SGS Logistics’ And Orcoda’s Multi-Year Partnership Could Not Impress The Investors- Share Price Tumbled

  • Dec 12, 2018 AEDT
  • Team Kalkine
SGS Logistics’ And Orcoda’s Multi-Year Partnership Could Not Impress The Investors- Share Price Tumbled

On 12 December 2018, Orcoda Limited (ASX: ODA) which is a logistic optimization company announced its multi-year service supply partnership with SGS Logistics Pty Ltd (SGS). SGS is also involved in providing the key drivers' solutions and logistics management to its clients. It’s a three years partnership worth $40,000 and will increase as the business grows. SGS believes in improving customer service through smart technology.

The company believes that entering into a partnership with SGS will help in improving the field services. There will also lead to an increase in the efficiency, visibility, and compliance of collections and deliveries.

The director of SGS believes that SGS and ODA’s business complement each other. SGS has a strong passion towards customer service, and ODA has to lead technological edge when comes together will make these two partners an unbeatable team.

Since ODA got listed on ASX, the performance remains negative. Since inception, the performance of the company is -71.17%. For the past ten years, the performance of the company is -74.77%. The last five years performance of the company is -86.85%. Still, a negative return is seen for past one year.

For the FY2018 ending 30 June 2018, the company incurred a net loss of $5,833,183. The balance sheet of the company appears a little healthy. However, there is an increase in the accumulated loss of the company which could have a negative impact on the investors. It also indicates that poor operating performance of the company. Further, we see that there is a tiny difference in the total current asset and the total current liabilities of the company which indicates that the company would somehow manage its working capital and its short-term obligations.

There was a net cash outflow of $3,504,854 from the operating activities of the company. Here, significant cash outflow was in the form of payment made to suppliers and employees including the GST.

There was a net cash inflow of $255,285 from the investing activities of the company. Here, the company generated cash by selling one of its acquired businesses.

From the financing activities of the company, the net cash inflow was $ 4,733,001. Here, the main source of cash inflow was through capital raising.

By the end of FY2018, the net cash and cash equivalent available with the company was A$2,105,116. By the end of the trading on 12 December 2018, the closing price of the share was A$0.200 with the stock holding a market capitalization of $18.79 million.


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