Mobecom Limited (ASX: MBM) offers consumer engagement technology which provide solutions related to technology for the businesses. The Company’s airBux, is a digital currency platform which offers liquidity for loyalty. MBM’s other product is Paid by coins, a safe payment solution for the customers. The company also provide B2B solutions based on its airBux technology which offers an end-to-end consumer engagement technology requirements which consists of back-end and front-end technology.
The company, on 19 March 2019, updated that it has signed an agreement with Liquor City to implement a number of its customer engagement technology solutions across Liquor City’s 280 retail outlets and to implement an e-Commerce platform. The Company anticipates that this new agreement will contribute to the company’s contracted recurring revenues in South Africa CY 2019 by circa 12%. The deal also presents a further revenue earning opportunity for the company, based on orders placed by Liquor City consumers, through the e-Commerce platform and future mobile ordering apps.
With this new agreement with Liquor City in South Africa now in place, the management continues to grow the company’s recurring contracted revenue, that compliments the now growing direct to consumer revenue from ordering and purchasing through Paid by Coins and airBux. The management is pleased to have successfully continued to complete, and deliver agreements that validate the development of Mobecom’s digital solutions. The successful deployment of the company’s technology for other clients in South Africa including Vodacom and Spur has been seamless, and the management is confident of winning new businesses after the success of this new agreement. Collectively, these clients provide the opportunity for the company to generate substantial new revenues within the next eighteen months. The management expects a significant boost to recurring contracted revenues, and strong potential to generate significant recurring fees, based on increasing transaction volumes and a growing subscriber base.
Liquor City is a privately owned retailer and liquor franchisor, headquartered in Johannesburg, with 150 owned and over 200 franchise outlets. The company is a well-established and recognised brand in South Africa that has been in operation for the past 20 years. In its early days, it specialised in providing imported brands that were not readily available at competitive outlets. With an attitude of the accountable liquor trade, the company continues to expand throughout the South African region. This was initially a family business. However, in 2008, the company decided to expand into the franchising/licensing pitch.
Recently, the company released its half-yearly financial report and notified about its upcoming general meeting.
On the price-performance front, the stock has posted the YTD return of -12%. The company also has posted returns of -8.33% over the past three months. By the end of the trading session(as on 19 March 2019), the stock of the company stood at a price of A$0.10, down 9.091% from the previous close, with a market capitalisation of ~A$ 24.48 Mn. The stock opened the day at A$ 0.100 and has been trading at the same levels throughout the trading session, with an average daily volume of ~ 14,000. It had a 52-week high price of A$0.280 and a 52- weeks low price of A$0.095, with an average volume of 147,007 approximately.
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