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ASX Quarterlies: Companies shine amidst market volatility
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It’s quarterlies season as the ASX market announcements page becomes increasingly flooded with lodgements.
The last day for companies to submit reports is the last business day of the first month after the prior quarter. If they don’t, they risk suspension (and consequential panic and anger from shareholders).
While the June quarter was volatile on global equity markets there were some quality performances in business operations with records falling. Here are some of the reports that caught our eye today as we enter another week.
The Aussie game developer’s price rose 10% today to 11 cents after announcing record quarterly cash receipts of $8.2m for Q2 FY22, a quarterly increase of 82%.
Revenue for the first half of 2022 is estimated to be $12.9 million, ICI’s highest half-year revenue ever and without the one-off acquisition cost, iCandy is operationally profitable for the first time.
ICI said sustainable growth will be further realised as accretive synergies are realised from its acquisition of Lemon Sky Studios, Storms, Flying Sheep Studio and Gameconomy.
Following the full integration of Lemon Sky Studios, the team has contracted services for game production for the next three years.
The company recorded $28.2m in cash, where the quarterly burn rate is set to significantly reduce as one-off costs lapse and compounding growth rates are realised.
Venture tech capital firm Fatfish has doubled its cash receipt in the latest quarter.
In Q2, FFG’s cash receipt increased by 96% from $398k to $780k.
Meanwhile, net cash used in operating activities is approximately $446k, substantively unchanged compared to Q1’s $440k.
Highlights for Q2 include the completion of a 87.44% or $2.11 million acquisition of JazzyPay Inc by its fintech subsidiary, ASEAN Fintech Group (AFG).
JazzyPay is a Philippines based digital payment provider and possesses an Operator of Payments System (OPS) licence issued by the Bangko Sentral ng Pilipinas (the central bank of the Philippines).
The JazzyPay platform enables the collection of online payments via 27 payment channels for its 500+ onboarded merchants.
During the quarter, Fatfish also completed the restructuring and consolidation of its investments in fintech businesses under AFG. Following the restructuring, Fatfish now holds approximately 65.9% direct stake in AFG.
In June, Fatfish announced that RightBridge Ventures, an investee of FFG’s 40% Swedish subsidiary Abelco, had entered into a reverse takeover agreement with Agilit in a deal that values RightBridge at a valuation of $25.5 million (SEK180 million).
Post the transaction, Abelco will have a direct stake in Agilit that is worth approximately $10.4 million (SEK73.1 million).
NeuroScientific Biopharmaceuticals (ASX:NSB)
The Australian drug development company has announced achieving several key milestones during the June quarter including progressing its lead drug candidate EmtinB into clinical development.
NSB received ethics approval to start the first clinical trial for EmtinB and reported positive safety outcomes from its preclinical safety and toxicology program for the drug candidate.
The program was undertaken to support the advancement of EmtinB into clinical trials for NSB’s neurology indications, leading with Alzheimer’s disease and Multiple Sclerosis, which represent large markets with unmet medical needs.
NSB had a cash position of $7.2m on June 30 2022 and said corporate expenses continue to be carefully managed.
The cannabis play announced total group revenue of $1,571,874 generated for the June quarter, underpinned by its ongoing international expansion and recreational cannabis sales growth.
Q2 revenue takes CPH’s unaudited group revenue in H1 FY22 to $4,314,308, highlighting a 42% increase on the previous corresponding period (pcp).
The company said H1 2022 unaudited revenue doesn’t include contributions from Sierra Sage Herbs LLC which generated US$1.1m in gross revenue during Q1 2022.
Net cash used in operating activities decreased 45% from $3,675,000 in the previous quarter to $2,008,000.
After the end of the quarter, CPH secured firm commitments to raise $7m through an equity capital raising. A further $25m of debt funding has been proposed by NYC-based Obsidian Global Partners LLC by the execution of a non-binding term sheet.
CPH expects to be well-placed with debt and equity funding going forward to progress an entry into the US market.
Malaysia focused fintech, IOUpay, has just reported its third consecutive quarter of positive adjusted net operating cashflow.
For the June quarter, net operating cashflow was a positive $8.08m, which includes adding back $5.53m payments to BNPL merchants that form part of BNPL receivables.
Total Transaction Value (TTV) of $5.4 million was transacted during the quarter, delivering around $340k in Net Transaction Revenues (NTR).
IOU also saw continued growth in consumer and merchant signups since the June 2021 launch of the myIOU app. Cumulatively, 2,390 merchant outlets and 33,871 consumer accounts have now been activated since launch.
These strong figures capped off a good quarter for IOU, as its Non-Performing Loans (NPL) of just 0.61% continues to indicate modest delinquencies and reinforces the company’s strong credit quality control strategy.
In the quarter, IOU also forged strategic partnerships with SOGO, Pine Labs and PayHalal, underscored by the Shariah Compliance certification issued for myIOU Islamic.
IOU’s myIOU KA$Hplus Visa also went live, bringing myIOU to any Visa-approved merchants.
KA$Hplus is a Visa eWallet and reloadable prepaid card issued by VirtualFlex in partnership with Fasspay. Approved by Bank Negara Malaysia, KA$Hplus’ Visa payment is supported by businesses and financial institutions worldwide, wherever Visa is accepted.
In March, IOU launched myIOU 2.0 with a rollout of phase one technology enhancements. Since launch, growth in consumer engagement has continued through to the June quarter.
From March, consumer downloads of the myIOU app have grown by 59%, consumer onboarding increased by 65%, and consumer account activation was up 67%.
Other technology improvements were also made during the quarter, including the mobile software development kits, PCI-DSS certification and integration with the Shopify e-commerce payments platform.
All these have reinforced the company’s commitment to innovative market leadership and best practices.
Meanwhile, IOUpay’s investment in I-Destinasi (IDSB) aligns with its growth strategy to build relationships with strategic partners who manage large communities of reputable merchants and creditworthy customers.
As the company progresses to investment completion, the relationship focus with IDSB is now centred on developing commercial partnership opportunities.
As presented on the Business Strategy update on 21 July, IOU said it will broaden the base of consumer finance product offered by the IDSB opportunity.
The Aussie medtech reported it had made significant progress during the June Quarter with its lead product CONNEQT Pulse.
Together with its manufacturing partner Andon, CDX submitted a clearance application to the US Food and Drug Administration (FDA) towards the end of June.
Subject to final FDA clearance, Pulse will be the first arterial health monitor to incorporate a full suite of patented and trademarked heart and vascular health parameters beyond traditional blood pressure.
CDX’s clinical trial services market continues to expand, with the strongest sales pipeline in its history and is the focus of its ATCOR business development efforts. The company closed the quarter with total cash reserves of $1.46 million.
In Q2, the electric scooter manufacturer sold 9,603 units, up 22% on the pcp, and up 50% on Q2 of FY20.
8,633 international unit sales were made in Q2, up 15% on pcp and up 45% on Q2 FY20,
It has been a solid first half performance as Vmoto continued to deliver strong unit sales of 17,601 units in total (up 28% on pcp).
During the quarter, new international distributors were appointed, with ongoing discussions and samples shared with a number of potential new B2C and B2B customers.
A strategic advisory and investment agreement was executed with Giovanni Castiglioni, along with a partnership and investment agreement with Graziano Milone, both well-known and experienced European entrepreneurs, investors and executives in the global motorcycle industry.
In the quarter, Vmoto also signed new sponsorship agreement with Ducati Corse racing, a division of Ducati as the official supplier of electric scooters for Team Ducati Corse in the MotoGP World Championship (MotoGP), and the Superbike World Championship (SBK) during the 2022-2023 seasons.
At Stockhead we tell it like it is. While iCandy Interactive, NeuroScientific Biopharmaceuticals, IOUpay, Creso Pharma and Fatfish Group are Stockhead advertisers, they did not sponsor this article.
