Aspermont Updates on Settlement with Gainwealth and Beacon

On 13 May 2019, Aspermont Limited (ASX: ASP) announced that a full and binding Settlement Deed (Deed) has been agreed and finalized between Aspermont Ltd, Gainwealth Group Ltd and Beacon Events Ltd. All the matters that were outstanding between the parties regarding their joint venture are now resolved.

As per the deed, Aspermont has received a cash payment of A$0.5 million in exchange for the termination of all claims linked to the outstanding Loan note, Options Agreement, as well as other intercompany liabilities between the parties.

With this settlement, the one-off, non-cash charge to net profits and net assets of $4.9 million of the company will be reported in the upcoming half-yearly results.

Previously, on 16 July 2012, Aspermont Limited and Gainwealth had entered an option deed. On 13 April 2017, Aspermont notified that it had been in dispute over the management and control of the Events division known as Beacon Events which was owned 60% by Aspermont and 40% by Gainwealth.

On 13 February 2019, Aspermont announced that on 30 January 2019, it had received a notice from Gainwealth Limited, purporting to exercise option of Gainwealth to require Aspermont to repurchase the Gainwealth shares in Beacon Events Limited within twelve months from that date.

In the company’s FY2018 report ending on 30 September 2018, there was a growth in the revenue by more than 21% to $14 million as compared to its previous corresponding period. The revenue generated through the subscription was up by more than 21% to $5.7 million. The digital advertising revenue increased by more than 7%, print advertising by more than 3%. The revenue through research and data was up by above 150% to $0.15 million and events by beyond 1100%. Gross margins improved from 46% in FY2017 to 54% in FY2018. The EBITDA was enhanced by more than 100%, standing at $0.2 million.

The key achievement of the company during the period included as follows:

  • Completion of the operational restructure.
  • Strong growth in subscriptions revenues and in Lifetime Values.
  • Increased digital advertising revenues.
  • Strong lift in normalized cash flow from operating activities.
  • Successful launch of new Events business, as well as new Research and Data division.

The balance sheet of the company reported an increase in the net asset base, as a result of increase in the total assets of the company. The total shareholders’ equity for the period was $9.671 million.

There was a net cash outflow of $0.436 million through the operating activities of the company and $0.725 million through the investing activities of the company. There was a net cash inflow of $1.875 million through the financing activities of the company. The primary source of cash inflow was from the issue of shares. By the end of the FY2018 on 30 September 2018, the company had a net cash and cash equivalent of $2.059 million.

The stock of the company last traded on 13 May 2019 at a price of A$0.012. The ASP shares have generated a decent YTD return of 33.33%. Aspermont holds a market capitalization of A$25.26 million and has approximately 2.11 billion outstanding shares.


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