Hi All,Thought it would be a good idea to summarise IP1's...

Hi All,

Thought it would be a good idea to summarise IP1's current activities and value proposition... IMO undervalued at these levels given the company’s current operations, growth potential, and the fintech sector strength of late.

Firstly, a corporate snapshot:

SOI: 308,840,298

MarketCap: 7.1 million @ 2.3c
Cash: 1.492 million cash
EV: 5.61 mill

Debt: Nil
Currently generating 497k in revenue, approx.2mill rev over the past year.

Management/Directors ownership ~ approx. 75% - significant amounts of cash being put in by Directors in the most recent rights issue at 1c. I must also note that this is the first time since late 2017 that the directors have increased their stake which IMO is promising.

Products

The company’s main software assets are comprised of ClickSuper, Single TouchPayroll, and more recently the addition of Payvu. A brief summary of each platform can be seen below:

ClickSuper/STP

In the most recent quarterly update, the company noted six new payroll service providers integrating with ClickSuper over the past quarter, and what soundsextremely promising is the comment regarding on-boarding a superannuation fund next month. I may be getting a little ahead of myself, but this represents a huge step-forward by the company in implementing its software solutions within institutional grade organisations. As announced by the company this month, their achievement of ISO27001 certification and the upcoming ASEA 3402 certifications IMO puts the company in a much better position to be rolled out across major Aus and international institutions.

Mandated changes to the way that tax and super is to be reported later this year IMO also presents an opportunity for further user uptake of the Super/STP platform.

PayVu

As per the company’s most recent ann, the scalability release is due by the end of July (i.e. today), and I believe this has great potential to be a significant revenue driver for the company. Integration with Xero and the major banks provides the company access to a huge market (54% of the book-keeper market in Aus), which will likely grow with further integration of MYOB/Quickbooks and other banks.

Potential short/medium term value drivers:

- Onboarding of firstSuper Fund next month

- Scalability release ofPayVu

- Further updates onuptake of software

- Update on ASEA 3402 certification

-Further onboarding of funds/large insto’s on the back of credentialing approval

I do not claim to be a TA maestro as I make most of my investment decisions on FA analysis, but chart looks good IMO with a sustained ascending channel over the past two months.

GLTA Holders, and as always DYOR!