Year-to-date sales revenue of $2.8 million, 39% ahead of prospectus forecasts
Strong cash position, with $2.4 million cash on hand at 31 March 2017
Appointment of new Chief Executive Officer, Ben Newport
Increased adoption of recently introduced investor relations product, Corporate Spotlight
HotCopper Holdings Limited, operator of Australia's #1 stock market forum hotcopper.com.au, has recently reported a strong operational and financial position at the end of Q3. Based upon unaudited management accounts the Company reported $0.96 million in sales revenue, with revenue convincingly ahead of prospectus forecasts.
In April 2017, HotCopper announced the appointment of new Chief Executive Officer, Mr Ben Newport. Mr Newport has been with HotCopper since 2014, most recently as Sales Director, and has been integral in driving the Company's revenues. He has a strong IT background and holds a degree in Information Systems from Murdoch University.
The Product - An effective and targeted investor relations channel
Corporate Spotlight is HotCopper's new, direct-to-market channel for ASX-listed companies to engage with their most-interested investors and boost their investor relations efficiency. As well as providing valuable insight into performance analytics, the Corporate Spotlight offers ASX-listed companies the opportunity to showcase investment highlights and connect with their most engaged investors.
The Engagement Rationale - Investors have moved online
Australians are increasingly applying a 'do-it-yourself' approach to investing, with 58% of retail investors trading through online brokers such as CommSec or E*Trade, and a growing number of SMSFs (577,000+) managing over $620 billion in assets. A large portion of these investors use HotCopper when researching and making investment decisions, and Corporate Spotlight will allow companies to reach the investors who are most interested in their investment proposition.
Update on Corporate Spotlight Sales - April 2017
The Company has already seen significant interest in the product since launch, which has now translated into sales results. As of mid-April 2017, the Company had obtained formal commitments for over $120,000 in subscription revenue and is confident that this will grow significantly over Q4 FY17. In April 2017. the Company appointed two additional sales staff with significant industry experience and expertise to drive the adoption of the Corporate Spotlight product within the marketplace.
Strong Market Position - Australia's pre-eminent stock market discussion platform
The site is the most popular and well-known ASX discussion forum, with 18x the traffic of its nearest competitor. Our user base and membership are also growing strongly, with unique users recently surpassing 700,000 a month and over 250,000 members. HotCopper users are highly engaged in capital markets and use the site when making decisions on investing, providing a valuable opportunity for corporate advertising clients looking to reach a financially literate audience.
ASX-Listing - Momentum for site enhancements and strategic growth opportunities
The company's main growth objectives are enhancing the user experience to provide value and insight for members and generating revenue with minimal investment to maximise value for HOT shareholders. Forthcoming initiatives include a mobile app, site optimisations and joint-venture agreements to complement the site.
Historically Profitable Company with Strong Cash Flow
HotCopper's revenue has traditionally been generated through commercial and corporate advertising including display advertising on the site and targeted email campaigns. The Company grew its revenue to $2.75 million in FY16, with a profit before tax of $873,963. At 31 March 2017, HOT reported year-to-date unaudited sales revenue of $2.8 million, convincingly ahead of its IPO prospectus forecasts. Additionally, in Q3 FY17 the Company reported positive operating cash flow of $0.46 million.
On-Market Share Buy-Back
On the 18th of October 2016, HOT announced its intention to commence a share buy-back of up to 10% of its issued share capital over the next twelve months to be funded from existing cash reserves and operating cash flow. The Company advises investors to refer to the Company's most recent Appendix 3E for updates on the share buy-back.
Steve James Chairman
Steve James has over 25 years’ experience in the financial services industry, having held a variety of senior positions in major Australian financial institutions such as Commonwealth Bank. Steve was a key player in developing the first wholesale online broking business in Australia, VirtualBroker. He holds a Masters Degree in Financial Services Law, Diploma in Financial Markets, Master Stockbroker qualification and is a graduate of the Australian Institute of Company Directors.
Alec Pismiris Non-Executive Director
Alec has over 30 years’ experience in the securities, finance and mining industries, having served as a director and company secretary of various ASX listed companies as well as many unlisted public and private companies. Mr Pismiris holds a Bachelor of Commerce degree from the University of Western Australia, is a member of the Australian Institute of Company Directors and is an associate of the Institute of Chartered Secretaries and Administrators.
Colin Chenu Non-Executive Director
Colin has 30 years’ experience in private legal practice, during which he has advised and represented clients on a diverse range of legal areas in both litigious and non-litigious work, including corporations, trade practices, contracts, equity and trusts. He has extensive experience in defamation law and reputational torts and was recommended in Doyles’ List of Leading Commercial Litigation and Dispute Resolution Lawyers in 2016. Colin is currently a director and part owner of prominent Perth-based corporate and commercial law practice, Bennett + Co.
Mr Gavin Argyle Non-Executive Director
Gavin is an experienced senior executive, with over 30 years’ experience in Australian capital markets. In 2006 he co-founded Capital Investment Partners, a Perth-based investment bank providing capital raising and corporate advisory services to small and mid-capitalised ASX-listed companies. He has been Managing Director of Capital Investment Partners since 2008. Gavin holds a Bachelor of Commerce from the University of Western Australia and a Masters of Business Administration from The Wharton School at the University of Pennsylvania.