Complii FinTech Solutions Q4 FY24 Report: Growth, Divestment, and Future Plans
CF1 (CF1) Share Update July 2024 Monday 22nd
Complii FinTech Solutions Announces Strong Q4 FY24 Performance and Strategic Divestment
Complii FinTech Solutions Ltd (ASX: CF1), a leading SaaS platform for equity capital markets participants, has released its Quarterly Activities Report for Q4 FY24, highlighting strong financial performance, strategic divestments, and future growth plans.
Instant Summary:
- 46% increase in receipts from customers to $2.651 million.
- Net cash from operations improved by $411k compared to Q3 FY24.
- PrimaryMarkets signed a significant agreement with Dexus Wholesale Australian Property Fund.
- Group ARR up 5.7% from Q3 FY24 and 14.7% year-on-year.
- Strategic divestment of Registry Direct expected to complete by 30 September 2024.
Financial Highlights
Complii FinTech Solutions Ltd reported a 46% increase in receipts from customers, reaching $2.651 million in Q4 FY24, up from $1.807 million in Q3 FY24. PrimaryMarkets, a business unit of Complii, saw an exceptional increase in receipts of $533k compared to the previous quarter.
Total Group Revenue and Other Income for Q4 FY24 was $2.430 million, up from $1.835 million in Q3 FY24. Despite overall negative net cash from operations of $411k for the quarter, this was an improvement of $411k from Q3 FY24.
Commercial and Strategic Highlights
PrimaryMarkets signed a significant commercial agreement with Dexus Wholesale Australian Property Fund (DWAPF) to provide a Trading Hub, offering an alternative liquidity solution to unit holders in DWAPF. This agreement marks a significant milestone for PrimaryMarkets and is expected to open new market opportunities.
Additionally, PrimaryMarkets had a strong Q4 FY24, with increased transaction volume and 527 new platform registrations. The Group's ARR increased by 5.7% from the previous quarter and 14.7% year-on-year.
Strategic Divestment
On 18 July 2024, Complii announced an agreement to sell its Registry Direct business unit in a management buy-out, expected to be completed by 30 September 2024. The transaction will consist of an initial payment of $3.85 million, with additional service fee payments of $500k each in June 2025 and June 2026. This divestment will increase cash on hand and allow the Group to focus on its core market and services.
Operational Improvements and Future Plans
Complii continued to enhance its product offerings, including the launch of a new Model Portfolio and Rebalancing module, generating strong interest. The Group is also working on several new products and enhancements, such as a specialised CRM module and further integration of acquired businesses.
PrimaryMarkets plans to expand its Trading Hubs to other large unlisted property funds and is focusing on technological enhancements to improve platform efficiency and user experience.
The strong financial performance and strategic divestment are likely to positively impact Complii's stock price. The agreement with Dexus Wholesale Australian Property Fund and the focus on core services will enhance the Group's market position and investor confidence.
Investor Reaction:
Analysts have responded positively to Complii's Q4 FY24 performance, highlighting the significant growth in receipts and the strategic divestment of Registry Direct. The agreement with Dexus is seen as a major milestone that could open new market opportunities.
Conclusion:
Investors should keep an eye on Complii's future developments, including the completion of the Registry Direct divestment and the launch of new products. The Group's strategic focus on core services and market expansion positions it well for continued growth.