Complii Fintech Solutions reports ongoing product enhancements as key to generating more revenue

Sydney-based Complii Fintech Solutions (ASX: CF1) continued to work on new modules and current product improvements for the first quarter of the new financial year with a view to generating greater annual recurring revenues.

An upgrade to its PrimaryMarkets platform — offering faster settlement times, a more transparent and informative settlement process, improved security and more detailed reporting — is in the final stages of design and will move into development in the coming weeks.

During the period, PrimaryMarkets signed a mandate with Splitit Payments (ASX: SPT) which will see Splitit delist from the Australian Stock Exchange to set up a trading hub with PrimaryMarkets in the new year.

Complii is also progressing major products enhancements and developments with its larger clients, which will then be standardised and offered to a broader base to generate new and additional lines of annual recurring revenue.

End-to-end ecosystem

The company told shareholders it had been investing in a differentiated, end-to-end ecosystem and the required go-to-market capabilities to position itself for more cross-selling opportunities.

“We have steadily been growing our total addressable market as well as increasing the potential share of wallet through cross-selling of our solutions, as most companies want to work with end-to-end vendors instead of a roster because it is simpler and more cost-effective,” the company said.

It said it would continue to build on an ambition to become the backbone for equity capital markets, with a unique offering covering cost-effective capital raising, absolute compliance assurance, operating risk mitigation and customer servicing efficiency.

New clients

During the quarter, $2.5 billion was raised in new capital funds on the Complii platform by AFSL (Australian Financial Services Licence) clients using the group’s proprietary capital raising system.

Complii signed three new AFSL clients and has another in the pipeline.

They are expected to start delivering incremental revenue in the next quarter.

MIntegrity acquisition

In September, Complii completed the acquisition of regulatory risk consulting firm MIntegrity including its brand, intellectual property, key personnel and client list.

The deal is expected to generate $1.37 million in incremental annual revenue this financial year.

MIntegrity has over 100 clients worldwide including banks, market exchanges and operators, AFSL holders, securities dealers and private wealth firms.

Complii said the acquisition increases its cross-promotional opportunities and consulting services through digital regulatory web offering RegsWeb and e-learning portal MIWize (delivered through Complii’s ThinkCaddie platform).

Financials

For the first quarter, the Complii group reported a total $1.59 million in receipts from customers, representing a $425,000 drop on the previous period when it worked on a new customer relationship management system for the Australian Investment Exchange and completed additional development work for new customer contracts.

At end September, Complii had $554,000 of fees receivable relating to this work which it anticipates to receive in the next quarter.

Total group revenue for the period was $1.82 million while cash at bank (including term deposits) was $3.83 million.

The group anticipates a $1.27 million research and development grant for its 2023 activities in the next quarter as well as $295,000 from a recent strategic investment trade.