CF1.Complii Fintech Ltd

[percy]

With 346,218,752 shares on issue at 8.2cps CF1 has a market cap of $28,389,938.
I took a small position at open.
From today's Pitt Street Research;


Complii FinTech Solutions (ASX:CF1): On track to deliver on its vision


Complii FinTech Solutions Ltd (ASX:CF1) aims to become a leading name in the financial services industry within its targeted risk, compliance and business technology domain. The company is well positioned with its current resources and funding and expects to achieve its business objectives, aided by strong annual recurring revenue (ARR) now supplemented with strong transactional revenue streams. It continues to grow its client base, which is at 107 AFSL firms with 3,500+ registered users at the end of Q2 2022, whilst providing new seamless trading services for its AFSL clients.



Cashflow positive quarter with strong cash at bank position




Complii registered a strong quarter with revenue up 370% at A$2.6m in Q2 2022 compared with A$0.70m in Q1 2022, excluding any R&D receipts. The growth was largely driven by the contribution from the acquisition of PrimaryMarkets, but that was only for two months in Q2. Complii’s cash balance was at A$4.8m in Q2 2022, an increase of A$1.5m over the previous quarter. The company’s strong cash position will help the company execute its organic growth strategy as well as to explore opportunities for further acquisitions and business expansion.



Integration of PrimaryMarkets to boost Complii’s transactional revenue




PrimaryMarkets’ trading platform will be integrated with Complii’s platform in Q3 2022, enabling all AFSL clients and their advisers to trade unlisted securities within Complii’s core compliance framework. This is likely to contribute significantly to the company’s transactional revenue in the future. We believe the acquisition will help Complii to boost its revenues for both ARR and transactional streams while realizing cost synergies leading to net margin improvement.



Valuation reiterated at conservative A$0.13 per share base case, $0.28 optimistic case


There has been above expectation benefits of the PrimaryMarkets acquisition and even though this transaction did increase the diluted shares of the combined entity it did not lead to any material change in the valuation range. The upside potential of the stock continues to remain significant.

[percy]

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

Always seems positive when companies tidy up their share register.

[DarkHorse]

Looks really interesting thanks Percy.
Only concern that jumps out from reading the annual report is the 82 million options and 29 million performance rights Mr Mason and Ms Sarich have granted themselves. (p7-8 options at 5c and 10c, last performance rights earned from achieving a mere 15% pa revenue increase). They already have enough stock to profit handsomely from any significant rerate - without having to cash in big time on only moderate performance at the expense of other shareholders - a sadly all too common situation in microcaps nowadays.

[percy]

Looks really interesting thanks Percy.
Only concern that jumps out from reading the annual report is the 82 million options and 29 million performance rights Mr Mason and Ms Sarich have granted themselves. (p7-8 options at 5c and 10c, last performance rights earned from achieving a mere 15% pa revenue increase). They already have enough stock to profit handsomely from any significant rerate - without having to cash in big time on only moderate performance at the expense of other shareholders - a sadly all too common situation in microcaps nowadays.

I too find it is too common in microcaps nowdays ;soft options and soft performance rights.
I have taken a very small position at 8.2 cents,as I see CF1 as a spec at this stage .

[percy]

Looks OK to me..
Cash on hand..$4,756,378
Current assets,$5,086,371
TOTAL Liabilities.$1,161,256.................Note Current assets are over 3 times Total liabilities.
Cash flow from operations.$190,028
Net loss for half year $189,944.

[percy]

Group Revenue Growth
Complii’s Group revenue has grown by 383% compared to the
PCP and by 123% compared to the previous six months (2H21).
It also provides clear evidence of the as-yet untapped revenue
growth potential inherent in a better integrated, compliance
assured, private trader broking platform.
Complii plans to continue to look for complementary strategic
opportunities throughout the FY2022 and beyond.

[percy]

Tried hard today to break through the 10 cent barrier on good volume.

[percy]

CF1 are currently trading at 10.5 cents.
This is higher than their January 9.7 cents high.
Now we will see whether the 10 cents resistance level becomes the new support level.
Chart is looking very positive.

[stoploss]

CF1 are currently trading at 10.5 cents.
This is higher than their January 9.7 cents high.
Now we will see whether the 10 cents resistance level becomes the new support level.
Chart is looking very positive.

I’m with you Percy , when that wall at 11 gets a bit thinner I will demolish it .

[percy]

Strong cash flow from operations.
Excellent cash balance of $5,924,000.
We could be onto a cracker.?