NOV

1.85%

5.5¢ novatti group limited

Good analysis, but couple of corrections.114K customers, rather...

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WhatsupwithBas

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14/05/22

22:01

Post #: 61412184
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Originally posted by mockage: ↑

This is really interesting - it seems that both Reckon and Novatti can clearly see the opportunity and have moved swiftly to capitalise on it.

114,000 small to medium businesses. And let's say conservatively 5-10% turn on the "Pay now" function over the next 24 months. Only Reckon will have a good feeling for this - obviously retail shops, for example, will have a low attraction to "Pay now" but many tradies, designers, sole traders etc will find this attractive as saves chasing invoices.

So assume an average small business that has invested in (affordable = Reckon) accounting software is a sole trader + 1-2 helpers, with turnover of say $10k (low) to $50k (high) per month + GST (labour + materials etc). I am thinking say a small design company at the low end, and a sole trader electrician + apprentices at the higher end.

This gives a volume through 'Pay now' of:
Low end : 5% x 144,000 x $10k x 12 = $864 million transaction volume
High end : 10% x 144,000 x $50k x 12 = $8.6 billion transaction volume

1.5% processing fee (to be split 50/50 between Reckon and Novatti) is therefore a wide range of:
Low end: $13 million (50% share = $6.5 million)
High end: $130 million (50% share = $65 million)

I would guess that the true figure will be somewhere between the two. But even at the low end - this outcome would more than double their existing processing revenue.

So the deal sits somewhere between 'very helpful' and 'transformational'.

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Good analysis, but couple of corrections.
114K customers, rather that 144k?
and fees paid to Visa/ MC might be about 0.3%, so that would leave 1.2% to split = 0.6% of the gross transactions processed that goes to NOV.
I’m too lazy to do the math myself though lol.

NOV Price at posting: 20.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 5.5¢		Change 0.001(1.85%)		Mkt cap ! $19.56M

Open	High	Low	Value	Volume
5.3¢	5.5¢	5.3¢	$12.68K	238.6K

Buyers (Bids)

No.	Vol.	Price($)
1	25000	5.5¢

Sellers (Offers)

Price($)	Vol.	No.
5.9¢	98725	1

View Market Depth

No.	Vol.	Price($)
1	701	0.054
3	55000	0.050
1	60000	0.048
3	190600	0.046
2	32000	0.045

Price($)	Vol.	No.
0.059	98725	1
0.063	27000	1
0.068	21741	1
0.070	100000	1
0.074	44635	2

Last trade - 14.25pm 19/07/2024 (20 minute delay)

NOV (ASX) Chart

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