- Travel sim card company Flexiroam (FRX) experienced a 35 per cent increase in revenue for the year ended March 31
- The company also saw a 36 per cent gross profit increase and paying users increase by 104 per cent over the whole year
- However, Flexiroam was not immune to coronavirus impacts, suffering a 54 per cent sales drop in its last quarter
- Despite the decline, cash receipts recorded a slight 1 per cent increase from the prior corresponding quarter at $1.54 million
- Company shares are currently trading flat at 1.3 cents each
Travel sim card company Flexiroam (FRX) has reported "stellar growth" in its financial results for the year ended March 31.
The company has reported revenue from ordinary activities came in at to $8.01 million. This represents a 35 per cent increase from the $5.93 million in FY19.
Gross profit increased 36 per cent to $3.57 million, with a rise from 44 to 45 per cent year-on-year due to effective network cost optimisation and pricing strategies.
Further, Flexiroam saw the number of paying users for its products increase by 104 per cent over the whole year.
The company put this down to global sales growth, that grew through better distribution networks and striking up new partnerships with overseas carriers.
However, net loss for the year was still $1,683,284. This represents a better result than the year previous, where the company had a net loss of $2,876,920.
This represents a net loss per share of $0.63.
This is primarily down to the growth model Flexiroam is currently operating under.
The company is spending upwards of $3 million a year in marketing expenses.
Due to travel restrictions bred by the coronavirus, Flexiroam suffered a huge hit in its final quarter.
The last quarter saw a sales drop of 54 per cent and because of this significant hit, the company is now looking at fundraising options. Despite the decline, cash receipts recorded a slight increase of 1 per cent from the previous corresponding quarter at $1.54 million.
During its financial year, the company completed a private placement of just under 20 million shares at an offer price of $0.04 per share. This netted the company some $775,000
That was a substantial premium on what the company currently trades for.
Company shares are currently trading flat at 1.3 cents each at 10:02 am AEST.