Quarterly Report, Cash Outflows Up and Strong Growth
Sydney, Oct 22, 2014 AEST (ABN Newswire) - Emerchants Ltd (
ASX:EML) (EMCHF:OTCMKTS) announce the quarterly report with cash outflows from operations were $479K for the quarter, an improvement of $657K on the prior year's comparative quarter (Q1FY14) and $299K on the immediate prior quarter.
The quarter was positively impacted by:
- Strong growth in our re-loadable operating metrics, with Total funds loaded up 182%, Transactions up 210% and Stored Value up 104% over the prior comparative period, largely driven by growth in programs including Ingogo, Ladbrokes and Nimble.
- Despite previous guidance that our non-reloadable (gift card) was expected to be flat in FY15 versus FY14, we have experienced a strong first quarter in FY15, with Total funds loaded up 28%, Transactions up 18% and Stored Value up 36% over the prior comparative period.
- The receipt of establishment fees from newly signed online wagering and consumer lending customers.
- Continued cost control measures.
Included in the $479K of cash outflows was an expense of $110K relating to some of the transaction costs associated with the acquisition of Store Financial Services UK Limited (SFUK). We will incur additional transaction costs in the current quarter associated with the acquisition. However $1.5M of our recent institutional raising was intended to cover transaction costs, including costs associated with the capital raising.
The outlook for the year ahead remains positive as we benefit from the launch of programs with Sportsbet, Bet Easy and CC Investment Group, continued growth from our existing programs and new business development initiatives, as well as the traditional Christmas seasonality in our non-reloadable products and the financial contribution from SFUK.
To view the quarterly report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-EML-695910.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.
| ||
|
