Spenda (ASX:SPX) Secures $50M Credit Facility As Cash Inflows Rise – The Market Herald

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  • IT services and lending company Spenda (SPX) reports $693,000 in cash inflows for the June quarter, marking a 10% increase from the prior quarter
  • Brings FY22 cash revenue to $2.3 million, representing 107% year-over-year growth
  • The company’s loan portfolio remained stable with a balance of $12.1 million as of June 30, and additional capital is expected to be deployed through a new debt warehouse.
  • The $50 million facility was announced today for a three-year term, and Spenda believes it will help accelerate the company’s growth
  • Spenda shares are down 17.65% at 1.4 cents per share at 1:49 p.m. AEST

IT services and lending company Spenda (SPX) reported $693,000 in cash inflows for the June quarter, marking a 10% increase from the previous quarter.

This result brings cash inflows for FY22 to $2.3 million, representing a growth of 107% over FY2021.

Annual recurring revenue (ARR) continued to grow and now represents 95% of company revenue. This aligns with Spenda’s new core business model which focuses on ARR rather than project-based work.

Spenda also saw a 500% quarter-over-quarter increase in business-to-business (B2B) payment flows, as merchant payment flows between businesses and consumers remained constant over the past two quarters.

The company’s loan portfolio reportedly remained flat in the June quarter, with a balance of $12.1 million as of June 30. This marks a very slight increase from the $11.9 million at the end of March.

For the full fiscal year 2022, however, Spenda’s loan portfolio has seen a 155% increase since acquiring Invigo in July 2021.

Its current loan portfolio is earning an average of 19% quarter over quarter.

The company ended the quarter with $7.6 million in cash.

Meanwhile, Spenda said he expected more capital to be deployed now that he had established a warehouse of debt.

Alongside today’s quarterly report, the IT stock announced it was entering into a $50 million credit facility agreement with an Australian private credit fund to provide capital to accelerate the company’s growth. .

The facility, which would have more favorable financing terms than the existing facilities, will allow the company to increase its net margins and enter into larger transactions that fall within its credit policy guidelines.

“Scaling our lending facilities through our debt warehouse puts the business in a strong position to capitalize on anticipated B2B payments trends,” said SPX Managing Director Adrian Floate.

“With increasing digital adoption and growth in global commerce, the demand for better payment infrastructure and faster access to working capital solutions will continue to accelerate.”

Spenda shares fell 17.65% to 1.4 cents per share at 1:49 p.m. AEST

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