Earnings increasing & multiples expanding (Re-rate commencing), page-1287

CXZ (reversal ready)
Supply done
$16 mill MC
$8.2 mill Revenue
$3.2 mill NPAT 2020 FY


Connexion Telematics (ASX:CXZ) caps off FY20 with 587pc profit increase


Source: GM Authority

• Connexion Telematics (CXZ) has capped off a remarkable FY20 with a 587 per cent in net profit after tax
• The tech business also recorded a 131 per cent increase in revenue for the 2020 financial year, to total around $8.2 million
• Additionally, Connexion ended the year cash flow positive and with $2.44 million in the bank

Smart car technology developer Connexion Telematics (CXZ) has ended the 2020 financial year with a remarkable 587 per cent increase in profit.


The almost 600 per cent increase in profit is due to Connexion's net profit after tax (NPAT) jumping from $470,000 at the end of FY19, to $3.2 million in FY20.

The company's net profit before tax also recorded a similarily big increase, up 340 per cent to $2.05 million.

Along with profit increase, Connexion's revenue jumped 131 per cent over FY20 from 3.56 million to a total of $8.2 million.

All up, the tech business ended the 12 months to June 30 cash flow positive, for the second year running, with an improved operational balance sheet of around $1.5 million. Of that, it received $230,000 in R&D tax grants.

Connexion also had $2.44 million in the bank at the end of FY20, up from $938,612 at the end of FY19.
COVID-19

The company's strong increases in profit and revenue are being attributed to recurring revenue from U.S. car manufacturer General Motors, one of their biggest customers.




Going forward Connexion said it was focused on diversifying its revenue base, by pursuing more deals within its current GM dealership network, as well as through other vehicle dealerships and independent software suppliers.