Synopsis of today's webinar:
1. This is CRO's best quarter to date-303% increase in revenue from Q4 FY21 to Q1FY22
2. 40% growth is their internal goal
3.This quarter is nearly half of last years TOTAL revenue
4. Cash on hand is 18.9m plus what they have loaned out , enough for nearly 2 years, so all raising of capital listed in Quarterly is in relation to loaning to customers- the debt warehouse is lending NOW- already $7m is on loan to customers now and they already have demand for the whole $100m.
5. The CRO team has grown more than 4 fold- now over 90 people. The technical team is now working on the core systems processing with the view to massively increasing transactions per second. This indicates anticipated volume requirements.
6. MasterCard Track Business Payment Services is squarely aimed at cross boarder and international transactions and "WE are right in the sweet spot there".
7.Neu Capital has been appointed to facilitate Debt Warehousing, and the focus is heavily on Securitization- this will allow CRO to borrow capital for
'x' amount and on sell it for a higher price through large intermediaries.- They have already put $10m into Moneytech which allows them to borrow $100m. With Whola, they are already committed and ready to fund the obvious growth from them.
8. Greenshoots, acquisition nearing completion, gives them an Asian base, to compliment their bases in Perth, Sydney and Singapore
9. The exciting growth areas are Agribusiness, which sounds like it is developing across the entire Agri sector, and Food/Beverage, which he mentioned several times, again, with a 'paddock to plate' mentality
10.They see Global expansion through Australian export markets, with again, a focus on Asia, making the Greenshoots acquisition pivotal
11. 3 key quotes- " The market is coming to us", and ,"some announcements about this (expansion) in the not too distant future" and, "we have a lot of relationships we don't necessarily announce"(in reference to a long standing relationship with Zepto)
12. Capricorn is a 'long, mutually beneficial relationship", but Adrian could not or would not elaborate on their uptake of Spenda, although it seemed implicit that this is the case
Final observations- this was a highly professional and enlightening webinar which highlighted the enormity of the position CRO finds itself in now. AF was forthright and positive, but this was clearly tempered with his disappointment at the ASX 'faux pas' yesterday, which saw the 4c released without the Quarterly. What should have been a jubilant and well received report was ruined by the release of the hard to understand 4c, without the Quarterly to explain it. The downramping that resulted, and the general misunderstandings which resulted in the share price drop was something that should never have happened and which Adrian was clearly upset about. Nevertheless, it was clear that there are so many things in the pipeline at the moment, that this will only be considered a small annoyance in the not too distant future.
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