- ASX-listed company, iSentric has reported revenue of AU$6,445,109 and a significant reduction of 52% in expenses for FY20. Post conditionally eased restrictions in Malaysia and Indonesia, ICU experienced increased customer activity.
- ISentric’s steady cash flow from its existing Mobile Banking and Digital Payments divisions was boosted further by a series of capital raisings.
- The Company is geared up to capitalise on the burgeoning demand and new market opportunities posed in the digital payments and mobile banking business divisions with the rebranding of core platform, renaming of a subsidiary, and key changes in the board and senior executive teams.
- During EGM scheduled on 30 September, iSentric plans to discuss important matters including further capital raisings and Company name and ASX stock code change.
iSentric Limited (ASX:ICU), a top-notch software provider fostering enterprise mobility, electronic payment and digital content, has released its preliminary final report for the period ended 30 June 2020, highlighting business performance for FY20 and important subsequent events.
iSentric’s core technology platform, the IOU Pay Platform, is a leading mobile banking transaction, messaging, and payment processing platform. Notably, the platform processes over 17 million online payments and consumer interactions each month, triggering a recurring monthly revenue flow for sizeable volumes of digital payments as well as mobile banking transactions, product marketing initiatives and corporate messaging.
With this backdrop, let us appraise ourselves with the preliminary final report for FY20.
Revenue from ordinary activities at AU$6,445,109
For FY20, revenue stood at AU$6,445,109, indicating a marginal decline of 2% y-o-y, primarily due to impact on revenue streams amid initial COVID-19 induced restrictions across Malaysia and Indonesia.
Since 30 June 2020, the Company has experienced increased customer activity in the digital payments and mobile banking sectors, owing to conditional easing in these restrictions.
Considerable Reduction of 52% in Expenses
iSentric noted a significant decline of 52% in expenses to AU$4,149,226, echoing material expense reductions in the following:
- Impairment noted a substantial decrease of 69% (y-o-y) and stood at AU$598,756;
- Amortisation and depreciation of AU$618,609, indicating a y-o-y decline of 43%; and
- Other expenses reduced extensively by 74% (y-o-y) to AU$511,511.
Steady Cashflow Boosted by Capital Raisings
iSentric witnessed a steady cash flow for FY20. Noteworthy, the Company experienced bolstered cash flows post a series of capital raisings, which resulted in the raising of funds worth AU$409,477 in July 2020.
Strengthened Balance Sheet
iSentric also divulged its robust financial position with AU$578,063 in cash and cash equivalents, as on 30 June 2020. Notably, the Company took decisive measures to impair non-core intangible assets and strengthen the balance sheet via focus on vital fintech activities as well as capital raisings.
Enhanced Focus on Mobile Banking and Digital Payments Businesses
During the year, iSentric sharpened its focus on core fintech business divisions of Mobile Banking and Digital Payments across Malaysia and Indonesia. This renewed focus on growth opportunities in its core fintech business segments can be exemplified by the following recent activities:
- Crucial changes in the board and senior executive teams
- Rebranding of its core fintech (mobile banking and payment processing) platform to the IOU Pay Platform, which was formerly referred to as Mobility2U, MobilityPay & MobilityGames; and
- Subsidiary renaming – ICU renamed a Malaysian subsidiary of ISentric Sdn Bhd from ISentric Wireless Sdn Bhd to IOU Pay (Asia) Sdn Bhd.
Lately, iSentric also enhanced the technology platform via addition of new features and capabilities to address the surged demand and new market opportunities across Malaysia and Indonesia, as part of plans to enlarge the revenue stream.
Notably, the advancements comprised of the system’s ability to assimilate with its existing customer base in banks, industry sectors and payment gateways to authenticate, credit score and onboard new clients; and to process customers loan payments via credit card and debit card debiting and bank account debiting.
30 September 2020 Scheduled Extraordinary General Meeting to discuss proposed further capital raisings, change in the Company’s name and other significant matters
iSentric’s Extraordinary General Meeting of Shareholders has been scheduled for 30 September 2020. The meeting would shed light on further capital raisings for working capital, accelerating sales growth and product development; and proposed changes in both the Company name and ASX code from iSentric Limited and ASX:ICU to IOUpay Limited and ASX:IOU, respectively.
ICU stock quoted AU$0.066 on 1 September 2020. The stock has delivered a return of more than 812% in the last one-year period.