Cape Range Ltd reports a robust 23% revenue increase in its Biztrak software business for the December 2024 quarter, alongside a 68% surge in cash receipts, while investing in strategic corporate initiatives to fuel future growth.
- Biztrak revenue up 23% to AUD255k in December quarter
- Cash receipts from customers surged 68% year-on-year
- Full-year cash receipts improved 56% to AUD935k
- Increased professional fees reflect active pursuit of growth transactions
- Strong cash position maintained at AUD1.52 million despite higher costs
Strong Operational Momentum in Biztrak
Cape Range Ltd (ASX:CAG) has delivered a compelling performance in the December 2024 quarter, driven by its core operating business, Biztrak Business Solutions. The Malaysia-based software developer reported a 23% increase in quarterly revenue to RM730,000 (AUD255,000), supported by a 68% jump in cash receipts to RM829,000 (AUD293,000) compared to the prior year. This growth is largely attributed to enhancements in Biztrak’s product suite and expanded software services aligned with Malaysia’s e-invoicing rollout.
Over the full 2024 year, Biztrak’s cash receipts climbed 56% to AUD935,000, underscoring the company’s successful execution of its product development and client support strategies. Biztrak’s focus on compliance-driven software upgrades and training programs has positioned it well to capitalize on the mandatory e-invoicing compliance deadline set for July 2025, which is expected to sustain demand into the first half of 2025.
Strategic Investments and Corporate Activity
Alongside operational gains, Cape Range has increased its investment in professional and advisory services during the quarter, reflecting active exploration of potential transactions aimed at scaling and diversifying the business. While these initiatives have led to a higher net cash outflow of AUD148,000 for the quarter, the company has managed to reduce its full-year cash outflow to AUD384,000, down from AUD424,000 in 2023.
The Board remains tight-lipped on the specifics of these potential deals, indicating that announcements will follow only upon formal agreements. This cautious approach suggests a measured strategy to enhance shareholder value without overextending resources.
Product Innovation and Market Engagement
Biztrak’s product development continues apace, with notable enhancements to its MSB desktop accounting software, including integrations with major Malaysian banks and the introduction of the Biztrak e-Bridge functionality to streamline e-invoice data handling. The company is also advancing its cloud-based Biztrak Online platform with QR code generation to meet regulatory requirements and expanding its Warehouse Management System (WMS) with SAP B1 integration and tailored reporting for logistics clients.
Engagement at industry events such as the MALT 2024 Expo in Kuala Lumpur has generated promising leads for the WMS business, with ongoing efforts to convert these prospects into revenue-generating customers. This multi-pronged product and market approach underlines Biztrak’s commitment to solidifying its footprint in the Asian business solutions sector.
Financial Position and Outlook
Despite increased corporate expenditure, Cape Range closed the year with a healthy cash balance of AUD1.52 million, providing a runway of approximately 10 quarters based on current operating cash flows. This liquidity buffer offers the company flexibility to pursue strategic opportunities and invest in growth initiatives without immediate funding pressures.
Looking ahead, the company’s ability to leverage regulatory-driven demand for e-invoicing solutions, combined with its ongoing corporate development efforts, positions it well for continued expansion. However, investors will be watching closely for concrete outcomes from the Board’s transaction pursuits and the impact of these on Cape Range’s scale and profitability.
Bottom Line?
Cape Range’s strong Biztrak growth and strategic investments set the stage for a transformative 2025, but execution risks remain.
Questions in the middle?
- What specific transactions is Cape Range targeting to scale and diversify its business?
- How will the mandatory e-invoicing compliance deadline impact Biztrak’s revenue trajectory beyond mid-2025?
- Can Cape Range sustain its cash flow improvements while managing increased corporate costs?