Ann: Trading Halt, page-30

Quick mock up of the data i found on Affinipay in the US. Eric Lookhoff mentioned the merchant payments biz in the professional services segment is the 'jewel in the crown' of the business. This is QFE's version of the Affinipay business it seems. As I previously mentioned, Affinipay was acquired by PE firm TA Associates for USD$600m in early, pre-covd, 2020. This acquisition valued the biz at c.10x rev and 20x a $30m EBITDA. Based on revenue and transaction volumes, Affinipay's EBITDA margin was c.50%.

I suspect this is the business that management have been throwing money at. The launche of Qube (which is now fully rolled out) takes the yield on the merchant payment volume to the 60bps range. On a run rate of $1bn in transaction volume, which we'll hit soon, that would be US$6m revenue on this business alone. Affinipay's CAGR on transaction volumes is c.35% over the long run, and if QFE is able to match or beat that, then the merchants payments biz is best case scenario 5 years away from a similar USD$600m valuation (share price >$3). Covid has assisted growth in this business and the e-cash regulation is only the beginnning of forcing the massive potential customers base of QFE online and into the platform. My assessment is that the merchant payment part of the business is worth more on its own that what the entire QFE business trades at now.

I will come back with some info re the lending business, which i also like...