Novatti’s turnaround measures deliver 41% reduction in quarterly cash use
ASX-listed payment leader Novatti‘s Q4 FY24 results have started to show the real, cumulative impact of all the initiatives that have been undertaken as part of its turnaround strategy, implemented at the start of FY24.
Some key highlights include:
- $2.5 million quarterly net operating cash outflow, 41% QoQ improvement ($4.3 million) and 38% YoY improvement ($4.1 million)
- $12.5 million quarterly revenue – slightly ahead QoQ and up 23% YoY
- 19% increase in FY24 revenue YoY to $46.5 million
- 21% decrease in FY24 operating expenses YoY (ex IBOA)
Novatti CEO Mark Healy stated, “The results highlight the success of our ongoing transformation; as we execute our change program we continue to grow the business and reduce our cost base, all while we move towards achieving our positive cashflow target.
“While important progress has been made here, much more is coming. We will continue our focus on portfolio optimisation, margin growth, improving efficiencies and reducing expenses. As a start, a further $3 million in annualised costs are identified for removal in Q1 FY25.
“We also expect further opportunities for portfolio optimisation and divestment, following our ongoing strategic review of all businesses against Novatti’s long term financial targets. A clear example here was the divestment of Novatti’s interest in the International Bank of Australia. As a result of the sale, the Bank’s expenses (Q4: $0.78 million) will no longer be included in Novatti’s net operating cash flows going forward, resulting in significant further savings.”
Novatti have also announced a pipeline of 500+ merchants to be on-boarded by the end of H1 FY25, highlighting the underlying growth in the business.
Healy added, “The progress to date and ongoing actions again highlights our commitment to achieving positive operating cashflow by the end of H1 FY25. I look forward to updating you on further progress towards achieving this target.”
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.
