Spenda’s FY25 Cash Receipts Surge 114% to $11.5m Amid Cost Cuts

Record Financial Performance

Spenda Limited (ASX, SPX) closed FY25 on a high note, doubling its cash receipts from the previous year to a record $11.5 million. The company’s Q4 alone saw $3.65 million in cash receipts, a 100% increase compared to the same quarter last year. This surge was accompanied by a significant 39% reduction in operating costs, which fell to $5.64 million, underscoring Spenda’s commitment to operational efficiency.

Despite these strong results, some invoices remained unpaid at quarter-end, causing cash receipts to fall slightly short of the $4 million quarterly target. Nevertheless, the company ended the period with $3.69 million in cash and equivalents, positioning it well for the year ahead.

Strategic Acquisitions and Partnerships

Key to Spenda’s growth was the acquisition of Limepay in September 2024, which contributed to the group’s total cash receipts of approximately $12.2 million for FY25 when including post-acquisition figures. The company also completed the sale of its Invoice Finance Loan book to Grapple for $2 million, streamlining its balance sheet.

Perhaps the most transformative development was the launch of the APG Pay platform, a closed-loop corporate credit and payments system developed in partnership with Singapore-based APG Tech Pte Ltd. APG committed $50 million in funding to the venture, with a profit-sharing and exclusivity agreement spanning up to 20 years. The platform is already processing payments exceeding $10 million monthly and is being rolled out across multiple regions including Australia, New Zealand, Hong Kong, and Singapore.

Product Rollouts and Market Expansion

Spenda continued to advance its SwiftStatement program with Capricorn, despite a slower adoption rate than anticipated. The company has enhanced the product with AI-driven invoice capture and processing features and currently serves around 120 paying customers. Additionally, the rollout of the Standard Operating Environment (SOE) for Carpet Court stores is expanding, aiming to digitize franchise operations and improve efficiency.

Spenda’s strategic focus on embedded finance solutions is further reflected in the integration of APG Pay into its software stack, enabling customers to access innovative payment and credit products without balance sheet exposure for Spenda.

Financial Position and Corporate Developments

To support its growth trajectory, Spenda secured a $3 million term loan facility from Capricorn Society Limited, featuring flexible drawdowns and a three-year term. The company also saw changes in its board composition with the resignations of Non-Executive Directors Andrew Kernan and David Laird.

Looking ahead, Spenda aims to accelerate product adoption, particularly for SwiftStatement and SOE, expand the APG Pay virtual card offering, and maintain sustainable positive cash flow. The company also anticipates finalizing a Research & Development claim exceeding $2.3 million and achieving further milestones related to the Limepay acquisition.

Outlook

Managing Director Adrian Floate highlighted the company’s resilience and strategic progress, noting that FY25’s achievements have laid a solid foundation for FY26. With a leaner cost structure and growing recurring revenue streams, Spenda is poised to capitalize on its embedded finance capabilities and broaden its footprint across supply chain and trading networks.