Quarterly Cashflow and Program Updates
Brisbane, July 31, 2014 AEST (ABN Newswire) - Emerchants Ltd (
ASX:EML) (EMCHF:OTCMKTS) had an improved Q4FY14 in comparison to the prior comparative period (Q4FY13) as the Company continued to focus on the growth of current clients and expansion within the gaming industry. Our reloadable segment experienced significant growth, fuelled by the launch of the Ladbrokes Digital program (March 2014) and the expansion of the Nimble program (June 2014).
We also launched a program with Ingogo, a leading provider of payment services in the taxi industry, and announced an agreement Cash Converters International Group (CCIG), a prominent franchisor of Cash Converters operating 24 stores.
As advised in our previous 4C submission for Q3 FY14, our non-reloadable segment remained steady, experiencing marginal growth for the year. We are expecting a similar result in the coming financial year for this segment.
The Company's investing activities, as advised in our previous 4C submission for Q3 FY14, centred on completing our I.T infrastructure upgrade, and in cooperation with Deloitte, investments in automating and streamlining our internal business processes, ensuring that we obtain the benefits of scale with the pending launch of new programs.
The outlook for the year ahead remains positive as we continue to expand our reloadable segment and implement new product offerings. Emerchants commences FY15 with a net cash position of $4.49m and will benefit from the launch of new major programs in September and October, with the launch of Sportsbet (the largest corporate bookmaker in Australia, with turnover of $3.4bn per annum), Ladbrokes Visa, Bet Easy and CCIG. The setup fees associated with these programs have seen Emerchants achieve a record month for revenue in July 2014 and a strong start to the financial year, with transactional and other revenue streams to come online in the months in which the programs launch.
The Directors are satisfied that the Company has adequate funding, that its current balance sheet is sound, and that the Company complies with Listing Rule 12.2.
The tables below summarise the Company's quarterly progress, with key inflows and outflows described in further detail in link below.
http://media.abnnewswire.net/media/en/docs/ASX-EML-686078.pdf
About Emerchants Ltd
Emerchants Ltd (ASX:EML) (OTCMKTS:EMCHF) is a payments solutions provider of prepaid financial card products and services in Australia. By using its proprietary Secure Account Management (SAM) system, the Company provides its clients with innovative financial service payment solutions for reloadable and nonreloadable pre-paid card programs.
Emerchants' proprietary technology, processing capabilities and program management services offers clients more control and flexibility in managing corporate expense programs, funds disbursement, petty cash, per diems, emergency payments, disaster/welfare programs and many other individual and bulk payment scenarios. Emerchants partner with well-established banking institutions and card associations (eftpos, Visa) to ensure card programs are fully compliant, scalable and easy to implement for clients.
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