Information and Technology Company, K2fly Limited (ASX: K2F), has via the latest release on ASX has disclosed the details about its activities for the quarter ended 31 December 2018. In the December quarter (Q2 FY2019) K2F raised invoices to the value of approximately $863k. This number was approximately 31% greater than the equivalent quarter last year where the number for Q2 FY2018 was approximately $659k.
Few of the key highlights for the quarter are as follows:
- A strong quarter with revenues in excess of $860k. Approximately 30% greater than the equivalent quarter for the previous year.
- Revenue consistently grew over the quarter with the outlook for the remaining FY19 remaining robust.
- K2F engaged with SAP in joint sales campaigns for Infoscope with many significant Tier 1 Resource Companies.
- Fieldreach solution, Mobile Inspection, and Works Management, currently being rolled out in Phase II for Arc Infrastructure.
- Awarded a contract to deploy Kony software in an existing Tier 1 client.
- Implemented an Employee Option Incentive Plan to encourage excellence and to retain the talent critical to K2F success.
- Completion of fully underwritten non-renounceable rights issue, raising approximately $1.8m (before costs)
K2F has also demonstrated impressive performance over the longer term. Comparing the total value of invoices raised for the calendar year, 2017 (Approximately $1,526k) to 2018 (Approximately $3,464k). This represents an increase of about 127%, year-on-year. The biggest clients by revenue for the calendar year 2018 were: Western Power at approximately $1.7m; Fortescue Metals Group (FMG) with nearly $615k; and Arc Infrastructure with more than $565k.
The month of January is traditionally considered a very quiet revenue month in the software and services sector. The Australian holiday season often sees decision-makers and influencers absent from clients (and prospective clients). In response to this, K2F limits staffing over the holiday season to billable project resources and critical operational services thereby reducing costs. Despite this, with a few days to go before period end K2F has invoiced approximately $200k compared to zero invoices raised in January 2018.
In October 2018 a total of 6,040,976 shares and 1,510,244 listed options were issued according to the Rights Issue. K S Capital Pty Limited fully underwrote the Rights Issue. All Directors of K2F participated in the Rights Issue. In addition to this, Brian Miller, Jenny Cutri and James Deacon sub-underwrote a total of $60,000 of the Rights Issue.
Now let us quickly look at the company’s stock performance over the last few months. The stock is currently trading at $ 0.135, down by 20.588% during intraday, with a market capitalization of circa $11.34 Mn as on 25 Jan. 2019. The stock has opened the trade at $0.170 which was also the day’s high and reached a day’s low of 0.125. The stock has delivered a YTD return of 30.77%. The company has posted returns of -32.79%, and -42.37% over the last six months & three months period respectively, as on 24 January 2019. It has a 52-week high price of $0.365 and a 52-week low of 0.125, with an average volume of ~142,512.
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