Updates On Four ASX-Listed Small Cap Tech Stocks - LVT, BTH, SVT, NEA

  • Oct 20, 2019 AEDT
  • Team Kalkine
Updates On Four ASX-Listed Small Cap Tech Stocks - LVT, BTH, SVT, NEA

Technology in present days has extended presence in all the sectors around the world. Many companies are investing huge amount of money to leverage significant economic and social opportunities from the digital economy.

As per a report from Data61, which is a segment of Australia’s national science agency CSIRO, over the next 10 years, digital innovation in Australia has the potential to deliver $315 billion in gross economic value. This sector would be a critical segment in the ongoing economic success of the country. As per the report, there are 8 strategic areas where Australia can attain success in developing new digital products or services. These include:

  • precision healthcare
  • data-driven urban management
  • digital agriculture
  • cyber-physical security
  • supply chain integrity
  • legal informatics
  • proactive government
  • smart exploration and production

Australia has certain key features that support the potential of the country in creating, developing and commercialising new digital technologies. These include:

  • Strong research & development environment
  • Highly skilled and innovative staff
  • Australia is the hub of key global growth industries. Thus, many technology companies get the advantage.
  • Stable economic and political environment in addition to strong regulatory protections.
  • Innovation in Australia receives huge support from state and federal governments.

Let us discuss four ASX-listed technology companies that come under the small cap space.

LiveTiles Limited (ASX: LVT)

LiveTiles Limited (ASX: LVT) made two announcements in the last one week. The first was Q1 FY2020 update and the second announcement was related to equity raising of $5 million through a share purchase plan.

Q1 FY2020 Highlights:

Q1 FY2020 ended 30 September 2019 was a solid quarter for the company.

  • The company’s annualised recurring revenue (ARR) increased from $40.1 million in Q4 FY2019 to $42.9 million in Q1 FY2020. In the last one year, LVT noted a 131% growth in its ARR.
  • In Q1 FY2020, the performance of the company in the APAC region was strong. However, it was offset by seasonal purchasing patterns in the US and Europe.
  • Wizdom, LVT’s recently acquired intranet software, is registering strong growth, with an increasing FY2020 pipeline of deals being generated via the global partner channel.
  • The global sales and marketing teams across Wizdom and LiveTiles during the period were integrated with a solid response within the enterprise market to LVT’s combined value proposition.
  • LVT during the period established a collaboration with UiPath. The new partner is a leading player in robotic process automation across the globe.
  • LiveTiles was also selected by Microsoft and had the opportunity to present at the latter’s biggest annual partner event (Inspire).
  • The company also confirmed the receipt of R&D tax refunds of $3.8 million for 2017 and 2018.
  • LVT also teamed up with GO1.com, an online compliance, professional growth as well as training marketplace in the world.
  • The company raised $50 million via placement.

Capital Raising through SPP - On 16 October 2019, the company announced to have raised $5.0 million via a share purchase plan (SPP) from eligible shareholders. The funds raised would be directed towards generating continued strong customer and revenue growth.

Bigtincan Holdings Limited (ASX: BTH)

Bigtincan Holdings Limited (ASX: BTH), recently on 2 October 2019, announced the closure of the acquisition of Xinnovation, Inc. (XINN), pursuant to the stock purchase agreement reached between Bigtincan, XINN and the latter’s shareholders.

BTH made a closing cash payment of ~US$4.437 million and issued 6,940,211 ordinary shares (fully paid) in its capital to the sellers, each at $0.537. The company will make a further payment of US$500,000 on or before the first anniversary of closing; however, the payment is subject to set-off of any amounts owed by the sellers to BTH.

XINN is a Boston based company whose product is a cutting-edge sales enablement and document automation platform, which caters clients in financial services. The XINN product helps in simplifying the process of automating presentations as well as collateral, thus delivering useful insights and allowing digital engagement. Some of the customers of XINN are Prudential, Mass Mutual and State Street Global Advisors.

ServTech Global Holdings Ltd (ASX: SVT)

In the recent past, ServTech Global Holdings Ltd (ASX: SVT) made two announcements. The first was related to the launch date of the Immersive VR Design Platform ‘FrameS’, while the other was the completion of the VR CAD Integration for Rhinoceros©.

Launch Date of ‘FrameS’:

On 10 October 2019, ServTech Global Holdings Ltd announced that it would commercially launch ‘FrameS’ in Europe in November 2019. It will be the company’s first step under its strategy towards building a global subscription-based software-as-a-service (SaaS) business model.

FrameS is a virtual reality visualisation software. The immersive VR design platform provides support to industries like architecture, engineering, manufacturing, fashion and retail to build Virtual Reality (VR) visualisations prior to execution, thus helping producers, manufacturers and customers in saving time and money.

The launch is supported by distribution partnerships with Altea Federation, Four Bytes and Infor, targeted towards more than 6,700 customers, such as Ferrari, Gucci, Duracell, Maserati, and Agusta Westland. Apart from these companies, SVT is also targeting the growing software product design & manufacturing industry.

Completion of VR CAD Integration for Rhinoceros©

On 17 October 2019, the company announced conclusion of a plug-in integration allowing all Rhinoceros (Rhino) users to effortlessly upload their 3D Computer-Aided Design (CAD) models directly into ‘FrameS’.

Rhino is a CAD software that offers its users with tools applied to model, document, and prepare designs for rendering, animation, manufacturing, etc.

Nearmap Ltd (ASX: NEA)

Nearmap Ltd (ASX: NEA), on 15 October 2019, released its Annual Report for FY2019 ended 30 June 2019. The company is scheduled to hold its annual general meeting on 14 November 2019.

During the period, NEA reported a 47% growth in total revenue and other income to $79.4 million as compared to the previous corresponding period, driven by continued customer retention and growth in the customer base. Moreover, revenue growth depicts growth in annualised contract value (ACV) of the group’s subscription portfolio.

The company’s balance sheet remained strong with zero debt. There was a rise in total assets from $82.487 million in the last year to $158.190 million in FY2019.

  • The company generated $24.899 million cash from operating activities. The cash inflow increased due to an increase in cash receipts from customers during the period.
  • Net cash inflow during the period through financing activities stood at $70.540 million. The primary source of cash inflow was through proceeds from share offer.
  • Net cash outflow through investing activities was $37.133 million.
  • Cash in hand by the closure of FY2019 was $75.914 million.

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