8common Limited Enters into a Contract with a Federal Government Agency

  • Feb 14, 2019 AEDT
  • Team Kalkine
8common Limited Enters into a Contract with a Federal Government Agency

8common Limited (ASX: 8CO) develops and distributes software solutions designed to assist in the control of costs, productivity, and lead generation. The Company serves customers in Australia.

The company stated through a release on the exchange that it has entered into a contract with a Federal Government agency for the provision of Expense8 services. The contract implementation period of 3 months with up to a cumulative 6-month extension is valued at $505,384 including GST. Commencement is expected in February 2019. Due to the critical and sensitive nature of the agency, the agency name and further details about the services will not be provided. 

For the FY 2018, the Group achieved revenue from continuing operations of $2,638,401 (2017: $2,119,564) and a loss after providing for income tax amounting to $982,981 (2017: $1,320,540 loss). The Expense8 results showed strong and steady growth, as new client wins, and existing clients continued to transition to the Expense8 enterprise cloud (SaaS) platform from old annual contracts. No dividend was paid or declared in relation to the financial year, which was ended 30 June 2018.

As at 30 June 2018, the company had net assets of $6,040,340 (2017: $4,667,099). The main assets were comprised of the receivable amount related to the sale of Realtors8 Pte Ltd (and its subsidiaries) of $3,568,000 ($3,180,000 was received on 7th August 2018 and a further $388,000 to be received as deferred consideration) and Intangible assets of $2,716,650 (2017: $3,203,826) that are made up of Goodwill $1,225,108 (2017: $1,225,108) & Intellectual Property and Development costs $1,491,542 (2017: $1,973,918).

 Outlook:

FY 2018 has seen the successful execution on two important decisions which were to divest the company’s Realtors8 business and to focus on the remaining core asset which is Expense8. The company’s end goal to have a focused business around financial technology leveraging a core product and platform offering with a client base that is highly identifiable with Australian investors has been achieved.

The company’s three core objectives for FY 2019 are as follows-

  • Expand adoption of Travel and Credit Card Application and Maintenance platforms amongst

existing customers;

  • Deliver the integrated Procurement Payment and Expense Management platform to a client;
  • Expand business development resources to accelerate new client growth.

Now, let us have a quick look at 8common Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.042, trading up by 5% during the day’s trade with a market capitalisation of ~$5.83Mn. The counter opened the day at $ 0.038 and touched the day’s high of 0.044 and touched the day’s low of $ 0.038 with a daily volume of 474,339. The stock has provided a YTD return of 14.29% & also posted returns of -11.11%, 14.29% & 17.65% over the past six months, three & one-months period respectively. It had a 52-week high price of $ 0.071 and touched 52 weeks low of $ 0.025, with an average volume of 201,608 approximately.


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