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*******THE GOLDEN HOT STAR STOCK OF THE WEEK (CURRENTLY AVERAGING OVER 10% IN 4 WEEKS)*******

AFTERPAY TOUCH GROUP LIMITED (APT) THE CHART IS EXCELLENT AND THE COMPANY IS GAINING SUCH TRACTION THAT THE WORDS ‘AFTERPAY‘ ARE BECOMING PART OF THE AUSTRALIAN VOCABULARY. WITH A COMPANY TRENDING SOCIALLY AND ON THE CHARTS APT IS A WELL DESERVED HOT STAR STOCK OF THE WEEK!

Afterpay Touch Group’s (APT) revenue has been soaring and in FY17 they merged with Touchcorp (previously they were just Afterpay) to form Afterpay Touch Group.

Together the combined entity posted FY17 revenues of $22.9M and loss after tax of -$9.6M. Largely that loss was from the Touchcorp customer development contract. Management have highlighted this in their report as well:

The Company’s statutory loss is mainly due to Merger related costs and a one-off decision by the Board of the Company post the Merger. In particular, the Board of the Company decided to recognise a Touchcorp Customer Contract as an onerous contract given future revenue opportunities from this contract under the merged group were not likely to increase gross revenues through the winning of significant new business in the immediate future. An expense of the $13.6M has been recorded as a one-off expense (calculated as the impairment of the prepaid assets amounts plus future required payments under the contract).”

Assuming we don’t see one of these one-offs again, the future looks bright for the new entity. APT have been contracting many brands including Target, Petbarn and even Jetstar. Essentially, moving into new sectors and getting their name out there. Scaling is going extremely well in terms of these numbers, especially now that they are working into penetrating the NZ market as well.

Future looks pretty bright for APT. Growing their top line and looking closer to profitability!

 

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