The Royal Exchange, Australia-based Raiz Invest Australia Limited (ASX: RZI) is the first of its kind mobile-led, financial services business offering customers a convenient way to regularly invest both small or large amounts, in or outside superannuation, using its micro-investment platform available via the Raiz app or its website. The company was established in 2015 and formerly known as Acorns Grow Australia Limited.
Since its launch in 2016, the company has accomplished solid progress, amassing over 625,000 signups, with more than 179,000 monthly active customers and ~ $268 million funds under management as at January 31st, 2019.
Going into the second month of the year, the company continued to witness strong momentum developing throughout for the business, stemming from a combined impact of the organic growth from existing active customers, as well as growth from the acquisition of new customers.
As per the company’s active (paying) customers and total funds under management (FUM) update as on February 28th, 2019, the Customer Sign Ups increased from 625,816 in January 2019, to 645,567 in February 2019, reflecting a rise of 3.2%. Meanwhile, the investment accounts also increased by3.3% from 286,394 to 295,804. The number of active customers was up 1.8% to 183,245 at the end of February.
Of the total FUM as of February 28th, 2019, the retail funds had a valuation of $ 254.25 million, up 7.1% on the $ 237.49 million in the prior month. In addition, the superannuation funds amounted to $ 35.21 million, improving by 11.8% as compared to $ 31.49 million as of January 31st, 2019. The total funds under management were valued at $ 289.46 million at the end of February reflecting a rise of 7.6% on $ 268.98 million in the prior month.
The company recently released its half-year report for the six months ended December 31st, 2018, posting revenue from ordinary activities at around $ 3.03 million, reflecting a growth of 32% on $ 2.29 million recorded in the prior corresponding period (pcp) ended December 31st, 2019. The consolidated loss of the consolidated group amounted to $ 3.36 million for the half-year as compared to $ 246,000 loss in the pcp after providing for income tax and eliminating non-controlling equity interests.
In April 2018, the Group also completed a large-scale corporate restructuring, following which the net assets of the consolidated Group stood at $ 29.67 million as at December 31st, 2018 (June 30th, 2018: $ 32.64 million). Besides, the working capital, that is current assets less current liabilities ,was around $ 9.099 million at the end of the half-year.
While operating activities resulted in cash burns of $ 1.53 million due to payments to employees and suppliers, there were significant net cash inflows of ~ $ 6.03 million from investing activities including proceeds from disposal of term deposits ($ 7.17 million). The net cash and cash equivalent with the company were $ 9.085 million as of December 31st, 2018.
Raiz has a market cap of AUD 44.37 million with ~ 66.23 million outstanding shares. With the end of the market session on March 6th, the RZI stock closed at a selling price of AUD 0.660, down 1.493%, indicating an intra-day fall of AUD 0.010.
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