Vonex posts increased revenue, eyes multiple growth opportunities
During 2022, Vonex will continue to pursue organic and merger and acquisition prospects.
Award winning and full-service telecommunications company Vonex (ASX: VN8) has achieved a 54% increase in revenue to $15.047 million for the half year ending December 2021 (H1 FY2022) – as it continues to pursue organic and inorganic growth avenues.
This $15.047 million in revenue compares to $9.77 million generated in H1 FY2021.
Also, during H1 FY2022, Vonex’s annual recurring revenue hit $34.5 million, which was up 103% year-on-year.
Vonex non-executive chairman Nicholas Ong said H1 FY2022 had been another period of “strong financial performance” for the company, with gross profit rising 174% to $7.5 million.
This resulted in a net after tax loss of $600,000 – down 65% on $1.66 million loss in H1 FY2021.
Mr Ong noted the loss was associated with extraordinary events in H1 FY2022, which included raising capital and finalising acquisitions that came with a “significant amount of one-off migration, integration and transaction costs”.
“The board considers that the best measure of the company’s performance is the underlying EBITDA, which increased from $200,000 in H1 FY2021 to $3.3 million in H1 FY2022,” Mr Ong added.
Growth strategy
Mr Ong said during H1 FY2022, Vonex continued to execute its growth strategy, which included acquiring the Direct Business from Symbio and purchasing South Australia-based Voiteck.
During this period, the Direct Business contributed to about 4.5-months of revenue, while revenue from Voiteck will be realised in the current H2 FY2022 period after the acquisition was finalised in January 2022.
Acquiring the Direct Business has brought 5,250 small-to-medium (SME) clients to the Vonex group – along with quality employees.
Looking ahead
To facilitate its growth plans, Vonex completed a $14 million capital raising in H1 FY2022.
“This year we will focus on capitalising on our increased market presence, lower marginal cost base and our strong capacity to realise cross-selling opportunities,” Mr Ong explained.
“We will continue to pursue new opportunities to increase the value of our combined business, by targeting growth in lead generation, brand awareness and average revenue per user.”
Mr Ong said the company would continue pursuing both organic and inorganic growth, including “disciplined” merger and acquisitions by targeting profitable IT and telco businesses that offer potential for increased revenue, profit and earnings per share through product expansion, scale and cross-selling.
“Vonex continues to see a positive outlook for growth as the company’s customer base diversifies and expands,” Mr Ong added.