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XTD Limited Delivers 203% YoY Growth

XTD Limited Delivers 203% YoY Growth
EMBARK is a comprehensive mobile-technology solution that allows people to navigate from their location to any destination serviced by all forms of public transport.
Jul 25, 2016 By Simon Herrmann Tags: XTD

XTD Limited (ASX:XTD) owner and operator of the Cross track digital media system, announced a 203% increase in operating cashflow for the June quarter.

Cash receipts for the period March through May were $947,000, a 203% increase over the prior year and a 30% increase on prior quarter. The cash balance rose 12% to $2.2million.

XTD continues to experience strong growth across all metrics and generated positive operating cashflow of $462,000 for the fourth quarter after adjusting for expenses associated with the Contact Light development. Operating expenditure for Contact Light was $313,000.

Management Seeks to Broaden XTD’s Product Offering

Chief Executive Officer Steve Wildisen was pleased for the quarter and: “This has been a particularly active quarter for XTD on two fronts. Firstly we continue to be recognised in the marketing industry’s digital out-of-home sector which remains the fastest growing and highly adaptable media channel.”

Steve Wildisen also focuses on innovation through the Contact Light division: “Our innovation division Contact Light is continuing to develop new mobile technology that broadens XTD’s product offering to capture broader transit audiences via mobile devices.”

Year-to-date receipts totalled $3.3million and net operating cashflow after expenses was $390,000.

EMBARK Launched Earlier This Year

On 26 May 2016 XTD launched the transit mobile Application EMBARK via its creative division Contact Light. EMBARK is live across Australia and also in 60 cities in 14 countries.

EMBARK is a comprehensive mobile-technology solution that allows people to navigate from their location to any destination serviced by all forms of public transport.

Negative Sector Sentiment Weigh’s on XTD Share Price, But Outlook Favourable

XTD’s share price has retreated during the past six months like many of its peers as well as market sentiment towards small=-cap technology companies remains negative. However, the outlook for the company remains favourable. XTD offers transitional exposure to the digital media and transport advertising market. Historic revenue growth and existing contracts are attractive qualities, while undrawn debt facilities provide financial flexibility. Working capital requirements to fund growth initiatives is a principal risk. Securing new domestic contracts and successfully expanding internationally are potential value drivers.

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Simon Herrmann Author: Simon Herrmann Jul 25, 2016

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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