The annual general meeting of Wisetech Global Limited (ASX: WTC) was held on 21 November 2018. Chairman Andrew Harrison addresses the shareholders and shares the financial highlights of the company for FY2018. FY2018 encountered a powerful revenue growth of 44%. The revenue reported by the end of FY2018 was $221.6 million. This resulted in a net increase in profit after tax which is attributable to the shareholder's equity. The net profit after tax for FY2018 was $40.8 million. The primary reason for this growth was due to the organic growth in revenues across their global business. The other factor which influenced the growth in revenue was the enhancement in the products of the company as well as new features introduced into CargoWise One technology platform. Further, the company acquired many strategic assets in other geographical locations and in line technologies.
Out of the total revenue, 99% of the revenue was recurring in nature through user-based licensing. The company is able to maintain its customer attrition below 1% since the past 6 years. The company was working continuously towards relentless innovation for which around 34% of the revenue is spent. Over 50% of the people are involved in product development so as to enhance their commercialisable pipeline. The marketing and sales model of the company is highly efficient on account of the company’s platform CargoWise One which consumed only 11% of the revenue and 9% of the people as compared to the other SAAS companies across the globe.
During the FY2018, the company completed 27 geographical expansion and also acquired adjacent technologies across Australia, Europe as well as the Americas. These acquisitions have added value to the strategic map of the company. Further, it has accelerated the network effects and made CargoWise more compelling to the local and global customers as well as the logistics providers. The acquired software is used in adjacent technologies to enable the global scale innovation and development. It will also energize the convergence of technologies so as to develop a new addressable market and also enhance the global data and transaction set.
During the FY2018, WTC provided a total shareholders return of 126.6%. The share price rose as high as 126.3%. It had a splendid performance in the ASX200 by 118% for the year. Even though the company had to face major global sell-downs which impacted the high technology stocks worldwide, the company still remains above that level as on date. The company also declared a fully franked dividend of 1.65 cents per share that was paid on 8 October 2018. The total dividend for FY2018 was 2.7 cents per share.
The company was able to maintain a healthy balance sheet. From the operating activities, the net cash flow was $74.2 million. By the end of FY2018, i.e. 30 June 2018, the cash and cash equivalent was approximately $122.8 million. In order to strengthen the balance sheet of the company, around $100 million of share capital was placed in a single transaction to the US-based capital Group’s small-cap world fund.
An overview of FY19 was also shared where the revenue needs to be in a range of $320 million to $333 million. The EBITDA needs to be in a range of $102 million to $107 million. At present, the market price of the share is A$15.81 with the market capitalization of A$4.78 billion and PE ratio 114.24x.
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