Complii FinTech Solutions (ASX: CF1) has reported a significant jump in revenue for the December quarter with its recent acquisition of PrimaryMarkets expected to provide even further opportunity for growth.
Complii is a financial tech group that specialises in Software-as-a-Service (SaaS) based technology that digitises compliance, capital raising and operational functions, assisting Australian financial services licence (AFSL) holders to meet their regulatory obligations.
In early November, the company also completed the acquisition of PrimaryMarkets, a trading platform for unlisted securities.
Cash flow positive quarter
According to its December quarter results released today, Complii achieved a cash flow positive quarter (excluding research and development receipts) with group gross revenue increasing by 370% from the previous quarter to $2.58 million.
The company noted its PrimaryMarkets business only began contributing revenue from 3 November (one-third of the way into the reporting period).
In addition, operations delivered a $1.48 million increase in cash at the bank to $4.75 million, representing 45% growth from the September quarter.
Over the period, Complii raised its total AFSL clients by four to 107. These firms use at least one or more services provided by the company and represent more than 3,500 registered users of the Complii platform.
The new clients and additional functionality to existing clients resulted in a $106,000 increase to group annual recurring revenue.
Business development focus
Major projects delivered in the December quarter included: the initial release of the next-generation Statement of Advice (SOA3000) automation and Adviser workflow efficiency; a complaint’s module; a Corporate Highway (broker distribution platform) release to enhance placement distribution capability; and Adviser Bid (electronic bidding/allocation system) enhancements to improve performance and support future growth.
Outlook for the remainder of FY2022
Complii believes its acquisition of PrimaryMarkets has provided “an opportunity for growth” to the company’s footprint as it has “no significant existing competitor” in Australasia.
PrimaryMarkets has already delivered a significant increase in the combined group’s revenue, both from a transactional stream and in terms of annual recurring revenue. The company also estimated that by relocating all of PrimaryMarkets’ operations to combine with Complii’s headquarters in Sydney, it has saved about $170,000 in annual rent.
“Complii’s existing core platform enables its AFSL customers to raise new capital in both listed and unlisted securities and is now positioned to offer a platform to facilitate trading of shares specifically in those unlisted companies, which should deliver transactional revenue for the group,” the company stated.
Integration of the PrimaryMarkets trading platform into the Complii platform is scheduled to be completed in the current March quarter.
Complii also plans to release a new staff trading module for AFSL clients this quarter, designed specifically across all relevant compliance necessities including staff order pre-approval, tracking and post-trade workflow management and review.
The company said it will focus its resources on onboarding new clients and projects that are expected to result in annual recurring revenue growth as the company continues to expand across the financial services sector in Australasia, as well as in Singapore and Hong Kong in the future.
At the end of December 2021, Complii recorded $4.75 million cash on hand with no debt.