- IkeGPS offers strong Q1 performance in latest announcement
- Owing to new contracts, the Company assumes positive outlook
- All eyes on the new IKE Insight to offer new growth potential
The IkeGPS Group Limited (NZX:IKE) reported a strong Q1 performance mainly due to new contacts, as announced by the Company, on the NZX today . For the period up to 30 June 2021, reporting its financial highlights the Company said that the revenue earned was boosted by the subscribers of the IKE platform as well as the transactions or asset volumes that were processed through the IKE software. The stock was up by 3.50% at NZ$1.190, at the time of writing.
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The revenue was up by 12%at NZ$2.6 million. The value of the various new contracts for Q1FY22 was estimated at NZ$6.1 million, which is 300% higher than the pcp. The Company said that this has been a strong quarter for the Company, with about NZ$11.5 million worth of new contracts.
The strong performance of IKE is because of global economic recovery from the COVID-19 impact and particularly the U.S. markets being in a economic growth phase. The Company disclosed that total receivables and cash till 30 June 2021 was estimated to be of about NZ$11.2 million without debt.
From the CEO’s desk
The CEO of the Company Glenn Milnes was of the view that this has been a strong quarter for the business. It was further added that the Company derives confidence from the new contracts and revenue, with potential for solid growth in the year to follow. Holding an optimistic view about the IKE Insight solution, the number of potential customers is on a steady rise. It is also currently believed that the AI centric solution can be an important catalyst for the IKE business, in segments favourable to the communications as well as electricity markets.
In terms of the outlook, the Company is hopeful of continued growth. Offering a strong growth profile in terms of revenue according to the trend of the past two quarters, the opportunity gyre of the Company has seemed to grow in the past few months. The Company aims to focus on three themes in Q2 FY22. Extending revenue opportunities, delivering contracts on time and further building revenue, making use of the AI IKE Insight.