SelfWealth Limited Releases Negative Cash Flows Data From Operation

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SelfWealth Limited (ASX: SWF) released the quarterly report for three months ended 31 December 2018. The company posted negative cash flows from operating activities of $839,000 which took the year to date balance to $2,043,000.

The company generated net cash from financing activities of $1,257,000 during the December quarter. It reflects the gross proceeds of $1,412,000 raised from the issues of shares. This comes after the company has completed a placement in December by the issuance of 20,528,144 at 0.070 cents.

During the Financial year ended 30 June 2018, SelfWealth business has delivered significant improvements with sales revenue up 745% to $1.05 million with continuing and growing demand for its services as we capture market share from existing players, as well as attracting a more significant percentage of new online traders. It translates FY18 sales revenue from continuing operations of $1,052,828 compared to FY17’s $124,531. The operating revenue included member fees, interest revenue, and trading income accounting to $30,004, $430,060 and $592,764, respectively. 

Beside reporting massive top-line growth, the company has continued to report heavy loss during the year. For the full fiscal year 2018, SelfWealth reported a total loss of $5,348,485 primarily driven by the substantial amounts of employee benefits and marketing expense. The company had $3.28 million cash on hand at 30 June 2018, but as at 31 December 2018, the cash and cash equivalents of the company declined to $2.49 million.

In 2018 Annual report, the company had explained its four key focus areas for Fiscal 2019. First to continue increasing its strategic marketing activities aimed to grow brand awareness to attract new customers. Second, to implement a white-label strategy and partnership distribution strategies to accountancy firms and dealer groups. Third, to launch international shares trading product and further improve its PREMIUM user functionality. Last and the fourth one to Launch SelfWealth’s new product, the SMSF Leaders ETF, which creates a new revenue stream for the business.

SelfWealth successfully listed on the ASX on November 23, 2017. In the initial public offering, the company raised $7.3 million by the issue of circa 36.7 million shares at a price of $0.20 per share. The company had witnessed strong demand from retail and institutional investors, thereby raising capital at the upper end of its target range. However, its market capitalization account to $10.47 million as at 11 January 2019.

In today’s trading session, SelfWealth shares traded at lower levels with stock price falling 7.143% to last trade at $0.065 on 11 January 2019. Over the past 12 months, SWF has witnessed a negative performance change of 45.64% including a plunge of 17.82% in the past three months.


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