Four Stocks from Diverse Sectors: SPT, KYK, DRO and FLN

By the closure of the market on 2 August 2019, the benchmark index S&P/ASX 200 was down by 0.3% and closed at 6788.9. Meanwhile, S&P/ASX 200 Information Technology (Sector) was down by 0.85% and closed at 1383.1.

Since 2 January 2019 till 2 August 2019, the performance of S&P/ASX 200 Information Technology (Sector) was ~ 22.87%. On the other hand, S&P/ASX 200 Industrials (Sector) performance in the same time frame was ~ 21%. The performance of S&P/ASX 200 during this period was ~ 17.88%. This means that both the industrial as well as information technology sector have outperformed the S&P/ASX 200 sector.

In this article, we will be looking at the recent developments in four companies (two from the industrials sector and two from the information technology sector).

Splitit Payments Ltd

Company Overview:

A global player in providing cross-border payment solutions, Splitit Payments Ltd (ASX: SPT) boasts a merchant base of more than 1,000. It caters to its clients in over 200 nations. SPT has emerged as an omnichannel instalment payment solution.

Quarterly Activity Report for June Quarter:

In the June 2019 quarter, there were around 72 active merchants who got added to the company’s merchant base. With the addition of these 72 active merchants, the number of total merchants associated with the company at present stands at 509. This increase represents a 121% growth in the active merchant base as compared to the previous corresponding period.

At present, there are more than 700 merchants in the sales cycle. The total number of customers increased by 228% to 197,000 as compared to the previous corresponding period (pcp) and 23% as compared to the previous quarter. The merchant transaction volume increased by 108% to A$ 31,850,000 in the second quarter of the year 2019 when compared with the same period a year ago. The merchant fees also went up from A$ 257,000 in Q2 CY2018 to A$ 575,100 in Q2 CY2019 with zero bad debts.

Financial Highlights:

In Q2 CY2019, the company used net cash of US$ 2.744 million in its operating activities and US$ 0.091 million in its investing activities. The net cash inflow through the financing activities of the company was US$ 19.625 million. By the end of Q2 CY2019, the company had net cash and cash equivalents worth US$ 23.703 million. The net cash outflow in the next quarter is expected to be around US$ 2.398 million.

Stock Information:

 

By the end of day’s trading session on 2 August 2019, the price of the shares of SPT was A$ 0.535, down by 6.14% as compared to the previous closing price. SPT has a market cap of A$ 175.29 million and approximately 307.53 million outstanding shares.

Kyckr Limited

Company Overview:

Kyckr Limited (ASX: KYK) is a regulatory technology company with access to more than 200 official registries in 120+ countries and more than 170 million legal entities.

Share Placement:

On 31 July 2019, the company announced that it successfully raised $ 5.2 million through share placement from new as well as existing institutional and private investors. In the last few months, the company made a significant progress as it rolled out its improved digital platform, Kyckr.com. The platform is used in the authentication process of know your customer, with the platform witnessing encouraging early growth sign since its introduction. The company has also continued to focus on developing strategic partnerships with enterprises in the financial, data and technology sector.

As the company would progress forward, the funds through the placement would be used for accelerating its global commercialisation activities as well as business development and account management.

The placement would occur in two tranches. The second tranche would depend on the approval during EGM that would take place in early September 2019.

Quarterly Results:

The company on 29 July 2019 released its quarterly activities report, under which it reported an increase of 28% in its quarterly revenue to $ 532k for the period ended 30 June 2019. There was also an increase in the enterprise revenue by 48% as compared to the previous corresponding period. Post the launch of new Kyckr platform in May, there was a positive growth in the number of subscribers, which pushed the total online revenue by 20% as compared to the previous year.

Financial position:

The company used A$ 0.565 million in its operating activities and A$ 0.280 million in its investing activities. By the end of the June 2019 quarter, the company had a net available cash balance of A$ 1.449 million. Expected cash outflow in the September 2019 quarter is A$ 1.263 million.

Stock Information:

By the end of day’s trading session on 2 August 2019, the price of the shares of KYK was A$ 0.078, up by 5.405% as compared to the previous closing price. KYK has a market cap of A$ 11.17 million and approximately 150.96 million outstanding shares.

DroneShield Limited

Company Overview:

DroneShield Limited (ASX: DRO) is a global leader in drone security technology. DroneShield has developed pre-eminent drone security solutions. With focus on protecting people, enterprises and key infrastructure from intrusion.

New Product Release

The company announced the release of RfZeroTM in a market update on 2 August 2019. The company’s breakthrough new product follows extensive development based on end-user feedback. The product, which is an omnidirectional drone detection device and completely non-emitting, is available for purchase to qualified end-users. The product is designed to be a cost-effective fixed site alternative to RfOneTM, which is the company’s higher end product.

DroneShield as Sole Counterdrone Member:

On 29 July 2019, DroneShield released an announcement, under which the company highlighted that it was accepted for membership in ACI (Airports Council International) Europe, which comprises of more than 500 airports in 45 European countries.

Stock Information:

By the end of day’s trading session on 2 August 2019, the price of the shares of DRO was A$ 0.310, up by 3.33% as compared to the previous closing price. DRO has a market cap of A$ 58.01 million and approximately 193.38 million outstanding shares.

Freelancer Limited

Company Overview:

Freelancer Limited (ASX: FLN) is a player in the industrials sector and is involved in the business of online freelancing, outsourcing and crowd sourcing marketplace.

Company’s Division:

Freelancer.com: It is an online services marketplace with more than US$ 4.5 billion in jobs awarded. The revenue model of this division depends on users posting a role in the form of a project or a contest. More than three fourth of Fortune 500 companies employ Freelancer.com in order to get their tasks done.

Escrow.com: This website is for secure online payments with more than US$ 4 billion in transactions. It is used for securing a wide range of important transactions which range from $ 100 to $ 100,000,000. It helps the users to transact online with increased trust. Buyers and sellers are accessible, which results in better choice, pricing and increased probability of successful transaction. Through Escrow.com, physical inspection, as well as acceptance, is possible on delivery. Thus, valuable products can be shipped across the state or country lines before the transaction completes, enabling buyers and sellers to expand beyond the local market safely. The other benefits of using Escrow.com is that it offers increased compliance, increased insights, increased conversion, as well as increased revenue.

1H FY2019 Group Results:

The company made a record with Gross Payment Volume (GPV) growth of 11% as compared to the previous corresponding period. GPV is the overall payments to the users of Freelancer and Escrow for products as well as services executed via the websites of Freelancer and Escrow along with total Freelancer and Escrow revenue. Freelancer GPV went up by 11% to $ 92 million and Escrow.com GPV grew by 10% on pcp. The net revenue for the period was A$ 28.7 million, representing a growth of 16%. The operating EBITDA and operating NPAT was reported as $ 0.8 million and $ 0.4 million.

In Q2 FY2019, Freelancer Limited used A$ 0.987 million in operating activities, and A$0.092 million in investing activities. The company’s financing activities accounted for net cash inflow of A$ 0.015 million. By the end of Q2 FY2019, Freelancer Limited had net cash and cash equivalents worth A$34.439 million. Expected cash outflow in Q3 FY2019 would be around A$ 14.743 million.

IH FY2019 Freelancer Enterprise update:

In 1H FY2019, the company had signed master service agreements with major brands from the technology, professional services, defence as well as healthcare industries. The company is about to start multi-nation pilots with international players in the cloud, software, computer and telecommunications industries. The company is working continuously with the sales team across the globe. An executive from Uber’s Greenlight driver was hired to run the enterprise operations. Around $ 2.6 million in enterprise services revenue was generated during the period.

Stock Information:

By the end of day’s trading session on 2 August 2019, the price of the shares of FLN was A$ 0.835, down by 5.114% as compared to the previous closing price. FLN has a market cap of A$ 401.03 million and approximately 455.72 million outstanding shares.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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