Invigor Group (ASX: IVO) today communicated that it has signed an agreement with Club 21 and secured a multi-brand deployment of the WeChat Pay platform in Singapore. The agreement is an achievement for IVO as a prestigious brand with the large physical store network is being collaborated and integrated for its online payment facility and loyalty platforms, Online-to-Online Commerce, to catalyse increased sales. The development will increase IVO’s reach in Singapore with expected higher margins considering advertising and loyalty technology integration into WeChat Pay platform.
As per the agreement, IVO will bring in the integration of its proprietary advertising and loyalty technology offerings into the WeChat Pay platform.
The target point for this will be customers, predominantly Chinese tourists, who shop at Club 21 stores in Singapore and avail the offers and further redeem it. The benefit in monetary terms for Invigor will be a share of transaction revenue from the payments and redeemed sales from these advertising and loyalty offerings.
40 stores of Club 21 in Singapore are available at main shopping and tourist areas, which includes the Four Seasons Hotel, the Hilton Hotel, ION Orchard, Paragon, Takashimaya and Marina Bay Sands. The brands represented by Club 21 include Armani Exchange, Paul Smith, Lanvin, Mulberry, DKNY, Bao Bao, Issey Miyake, Calvin Klein and COMME DES GARCONS, Dolce & Gabbana, Donna Karan.
Invigor is engaged in B2B data intelligence and solutions business, turning data analytics into dollars catering to retail and service industries. Its products include Loyalty, Pricing and Skyware (TillerStack).
Club 21 is a subsidiary of COMO Group and is one of Asia’s leading luxury goods retailer with a global presence across four continents and over 250 brands across nearly 400 stores.
Management considers this agreement as one of the biggest developments in the company’s history. IVO will work on deployment as Club 21 will be rolling out new stores. The management expects this development is likely to have a positive impact on other retailers outside of Club 21, who are in the pipeline and close to the signing. IVO is looking forward to further opportunities in terms of Shopper Insights and CRM with Club 21.
Analysing its financial performance for FY18, the company has recorded a revenue of $1.25 million, posting a growth of 74% (pcp). The major chunk of the revenue was driven by “TillerStack” which amounted to $1.07 million. A net loss on EBITDAI front came in at $4.0 million as compared to $4.3 million in FY17. However, the company strengthened its balance sheet and reduced its debt and raised equity. Total debt was reduced by 35% or $3.9 million from $11.1 million to $7.2 million in FY17. The company also raised its capital with total ordinary fully paid shares of 1.580 million, which were issued in December 2018. The fund-raising program was largely to fund the growth, repayment of debts and working capital. The company has not announced any dividend in FY18 and FY17. A dividend reinvestment plan is not activated for now.
The 52-week high and low price of the stock stands at A$0.009 and A$0.003. The stock is currently trading at A$0.004, at market close on 10 April 2019, with a market capitalisation of A$7.78 million. The stock today zoomed 33.333% on the news that the company has secured a multi-brand WeChat Pay deployment with Club 21.
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