Pattersons BUY at 0.50c following ANN Rep, page-9

Hi Guys

Following on from @hotmix87's great post.

ISX have now uploaded Paterson's Research Note from the 31-08-17 onto their website.

Very interesting read. Will be great when they hit these numbers.

Cheers
Tradealot




FY17 RESULT, NEXT STEP COMMERCIALISATION


In line, with transaction flow to accelerate


Isignthis Ltd (ISX) reported its full-year result that was in line with our expectations. Revenue was c$1.4m, well up on the pcp, but included a c$0.6m R&D tax concession (c$0.24m pcp). The underlying loss was c$4.7m and the statutory result was a loss of c$5.7m, down from c$9.2m for the pcp. ISX secured funding agreements with NAB and Worldline in Europe, as well as an agreement with Japan Credit Bureau (JCB) to offer card acquiring, settlement and processing services to European Union / European Economic Area (EU / EEA) merchants for JCB’s 106m card members. It received its e-Money Institution License enabling ISX to provide card acquiring and issuing services within the EEA. XM went “live” with XM.com’s UK business and further rollout is expected next month. XM’s global business has c1m clients. ISX also went “live” with Ixaris (payments provider) and Borgun (Icelandic card acquirer). ISX’s technology, regulatory and partnering developments over the year mean that ISX is the only Company to offer a full end to end, globally compliant payment and identity verification solution for regulated merchants under the 4th AMLD / PSD2. The challenge for ISX now is to demonstrate it can monetise its position and generate rapid revenue growth. We maintain our forecasts and valuation at $0.50/sh. BUY


We note that at this point, significant uncertainty exists around the pace of ISX’s development and subsequent forecasts, primarily due to lead times on agreements with large multinational customers. We expect to see growth in the September Qtr, but clarity around ISX’s trajectory should be clear by the December Qtr release. We also note that ISX needs to generate c$10m in annualised revenues over a six-month period by 30 June 2018 to qualify for its c336m director performance shares.


The focus for ISX in FY18 will be to roll-out a number of contracted customers that have been undertaking integration processes through 2H17 / 1H18. ISX will also be aiming to complete the global roll-out of XM.com. We should also see progress on the acquisition of settlement books of varying size, in both regulated and unregulated sectors in multiple jurisdictions, off the back of preventing credit card fraud. A recent example was the announcement regarding contracting of settlement services for two settlement books totalling over c$20m in Australia, belonging to online retailers. That acquisition should generate net revenue of c$0.23m annualised with a charge of c91bp. We should see more of these in 1H18.


https://www.isignthis.com/wp-content/uploads/2017/09/ISX_FY17-Result_170831.pdf