Australia-based consulting systems integrator, K2fly Limited (ASX: K2F), serving asset intensive industries, has announced some impressive figures under its Half Year Results for the six months to 31 December 2020 (HY20).
Invoices and Revenue Head Higher
For HY20, K2fly invoiced a total of $ 3,083k, representing an increase of 69% relative to $ 1,820k recorded in the prior corresponding period (pcp) ended 31 December 2018 (HY19). The revenue from ordinary activities rose considerably to $ 2,653k, depicting an increase of 45% from $ 1,829k in HY19, which can be attributed to the continued growth of the Company, new contract wins as well as sales to global Tier 1 clients.
K2fly has three broad operational areas- Owned Software; 3rd Party software; and Consulting Services, explained in the figure below.
Owned Software – Infoscope & RCubed
During the half-year, K2fly witnessed significant success with the introduction of its new RCubed Resources and Reserves Software solution (RCubed) to its Software as a Service (SaaS) offering, which initially comprised Infoscope. RCubed had major clients like Teck Resources Ltd and Anglo Gold Ashanti Ltd that were utilising the solution for their Mineral Resource and Reserve Reporting as RCubed works successfully across a number of industry standards including: JORC, SAMREC, NI43101. Besides, the solution works for a number of international bourses including NYSE, LSE, ASX and TSX.
Between June and December 2019, K2fly won significant contracts for the RCubed software solution in Imerys SA, Newcrest Mining Ltd, Glencore Canada Corporation, Nexa Resources and Rio Tinto Ltd.
In addition, during this period, new and existing clients entered into multi-year contracts for either Infoscope or RCubed, including Newcrest (3 years), Rio Tinto (5 years), Teck Resources (3 years) and Westgold Resources Ltd (5 years).
The Keeping Place Solution- In December 2019, a newly formed entity, “The Place of Keeping” agreed to oversee and give momentum to the rollout of “the Keeping Place solution”, a secure, customisable online platform based on Infoscope functionality, to different communities like Aboriginal groups across Australia who may potentially want to deploy the solution.
Traditional Owners can utilise ‘The Keeping Place’ to reclaim data sovereignty, manage native title, enhance governance, apply cultural protocols and explore social and economic opportunities for present and future generations.
Stepping into 2020, K2fly has a number of significant opportunities in the sales pipeline which could come to fruition within FY20.
As at the end of January 2020, K2fly’s SaaS-based solutions have been deployed or are in the process of being deployed in 45 countries, across more than 250 sites.
- Kony: During the concerned period, k2fly continued to work in Fortescue Metals Group (ASX: FMG) with the Kony Mobile Application Development Platform. Fortescue Metals Group is a major user of Infoscope but is also utilising K2fly resources to help deploy this mobility solution. K2fly was also engaged in a Kony implementation in South Australian Water in HY20.
- Fieldreach: The Company resells Fieldreach mobility solution, developed by Capita (UK), with a current user base of 50,000+ field workers in the utilities and rail sectors of UK, Australia, the United States as well as South Africa. In November 2017, K2fly had sold the Fieldreach solution to Arc Infrastructure and various Go Live stages took place in 2018 and 2019. The final rollout of Fieldreach successfully took place in November 2019 and subsequently additional users were added to the system.
- Totalmobile: This solution is sold in Australia. As part of its onboarding process, K2fly had worked on a Totalmobile assignment in 2019 whereby the solution was deployed in the UK on an EDF Energy nuclear power station implementation.
K2fly has subject matter experts on its consulting who provide leading edge advice to the clients. Consequently, the Company continues to win new consulting/advisory contracts, and contract extensions with Tier 1 clients such as Teck Resources, Anglo Gold Ashanti, Imerys, Newcrest Mining, Glencore, Nexa Resources, Fortescue Metals Group, Westgold Resources, Rio Tinto, Gold Fields, South32, Adani, Programmed, Western Power, ABB, SA Water, Arc Infrastructure, Horizon Power, The Place of Keeping, New Hope Resources and Stanwell Energy.
Significant Events After Balance Date
- On 9 January 2020, K2fly executed an agreement with The National Trust of Australia to novate the license of The Keeping Place to The Place of Keeping Ltd.
- On 24 January 2020, K2fly announced that Gold Fields Australia (a subsidiary of Gold Fields Limited) had signed a new 5-year RCubed contract for its global operations and major projects.
K2fly remains strongly positioned for the year ahead with cash at bank of $ 1.144 million.
For a lens over the company December 2019 quarter, please READ- K2fly Books Record Invoices in Q2FY20; SaaS Business Expanding Well
Stock Information: K2fly has a market capitalisation of around $ 17.34 million with ~ 82.59 million shares outstanding. On 28 February 2020, the K2F stock was trading at $ 0.200 (AEST: 4:12 PM), having delivered positive returns of 13% in the last six months.
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