MSM Corporation International Limited (ASX: MSM) is a digital entertainment company that builds new digital entertainment products for global audience including the countries like Australia, Canada, US etc. The company has also partnered with the local players in non-English speaking markets to extend the reach of its products.
On 1st May 2019, the company released the results for the six months period ended on 31st December 2019.
The company has planned to raise $1,752,000 via a placement of 39,000,000 fully paid ordinary shares at $0.008 per share. It has appointed Emerald Capital Australia Pty Limited (ECA) as the lead manager for the capital raising. Another $1.44 million (before costs) is to be raised out, of which $890,000 (before costs) had been raised till 1st May 2019.
MSM further mentioned, that Mr Jones had joined the company as Non-executive director in November 2018. He will be ensuring focus on driving shareholder value and reductions in the ongoing costs.
The company has also focused on improving the expenditure structure for marketing and distribution and platform development. To deliver maximum value for the shareholders’, Ms Danika Mullins was contracted as an interim Chief Marketing Officer (CMO) to provide a cost-effective and flexible approach, to leverage the company’s technical capabilities and Intellectual Property (IP) for the benefit of the users. Her contract concluded last year, and as on 1st May 2019, the company has no full-time employee which is in sync, with the cost reduction strategy for the company.
Profit and loss statement
The revenue from operations was reported at $1.38 million, which was significantly higher than the previously reported revenue of mere $34,379 in 1HFY18.
The total loss for the year was reported at $688,401 after accounting for expenses like $457,084 towards Employee benefits and directors’ fees and $553,742 towards project expenditure etc. However, the company performed well when compared to the pcp, where it made a loss of around $14 million. The loss per share decreased from 0.04 cents per share (cps) on pcp to 0.01 cps in the same period this year.
On the balance sheet front, the company has clearly strengthened the position compared to the last six months from the reporting period. The total assets grew from $1.37 million (as on 30th June 2018) to $2.64 million (as on 31st December 2018). On the other hand, total liabilities decreased from $3.4 million to $1.94 million in the same period, with major reductions were seen in trade and other payables. The net assets at the end of the reporting period stood at $696,732 as compared to $2.03 million of liabilities (noted six months ago).
The company used total cash of $1.88 million for the operating activities, a larger part of which was used towards payments to suppliers and employees ($1.36 million). Payments of deposits led to the cash outflow of $1.38 million toward investing activities. The company received net cash of $4.1 million from financing activities. The net cash at the end of 31st December 2018 was reported at $1.14 million.
On 10th January 2019, the company announced its entrance into the mobile gaming domain.
The stock last traded at a price of A$0.009 (as on 20th September 2018).
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.