- Sports and leisure software company MSL Solutions (MSL) is expecting solid 2020 revenue despite the COVID-19 crisis
- The company said last month almost half of its revenue comes from its MSL Golf Business, which provides scoring, booking, and tournament software for golf clubs
- Given golf can be played while adhering to social distancing measure, MSL said the golf tech arm was largely unaffected by the spreading virus
- While non-recurring revenue took a slight hit, MSL said recurring revenues are still expected to come in high for this financial year compared to the last
- Moreover, as lockdown measures lift across the globe and pubs, clubs, and stadiums reopen, MSL's business is beginning to pick back up
- Shares in MSL Solutions closed 10 per cent higher today at 6.6 cents each
According to its latest business update, sports and leisure software specialist MSL Solutions (MSL) seems to have endured the COVID-19 crisis better than most.
The company said in May things were tracking along nicely despite the spread of the virus, and today reaffirmed this idea as its golfing segment continues to perform as usual.
MSL said recurring revenue for the 2020 financial year is still expected to come in higher than last year. The company explained last month that almost half of its total revenue comes from the MSL Golf Business, which involves scoring, booking, and tournament software.
Despite sports across the globe shutting down in an effort to help stem the spread of the coronavirus, golf is a sport that can be played while adhering to social distancing measures and needs no crowds to keep it going. Thus, MSL's golf business has been "largely unaffected" by the events of the past few months.
On top of this, the company has reduced its cost base by more than $4.5 million compared to the year before to ensure its balance sheet stays healthy while the virus continues to spread.
Nevertheless, the company said as countries begin to ease restrictions and lockdown measures, activity in the stadium market is beginning to ramp back up. With the recently-signed deal with Kappture, MSL is gearing up to make use of its new point-of-sale (POS) software.
MSL admitted, however, that non-recurring revenue has been subdued in light of the virus. Despite this, the company said this type of revenue has still performed better than originally expected as pubs and clubs reopen in Australia and the U.K.
Though it's not out of the bunker yet, MSL said a combination of a strong balance sheet, strong recurring revenues, and "stringent" cost management means it is in a comfortable-enough cash position that it won't need to raise capital any time soon.
Shareholders have taken well to today's news, with MSL shares closing 10 per cent higher at 6.6 cents each.