Ann: Appendix 4E & Full Year Statutory Accounts, page-28

From my perspective, the outlook for Spenda appears to be cautiously optimistic, with several promising developments on the horizon. The company's recent strategic partnerships with significant players like Carpet Court, Capricorn Society, AirPlus International, and eBev indicate a clear direction towards scaling operations and driving long-term revenue growth. I see their "land and expand" strategy, where they start small with clients and gradually roll out their solutions across entire supply chains, as a smart move. It’s a strategy that could embed Spenda's technology deeply into partner operations, potentially leading to sustainable and recurring revenue streams.

Financially, Spenda has shown impressive revenue growth, jumping from $3.1 million in 2023 to $5.4 million in 2024. However, the fact that the company is still operating at a loss, with a net loss after tax of $13.2 million in 2024, is a concern. While they have a net cash position of $6.6 million, which gives them some breathing room, the ability to secure additional funding will be crucial for their continued growth and eventual path to profitability.

I think Spenda's integrated platform is a significant competitive advantage. It allows them to offer end-to-end solutions that streamline business processes and improve cash flow for their clients. For example, Spenda’s partnership with Carpet Court has already led to stable B2B volumes of approximately $20 million per month, and the company has seen a remarkable 160% increase in total payment volumes on its platform from the previous year. Additionally, Spenda’s collaboration with Capricorn Society has positioned them to serve a network of over 28,000 members and 2,000 preferred suppliers, which I find particularly impressive.

However, there are challenges, particularly the rising operational costs and the need for ongoing funding to support their growth ambitions. Additionally, the regulatory environment poses potential risks, especially with possible changes in payment system regulations and privacy laws.

Personally, I believe Spenda is on the right track, but achieving profitability will require careful management of their costs and ensuring they have the necessary funding to continue their growth. If they can navigate these challenges successfully, I think Spenda has the potential to become a significant player in its industry.