iSignthis Ltd (ASX: ISX) is a global Regulatory technology (RegTech) leader which is involved in the operations of remote identity verification, payment authentication, transactional banking and payment processing operations. iSignthis Ltd’s shares rose over 8% during the intraday trade today (14 May 2019 AEST 12:04 PM) after the company announced that on the basis of its cash receipts and unaudited management accounts, it has achieved a ‘break even’ position on a weekly cash run rate basis. The company has achieved this position within 4 months of its Tier 1 operations. This is a very encouraging news for the company and its shareholders as the company is entering into its extreme growth phase.
With this announcement, the company has confirmed that its gross profits will be contributing positively to the Company’s EBIT line as they are exceeding group’s operating costs. The company’s Gross profit contribution is exceeding the $8.75 million annualized operating cost base at the current processing and EU acquiring levels and its annualized Gross Processed Transaction Volume (GPTV) is exceeding AU$542 million, when calculated against actual weekly processed funds. Annualised GPTV has increased by 130% in just over a month from Start Q2 to 9/5/19.
The company’s individual merchant GPTV is also increasing on a week by week basis and it is expecting that its contracted merchants will continue to transact and process GPTV with the company on the current levels.
In the first quarter of FY 2019, the company achieved revenues of $1.85 million, up 56% on Q4 2018. Further, the company reported Cash Receipts of $1.4 million, up 55% on Q4 2018.
In the company’s Annual report, Managing Director and Chief Executive Officer Mr. N J Karantzis has advised that in 2019, the Company will be focussed on revenue and growth. Further, the company will reduce its cost of goods through the implementation of its own Tier 1 supply chain, releasing various new products to market for further revenue streams, and transforming into a commercially focussed transactional banking institution.
The company is holding a significant first mover advantage in regard to the delivery of a truly online customer identity service. The company is now striving to deliver an outstanding product to existing customers, expand its customer list and deliver increased revenues in FY 2019.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. At the time of writing, i.e., on 14 May 2019 AEST 12:04 PM, the stock of the company was trading at a price of A$0.370, up 8.824% during the day’s trade with the market capitalisation of ~A$367 Mn. The stock has provided a year till date return of 126.67% & also posted returns of 151.85%, 83.78% & -10.53% over the past six months, three & one-month period respectively. It had a 52-week high price of $0.412 and touched 52 weeks low of $0.105, with an average volume of ~2,036,879.
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