Orcoda’s Customer Revenues Up 250% in December Quarter Over Previous Quarter; 2020 Optimism Continues 

  • Jan 31, 2020 AEDT
  • Team Kalkine
Orcoda’s Customer Revenues Up 250% in December Quarter Over Previous Quarter; 2020 Optimism Continues 

The world of logistics excellence is competitive but highly rewarding. In this regard, we present to you, Orcoda Limited (ASX:ODA), a driven team of operational efficiency specialists that is building a solid position in this field.

Engaged in integrating systems, processes and data via connecting and automating complex supply chains, Orcoda Limited is known for its real time digital platform, management expertise and contracting services.

With the goal to optimise everything, ODA’s combined offering is focused on three key business sectors- healthcare logistics, transport logistics and resource people logistics. In today’s contemporary world, ODA empowers its vast array of clientele to 'Plan, Mobilise and Manage' complex supply chains, whilst minimising waste and maximising efficiencies.

FY19 was a successful year for the Company, with segment revenue up by approximately 70% to $2.4 million, compared to $1.4 million in FY18. Continuing its growth trajectory, ODA recently announced its results for the quarter ended 31 December 2019.

ODA’s December 2019 Quarter Results

Orcoda continued to catch the investors’ and market attention with solid December 2019 quarter results. Let us look at the highlights of this result:

ODA reported a quarter on quarter increase of 250% in customer revenues during the December 2019 quarter. The Company’s cash at bank was up by 26%, compared to the last quarter, increasing from $1.68 million at end-September 2019 to $2.12 million at end-December 2019. What’s interesting is that this increment has been demonstrated without any further capital raising in the quarter.

Healthcare Logistics Division

In FY19, the healthcare segment was the largest contributor to the profit recorded. This continued in the December 2019 quarter, wherein the healthcare segment registered an operating profit of $607k.

At present, ODA has 17 managed vehicles in its Queensland fleet. This has played a dual role for the Company- firstly, being major driver in lifting the segment revenue and secondly, benefiting the aged care and disability sector.

ODA continues to sell licenses and manage fleet vehicles on behalf of its licensees. An IAG/Carbar agreement has confirmed vehicle supply, as ODA enters optimistically towards the future.

Moreover, sale of Orcoda licenses to operate the vehicle rental business continued in the quarter. Ever since these licenses were introduced in FY19, they have been major contributors to the Company’s revenue stream. Consequently, driven by the recent license sales, ODA now has Community Transport vehicles operating in Brisbane, Sunshine Coast, and the Gold Coast.

Post the December quarter, in mid-January 2020, ODA launched the Community Transport vehicles in Melbourne. The Company further plans to expand it to Sydney in the coming months.

Transport Logistics division

The transport division’s performance met the Company’s expectations, with receipts from customers being maintained.

Moreover, the Company’s management anticipates improved market penetration over the coming months, as a result of improved access through Savills’ Australia wide sales network.

Resource Logistics Division

ODA’s Resource Division, which caters to onboarding, mobilisation and worksite compliance, is currently bidding on Snowy Hydro 2 project, which is estimated to be 7-year long.

ODA’s Outlook

At the back of consistent results, the Company is continuing to grow, and its efficient management is looking forward to the future. Shareholders have been bestowing their continued loyalty and support on ODA, which has been a great catalyst for the Company.

ODA is in a growth phase, with plans to advance further in FY20. The sales forecasts for all the three Australian divisions look encouraging. Further, The Orcoda Connect business, which was launched in FY19, has been contributing substantially to the profitability of the healthcare division, and is expected to be doing so in the future.

The Company’s management aims to focus on areas where revenue will not be heavily impacted, in order to increase profitability.

Share Price Information

After the close of business on 31 January 2020, the ODA stock settled the day’s trade at $0.200 on the ASX, with approximately 108.54 million shares outstanding. The Company has a market capitalisation of $21.71 million and its stock has generated 8.11% in the past six months.


Disclaimer

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