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Plexure shares soar 26% as revenue gains, cost cutting gets cash in the door

Wednesday 30th May 2018

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Plexure Group shares jumped 26 percent as the mobile voucher firm started generating positive cash flow after slashing costs and building sales momentum. 

The Auckland-based firm held cash of $4.1 million as at March 31, after generating a cash inflow from its operations of $2.6 million in the year through March, compared to an outflow of $4.7 million a year earlier. That means it can fund its own operation without having to go back to shareholders. 

Plexure narrowed its loss to $1.6 million from $6.5 million a year earlier, having boosted income 62 percent to $11.8 million and trimming 13 percent from its operating costs to $11.9 million. 

The shares climbed 4.9 cents to 24 cents. 

"The board is extremely pleased with the progress the company has made in the last 12 months," Plexure said in a statement. "The financial results, cash position and substantial reduction in loss are clear evidence that our strategic direction is positioning Plexure for sustainable growth and profitability." 

The mobile voucher firm, formerly VMob, was tracking ahead of expectations when reporting its first-half result in November, due largely to cost cutting by laying off staff. 

Separately, former chief executive and its biggest shareholder Scott Bradley resigned from the board, effective immediately. 

(BusinessDesk)

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