobestar")
October 23, 2008

Appointment of Administrators and Resignation of Advisers

Appointment of Administrators

Further to the announcement made by the Company on 7 October 2008, the Board announces that Joint Administrators have been appointed to the Company.

The contact details for the Joint Administrators are set out below:-

Chris Latos : ( Corporate recovery & insolvency at PKF )
and
Stephen Holgate : ( Corporate recovery & insolvency at PKF )

PKF (UK) LLP Pannell House Park Street Guildford Surrey GU1 4HN Telephone: 01483 56 45 46 Resignation of Advisers

Dowgate Capital Advisers Limited, the Company's nominated adviser, and Midas Investment Management Limited, the Company's broker, announce their resignations with immediate effect.

Pursuant to AIM Rule 1, if an AIM company ceases to have a nominated adviser, the London Stock Exchange will suspend trading in its AIM securities. If within one month of that suspension the AIM company has failed to appoint a replacement nominated adviser, the admission of its AIM securities will be cancelled.

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

PKF (the appointed administrators) send out a Letter about Mobestar's Insolvency on December 15. It contained a proposal on how to handle the company's insolvency going forward.

The full letter can be read HERE.

What is clear is the following:
Page 24 and page 25 illustrate who the company owed money to. Below is merely a partial list of companies that have not been paid by Mobestar.

The University of Surrey - not paid over 5400 GBP. To me, it is one level of low ethics to not be fiscally responsible to pay another business. But to swindle a University takes extremely low morals.
Penningtons Solicitors (a law firm) - not paid over 4000 GBP
Rackspace (their web hosting firm) - not paid over 18000 GBP
Martineau Johnson (a law firm) was not paid over 21000 GBP
Hemscott (a press release firm) - not paid over 2000 GBP
Business Wire (a press release firm) - not paid over 9000 GBP
BDO Stoy Hayward (an accounting firm) - not paid over 15000 GBP
Smith and Williamson (an accounting firm) - not paid over 5000 GBP

Not surprisingly, Suzanne Newes-Smith had a credit due of 0 GBP. None of the other Board Members, Directors or Senior officers listed had amounts due them.

There were several names listed as 'Potential Creditors' to the company. These include former executives.....(page 26)

(Names with links show their Linked-In Profiles)
Mr Peter Richards, now CEO of Venture Pilot (located in Kingston upon Thames, England)
Mr Stephen Doyle, now owner of Mobile Life (Mobile-Life.com)
Mr Gavin Edwards
Mr Colin Mead, now at Sun Microsystems (old Linked in Profile here / NEW ONE is HERE)
Mr Robert Simon Meeds, assumed now with Propath Consulting Services. (Site is propath.info (not working) )
Kelly Newell
Mrs Suzanne Newes-Smith
Mr Peter Skinner
Mr Prakash Sankaran, now with INCAT

FYI, the company's Chairman, Paul Robinson can be found on Linked-In here.

Mobestar now becomes one for the records. This is pretty much the aftermath. As I said in a previous post, now there is a record for someone doing a search to see who was involved and what happened. I hope that the research done here helps others in future making a prudent business decision on whether or not to deal with these individuals.

Marc Lesnick
Conference Organizer
Internet Dating Conference

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

In Q1 2009. Mobestar announced they were to "relaunch, reposition and relocate." They tried to make it sound as if the company was on a comeback.

My earlier posts on this thread along with their insolvency notices made such claims hard to swallow. I sat back and watched.

I am now the reciever of this insolvency document:

Report to Creditors Pursuant to Rule 2.47 of the U.K. Insolvency rules 1986
Issued on May 20, 2009, it shows where the company is now fiscally and where they are going. Its a good read....

Here are my highlights:

1) They sold their assets to Venture Pilot Limited for a mere £35,000 (net of VAT). (see page 2)

Who is Venture Pilot? That is the best part! From my earlier post

yorktown · Site Admin Joined: 16 Jun 2004 Posts: 442

According to a June 25 article in the Financial Times Mobestar was a "clear example of a company that should never have been brought to AIM." In other words, it should not have been underwritten and made a public firm.

Also, according to a June 23 article in the Telegraph, it claims the company "went bust at the end of last year."

These are 2 reporters at 2 reputable financial tabloids, both basicly declaring the final fate of the firm.

The FT article discusses Mobestar as an example in its story on the London Stock Exchange's recent disciplining of other companies that use Nominated Advisers (Nomads).

For Mobestar to be mentioned in such a negative light within a week by BOTH the Financial Times and the Telegraph alone says alot about that firm and what it was up to. But it leads me to wonder....over and above the 2008 "bust" according to the Telegraph, Mobestar's Q1's actions, mentioned in the above posts, may further catch the eye of the LSE.

Marc Lesnick
Conference Organizer
Internet Dating Conference