iBuyNew Group Limited (ASX: IBN) operates a leading Australian online marketplace which helps buyers to find, compare and buy new properties.
iBuyNew Group has recently released its half-year results for FY 2019. For the half-year period, the company reported revenue of $1.75 million which was 29.60% less than the revenues earned in the corresponding previous period (pcp). The main cause behind the reduction in the revenues was the tough lending conditions due to which clients faced difficulties in obtaining finance for new purchases.
Further, the company reported net operating (loss) of $1.451 million in H1 FY19. The half-year results were in-line with management’s expectation as the Australian market for new property remained considerably soft during the period. During the half year period, the company took a number of strategic initiatives to mitigate the impact of challenging market conditions and support the future path to break even.
The company is expecting that there will be an improvement in the area of financing as macro-prudential controls soften and the neutral findings of the Royal Commission reduce buyer anxiety. The company is confident that purchasers will return to the market as lending conditions improve.
During the half year period, the company invested in its technology platform and website to improve usability and provide a better all-round user experience. The new website and platform will be delivered in the fourth quarter of 2019 and along with other digital initiatives the company is expecting it to result in an increase in website traffic and organic non-paid leads.
Recently on 15 January 2019, the company announced that it has entered into a $2,450,000 senior secured loan facility (Secured Facility). The proceeds from the loan facility will be used to repay all its debt obligations to Mark Mendel and nominees. The proceeds will also be used to repay $500,000 of its existing convertible bonds and working capital to complete the strategic initiatives announced on the 8 October 2018.
On 1 March 2019, the company’s share were suspended from Official Quotation in accordance with Listing Rule 17 following failure to lodge the relevant periodic report by the due date. However, on 8 March 2019, the company’s shares were reinstated to Official Quotation following the lodgment of its Half Year Financial Report for the period ended 31 December 2018.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock last traded at a price of $0.084, down by 6.667% during the day’s trade as on 8 March 2019. The counter opened the day at $0.083 and reached the day’s high of $0.084 and touched a day’s low of $0.083 with a daily volume of ~4,000. The stock has provided a year till date return of -55.00% & also posted returns of -70%, -55% & -10% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.700 and touched 52 weeks low of $0.051, with an average volume of ~2,695,372.
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