Pushpay Holdings Limited

 
PPH & Church Community Builder Announce Business Combination:Pushpay Holdings Limited (ASX: PPH) offers donor management services in Australia, Canada, the US and New Zealand. The stock of the company is currently on a trading halt due to a pending announcement and will commence trading on 17 December 2019 or after the release of the announcement. Recently, Pushpay Holdings Limited and Church Community Builder, LLC announced a joint vision to offer 10,000 Customers with new and advanced, best-in-class technology solutions. As per the alliance, the companies will jointly provide a fully integrated church management system (ChMS) and a custom community app for customers in the US faith sector.
 
Shareholders Update:On 13 December 2019, the company issued an announcement stating that Woodhill Investment Company LLC will be a substantial holder of the company, holding 10,966,434 ordinary shares with a voting power of 3.984%. The company further announced that DDS Trustee Services Limited as trustee of the Dorchester Trust, ceased to be a substantial holder of the company. The company also issued an announcement stating that Christopher Benjamin Heaslip has reduced his voting power from 6.34% to 3.984%.
 
1HFY20 Financial Highlights: During the first-half ended on 30 September 2019, the company’s total revenue increased by 30% to US$57.4 million. Gross margin for the period came in at 65% as compared to 57% reported in the previous year. NPAT came in at US$6.5 million as compared to a loss of US$4.4 million. Operating cash flow stood at US$8.9 million as compared to an operating loss of US$5.1 million.
 

Financial Highlights (Source: Company Reports)
 
Outlook: For FY20, the company expects its operating revenue to come between US$121.0 million to US$124.0 million.Gross margin is expected to be over 63%. EBITDAF is expected to be in the range of US$23.0 million - US$25.0 million. 
 
Stock Recommendation:Net margin of the company stood at 11.6% in Q1FY20, which is higher than the industry median of 10.2%. ROE stood at 15.1%, which is higher than the industry median of 6.3%. This implies that the company is providing a decent return to its shareholders against the broader industry. Current ratio of the company stood at 2.56 in the same time period against the industry median of 2.20x, which reflects that the company is in a better position to address its near-term responsibilities as compared to the peer group. The stock last traded at a market price of $0.365.

XREF Limited

 
Cash Receipts in Q1FY20 up by 31%:XREF Limited (ASX: XF1) is a human resources technology company that automates the candidate reference process for employers. On 12^th December 2019, the securities of the company were placed on a trading halt at the request of XF1 as the release of an announcement is pending. It was also mentioned that the securities would commence trading on 16th December 2019 or when the announcement is made to the market.
 
Recent Updates: On 29 November 2019, the company passed a resolution in its annual general meeting pertaining to the approval of the remuneration report, to re-elect Nigel Heap and Mr Brad Rosser as Directors of the company and to approve a 10% Placement Facility.
 
Key Highlights for the Quarter Ended 30th September 2019:For the first quarter of FY20, sales of the company came in at $2.46 million, up by 23% year over year. Credit usage stood at $2.24 million, up 32% on pcp. Cash receipts during the quarter stood at $3.53 million as compared to $2.7 million in the prior corresponding quarter. The company added several clients during the quarter like Ministry of Social Development, New Zealand, Tourism Australia & Schneider Electric, Australia, to name a few. Cash and cash equivalents at the end of the quarter were reported at $5.25 million. Cash used in operations came in at $1.95 million.
 

Graphical Representation (Source: Company Reports)
 
What to Expect: In the coming quarter, the company is expecting net cash outflow amounting to ~$5.3 million.
 
Stock Recommendation:The stock of the company generated a negative return of 33.64% in the last six months. The company continued its growth trajectory throughout Q1FY20, with record sales in June providing a significant uplift in cash receipts. Overall, the company has established a good platform through partnerships and acquisitions, direct sales growth, team growth, etc.  The stock last traded at a market price of $3.930.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.