K2fly lifts half-year revenue 45%, looks forward to continued growth in 2020

K2fly Ltd (ASX:K2F) enjoyed a productive six months in the second half of 2019, with revenue increasing 45% from the previous period to $2.653 million.

During the half-year ending December 31, the company invoiced a total of $3.083 million, which represents a 69% increase on the same period of 2018.

K2fly said: “The increase in revenue from ordinary activities is due to the continued growth of the company, new contract wins and sales to Tier-1 clients.”

Contracts won during the period

The companys RCubed Resources and Reserves Software solution focuses on mineral resource and reserves reporting across JORC, SAMREC and NI 43-101.

Existing major clients include Teck Resources Ltd (TSE:TECK) and Anglo Gold Ashanti Ltd (ASX:AGG).

New agreements were made over the period with Imerys SA (EPA:NK), Newcrest Mining Limited (ASX:NCM), Glencore PLC (LON:GLEN) Canada Corporation, Nexa Resources SA (NYSE:NEXA) and Rio Tinto Limited (ASX:RIO).

New and existing clients also entered multi-year contracts for either the Infoscope or RCubed software solutions, including a three-year contract for Newcrest, a five-year contract for Rio Tinto, a three-year contract for Teck Resources and a five-year contract for Westgold Resources Ltd (ASX:WGX).

Additionally, Gold Fields Australia, a subsidiary of Gold Fields Limited (JSE:GFI) (NYSE:GFI), signed on to the solution in January 2020 for a five-year contract.

Financial position

At December 31, 2019, the company had cash reserves of $1.14 million and $1.12 million in aged receivables largely from Tier-1 clients.

K2fly incurred a net loss after income tax during the half-year of $1,919,985 which included non-cash share-based payment expenses for options issued to employees under an employee incentive option plan and to directors, as approved by shareholders at K2flys annual general meeting, and securities issued to investor corporate advisors of $308,870.

This also included a milestone incentive payment expense of $600,000 for deferred consideration to be paid to the vendors for the RCubed acquisition, which is payable in May and November 2020.

Placement completed and unlisted options issued

On September 26, 2019, the company completed a placement of 6.25 million fully paid ordinary shares at 16 cents per share to raise cash funds of $1 million.

Funds will be useRead More – Source