OneVue Holdings Limited (ASX:OVH) Managing Director, Connie McKeage discusses 1H17 results and strategy.
OneVue Holdings Limited (ASX:OVH) is a fintech company that disrupts along financial services value chain. We listed in 2014, in July that year. So we’re coming up to our third year this year and when we started, it was primarily a platform business. Today less than 50 per cent of our revenues are platform services, and then we have other parts of the business that comprise the balance of the revenue.
There were lots of highlights; we’re very pleased with our half-year results. We had EBITDA was actually up 212 per cent. Our revenues were up 50 per cent and we have a very strong cash balance, which we like in this kind of volatile market of $26.2 million. All three businesses that we have, platform services, trustee services and fund services have now hit that critical mass. So all three of them contributed to the results by reaching scale and increasing operating leverage.
Yes, we’re very fortunate. We won a large mandate with NAB (National Australia Bank ASX:NAB), which has been terrific. As a partner, they’ve really increased the robustness of the organisation and infrastructure and security. We also had a cross-sell with Praemium Australia Limited (ASX:PPS), who’s a customer on the trustee side of the business, moving it’s outsource relationship to us and to superannuation administration. So it shows our ability to win new clients as well as cross-sell the existing clients.
We’re pursing both organic and acquisitive opportunities. On the organic side, the pipeline’s never been better. So we’re quite excited about just making sure that we complete those opportunities and that they become a customer, over the next six to 12 months. On the acquisition side, given that we have that cash balance, we’re continually looking for acquisition opportunities. We do have a strong filter now, as the business has turned into a profitable business. We make sure it’s on strategy, that the business is profitable and that it would be EPS accretive in the first year, for our shareholders.
Our focus in the next six months is just delivering what we have ahead of us. We have $4 million of synergies that are well ahead of schedule with Diversa Limited (ASX:DVA). So we will complete those; we are continuing to bring in new clients. And most importantly, we need to move across the clients that we won, particularly in fund services and superannuation administration. We have a huge transition pipeline and we just need to move that money across and hit our deadline. So it’s a very exciting time for the business.