Surfstitch Group Ltd

SRF Details
·         Revised the EBITDA projection: Surfstitch Group Ltd (ASX: SRF) stock surged over 10.34% on March 20, 2017 driven by some improving sentiments. SRF in the 1H 17 has reported a loss from continuing operations of $5.6m, which is an $8.0m improvement to the prior corresponding period (pcp) loss of $13.6m. The revenue was 13.1% below the pcp (4.3% down in constant currency) attributed to both the +20% appreciation of the AUD to GBP and a decline in sales in the North American market. Moreover, the Underlying EBITDA loss reduced from ($6.1m) to ($1.3m). There was $4.8 million reduction in expenses and capex in the 1H 17 and more than 50% run rate savings from the US restructure from November 2016. However, SRF has revised the underlying EBITDA loss projection from the previous range of ($4.0m) – ($5.0m) to an underlying EBITDA loss forecast range of ($5.0m) – ($6.5m) owing to trading headwinds witnessed in last weeks of December and into January and February. The cost control initiatives have mitigated some of the impact of these difficult trading conditions and would continue to be carefully managed to deliver on underlying EBITDA closer to the lower end of the updated forecast range.
 
·         Recommendation: SRF stock fell over 19.44% in the last three months (as of March 17, 2017). SRF stock has been removed from All Ordinaries Index, effective at the open on March 20, 2017.We maintain a “Hold” recommendation at the current price of – $ 0.16
 

1H 17 Financial Performance (Source: Company Reports) 

Zyber Holdings Ltd

ZYB details
·         Market Update: Zyber Holdings Ltd (ASX: ZYB) stock surged over 37.5% on March 20, 2017after the company gave the market update in relation to its recent activities. The company’s development team over the last two weeks has been working on building the Zyber Enterprise Mobile application in iOS and Android. The team had ran into some issues solving the critical defects when implementing iconic framework on which myZyber mobile application was built, with the Enterprise application. The team had decided to rebuild the application using native SDK’s and has now accomplished the ability to view folders, navigate through folders, preview files, and upload files. These features are currently in the test cycle. Moreover, the team has also implemented a notification feature so that users can receive notifications on particular files or folders they wish to watch. Over the next few weeks, the team would continue to test the application and look for potential BETA customers. ZYB management team said that they would look for opportunities in area related with local law or accounting firm with at least one other office to gain valuable user feedback to drive the product development. ZYB continues to work on cost cutting initiatives with both the Chairman and the Company Secretary agreeing to reduce their monthly fees. Overall, ZYB continues to receive numerous proposals on a weekly basis for corporate transactions opportunities involving the company.
 
·         Recommendation: ZYB stock rose over 30.61% (as of March 17, 2017) in the last six months, and we give a “Hold” recommendation at the current price of – $ 0.011

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