8VIC Holdings Ltd (ASX: 8VI) operates as a holding company. The company, through its subsidiaries, provides online financial education and training services. 8VIC Holdings serves customers worldwide.
The company had released its interim report for the 1H 2019, in which it has stated that it is done with the sale of its digital and marketing business, and henceforth will concentrate solely on its financial education business. For the first half of 2019, the company recorded a growth of 32% in their revenue on PCP basis, which came in at S$ 8.088 Mn.
However, the NPAT attributable to shareholders took a hit and came in at a loss of S$2.9 Mn vis-à-vis a profit of S$1.1 Mn for the PCP. This was mainly due to the one-time expenses incurred by the company on account of loss incurred on disposal of its discontinuing operation of digital & marketing coupled with the increased general & admin expenses and goodwill impairment of S$1.6 Mn. The impairment of goodwill is a non-cash item on account of the earlier combinations effected by the company and hence, it will not impact the cash earnings of the company in any manner for the half year reported. The company’s cash & cash equivalent stood at S$11.01 Mn for the period mentioned above. The management has expressed their grave concerns about the rising operating expenses and thus resolved to review it and better manage it in coming quarters.
From the upcoming calendar year, Mr. Ken Chee will be taking over as the CEO of the company. He has a plethora of experience in the domain of operating and developing financial education & training business. As a part of curtailing its operating expenses, the company will review its sales and marketing processes in order to improve operating efficiency and business process performance.
The company will keep the financial education at the core of its operating activities and will try to synchronize it with the larger ecosystem of the 8I group with the objective of bringing the “Value Investing Fundamentals” to the world. Going forward, the company will be expanding with its range of offering fuelled by the joint venture that it has entered with its parent 8IH on the “Wealth Park Initiative” which is a smart investing platform that will provide a whole lot of tools with an integrated ecosystem necessary for the modern-day investor.
In the last six months, the share price of the company increased by 36.36 percent as on 30 November 2018. 8VI’s shares were last traded at $0.600 with a market capitalization of circa $26.15 million.
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