Since undertaking its first major leadership change since listing on the ASX, digital payments company Novatti Group (ASX: NOV) has reported encouraging results, six months into a business transformation that has streamlined the previously fragmented fintech. 

For the Half Year ended 31 December 2023, Novatti generated $21.4 million in sales revenue which represented a 12.1% increase on the previous Half Year. Simultaneously, the Company’s $15.2 million in expenses was an 11% decrease, highlighting the trajectory of both key metrics targeted by CEO Mark Healy, who took on the role in June 2023. 

“The half year began with a new leadership team in place and we moved quickly to implement a clear strategy moving forward,” he said. 

“This strategy is focused on simplifying the business, becoming market and customer-led, and ultimately lifting financial performance. Most importantly, this strategy is underpinned by core financial targets of positive operating cashflow by mid-2024 and 70%+ margins within three years.”

Underlying EBITDA of a $6.6 million loss was an improvement on the previous year’s $7.1 million loss. Still, this figure is expected to improve substantially over the next year as savings from a $4m per annum cost reduction program are realised. 

Novatti’s transformational journey in H1 FY24 involved streamlining its operations from 12 disparate entities into four core divisions: Payments AU/NZ, Payments International, Technology Solutions, and Investments. Each quarter saw targeted efforts, such as business simplification, financing optimisation, and cost reduction, culminating in a series of initiatives aimed at enhancing efficiency and aligning with strategic goals.

As the company enters the second half of the fiscal year, it has undertaken a $4 million annualised cost-reduction program and launched a targeted marketing campaign focusing on the education sector. Additionally, over 1,000 existing customers have been identified as potential candidates for cross-selling Novatti’s diverse product portfolio, signalling a proactive approach toward revenue enhancement.

Novatti offers a comprehensive suite of digital payment services tailored to meet the diverse needs of businesses across various industries. These domestic services include ane extensive suite of payment solutions, including card payments, direct debits, and electronic fund transfers. 

With a global payments ecosystem, Novatti’s international payments services encompass cross-border payments, foreign exchange, and international remittance solutions. Much of the payments tech utilised by Novatti was built in-house and utilised as enterprise solutions throughout the country. These include white-label payment platforms, mobile payment applications, and custom payment integrations.

Looking ahead, Novatti remains committed to its transformation agenda, leveraging technological innovations and market insights to drive sustainable growth.