On 3 April 2019, iSignthis Ltd (ASX: ISX), a company engaged in providing transactional banking and card services in the EU/EEA and Australia, announced the update related to the ISXPay™ EEA card processing.
During 22 January 2019 to 30 March 2019, the company had 13 new merchants that had gone live on the Tier-1 network in the EEA, where each merchant is increasing GPTV as per the company’s expectation. In the period between 1 February 2019 to 1 April 2019, the daily processing volumes have increased by 260%. When the average daily figures are annualised, the actual GPTV based on the existing recurring basis will exceed $302 million.
When the additional contracted merchants are on-board, the company expects to have an accelerated daily processing turnover volume. With the addition of the contracted merchants, there will be a positive contribution to GPTV, when each merchant uses ISXPay™ network to process greater volumes.
Since October 2018, the company has executed over 100 agreements for regulated services and completed the due diligence. At the same time, it is also stepping towards the onboarding of contracted parties as soon as possible.
The announcement also highlighted that the company is slightly ahead of the expectations with respect to the annualised GPTV target that was announced earlier. The company also transformed its revenue significantly to cost base. Many of the third-party costs have now been eliminated. With this, the actual average MSF percent and gross profit have now reached the earnings guidance of the company.
On 29 March 2019, the company released its full-year statutory accounts statement. The FY2018 period remained challenging for the company as it has moved from reliance on the third-party partnerships to creating its Tier 1 banking capabilities. The second half of the year was used by the company to conclude key elements of the European Tier 1 infrastructure build.
During the period, the company reported a loss of $8,030,052. The balance sheet highlighted an increase in the net asset base during the period, which was driven by growth in the total assets of the company. The total shareholders’ equity was worth $11,443,964.
During the period, the company reported a decline in the receipts from the customers followed by an increase in the payment to the suppliers and the employees. As a result, the net cash outflow through the operating activities was $6,736,421.
The company also made payment for plant and equipment, intangibles, acquisition of the business, loan advances to the third party during the period. It also received repayment of the loan from the third party and acquired cash from the acquisition of Probanx. As a result, the net cash used in the investing activities was $941,334.
The company also generated cash by issuing shares. $8,501,419 was the net cash used in the financing activities. By the end of the period, the net cash and cash equivalent of iSignthis Ltd was $8,433,874.
In the last six months, the stock generated outstanding return of 120.69%. At market close on 3rd April 2019, the stock of the company traded at A$0.320, up by 12.281%. Today, 4 April, the stock has soared by 4.69% at A$0.335 (As at 2:05 pm AEST) with a market capitalisation of ~A$345.26 million and ~1.08 billion shares outstanding.
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