Sanford records positive cash flow
Financial services groupSanford
“Being cash flow positive is significant for Sanford’s business because it represents a continued decrease in the operational cash burn and the sixth consecutive quarter of revenue growth,” Goh says.
Revenue increased by 43 per cent from the same period the year before, while costs reduced by 27 per cent, giving an operational cash burn of $6.9 million and a cash generation of $0.2 million. Total revenue increased by $44,000 from the previous quarter.
The result comes after chairman Clive Hall said at the group’s annual general meeting late last year that expectations of growth in the immediate future would be decreased due to the impact of September 11.
At the time he said the group had suffered an operational loss of $11 million but had also achieved a positive cash flow for the first time in August.
All five of Sanford’s operating divisions; Retail Financial Services, Wholesale Financial Services, Online Capital Partners, Outsourcing and Nemus Technologies, contributed to the December quarter results. However the performance of the retail broking division significantly assisted the final revenue result, Goh says.
“The increase in revuene was underpinned by a solid performance from the retail broking division, a result which is particularly pleasing during the traditionally slow trading month of December,” he says.
The retail business registered an increase in overall online market share to 21.58 per cent from 10.21 per cent, while Sanford’s retail market share increased by 1.8 per cent to 5.27 per cent.
Sanford also decreased indirect expenses for the quarter by $276,000 or 6.1 per cent. The company report states this reduction has mostly been achieved by savings in employment costs.
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