Complii Reports 12.9% Year-on-Year ARR Growth and $3 Million Cash Position

Financial Resilience and Strategic Refocus

Complii FinTech Solutions Ltd (ASX: CF1) has delivered a solid performance in the second quarter of FY25, underscoring its financial resilience and strategic clarity. The company closed the quarter with $3.048 million in cash and term deposits, bolstered by a net cash inflow from operations of $444,000. This marks a significant turnaround from the previous quarter’s outflow, largely attributed to the divestment of Registry Direct and receipt of a $1.508 million R&D rebate.

The divestment of Registry Direct, completed in early October 2024, has been a pivotal move. It not only injected $2.012 million net proceeds into the company but also reduced ongoing cash outflows, allowing Complii to sharpen its focus on core SaaS offerings for equity capital markets participants. The company continues to benefit from a service agreement with Registry Direct, securing early payments totaling $1 million (ex GST) expected over the next 18 months.

Sustained Growth in Annual Recurring Revenue

Annual Recurring Revenue (ARR), a critical metric for SaaS businesses, showed encouraging momentum. Excluding Registry Direct revenue, the group’s ARR increased by 1.7% quarter-on-quarter and an impressive 12.9% year-on-year. This growth was driven by strong performances across Complii’s core business units, including a 14.5% year-on-year increase for Complii itself and a 25.6% rise for Advisor Solutions Group.

PrimaryMarkets, despite a slight quarterly dip, reported a near 10% year-on-year ARR increase and a remarkable 175% surge in traded value compared to the prior year. ThinkCaddie maintained steady ARR growth, reflecting expanding cross-selling opportunities within the group’s ecosystem.

Product Innovation and Market Expansion

Complii’s commitment to innovation remains evident with ongoing enhancements to its capital raising platform, including the Adviser Bid and Corporate Highway systems. The company is progressing towards launching a client-led CRM module and an updated Compliance Management solution later in FY25, aiming to deepen customer engagement and streamline compliance workflows.

PrimaryMarkets is advancing its platform upgrades to handle higher trading volumes and improve user experience, while expanding into the managed fund sector through new Trading Hubs. This strategic diversification is complemented by active onboarding of new AFSL clients and partnerships, including initiatives with Dexus to engage financial advisors.

Operational Efficiency and Outlook

Operationally, Complii has reduced its cost base, with staff costs decreasing by $627,000 compared to the previous quarter, partly due to the Registry Direct divestment. Administration costs rose slightly due to timing of annual expenses but remain controlled overall.

Executive Chairman Craig Mason highlighted the company’s focus on organic growth through cross-selling, new product launches, and partnerships, alongside potential M&A activity both domestically and internationally. The group’s vision to become the backbone for equity capital markets is supported by a unique end-to-end platform that integrates capital raising, compliance, risk mitigation, and customer servicing.

With a strong cash position, a clear strategic focus, and a robust product pipeline, Complii FinTech Solutions is well positioned to deliver sustained growth and improved profitability through FY25 and beyond.