Complii Fintech (ASX: CF1) has continued its rapid progression towards becoming a one-stop-shop for ASX-listed companies that can handle all facets of regulatory compliance and capital raising with their busy year being capped off by a 406% surge in revenue.
For the year ended 30 June 2022, Complii generated $9.05 million in revenue receipts from its customers, primarily listed companies, stockbrokers and financial advisers, which represented a 403% increase from the previous year. This revenue included acquired revenue from Primary Markets which was purchased by Complii in September 2021. These numbers are expected to again increase substantially next year with Complii currently in the process of acquiring share register Registry Direct (ASX: RD1) in an all-scrip takeover that will give Registry Direct shareholders 1 CF1 share for each 4.5 RD1 share held.
“Despite weakened market conditions, we are delighted to disclose another solid Quarterly result,” said Complii Executive Chairman, Craig Mason.
“We are also pleased to announce a further expansion initiative in line with our Company growth strategy – the proposed Takeover Offer of Registry Direct this quarter. This proposed new acquisition will enable us to provide a full end-to-end digital service offering to customers and corporate entities, maintaining our first mover positioning advantage across all facets of our industry.”
By structuring their acquisition as an all-scrip purchase, similar to the Primary Markets acquisition, Complii has maintained a healthy cash flow position to have positive operating cash flow of $1.3m in FY22. In addition to this, the Company also has $5.7m cash on hand.
The addition of Registry Direct to Complii is a move that follows a growing industry trend in the financial service space that is advancing the traditional services provided by share registers – a staple service required by all publicly traded companies.
The movement has recently seen Automic (unlisted) emerge as the fastest growing share registry business in Australia through their digital-focused approach, which has been further bolstered by their recent acquisition of investor relations company MarketEye. That acquisition effectively extended the revenue opportunities for companies housed on Automic to be upsold for ongoing investor relations services, including capital raising activities.
With the addition of Registry Direct which houses more than 700 company share registers, Complii will look to capitalise on cross promotional revenue opportunities by offering their flagship corporate governance services, as well as access to more than 100 brokers and 3,500 registered Complii users and 110,000 investors through Primary Markets that regularly participate in capital raises.
In FY21, Registry Direct generated $807k revenue but this is virtually immaterial compared to the revenue opportunity Complii will secure via acquisition of their customer base and cross-sell opportunities. Upon completion of the acquisition which is pending RD1 shareholder approval, Registry Direct shareholders will own 18.1% of Complii Fintech.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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