How Will Way2VAT Capitalize on Record Revenue and UK Acquisition?
Way2VAT Ltd has completed its acquisition of RBC VAT Limited, boosting its European footprint and advisory services, while reporting a record quarterly revenue of A$1.89 million, up 34% year-on-year.
- Completed acquisition of UK-based RBC VAT Limited
- Record Q3 FY25 revenue of A$1.89 million, up 34% year-on-year
- Enterprise clients increased to 489, including Trafigura and Savills
- Raised A$4.1 million through placement to support growth
- Focused on integration and cost synergies with RBC VAT
Strategic Acquisition Expands European Presence
Way2VAT Ltd (ASX, W2V), a global fintech leader in automated VAT claim and return solutions, marked a pivotal moment in its growth trajectory by completing the acquisition of RBC VAT Limited on 30 September 2025. This UK-based VAT advisory and compliance firm, with over 20 years of experience and a strong client base, significantly enhances Way2VAT’s advisory capabilities and European footprint.
The acquisition is a key pillar in Way2VAT’s four-pronged growth strategy, introducing a new business vertical focused on VAT compliance services. The company is already executing a 90-day integration plan aimed at unlocking cross-selling opportunities and achieving cost efficiencies, with plans to co-locate RBC VAT’s London office alongside Way2VAT’s existing UK operations.
Record Revenue and Client Expansion
Way2VAT reported a record quarterly revenue of A$1.89 million for Q3 FY25, representing a 34% increase compared to the same period last year. Year-to-date revenue stands at A$4.38 million, up 39% from the prior corresponding period. This growth is underpinned by both organic client acquisition and the addition of RBC VAT’s 70 enterprise clients, bringing the total to 489.
Notable new clients signed during the quarter include global commodities giant Trafigura and international property services firm Savills, reflecting Way2VAT’s expanding reach across diverse industries. The company’s platform now serves clients in over 40 countries and 20 languages, reinforcing its position as a leader in VAT automation.
Financial Position and Outlook
Way2VAT raised A$4.1 million through a placement during the quarter to support its growth initiatives. Cash receipts improved modestly to A$977,000, while accounts receivable increased to approximately A$6 million, reflecting ongoing VAT reclaim processes. Operating expenses remained stable at A$2.17 million, narrowing the gap with revenue and signaling progress toward profitability.
Founder and CEO Amos Simantov highlighted the company’s confidence in a strong December quarter, traditionally the busiest period due to VAT deadlines across multiple jurisdictions. The integration of RBC VAT is expected to contribute positively to revenues and cost savings, with targets to reduce RBC’s cost base by 10% and grow its revenues by 20% over the next year.
Challenges and Strategic Focus
While revenue growth is robust, Way2VAT continues to manage a sizeable accounts receivable balance, typical in the VAT reclaim business due to the time tax authorities take to process claims. The company maintains active dialogue with tax authorities to expedite collections and expects cash flow to improve in coming quarters.
Financing facilities with Bank Hapoalim include secured and unsecured loans, supporting operational needs and the recent acquisition. The company’s financial strategy appears focused on balancing growth investments with prudent cash management as it approaches breakeven.
Bottom Line?
Way2VAT’s successful acquisition and record revenue set the stage for a potentially transformative Q4, with integration and cash flow management now in sharp focus.
Questions in the middle?
- How quickly will Way2VAT realize cost synergies and revenue growth from the RBC VAT acquisition?
- What impact will the large accounts receivable balance have on near-term cash flow and profitability?
- Can Way2VAT sustain its client acquisition momentum amid increasing competition in VAT automation?
