RESEARCH NOTE NOT ATTACHED (CONTACT PATTERSONS) Isignthis (ISX) $0.16 Recommendation: BUY Analyst: Martyn Jacobs Tel: 03 9242 4172 FY17 Result, Next Step Commercialisation Investment Highlights
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 JCB to offer card acquiring, settlement and processing services to EU / EA 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.com went “live” with its UK business and further rollout is expected next month. XM’s global business has c1m clients.
ISX also went “live” with payments provider, Ixaris and Icelandic card acquirer Borgun. 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 monetize its position and generate rapid revenue growth.
We maintain our forecasts and valuation at $0.50 / share.
ISX Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
