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Recruitment services provider, ApplyDirect Limited (ASX:AD1) has completed the acquisition of all the shares in Utility Software Services Pty Ltd (USS). The company has issued 132,888,893 new fully paid ordinary shares in the Company in consideration for all of the shares in USS under the share purchase agreement.
The company has also completed a placement of new fully paid ordinary shares in the Company to Potentate Investments Pty Ltd and the Associates (Placement) announced to the market on 26 November 2018. Through the placement, the company has raised around $990,000 by issuing 36,666,666 new fully paid ordinary shares.
The Placement securities were issued with shareholder approval granted at the EGM and as announced to the ASX on 19 March 2019 and on the terms set out in the notice of extraordinary general meeting dated 22 February 2019.
The company believes that the acquisition of USS and share placement will provide the clearest and most viable path for ApplyDirect to ultimately become successful and profitable. The acquisition of USS is expected to provide a number of important benefits for ApplyDirect including a diversified revenue stream, the opportunity to access cost synergies and important technical capability that should accelerate our pathway to breakeven.
For the half-year period ended 31 December 2018, the Company recognized an amount of $714,641 in revenue and $3,042,396 in a net loss. During the half year period, the company won a significant managed services contract with APM, which is expected to be launched in the Q4 of FY2019. APM is Australiaâs largest provider of Disability Employment Services, as well as a key provider under the Federal Governmentâs jobactive program.
Further, the company also secured three individual Victorian Government contracts with Development Victoria; the Department of Health & Human Services; and the Department of Environment, Land, Water and Planning.
For the half-year period, the company reported operating revenue of $0.53 million, down 10% on pcp. In part, this reduction reflected the execution of the capital management plan and the associated reduced focus on lower-yielding revenue. In addition, the Government segment experienced a slowdown due to the Victorian State election. This segment is expected to rebound in the second half of FY2019.
In the second half of FY19, the Management will continue its focus on prudential cost savings, thus seeking to accelerate ApplyDirectâs pathway towards breakeven.
Now, letâs have a glance at the companyâs stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.013 with a market capitalisation of ~$3.33 Million as on 22 March 2019. The stock has provided a year till date return of -50.00% & also posted returns of -62.86%, -43.48% & -27.78% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.082 with an average volume of ~ 153,558.
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